Can You Start a Plumbing Business Without a License? The short answer is no! You can’t operate a plumbing business without a license in the US and Canada. The reason is that plumbing is a regulated trade, and you need proper training and obtain certain licenses to run a business. To run a legitimate plumbing […]
What Are Accounting Structures? Accounting structures illustrate organized frameworks businesses use to record and report financial transactions. These structures tell us how income, expenses, assets, and liabilities can be tracked. The key components of accounting structures are: If you have ever built some IKEA furniture, you’ll understand the accounting structures better. These structures represent the […]
Is A Sinking Fund the Same as a Reserve Fund? Let’s say you have the sinking and reserve funds. You’ll buy a coffee machine from the sinking funds and pay emergency bills from reserve funds. Let’s break down both terms. Sinking Fund A sinking fund is a specific pool of money set aside for planned […]
Do Property Management Companies Pay Up Front For Roof Replacement? Property management companies typically don’t pay upfront for roof replacements. Instead, they use funds from the property’s reserve account, which is the owner’s fund. In addition, they can coordinate with owners to cover the cost directly. They can arrange a payment plan or special assessment […]
Cash Flow vs. Appreciation Cash flow and appreciation are two players on the same football team, but they score differently. The two terms are synonymous with the real estate business. Cash flow is the money coming in and out of your business, such as profit/loss from property. A positive cash flow occurs when rental income […]
What Are Costs in Excess of Billings? Costs in excess of billings happen when you’ve spent more on a project (materials, labor, etc.) than you’ve billed your client. In accounting, it shows up as an asset because it’s money you’re expecting to recover soon! For instance, say you are building a treehouse for a friend. […]
Why is Accounting a Service Industry? Well, it’s simple: accounting doesn’t provide any tangible goods. Accountants use their expertise to keep businesses on track and help manage taxes, balance books, and plan budgets. Unlike product-based industries, where value is derived from tangible goods, accounting delivers value through financial insights, accuracy, and strategic planning. In addition, […]
What is Net Receivables? Net receivables refers to the amount you expect to collect from your customers. It’s your total accounts receivable (all the money owed to you) minus any amounts you think you won’t get, like unpaid invoices or discounts. Imagine giving your friend $100, but you know they can only pay $80 now. […]
Importance of Trade Receivables Analysis Trade receivables, aka accounts receivable, represent the amount a company has billed customers for goods or services delivered but has yet to receive. Here’s why trade receivable analysis is important: Trade analysis comes down to one key question: How likely is it that this customer will pay on time? A […]
Fundraising Expenses Fundraising Expenses are the costs incurred by organizations, especially nonprofits, to raise funds for their operations. These expenses cover activities and materials directly related to fundraising efforts. Fundraising involves both direct and indirect expenses, and understanding the full scope of costs is crucial for evaluating an event’s effectiveness. While some expenses are obvious, […]
