NI flows through the balanced sheet through retained earnings, and through the cash flow in the indirect method. If both net profit and retained earnings are substantial, it’s time to invest in growing your business, perhaps with new equipment ... Read more
Opening a business bank account requires proof of identification for both you and your business. Examples include your state-issued driver’s license or passport, your business license or your partnership agreements.However, community banks get ... Read more
We’ve found the five best accounting system software packages available as alternative choices to Quicken. Whether you don’t want to pay for software or you’re looking for something a bit easier to use or manage, you’ll find t... Read more
You can learn more about our independent review process and partners in our advertiser disclosure. Brian Carmody is a writer and president of a manufacturing company who specializes in commercial lending, investing, and business loans. Brian is also ... Read more
Once the buyer and the seller agree upon the terms of the sale and the buyer has accepted the terms of the proforma invoice—usually by submitting a purchase order that the seller has accepted—the transaction is ready to proceed. When the goods are re... Read more
Note that net profit takes all business expenses into account, not just the cost of goods. This example illustrates the importance of having strong gross and operating profit margins. Weakness at these levels indicates that money is being lost on bas... Read more
Enter the total amount into the income statement as the selling and administrative expenses line item. Subtract the cost of goods sold total from the revenue total on your income statement. This calculation will give you the gross margin, or the gros... Read more
Management's assumptions do not provide a reasonable basis for presenting the significant effects directly attributable to the underlying transaction . Management's assumptions provide a reasonable basis for presenting the significant effects directl... Read more
The remaining funds available for new applications are $8 billion set aside for community financial institutions and a $6 billion set aside for PPP applications still in review status or needing more information due to error codes. The SBA reported o... Read more
Balancing the petty cash account usually occurs when the fund needs to be replenished. The petty cash custodian brings all the slips or vouchers to the business' bookkeeper, cashier, or accountant. The petty cash receipts are logged into the company'... Read more
