Why Use Outsourced Accounting

Why Use Outsourced Accounting

There are many reasons why accounting is being outsourced more commonly by different types of businesses and organizations. Some may think that using outsourced accounting services is a bad idea because of less control and more costs, but that is a myth that has been...

What is a Sole Proprietorship

What is a Sole Proprietorship

A sole proprietorship is the business or an individual who has decided not to carry his business as a separate legal entity, such as a company, partnership or limited liability company. This kind of business is not a separate entity. Any time a person regularly...

What is Local Company

What is Local Company

Most businesses start out as a small company, owned by at least one person. The most common type of business when there are multiple owners is a corporation. The law sees a corporation as a real, live person and a qualified person. Like an adult, a company is treated...

Types of Costs

Types of Costs

Direct costs are those costs that can be directly attributed to a product or product line, or to one source of sales revenue, or one business unit or operation of the business. An example of a direct cost would be the cost of tires on a new automobile. Indirect costs...

Revenue and Receivables

Revenue and Receivables

In most businesses, what drives the balance sheet are sales and expenses. In other words, they cause the assets and liabilities in a business. One of the more complicated accounting items is the accounts receivable. As a hypothetical situation, imagine a business that...

Profit and Loss

Profit and Loss

It might seem like a no-brainer to define just exactly what profit and loss are. But of course, these have definitions like everything else. Profit can be called different things, for a start. It's sometimes called net income or net earnings. Businesses that sell...

Measuring Costs

Measuring Costs

Measuring profits or net income is the most important thing accountants do. The second most important task is measuring costs. Costs are extremely important to running a business and managing them effectively can make a substantial difference in a company's bottom...

Managing the Bottom Line

Managing the Bottom Line

If you don't keep track of how much money you're making, you have no idea whether your business is successful or not. You can't tell how well your marketing is working. And I don't just mean you should know the number of your total sales or gross revenue. You need to...