Rubriik: Bookkeeping

Other names for net income are profit, net profit, and the “bottom line.” Income is money the business earns from selling a product or service, or from interest and dividends on marketable securities. Other names for income are revenue, gross income, turnover, and the “top line.” In such a case, the transaction will result in…

If manual payments have already been made to employees, such as advances, then deduct these amounts from the remaining net pay. This may require input from the payables clerk, who is tracking the amount of these advances. Before joining the team, she was a content producer at Fit Small Business where she served as an…

When using FIFO, we pick the units that were acquired first and use the cost of those units first. We keep picking units until we have accounted for the cost of all the units sold, in this case 245 units. When the cost of inventory is rising, FIFO will ensure that the older, less expensive…

For instance, if you sell two items and one costs $2 to produce while the other costs $20, the average cost of $11 doesn’t represent either cost very well. Whether or not you actually sell your items in that order doesn’t matter as long as you use that approach for figuring out your cost of…