The standard costs are based on the efficient use of labor and materials to produce the good or service under standard operating conditions, and they are essentially the budgeted amount. Even though standard costs are assigned to the goods, the company still has to pay actual costs. Assessing the difference between the standard (efficient) cost […]
Ashley hasn’t been in business long, and her credit is only fair. So she decides to sell 20% of the business to investors to raise capital. “Companies know how much the payments will be every month, so they can plan for the impact on their cash flow.” Maintaining control of your company may be the […]
It is often used to determine the best financial strategies for people or organizations. Investors can compare products and calculate which type of interest rate will offer the more favorable return. Typically, the effective annual interest rate will be higher than the stated annual interest rate due to the power of compounding. The more frequently […]
Next, you deduct the amount of federal tax your employee has to pay based on the amount you’re left with after pre-tax deductions. For example, if your employee makes $60,000 a year before taxes and $15,000 is taken out for taxes and other deductions, their net pay would be $45,000. This means they only take […]
Not keeping accurate records – This is one of the most common mistakes made in bookkeeping. If mistakes happen, it is possible to correct them by recording journal entries. There are many options for different accounting https://business-faq.com/category/finance/ packages, and it is difficult for business owners to choose the right one. A cash flow forecast is […]
