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Accounting

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The ability of a small business to survive in the business depends on both external and internal factors. External factors are factors that we cannot control whereas internal factors are more predictable. One internal factor that needs to be considered is how a small business makes a budget or called financial budgeting. Budgeting is a process that requires teamwork, both in planning and implementing it so that operations can run effectively. A budget is usually…

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…

Many business people felt so relieved in the past few months because of the tax amnesty which was given by the government. Tax amnesty is elimination of tax that should be owed. Taxpayers could be relieved from any sanctions by participating in the tax amnesty program. The tax amnesty in Indonesia lasted for 10 months from July 2016 to April 2017. Now that the tax amnesty program is over, tax calculation has returned as before.…

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…