The most how to enhance the audit to prevent and detect fraud important thing when choosing software for accounting is matching it with your business needs. Are you looking for automated tracking and reporting that saves you as much time as possible? Looking for an easy way to synchronize your Read more…
Using the formulas in this article, you can get a clear picture of your business’s total revenue and cash flow. To calculate a company’s gross sales, add up the total sales revenue for a specified period of time—monthly, quarterly, or annually. Analysts often find it helpful to plot gross sales Read more…
For Workweek 1 the employee worked 20 hours (worked February 26-28) in the precedingpay period. The employee worked a total of 44 hours for the workweek soovertime pay is due for the 4 hours worked in excess of 40. The regular rate on which overtimepay is calculated includes remuneration (or Read more…
Otherwise known as volume pricing, bulk pricing incentivizes customers to purchase more, as it proves to be more cost-effective – the more they buy, the more they save. This model is ordinarily used for digital services as it helps orgs fulfill the requirements of a range of target markets. The Read more…
All three of these types have exactly the same format but slightly different uses. The unadjusted trial balance is prepared on the fly, before adjusting journal entries are completed. It is a record of day-to-day transactions and can be used to balance a ledger by adjusting entries. Companies initially record Read more…
The challenge is that the concept can interfere with the balance sheet. When dealing with fixed assets appreciation, the main problem comes when the value by the time of purchase differs from the current time. It becomes practical when dealing with depreciation and its effects on the business. Would you Read more…
Since publicly owned companies are required to be GAAP compliant, they should be using the historical cost principle as well. When using the principle cost method, good accounting software is key. Being able to keep all costs consistent over time, as well as house documents for verification, is key. As Read more…
Operating income is any money made through regular business activities; if you own an e-commerce clothing retail business, your primary operating income is from inventory sales. In one column of the balance sheet, you list all of your company’s assets. These include your inventory, cash funds, and accounts receivable or Read more…
For example, imagine Company ABC buys a company vehicle for $10,000 with no salvage value at the end of its life. Harold Averkamp (CPA, MBA) has worked as a university accounting instructor, accountant, and consultant for more than 25 years. A traditional IRA (individual retirement account) is a tax-deferred investment Read more…
It provides one way to show the profit potential of a particular product offered by a company and shows the portion of sales that helps to cover the company’s fixed costs. Any remaining revenue left after covering fixed costs is the profit generated. The contribution margin ratio of a business Read more…