The Importance Of Cash Flow Management During An Economic Downturn

It means that the business is profitable and that companies have the ability to grow and reinvest as needed with positive cash. Cash inflow is incredibly important because it is how revenue and profit is generated. A positive inflow of cash, helps a business grow while also maintaining its expenses. This article will take you through

Companies that provide time and a half must pay the employee’s regular rate plus a half for each additional hour worked outside of their standard 40-hour week. Non-exempt employees https://www.bookstime.com/articles/aging-of-accounts-receivable get paid time and a half when they work additional hours outside of the standard 40-hour workweek. This is also known as overtime and gets compensated

The Securities and Exchange Commission (SEC), the U.S. government agency responsible for protecting investors and maintaining order in the securities markets, has expressed interest in transitioning to IFRS. However, because of the differences between the two standards, the U.S. is unlikely to switch in the foreseeable future. Business accounting software makes it easy to record every small transaction,

Until there is a clear understanding of the market and production, it would make sense put further purchases on hold. The key to managing inventory levels is to have visibility to inventory trends. The trends should be evaluated monthly or quarterly, depending upon your industry. If a competitor offers a higher quality or more affordable product,

Since technology is not going anywhere and does more good than harm, adapting is the best course of action. We plan to cover the PreK-12 and Higher Education EdTech sectors and provide our readers with the latest news and opinion on the subject. From time to time, I will invite other voices to weigh in on

Generally accepted accounting principles (GAAP) dictate that inventory can be valued via the specific identification method, average cost basis, or first-in-first-out method. The German bank said Wednesday that it made 1.03 billion euros ($1.09 billion) in attributable net profit for the period compared with EUR1.12 billion a year ago, on revenue that grew 3% to EUR7.13

It is highly unlikely that the provision for doubtful debts will always exactly match the amount of invoices that are actually unpaid, since it is only an estimate. Thus, you will need to adjust the balance in this account over time to bring it into closer alignment with the ongoing best estimate of bad debts. This

On the balance sheet, the current portion of the noncurrent liability is separated from the remaining noncurrent liability. No journal entry is required for this distinction, but some companies choose to show the transfer from a noncurrent liability to a current liability. Common current liabilities include accounts payable, unearned revenues, the current portion of a note

To learn more about the vendor management office, check out our comprehensive guide to the vendor management office. Once you know what kind of vendors you’re looking for, there are a few places you can search. One option is to join an organization or community group with others in your industry. The process of how a

If the rental rate on a property increases, the security deposit that is held in escrow might not be sufficient. For example, if a renter breaks a window or causes permanent damage to the floors, walls or infrastructure of the property, then the landlord can use the security deposit toward repairs. Typically, if the property is