How to Calculate Target Profit

As a business matures and stabilizes, it’s common for management to begin planning goals for the company, with the most common being profit. The term for this is called Target Profit and here we will discuss the planning and formulas to help you beginning this process. Target Profit Definition Target profit refers to the anticipated …

How to Calculate Target Profit Read More »

What are Permanent Accounts?

The bookkeeping process utilizes permanent accounts to record balance sheet items, such as assets, liabilities and owners’ equity, as of a point in time. This is the opposite of temporary accounts, which are used to measure activity over a specified date range. Understanding permanent accounts is critical for month-end-close and the generation of financial statements. …

What are Permanent Accounts? Read More »