Methods of Valuation of Goodwill. The most commonly used methods of valuation of goodwill are as follows:(i) Few Years' Purchase of Average Profits Method;(ii) Super Profits Method;(iii) Annuity Method; and(iv) Capitalization MethodFew Years' Purchase of Average Profits Method:Under this method, goodwill is valued on the basis of an agreed number of … [Read more...] about Methods of Valuation of Goodwill: Meaning, Types
What Does Goodwill Mean in Accounting? Goodwill may be described as the aggregate of those intangible attributes of a business that contribute to its superior earning capacity over a normal return on investment. It may arise from such attributes of a business as good reception, a favorable location, the ability and skill of its employees and management, nature of its products, … [Read more...] about What Does Goodwill Mean in Accounting?
Components of Financial Statements. What are the components of financial statements? Or,Corporate financial statements are prepared in accordance with corporate laws, regulations, and IAS/IFRS. Briefly describe the components of corporate financial statements.The components of financial statements are:➢ Balance sheets (assets, liabilities, and owner's equity) ➢ … [Read more...] about Components of Financial Statements
Factors to be considered while hiring an Accounting Firm. With the constantly evolving UK’s tax regulations and the increasing complexity of managing your business, it becomes essential to partner with the right accounting firm in the UK to ensure that you keep up with your financial goals.There’s no doubt that your business will benefit from excellent advice and guidance … [Read more...] about Factors to be considered while hiring an Accounting Firm
Where to Get the Best Accounting Resources? The accounting industry is an ever-changing field. Some practices that might be effective for your clients last month may no longer work this month. Regulations regarding taxations, new laws and policies are also being released constantly, which means you should be updated with the latest trends so your client's finances won't get … [Read more...] about Where to Get the Best Accounting Resources?
Role of Accountant and Financial Planner.The famous line, "money cannot buy happiness," is a go-to quote to uplift those of us who are on a tight budget. Although it is true, the simple fact is, money can pay the bills, feed you, clothe you, shelter you, and give you the means to survive. We all need it.Unfortunately, money comes and goes. It is not easy to handle or … [Read more...] about Role of Accountant and Financial Planner
Why Accounting Reports Are Crucial For Developing Businesses? Accounting is a branch of commerce and it deals with the study of all recorded financial and management transactions which have been made by a particular organization. One of the prime tools used in this study are accounting reports.Accounting reports are nothing but files that holds all financial details of a … [Read more...] about Why Accounting Reports Are Crucial For Developing Businesses?
Introduction to Accounting and Its Importance: Accounting is a way to organize the finances of a business so that its financial transactions can be tracked accurately. Accounting is extremely significant for every business. Therefore, every individual involved in a business is required to have basic knowledge about accounting and its importance, which we have elaborated on … [Read more...] about Introduction to Accounting and Its Importance
Accounts Payable Automation to Resolve Common Challenges.The responsibilities of Accounts Payable managers evolve constantly. Accounts Payable managers always have one thing in mind – to pay vendors quickly and securely, but manual, paper-based processes do not allow it to happen on time.Accounts Payable departments need to spend hours handling various accounts payable … [Read more...] about Accounts Payable Automation to Resolve Common Challenges
7 Reasons Why Businesses Should Keep Their Books Clean7 Reasons Why Businesses Should Keep Their Books Clean.When starting a business the financial records are one of the most important aspects which – if left to the last minute – can end up causing major stress and problems, not to mention potential legal and tax implications if they are not kept properly.Business books … [Read more...] about 7 Reasons Why Businesses Should Keep Their Books Clean