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Accounting

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Here’s why a budget is important for small business entrepreneurs: No matter the industry, market fluctuations can signal volatile waves for SMEs. Big fish can weather the storm, but small fry will always be hit hard by tides of change; the ability of your business to sink or swim will often depend on both external and internal factors. But fear not- while external factors are out of your control, savvy entrepreneurs can harness internal factors…

In order to start a successful business, besides a good business idea, we need sufficient knowledge to manage the business. Without it, an entrepreneur can have a wrong understanding of their business condition. A lack of analysis can result in entrepreneurs only looking at a business from the profit point of view without thinking about cash flow. Conversely, there are also entrepreneurs who only see the availability of cash as an indicator that a business…

As the owner of a business, do you know the importance of inventory for your business? In this case, inventories are all types of goods owned by the company. Inventory can be sold or consumed for the operation of a business. There are at least two systems for inventory accounting, namely LIFO (last in first out) and FIFO (first in first out). These two recording systems definitely have an important role in your business, regardless…

In business, the term ending finished goods inventory is often used. As the name implies, this is the stock of products that are ready for sale but not yet sold. A budget for these goods can be developed after calculating the basic costs of materials, direct labor costs and overhead budgets required to produce the products. Why do we need this? The ending finished goods inventory budget is very important for the company because it…

Every subject in this country is taxed and this also applies for businesses. However, determining the amount of tax is not easy because it is imposed based on many things, not only on a business’ profits. Taxes are also imposed on loans for business capital including online loans. Taxes also serve as a business’ obligations to the government. Tax can also be seen as a contribution by the citizen to the country, which is intended…

In practice, business needs financial planning as a reference for running business operations during a specified period. The operating budget is one of two parts of the master budget. What is the Business Operating Budget? The operating budget is a record of activities that generate income for the company, such as sales, production, and finished goods inventory. It can be said that the operating budget is a pro forma income statement and the operating profit…

Both big and small businesses need to pay special attention in managing their finances. This is true for all accounting processes, bookkeeping, and recordkeeping. Recordkeeping for small businesses in this article refers to all aspects of recording that is related to accounting. Meanwhile, bookkeeping is based on recording all information about transactions and all financial activities. For example, tax accounting is a record that plays an important role for your company because it is even…

Every good company must have an expert in finance who can analyze financial statements carefully and effectively. Finance is delicate, so a person who holds full control of the financial statements must be responsible, and the person must work as detailed and as thoroughly as possible. A financial professional must master these three areas: Structure of the financial statements: A professional in finance must know how to organize financial statements in a neat and easily…

Cash is the fuel that keeps your business running. Cash flow can be defined as the way money flows into and out of your business. From here, we can distinguish which business will be able to last and which one will not. Cash flow cash analysis is a method to check your company’s financial health. Analysis of the movement of cash through your business (or better known as the cash budget) is the determinant on…

For those of you who are engaged in manufacturing or producing goods for sale, pricing a product is indeed an important aspect. There are several things that need to be taken into consideration when determining the price of a product. All of them are of course interrelated in determining the price of a product to be sold. In determining the price of a product, consider this. When the price of a product is too low,…