Latest posts
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Employee Bonus Tax in Ghana: Step-by-Step Calculation and Payroll Treatment Explained
Receiving a bonus at the end of the year can feel like the ultimate reward for months of dedication and hard work. Whether it’s for hitting performance targets, staying loyal to your company for many years, or simply as a token of appreciation, bonuses are a welcomed financial boost. However, like regular income, bonuses in…
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What Is a Billing Cycle? Definition, Process, and Real-Life Examples
Whenever people pay for recurring goods or services—whether rent, a phone plan, or streaming subscriptions—there’s a set schedule that determines when bills are issued and payments are due. That schedule is known as the billing cycle. It is the recurring period between one statement closing date and the next, and it plays a vital role…
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Backlog in Accounting: Meaning, Types, and Business Impact
In business and finance, the term backlog often signals that tasks or obligations are piling up faster than they can be completed. In accounting specifically, a backlog usually means financial activities that remain unprocessed or delayed, such as invoices, reconciliations, or reports. Left unattended, these backlogs can interfere with decision-making, compliance, and growth. But backlogs…
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What Is Average Daily Rate (ADR)? Hotel Industry Definition, Calculation, and Uses
In the hospitality industry, measuring performance is essential for success. With hotels and lodging businesses competing for travelers’ attention, managers need tools to understand whether their operations are generating enough revenue. One of the most important benchmarks is the Average Daily Rate (ADR). This figure reflects the average income earned per occupied room each day.…
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What Are Accounting Periods? Definition, Types, Principles, and Examples
Every organization needs a structured way to track its finances. Without a clear framework, businesses would struggle to make sense of their income, expenses, and overall performance. This is where accounting periods come in. They provide the time frames against which financial activities are measured, organized, and presented. Whether a company chooses to report monthly,…
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Sunk Costs and the Fallacy: Why the Past Shouldn’t Dictate the Future
Every individual and business faces moments when money, time, or energy has been spent but cannot be retrieved. Economists call this a sunk cost—a past expenditure that should no longer factor into rational decisions. While the concept is straightforward, human behavior often complicates matters. People have a natural tendency to let prior investments shape future…
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Fixed and Sunk Costs in Business: Definitions, Practical Examples, and Core Differences
In finance and economics, every business faces costs that shape decisions about investment, pricing, and long-term planning. Among these, two categories often create confusion: fixed costs and sunk costs. At first glance, they may look similar because both are tied to expenses that don’t change with immediate production levels. However, their implications for decision-making are…
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Forensic Accounting Explained: Definition, Methods, Examples, and Career Opportunities
Introduction to Forensic Accounting Money often leaves a trail, and when wrongdoing is suspected, someone has to follow that trail with precision. This is where forensic accounting comes in. It blends traditional accounting with investigative skills and legal knowledge to uncover financial irregularities. Forensic accountants do more than crunch numbers—they help courts, businesses, and even…
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Understanding Prime Cost: Meaning, Calculation, and Role in Business
Every product or service that reaches a customer goes through a process of creation, and this process is tied directly to expenses. Among the different categories of costs that businesses measure, prime cost stands out because it covers the most essential spending involved in production—materials and labor. By focusing only on these core expenses, prime…
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How to Prepare a Trial Balance: Definition, Types, Common Errors, and Practical Steps
A trial balance is an essential internal financial report used by businesses to confirm the mathematical accuracy of their bookkeeping. It lists all the closing balances of the general ledger accounts—both debit and credit—at a particular point in time. By displaying these balances side by side, usually in two columns, accountants can quickly check whether…