How could an accountant help your business? Every good business will have an excellent entrepreneur; besides, there will be an accountant. Implementing an accounting system helps the company start completely controlling its finances, such as minimizing tax payments and keeping overheads to the minimum. People who run a successful business may […]
Purpose of Management accounts The information from Management Accounts informs how each part of the business has been performing and thereby guide decision-making to benefit the company’s future performance. Measure the gross margin percentage. What are Management Accounts? Everybody has heard of management accounts, so everybody knows what they are. Well, […]
Many businesses face cash flow problems because of the delay in receiving customer payments, which brings many difficulties. They use invoice financing to overcome that issue by receiving 75% to 95% of the value of the invoice from the lenders. The invoice finance provider takes control of the payments, such as […]
How do you work out retained earnings? What has retained earnings? Usually calculated at the end of each financial year by doing the profit and loss account and then deducting any dividends paid out. Then the balance is carried forward to the following year and shown in the balance sheet. Usually, […]
*Gross profit and stock valuation Gross profit is shown in the income statement as a figure after deducting all the associated costs in producing your product or services from the sales that are called the gross profit. In another format, Gross profit= Sales- Cost of goods. After calculating the gross profit, […]
Financial ratios are part of monitoring Budget and cash flow An economic rate requires reasoning the connection between two figures and asserting the meaning of that correlation. Financial ratios used to compare the past performance with actuals help in the forecasting of budget and cash flow. There are four types of […]
Classification of ledger accounts When entering the business transaction into five types of accounts becomes the classification of accounts is as follows. And some accounts of these are balance sheet accounts and income statement accounts. Assets Liability Revenue Expenses account Equity account. Withdrawal’s account Accounting categories and their role Asset Account […]
Accounting for inventory Learning about inventory is essential for any business that sells products because you need to buy to sell goods and have a count of the items you hold in your business; if not, you might run or overstock the goods. Inventory means that the goods are bought for […]
Using software to get accurate metrics for forecasting. Financial forecasting needs an efficient system of collecting data and analyzing it to produce accurate forecasting Profit Well Metrics is a subscription analytics software designed to do everything on one platform. Some of the metrics that you can get using this program include: […]