Incorporation: Definition, How It Works, and Advantages
Another primary difference between legal entities and one of the most important reasons a company may want to incorporate is for the advantage of issuing stock. When a company incorporates, it gains the ability to share ownership of the company by issues shares of stock. Whereas a sole proprietorship or partnership is usually only owned […]
Inventory Management: Definition, How It Works, Methods & Examples
If demand unexpectedly spikes, the manufacturer may not be able to source the inventory it needs to meet that demand, damaging its reputation with customers and driving business to competitors. Even the smallest delays can be disruptive; if a key input does not arrive “just in time,” a bottleneck can result. In retail, manufacturing, food […]
Realization Concept In Accounting Revenue Recognition Principle
The realization principle provides an opportunity to review financials in a timely manner, prior to payments being received, which can help to create accurate budgets and identify available cash. As well, the ability to track payments on an individual level allows businesses to assess customer behavior and inform their marketing and sales strategies. Under this […]
Leader in Business Process Outsourcing
These types are largely determined by the geographical location of the BPO provider with respect to the client company, and include onshore, nearshore, and offshore outsourcing. BPO can reduce these costs by outsourcing this job to an external party, often in a less cost-intensive country, reducing the overall cost of performing that job function. BPO […]
Online Accounting Software Cloud Accounting
The software offers a variety of features, including invoicing, tracking expenses and creating financial reports. Xero also integrates with other business applications, such as payroll and inventory management systems. This makes it a versatile tool for small businesses that need to streamline their operations. Next up, the Growing package knowing your customers costs $32 per […]
Differences of Liquid vs Non-Liquid Assets
The company receives cash but must pay back the original loan amount plus interest to the bank. Money owed to a business by its customers for goods and services provided makes up accounts receivable. For instance, some companies sell on credit and the sales proceeds are collected only after the credit term is over. What’s more, some accounts […]
Basic Bookkeeping for Beginners: 6 Steps to Get You Started
Accountants interpret, classify, analyze, report, and summarize financial data. They also handle financial statements, file tax returns, and advise on financial strategy. Additionally, your employer might be inclined to promote and offer higher salaries to certified bookkeepers. Demonstrating a high level of proficiency can reassure employers that you’re equipped to take on greater responsibility, significantly […]
Creating an Effective Invoice Number System: Best Practices
(purchase order) will usually come first, as it is the expressed intent of a buyer to purchase goods and services from the seller. If a verbal agreement is made over the phone, for example, in the case of a tight timeline, a seller may send the product and invoice first, with the buyer later sending […]
Overhead Cost: Definition, Types, and Examples
From running health checks on your inventory and accounting systems to sharing relevant formulas to crunch the numbers, we’ve got your efficiency needs covered. Indirect costs vary widely, so always use your business’s internal data to determine the best inventory management decision. ABC is more accurate than traditional overhead allocation methods because it takes into […]
Uncashed Checks, Returned Checks or Stale-Dated Checks from 401k Plans
Another thing a person can do to prevent a stale check from clearing is to freeze their account. Typically, accounts are frozen if checks have been stolen or there is other possible fraudulent activity, but a person can always ask to have their account frozen. A check is usually payable at the time it is […]