What are performance metrics? Why should small businesses track them?
Performance metrics give small business owners a benchmark to compare the efficiency of efforts toward achieving their goals in sales, production,...
What is Absorption Costing in Accounting?
Every production process has its related costs that are both direct and indirect. Absorption costing takes all of these into consideration....
What is a non-payment account in accounting?
Your business bank account can be a payment or non-payment account. What defines both are the functions or limitations. Bank accounts...
What is a Trial Balance in Accounting?
What is a trial balance, the types, who uses it, and for what purpose? In a news organization, there are news...
What is Days Sales Outstanding, Formula, and How to Improve It?
While many small businesses offer credit sales, the growing concern is the days it takes to get payment. Days Sales Outstanding...
What is Accrual Accounting?
What is accrual accounting? What small business does this method fit? Can your company apply it? What is the IRS's take? ...
What is unlevered free cash flow and how to calculate it
Before understanding unlevered free cash flow, we'll break down the terms unlevered, cash flow, and free cash flow. Businesses treat cash...
What is a Good Liquidity Ratio? Types and How to Calculate it
A good liquidity ratio is essential in a small business sorting out its day-to-day expenses. The higher the liquidity ratio, the...
Unapplied cash payment and how to reconcile transactions
This article will discuss an unapplied cash payment and how to reconcile such transactions. Small business owners sometimes receive or make...
Service charge vs Tip: What is the difference?
Understanding service charge vs tip will save you headaches when filing your finances with the Internal Revenue Service (IRS). Service charges...