Bookkeeping

Further, production expediters may be used to force certain key jobs through the pile of work-in-process jobs, which throws the production system into an even greater muddle. Instead, work-in-process should move between work centers one unit at a time, with very little inventory piling up between workstations. Ideally, a lean …

With automation, you’ll get all the benefits of three-way invoice matching without the need to devote valuable AP resources to manual matching. Having complete and accurate documents will help your auditor check data and complete an audit quickly. A timely audit helps your business avoid costs you would have incurred …

Revenue refers to sales and any transaction that results in cash inflows. They are a type of equity—the difference between a company’s assets minus its liabilities. Businesses can choose to accumulate earnings for use in the business or pay a portion of earnings as a dividend. For instance, if your …

However, it is essential to conduct more frequent reviews for items with volatile demand or suppliers with inconsistent lead times to ensure accurate and optimal reorder points. To calculate the reorder point, you must calculate lead time in days and safety stock. The purpose of the ROP is to ensure that …

Under perpetual inventory system, the company does not have a purchase account nor a purchase discount account. Any transaction related to inventory (e.g. purchase, sale, discount, return, etc.) will be recorded directly into the inventory account. Likewise, the discount above will reduce the cost of inventory by $60, hence, it …

Tim also works for Company E providing landscaping services directly to them but uses his own mower and equipment to complete that work. Another determining factor is the fact that she doesn’t provide her services to the public, only to Company A. Based on the circumstances, Laura should be classified …

Thus, the methods used in calculating depreciation are typically industry-specific. The examples below demonstrate how the formula for each depreciation method would work and how the company would benefit. The units of production method assigns an equal expense rate to each unit produced. It’s most useful where an asset’s value lies …

The most common mistakes are mixing personal and business finances, leaving taxes to the last minute, missing out on deductions, and not retaining records for long enough. Sign up to receive more well-researched small business articles and topics in your inbox, personalized for you. If you think your bookkeeper has …