Yes, you would want to use the average cost per unit along with the average selling price to get the contribution margin per unit in the formula. To calculate BEP, you also need the amount of fixed costs that needs to be covered by the break-even units sold. Although investors are not interested in an […]

On the downside, the simplicity, is what can be negative about it. Kashoo doesn’t have much in terms of automation, and it doesn’t have online payment capability. There’s also no inventory, no ability to attach items to invoices, and no add-ons beyond Payroll. There’s a trade-off with Kashoo that comes down to transactions. QuickBooks, for […]

We need to understand the concept of debt is what comes in and credit is what goes out. The accounting and book-keeping process measures, records and communicates day to day financial activities. A transaction is an event taking place between two economic entities, such as customers or vendors and businesses. It’s a fundamental concept encompassing accounting […]

Some banks still mail out monthly bank statements around the end of the month, but many have switched to online statements only. If you no longer receive paper statements, log on to your online banking system and print out the current statement. Reconcile it against the information that’s listed in your check register. This simply […]

Content Retirement Savings Rate Funding your retirement with a strategic distribution plan Infographic: Understanding your Social Security benefits Explore personal banking How to boost average retirement income Be tax smart Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns. Insurance products are available through various affiliated non-bank insurance agencies, which […]

For example, if a business owner purchases $1,000 worth of inventory using cash, the bookkeeper records two transactions in a journal entry. The cash account will show a credit of $1,000, and the inventory account, which is a current asset, will show a debit of $1,000. But with accounting software, transactions like those above are automatically […]

In this type, a company calculates the wages expense by determining the units produced by a single employee. Then, they multiply that amount with the per-piece rate to determine their wages. As an alternative, wage expenses for production workers may be added into the cost of goods sold (COGS) item on the income statement. The […]

These assets are listed in the Current Assets account on a publicly traded company’s balance sheet. Always make sure that your assets are properly categorized and are not duplicated. For example, if you record machinery under fixed assets, make sure that it’s not recorded under tangible assets or operating assets. The above mentioned are the […]

When evaluating transportation investments, it is important to account for the future operating and maintenance costs of the facility. Bridges require preventive maintenance, and roadway lanes have to be plowed and patched each year. In the case of an upgraded roadway, it is necessary to estimate the marginal or additional maintenance costs that would be […]

If you do not already use QuickBooks, then Merritt can help you create your file and update your data. Plus, the company uses automated software to receive customers’ information every month. What you don’t know can sometimes be very costly and we see it all the time with businesses that try to save money by […]