Top 5 pandemic-proof industries
As more people than ever are stuck at home due to coronavirus fears, homeowners have much more time to tend to their lawns and gardens. As such, landscaping and general yard care companies are seeing unseasonably good business. Clogged drains, pipe leaks, and electrical wiring issues can cause problems whether during a bear market recession […]
Operating Cycle Definition, Formula, Analysis & Example
The operating cycle is important for measuring the financial health of a company. Bad debt is considered unrecoverable and is written off as a loss by the creditor or lender. Every business owner tries their best to reduce bad debt to maintain an easy flow of working capital. When the operating cycle is long, there […]
What Is Obsolete Inventory, and How Do You Account for It?
When the obsolete inventory is finally disposed of, both the inventory asset and the allowance for obsolete inventory is cleared. In our example on inventory write downs, an allowance for obsolete inventory account is created when the value of inventory has to be reduced due to obsolescence. This method involves estimating the percentage of sales […]
1 1: Define Managerial Accounting and Identify the Three Primary Responsibilities of Management Business LibreTexts
Suppose one of the controls put into place is to measure the sales in the current stores to determine if selling the company’s products in new stores is adding new sales or merely moving sales from existing stores. This control measure, same-store sales, must be evaluated to determine the effect of the decision to expand […]
Gross Margin Definition, Components, Significance, & Factors
Companies use gross profit margin to identify areas for cost-cutting and sales improvement. A high gross profit margin indicates efficient operations, while a low margin suggests areas needing improvement. The gross profit margin (also known as gross profit rate, or gross profit ratio) is a profitability metric that shows the percentage of gross profit of […]
How to Calculate the Number of Shares of Common Stock Outstanding The Motley Fool
A company’s number of outstanding shares is not static and may fluctuate wildly over time. Conversely, a reverse stock split reduces the number of outstanding shares. Companies typically use reverse splits to increase their share price to meet minimum exchange listing requirements. Although this decreases liquidity due to fewer shares, it can deter short sellers […]
How much do accountants charge? A comprehensive guide to understanding accounting fees
However, they basically handle anything else a client may need, including everything from transaction preparation to technology with plenty of points in between. Although we see these types of fees on occasion, they’re quite rare and also a bit of a misnomer. A firm might present its fees as a daily, weekly, or monthly rate […]
Small Business Taxes & Bookkeeping Online
Bookkeeping, at its basics, involves financial data entry and collection. Analysis, budgeting, forecasting, and financial decision-making are typically left to accounting professionals. As the name suggests, the primary duty of a bookkeeper is to “keep” the financial books of a company, which means accurately managing financial transactions and inputting financial data into bookkeeping software. The […]