Who doesn’t love a discount? Many small business owners have realized that offering a purchase discount to their customers frequently leads to earlier payments and improved cash flow. Learn more about cash discounts and why they might be a good idea for your business.
Why allocating costs is important for your small business
Business owners use cost allocation to assign costs to specific cost objects. Cost objects include products, departments, programs, and jobs. Cost allocation is necessary for any type of business, but it’s more frequently used in manufacturing businesses that incur a wider variety of costs.
Deferred revenue: how to recognize it properly
If you’re using the accrual method of accounting, you’ll need to make sure that any revenue your business receives is recorded in accordance with the revenue recognition principle. This principle states that revenue should be recognized in the same period in which goods or services are provided.
In simpler terms, any...
What are overhead costs and how to track them
If you have a business, you have overhead costs. Whether you work alone or have a staff of 50, overhead expenses are a part of doing business. Learn what overhead costs are, the different types of overhead your business may have, and how you or your bookkeeper can learn to easily calculate them.
Direct vs. Indirect Costs: What’s the Difference?
As a business owner, you need to manage all aspects of your business, including accurately accounting for various costs. Whether you’re using accounting software or recording expenses manually, one area where business owners may struggle is properly categorizing direct costs and indirect costs.
How Management Accounting Can Help Your Business
Management accounting, also known as managerial or cost accounting, focuses on internal operations and uses operational metrics to help business owners and managers make informed business decisions.
This is done by addressing questions and concerns in specific areas of a business, rather than concentrating on past performance.
A Beginner’s Guide to Trade Receivables
Trade receivables, also known as accounts receivable, represent the money your business is owed by customers to whom you’ve sold products or provided services. Trade receivables are considered a current asset and are listed as such on your balance sheet, as they’re expected to be paid in less than a year.