Bookkeeping

Additionally, if you offer customised products, understanding your WIP inventory is more crucial. You learn what goes into the production cost and how to calculate it at the end of the accounting period. Monitoring WIP inventory helps businesses understand production progress, manage costs, and optimize workflow efficiency. Lean manufacturing is a philosophy focused on minimizing…

Income statements are considered temporary accounts closed at the end of the accounting year. Their net balances — positive or negative — are added to the equity portion of the balance sheet. In contrast, the accounts that feed into the balance sheet are permanent accounts used to track the business’s ongoing financial health. Understanding the…

To learn about your company’s market position and overall financial situation, calculating Gross sales can be helpful. With the help of examples and supporting data, let’s see what gross sales might reveal about revenue performance of your business. Gross sales sums up all the sales transactions, regardless of whether the customers paid in full, received…

Margin is a special type of leverage that involves using existing cash or securities as collateral to increase one’s buying power in financial markets. Margin allows you to borrow money from a broker for a fixed interest rate to purchase securities, options, or futures contracts in anticipation of receiving substantially high returns. Investors must be…

Companies also need to account for churn by calculating historical churn, and estimating future rates based on industry benchmarks and customer retention strategies. Change the formula to calculate the topline in your model to reflect the pricing change. The first approach involves putting all three statements on a single sheet. Alternatively, you can put all…

Faster approvals, fewer mismatches, and greater financial control—without the complexity of manual reconciliation. Let’s break down how 3-way matching works in SAP S/4HANA, and how balance sheet businesses can use third-party automation tools to enhance AP efficiency. AI detects and flags invoices that match already-paid POs, preventing double payments—one of the most common AP errors​….