Ryan

Whether your accounting period is monthly, quarterly, or annually, timing is crucial to implementing the accounting cycle properly. Mapping out plans and dates that coincide with your accounting deadlines will increase productivity and results. If any discrepancies are spotted, adjustment entries must be made to remedy them. Companies using accrual accounting need to account for …

8 Steps to the Accounting Cycle: Complete Guide & Examples Read More »

By decomposing ROE into three distinct componentsprofit margin, asset turnover, and financial leverageaccountants can gain a deeper understanding of what drives a company’s profitability. This granular approach allows for more targeted financial analysis and strategic decision-making. By breaking down ROE into these factors, investors can pinpoint whether a company’s strength lies in its operational efficiency, …

What Is the DuPont Formula and How Is It Used in Finance? Read More »