Bookkeeping

They can often be factored into the reporting of top line revenues reported on the income statement. The net sales value must be regularly analyzed by you because it is an important metric. For example, if the difference between gross sales and net sales is big then it means your business is getting product returns […]

Cost of goods sold (COGS) is the determination of how much it costs retailers, wholesalers and manufacturers to produce the goods they sell. For makers and resellers of products, COGS, sometimes also referred to as “cost of sales,” appears on an income statement where it is central to calculating gross profit. Internally, business executives focus

Negative operating cash flow means businesses might need to secure additional funding in order to keep the wheels turning. The operating cash flow ratio is a measure of the number of times a company can pay off current debts with cash generated within the same period. A high number, greater than one, indicates that a

For example, if Company A purchases Company B, it must consolidate the financial statements from both companies into one complete set of financial statements. This method eliminates the need for double-entry bookkeeping because all of the transactions from both companies are recorded as if they were one company. The most commonly used consolidation consolidated meaning