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Direct and Indirect Materials Cost Calculation and Example

To find manufacturing overhead, identify the manufacturing overhead costs then add them up. Now you can determine the manufacturing overhead rate — this is the percentage of your monthly revenue that goes towards paying for overheads each month. To do this, divide the monthly manufacturing overhead by the value of your monthly sales, multiplying that […]

Common Accounting Errors and Mistakes and How to Avoid Them

This extremely helpful document keeps track of cash and cash equivalents coming into your online store and going out, too. You should review all these items to determine the overall financial health of your company. As an ecommerce entrepreneur, you’re going to come face-to-face with payroll duties and payroll taxes. Two primary accounting methods include […]

Bookkeeper360 Review: Features, Pricing & Alternatives 2024

You can also reach out to your dedicated adviser through the Tasks section, which eliminates the need to email your bookkeeper if you have questions. You can create a task for your bookkeeper, set a due date, and wait for them to get back to you. This feature is available because the communication happens within […]

Earnings Per Share Learn How to Calculate Basic and Diluted EPS

Investors purchase the stocks of a company to earn dividends and sell the stocks in the future at higher prices. The earning capability of a company determines the dividend payments and the value of its stocks in the market. Hence, the earnings per share (EPS) figure is very important for existing and prospective common shareholders. […]

How to Do Accounting for a Small Business: A Beginners Guide

Keep all cash, credit card, and other financial activities separate. When you keep detailed, organized records of your business transactions, tax season suddenly won’t feel like such a daunting chore. By being proactive with your bookkeeping, you’ll save your small business time when it comes to taxes. Simply turn your financial statements over to your […]

Reconciliation in Accounting: Meaning, Purposes, Types

By reconciling financial records, such as bank statements, invoices, and receipts, businesses can identify discrepancies and irregularities and protect themselves against potential fraud. Check that all outgoing funds have been reflected in both your internal records and your bank account. Whether it’s checks, ATM transactions, or other charges, subtract these items from the bank statement […]

Shareholder vs Stockholder: Difference and Comparison

For instance, common stock comes with voting rights, so institutions may buy this type of stock to gain a controlling interest in a company. Companies may issue another kind of stock called preferred stock, and owners of this could also rightly be termed shareholders. Although shareholders do not take part in the day-to-day running of […]