When in doubt, please consult your lawyer tax, or compliance professional for counsel. Sage makes no representations or warranties of any kind, express or implied, about what is inventory tracking the completeness or accuracy of this article and related content. Using the fruit stand example, if you were using LIFO, you would be selling the […]
In more practical terms, retained earnings are the profits your company has earned to date, less any dividends or other distributions paid to investors. Even if you don’t have any investors, it’s a valuable tool for understanding your business. Since stock dividends are dividends given in the form of shares in place of cash, these […]
Businesses may end up with obsolete inventory when they fail to accurately forecast demand based on historical sales data, market trends, and other factors. The allowance for obsolete inventory account is a reserve that is maintained as a contra asset account so that the original cost of the inventory can be held on the inventory account […]
And in addition to helping you manage cash flow through invoice factoring, we offer a host of other business services through our parent company Triumph Bancorp to help you do what you do best. Factoring companies assume insolvent risk with non-recourse invoice factoring, and your business reduces bad debt while increasing cash flow, even if […]
Gross income is higher than net income and includes total revenue or income, whereas net income refers to net profits after all expenses, taxes, and deductions are taken out. Because these are two different calculations, they have entirely different purposes for gauging how a company is doing. Gross profit is useful to determine how well […]
Typically, income statement and balance sheet are prepared in a comparative form to undertake such an analysis. The operating activities on the CFS include any sources and uses of cash from running the business and selling its products or services. Cash from operations includes any changes made in cash accounts receivable, depreciation, inventory, and accounts payable. […]