If you need assistance in supporting workers’ compensation, retirement plans, and health insurance, ADP offers those services for a fee. It has various other benefits, including legal and an advice line, LifeCare. Finally, it can enroll employees in its program that offers discounts for everything from gym memberships to vacations. For an additional fee, ADP [...]

ContentAccounting 101 for Small BusinessesWhat Is a Balance Sheet?Example of Balance Sheet FormulasShareholder EquityVideo: What Is a Balance Sheet?Importance of Balance Sheets Each category consists of several smaller accounts that break down the specifics of a company's finances. These accounts vary widely by industry, and the same terms can have different implications depending on the [...]

In May, the AICPA Auditing Standards Board approved new quality management standards. CPA firms will need to shift their audit and quality assurance practices from a policies-based approach to a risk-based approach. With this impending change, financial institutions should revisit how they evaluate financial statement risks based on their source. You know you’re using the [...]

This article is part of our new series, Currents, which examines how rapid advances in technology are transforming our lives. Research from McKinsey cites that 25 percent of almost 2,400 business leaders surveyed said they increased AI adoption due to the pandemic. By letting AI do what it's good at, we free ourselves up to [...]

The calculation of the contribution margin ratio is a three-step process. The 60% ratio means that the contribution margin for each dollar of revenue generated is $0.60. All else being equal, the greater the contribution margin (CM) of each product, the more profitable the company is going to be, with more cash available to meet [...]

When we sum the account balances we find that the debits equal the credits, ensuring that we have accounted for them correctly. By following the expected normal balances, accountants can ensure that the financial statements accurately represent the financial position, performance, and cash flows of the business. Consistency in the presentation and classification of accounts [...]