Accountancy Articles

Client assets granted by an enterprise must be registered. But it all depends on the nature of the asset and the date on which it was granted. Back on this accounting manipulation essential for businesses. Accounting for client assets during the year When a customer credit is granted by the company at the same time as the fiscal year, it must imperatively be recognized at the beginning of a product account. Account 709, Rebates, rebates and rebates granted by the company, and account 4571, that is to say the VAT collected, should be debited . Credit 4111 Customers - Sales of Goods or Services is then credited. However, when the client has a fixed asset, then another accounting manipulation is required , ie debit the account 775 Revenue from the sale of assets and the 4571 VAT account collected, and credit Account 4111. The accounting and tax treatment of crowdfunding Raising funds through crowdfunding platforms implies the observance of some very strict rules  on accoun...

Crowdfunding, also known as participatory financing, is a new way of financing projects carried out by a company. For best accountancy training  Best school of accountancy In Pakistan .  But this new possibility of raising funds does not mean keeping an accounting and declaring its taxes . Crowdfunding, a form of financing that is progressing Because it is not always easy for a company to rely on the support of a bank to obtain the funds necessary for the conduct of certain projects, crowdfunding is becoming more and more extensive . Participatory financing allows a company to raise funds through the financial support of a large number of people making a small investment. Obviously, this funding mode has been greatly facilitated by the emergence of social networks since they allow to make known a project to several million people in the world in a few clicks only. No wonder then that the crowdfunding platforms putting savers and project bearers in contact grow like...

Because it is essential to know the strengths and weaknesses of a company in order to compare it to its competitors or determine its value , many financial analysis ratios exist. Be careful, however, to choose the ones that are most relevant. The ratios relating to the profitability of the company There are several ratios to evaluate the profitability of the company: The EBITDA margin is calculated using the following formula: Gross operating surplus (EBITDA) / Revenues . This ratio makes it possible to know the share of the added value between shareholders and employees and is a good tool to compare companies between them The return on equity , calculated on the basis of the formula Net Profit / Equity , measures the profits generated with the money invested by the shareholders. This ratio is very relevant for comparing the profitability of firms belonging to the same sector of activity The margin rate calculated using the formula (Turnover excluding VAT - Purchases / S...

In the life of a company, relations with suppliers and customers have a preponderant part. For best accountancy training  Best school of accountancy In Pakistan .  Also, it is common for a company to be led to receive or pay down payment or advance , hence the importance of knowing how to account for them. An advance and a deposit, what is it? Before starting a service or starting a production, it is common for a company to ask its client for an advance or a down payment . However, there is a real difference between the two terms. An advance is actually a sum of money paid before an order is even executed . Generally, it allows a company or a craftsman to finance the acquisition of the materials necessary for the delivery without having to "draw" in its caisses. The deposit is a sum of money paid as the advancement of a benefit according to a schedule previously defined most often. To be complete, note that it is not necessary to confuse down payment or advance ...