Days Sales of Inventory (DSI) is a crucial metric that measures how quickly your company turns its inventory into sales. A shorter DSI indicates efficient inventory turnover, which is essential for cash flow and reducing carrying costs. Understanding how to calculate your operating cycle is essential for monitoring and improving your operating cycle formula financial […]
For organizations in the nonprofit sector, try to allocate between 5-15% of your budget to marketing. Your marketing budget ensures you have the funds needed to reach your goals and determine whether your plans are realistic. Your organization likely already has a sense of how much money it spends each year. Peer-to-Peer Fundraising This powerful […]
Bookkeeping allows agencies to monitor cash flow with precision, ensuring that there is enough liquidity to cover operational expenses, pay employees, and invest in business development initiatives. QuickBooks is a great system for most businesses but not insurance agencies. Never use QuickBooks unless you have a high degree in accounting gross vs net and possess […]
After tax salvage value is like the retirement money for a company’s equipment. It’s the amount a company thinks it will get for something when it’s time to say goodbye to it. Companies use this value to figure out how much to subtract from QuickBooks the original cost of the thing when calculating its wear […]
But for patients with renal impairment, especially people who are already on dialysis and/or taking medication, certain measures need to be taken, information to be shared. Seeing a doctor as soon as possible helps ensure appropriate treatment and can reduce the risk of complications. It is the body’s way of warning of a potentially serious […]
One of the primary reasons for calculating common stock on the balance sheet is to provide financial transparency. The balance sheet shows the company’s assets, liabilities, and equity, which helps stakeholders understand the company’s financial position. The calculation of common stock provides additional information about the company’s ownership structure and how many shares of stock […]
Dividends are typically distributed from the company’s current or retained earnings. The amount of dividends paid out by a company directly impacts its retained earnings. Retained earnings and dividends represent different paths for a company’s income statement accounts net income. Retained earnings on a balance sheet are those profits that a company chooses to reinvest […]
Net income is the total amount of money your business earned in a period of time, minus all of its business expenses, taxes, and interest. Net income refers to the income left over after all expenses have been deducted from a business’s collected revenue. Some small businesses try to operate without preparing a regular income […]
Sales revenue minus cost of goods sold is a business’s gross profit. The cost of goods sold (COGS) is the cost related to the production of a product during a specific time period. It’s an essential metric for businesses because it plays a key role in determining a company’s gross profit. Cost of goods sold […]
For instance, in an automotive factory, indirect costs might include facility upkeep and production line maintenance costs. Analyzing the cost of production helps businesses make informed decisions about pricing, resource allocation, and profitability. For instance, a clothing manufacturer can determine whether a specific line of clothing is profitable by comparing its production costs to the […]