Category: Bookkeeping

It’s something that becomes more and more complex as businesses expand into more channels and sales grow, which means there’s more to analyze and track. With just-in-time management, firms can improve cash flow (as less storage space is needed), reduce excess stock, and cut inventory holding costs. Firms which adopt just-in-time methods must make sure…

If the current portion of long term debt is significantly higher than the cash and cash equivalents, the company may not actually be able to pay its debts on time. In such situation, the company’s liquidity position discretionary charge at restaurants would suffer in the eyes of creditors and both actual and potential investors. The…

Liquidation value does not include intangible assets such as a company’s intellectual property, goodwill, and brand recognition. However, if a company is sold rather than liquidated, both the liquidation value and intangible assets determine the company’s going-concern value. Value investors look at the difference between a company’s market capitalization and its going-concern value to determine whether salvage…

Let this collection of articles show you what’s possible in an outsourced nonprofit accounting firm partnership – deciding on what services you need, how to get the most from those services, and how to transition. Just like we discussed in the reporting section, you don’t want to just check something off your list, you want to ensure…

If the remaining balance is less than what it should be, there is a shortage. If the remaining balance is more than what it should be, there is an overage. Although there can be minor variances, when unbalanced, the source of the discrepancy should be identified and corrected. However, to effectively use your organization’s petty…

Gross profit margin is a type of profit margin where the cost of goods sold is subtracted from total revenue. It’s the most straightforward measure of profit margin and shows how much money a company retains after accounting for the cost of the goods. Many businesses regularly eliminate low-performing inventory or change their service offerings.…

By accurately tracking and managing direct materials, companies can determine their material costs, control inventory, ensure efficient production, and calculate the accurate cost of goods sold. Proper identification and management of direct materials are crucial for cost control and inventory management. By accurately tracking direct materials usage, businesses can optimize their production processes, monitor material…

While you may trust your gut as a business owner, it’s always best to use data to determine how fast your inventory is moving. However, a smaller, shorter DSI ratio doesn’t always imply a more profitable and efficient company. Frequently selling off inventory can put customers’ demands in danger and have a negative impact on…

While you may trust your gut as a business owner, it’s always best to use data to determine how fast your inventory is moving. However, a smaller, shorter DSI ratio doesn’t always imply a more profitable and efficient company. Frequently selling off inventory can put customers’ demands in danger and have a negative impact on…

Another alternative to both paper and electronic registration is the use of paper-equivalent electronic stock certificates. Forty-seven states have enacted legislation equivalent to the Uniform Electronic Transactions Act, which formalizes equivalency for electronic signatures “in writing” requirements. In the U.K., the Companies Act 2006 directs that a company must issue a share certificate when any…