What Is Small Business Accounting? A Beginners Guide

The accountant provides an accurate financial picture of the company. It makes sure that you can compare financial reporting across a company. Say you’re comparing two departments, but they record the same transactions in different ways. Review the payroll summary before payments are disbursed to avoid making corrections during the next payroll period. A payroll service […]

What is sales revenue? Ultimate guide on how to calculate it

Total sales revenue is another name for gross sales, so the difference between them and net sales is that they include the total number of sales plus returns, allowances, and discounts. Meanwhile, the net sales calculation includes the deduction of these amounts. Suppose you own a store that sold a total of 50k products during […]

Perpetual inventory method definition

Unlike the periodic inventory management system, the perpetual inventory management system precisely reflects the level of goods on hand. It is, therefore, the standard inventory tracking system used by businesses that maintain a large inventory. A perpetual inventory system is the best choice for fast-growing ecommerce businesses. A periodic inventory system has a high probability […]

How to calculate manufacturing overhead Formula + examples

These costs include the physical items which are essential for manufacturing. They usually include the cost of the property where the manufacturing is taking place and its depreciation, purchasing new machines, repair costs of new machines and other similar costs. Accountants calculate this cost by either the declining balance method or the straight line method. In the […]

Salvage Value Definition, Importance, Depreciation

It is also known as scrap value or residual value, and is used when determining the annual depreciation expense of an asset. The value of the asset is recorded on a company’s balance sheet, while the job cost sheet definition depreciation expense is recorded on its income statement. Regardless of the method used, the first […]