Catégorie : Bookkeeping

Opex or operating expenses are a different category of costs. Things like salaries, commissary fees, maintenance, licensing and other overhead expenses are usually covered by operating costs. These are more indirect, as they are not directly linked to the food product you sell. Our one of a kind template, process, and support make creating projections […]

Clarity regarding the reason for the credit helps both parties understand the transaction context. Most credit memos are issued under the circumstances of owed, accounts payable, and reduce payments. The document can be issued under a cash payment-based method or any other payment method. A credit memorandum, or credit memo for short, can reduce the […]

The main user of the trial balance is the general ledger accountant (or the bookkeeper in a smaller business). This person uses it as part of the month-end and year-end closing process, to ensure that the debit and credit totals match. A trial balance sheet is a report that lists the ending balances of each […]

GAAP says to include sales tax and installation fees in an asset’s purchase price. Salvage value is an asset’s estimated worth when it’s definition of « capital budgeting practices » no longer of use to your business. Say your carnival business owns an industrial cotton candy machine that costs you $1,000 new. AccountingTools Generally Accepted Accounting Principles […]

Knowing how to calculate opportunity cost can help you accurately weigh the risks and rewards of each option and factor in the potential long-term costs of doing so. For example, a college graduate has paid for college and now may have outstanding debt. This college tuition is a sunk cost, since it’s been incurred and […]

If you lose your home in a foreclosure, your repayment is limited to the amount of the gain. And if you or your spouse are in the military and sell because of an order to relocate for extended duty, you don’t have to repay the credit. What if your house didn’t increase in value, and […]

Such a balance can be both positive or negative, depending on the net profit or losses made by the company over the years and the amount of dividend paid. The beginning period retained earnings is nothing but the previous year’s retained earnings, as appearing in the previous year’s balance sheet. A statement of retained earnings […]

Hence, the net income using the FIFO method increases over time. Similar to COGS, this focuses on direct costs and ignores https://www.kelleysbookkeeping.com/what-is-the-cost-of-sales/ indirect costs. For Cost of Services, you will focus on labor costs directly tied to the rendering of services. Incremental Sales: A Crucial KPI to Guide Your Marketing Efforts At the end of […]

In conclusion, the ability to accurately calculate common stock on a balance sheet empowers individuals to make informed decisions and navigate the complex world of corporate finance with confidence. So, prepare to delve into the world of balance sheets and unravel the secrets they hold. Join us on this exhilarating quest as we unearth the […]

When issued, debit memos typically appear on the monthly statements of outstanding accounts receivable that are sent to customers. Debit memos can be created as internal offsets to reverse the credit balance of a customer’s account. The business can issue a debit memo to offset the credit and eliminate the positive balance. What is a […]