Learn How to Calculate Net Profit Margins
A net profit margin is a popular measure of profitability. If you’re lost on how to calculate a net profit margin, we’ll look at how …
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Understanding the Sarbanes Oxley Act, Maintaining Accounts Receivables, and Financial Misrepresentations
Understand the relevance of the Sarbanes Oxley Act to Accounts Receivable, Bad Debts, Allowances for Doubtful Accounts, and the popular use of these …
Continue ReadingHow to Calculate, Interpret, and Analyse Earnings Before Interest Tax (EBIT)
Earnings before interest tax or EBIT is a popular and important number for analysing the financial standing of a company. Here is how to calculate …
Continue ReadingTypical Examples of Manufacturing Overhead Costs
There are obvious input costs that are involved in the manufacturing process and then there are other indirect costs that are known as manufacturing …
Continue ReadingUnderstanding the Importance of Adjusting Journal Entries
Keeping an accurate set of financial records means one needs to understand the importance of adjusting journal entries (AJEs)! AJEs are used on all …
Continue ReadingThe Difference Between Net Profit vs. Gross Profit
If you’re confusing net profits vs. gross profits, you probably don’t even know if you have a profit! These two profits have very different meanings …
Continue ReadingA Guide to Learning What Is the Difference Between Cost and Expense
If your accountant or controller uses the words “cost” and “expense” interchangeably, are you confused? What is the difference between cost and …
Continue ReadingA Guide to Understanding Operating Budget Concepts
Does the idea of learning operating budget concepts have you down? Look no further than this article on the basic concepts and explanations behind …
Continue ReadingThe Problems With EBITDA: Investors Beware
If you employ EBITDA, earnings before interest, taxes, depreciation or amortization to find investors, that’s probably a fair practice. As far as …
Continue ReadingWays to Improve Your Accounts Receivable Collection Percentage
If your customers aren’t paying, you aren’t handling your receivables correctly. What is the best way to improve your accounts receivable collection …
Continue ReadingAccounts Receivable Collection Letters: Three Examples for Different Approaches
Every business owner is faced with the problem of collecting on overdue accounts at one point or another. If you need to write an A/R collection …
Continue ReadingHow to Set Your Accounts Payable Payment Terms
Your business is up and running and you’ve just realized you need to apply for some credit accounts from your suppliers. Or, you’ve just been asked by …
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