A Cash Budget is simply a way of keeping track of your incoming flow of money and your disbursements (outflow) per month or week. It’s a real-time inflow and outflow cash management system. It is not a budget, budgets have another purpose, besides they are static. You can use an Excel spreadsheet, like the image… Read More

Do You Need to Bundle Products in QuickBooks? Create Assemblies  If you frequently sell multiple inventory items grouped together, you need to learn about QuickBooks’ assemblies.  Let’s say you run a home improvement retail outlet, and one of the things you sell is doors. You might sell their parts—door frames, hinges, doorknobs, etc.—individually, in case… Read More

For the financial information to be accurate, particularly for the investors who will rely on it to the extent of making investment decisions, companies include noncash items in their accounting reports. This is particularly true when using the accrual method of accounting. There are several noncash items like deferred income tax, stock-based compensations, among others.… Read More

You’re accustomed to money going in a certain direction, but sometimes you have to pay your customers. Here’s how it’s done.  QuickBooks is very good at helping you get paid by your customers. It comes equipped with customizable invoice templates for billing customers and sales receipts for recording instant sales. It supports online payments, so… Read More

When we want to know how our business is doing, we quickly tend to look at our Profit and Loss report. By the way, it is perfectly fine to look at this report because it allows us to see how much sales you generated in the year, why certain expenses are so high, which ones… Read More

You may hate to have to do it, but assessing finance charges for late payments may improve your overall cash flow. There are a myriad of ways to bring in customer payments faster and improve your cash flow. You can: Get a merchant account and let customers pay you electronically Offer a discount for early… Read More

Estimates can be effective sales tools – if they look professional and offer attractive prices. Here’s how to create them using QuickBooks. You don’t need to be a car repair shop or an HVAC technician to present prospects and customers with estimates. In fact, there may be many times when an unexpected estimate—or bid, or… Read More

Working as a team is one of the most rewarding, yet challenging settings that exist. Several factors contribute to this situation, such as cultural differences, personality crash, virtual communication challenges, etc. In order to have a peaceful work environment, the conflict has to be resolved.  At least removing the cause of frictions among employees can… Read More

Manufacturing overhead costs are direct labors, direct materials and direct expenses, such as electricity used in the factory, depreciation of the machinery, supplies used in the manufacturing process, etc. These costs are based on a predetermined overhead rate. The total rate gets divided by the total number of machine hours which are most likely determined… Read More

According to Zimmerman (2016), “an accounting system is very much a part of the fabric that helps hold the organization together” (p.4).  Why? Because it provides the business with the information necessary to make sound business decisions.  Such decisions are, what is the business’ net worth, unusual expense categories and opportunities to reduce costs, how… Read More