Manufacturing companies have choices in the way they determine and report their profits. Some choose to utilize the absorption costing income statement while others choose the variable costing income statement. Both income statements offer their own set of advantages and disadvantages. However, the absorption costing method conforms with the generally accepted accounting principles, and it offers a …
Besides delivering a quantifiable method for tracking performance, accounting also enables people to evaluate operations. Courtesy of a never-ending financial ratios list, professionals can utilize various calculations from financial statements to pinpoint the standing of their company. In fact, one of the most powerful ways to utilize income statements is to conduct in-depth ratio analyses …
In almost every businesses, generating sales is arguably the most important part of operations. After all, the ultimate goal of entrepreneurship is to facilitate a constant stream of free cash flow. In order to evaluate efficiency, however, business owners must be familiar with everything from the income statement and cash flows to financial ratios like …
Maximizing Efficiency by Understanding the Return on Sales Formula Read More »
Glancing over the financial statements of a small business, many entrepreneurs will see the names of several accounts and not understand what they are and the importance to their company. For instance, revenue, accounts receivable, interest expense, and cost of goods sold accounts are probably shown on every income statement but what do they mean …
Accounts Receivable Turnover Ratio | What a Business Owner Should Know Read More »
Keep in mind that one of the biggest deductions that you can take off your small business income is your business miles. Hopefully, you kept a good business mileage log. If not…now’s as good as any time to start one. If you don’t have room in your car for a big notebook or mileage log …
