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Category: Bookkeeping

  • May 29, 2025
  • admin

Retained Earnings: Definition, Formula & Example

Unlike assets, retained earnings are the capital that successful business operations generate and keep for the company’s long-term strength. Profitable businesses face tough choices about allocating retained earnings. For example, management might decide to build up a cash reserve, repay debt, fund strategic investment projects

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  • January 10, 2023
  • admin

What is an independent audit?

“Independent” refers to the fact that the auditor/CPA is not an employee of the nonprofit but instead is retained through a contract for services, and hence is “independent.” This is where understanding the difference between a CPA and a bookkeeper becomes crucial. Understanding these aspects of

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