Month: September 2021

More frequent compounding periods means greater compounding interest, but the frequency has diminishing returns. This example shows the interest accrued on a $10,000 investment that compounds annually at 7% for four different compounding periods over 10 years. You should always consult a qualified professional when making important financial decisions and…

Another variation is to offer a special commission rate on inventory that management wants to eliminate from stock, usually before the inventory becomes obsolete. Instead, your business can leverage a financial automation tool that can handle sales commission accounting and adhere to all regulations, whether they stay the same or…

Expenses decrease retained earnings, and decreases in retained earnings are recorded on the left side. Understanding debits and credits—and the fact that debits are on the left and credits are on the right—is crucial to your success in accounting. Revenue accounts are accounts related to income earned from the sale…