Bookkeeping


Owner’s equity is directly linked to a company’s financial performance. As a company’s net income increases, so does its retained earnings, which in turn boosts the owner’s equity. A growing owner’s equity is often seen as a positive sign, indicating a company’s ability to generate value for its shareholders. Assets […]

Definition, Explanation and Examples







Using small business accounting software centralizes overhead tracking and analysis. Features like automated categorization and reporting provide real-time visibility into overhead costs. By factoring in overhead costs in this manner, the company arrives at a more accurate COGS. The actual overhead rate enables the recovery of the actual amount of […]

How to Calculate Predetermined Overhead Rate: Formula & Uses



Owner’s equity can be used to evaluate a business’s performance and prospects. Increases in owner’s equity from one year to the next may indicate a business is well-managed and succeeding. Decreases in owner’s equity may indicate the owner needs to inject more capital into the company. This includes money taken […]

Owners Equity: What It Is and How to Calculate It