Categoria: Bookkeeping

The cosmetic company must generate $379,746 in lipsticks sales dollars to break even. Profitability may be increased when a business opts for outsourcing, which can help reduce manufacturing costs when production volume increases. When there is an increase in customer sales, it means that there is higher demand. It enables them to sell at more competitive… Continuar lendo How to Calculate Break Even Point Units and Sales Dollars

Each of these figures must be reported on both the balance sheet and income statement. While direct materials and labor account for the majority of manufacturing costs, not including overhead expenses can directly impact your bottom line. The overhead rate is a cost added on to the direct costs of production in order to more… Continuar lendo Manufacturing Overhead: Definition, Formula and Examples

Some companies may see their accounts receivable as a burden since they are expected to be paid but require collections and cannot be converted to cash immediately. This Assignment of Accounts Receivable with Recourse Template can be used to quickly remove valuable receivables from the operating entity. Cash paid to the operating entity for the receivables… Continuar lendo What is the purpose of assigning accounts receivable?

Modern accounting software is the repository of all financial transactions for your company and can generate requisite reports in real-time. So even if you have accounting software, odds are, you still need a bookkeeper to manage the software, enter data, file reports, identify errors and keep everything current. Find out more on bookkeeping accounting skills,… Continuar lendo A Guide to Bookkeeping: Skills, Salaries, and Careers

Moreover, for small businesses, the framework may make things unnecessarily complicated, as the business will have to comply with a whole new accounting framework. Examples of accrued expenses include salaries and bonuses that have already been granted and will be paid at a future date. The reason why they are considered a liability is that… Continuar lendo Accrual Accounting Guide to Accruing Revenues & Expenses

Moreover, for small businesses, the framework may make things unnecessarily complicated, as the business will have to comply with a whole new accounting framework. Examples of accrued expenses include salaries and bonuses that have already been granted and will be paid at a future date. The reason why they are considered a liability is that… Continuar lendo Accrual Accounting Guide to Accruing Revenues & Expenses

The swimming pool company wants to double its business in the next year but does not have enough retained earnings to actualize that goal. It decides to take out a business loan to finance the growth it would like to achieve. While leverage affords plenty of potential upside, it can also end up costing you… Continuar lendo Leverage Guide, Examples, Formula for Financial & Operating Leverage

Getting offshore accounting services helps companies lighten their workload and expand their businesses more easily. With this, the quality of their work also increases, which can increase their profit. An offshore bank account can make it easier to do business in foreign currencies. It also allows you to take advantage of any financial security or tax benefits… Continuar lendo Offshore: Definition, How It Works, Pros and Cons

Accounts payable is short-term debt that a company owes to its suppliers and creditors. The accounts payable turnover ratio shows how efficient a company is at paying its suppliers and short-term debts. Accounts Payable (AP) is a liability account that tracks the money owed by a company to its suppliers for goods and services received… Continuar lendo Understanding Accounts Payable: Is It A Debit Or A Credit?

It’s simple to transition to the hosted QuickBooks because the functionality and features are substantially identical to the QuickBooks desktop version (through RDP). With cloud-based accounting software, you are no more bound to your office desk for accessing financial information. Computing accounting allows you to manage your books of accounts wherever you are, that is, in… Continuar lendo Cloud Accounting Software for Small Business