Monthly Archives: January 2012

Creating a Business Budget

A business budget is a financial tool that not everyone uses, but something every business should. In order to use a business budget, one has to be created first. It is not enough, however, just to have a budget. It ...
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What is Cost Accounting?

In this post we’ll attempt to answer the question, “what is cost accounting?” Cost accounting is an approach to managerial accounting that creates a clear understanding of the relationship between incurred costs and realized revenues. When implemented correctly and efficiently, ...
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How to Run a Cash Register

Most people would agree that small business cash management seems simple; yet somehow it is also one of the most frequently neglected or mishandled items. You’re probably thinking, “Who cares; petty cash is immaterial, right?” Well, for a small business ...
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Installment Sales: Why Do We Use Them?

Why do we use installment sales? Installment sales are only used for financial reporting when there is no reasonable basis for estimating the degree of collection ability. Revenue recognition occurs when cash is actually collected, rather than at the point ...
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The Basics of Factoring Receivables

We have seen many business owners and advisors overlook factoring receivables as a viable option for financing and managing cash flow. While it is not the best option for every company in every situation; companies with factorable accounts receivable should ...
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Accounting Tips: Filing Documents

In today’s fast-paced environment, who has time for filing documents? It is much easier to keep documents in piles, strategically ordered by the most recent document in front. Ultimately, you end up with what most people call an organized mess. ...
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