How to Calculate Profit Margin
In the world of business, understanding financial metrics is crucial for success. One key performance indicator that drives profitability and informs decision-making is Gross Margin. Sometimes this is unavoidable; you will need to pay for supplies, website hosting, employee salaries, and many other expenses. But by tracking gross margin accounting your expenses, you’ll be able […]
How to Calculate Gross Profit Margin
More precisely, your business’s gross profit margin ratio is a percentage of sales calculated by dividing your gross profit by total sales revenue. It indicates the profitability of what you spend on goods and raw materials to make your products, compared to the dollar amount of gross sales that you make. The higher the percentage, […]
Cost of Goods Sold: What Is It and How To Calculate
Since the oldest merchandise is assumed to be sold first, it is expected that the first units sold would generally have a lower purchase cost than the more recent units sold. That is because we live in an inflationary economy in the long term. Average inventory represents the average balance of the inventory account between […]
Closing Entries Financial Accounting
Opening entries include revenue, expense, Depreciation etc., while closing entries include closing balance of revenue, liability, Depreciation etc. Failing to make a closing entry, or avoiding the closing process altogether, can cause a misreporting of the current period’s retained earnings. It can also create errors and financial mistakes in both the current and upcoming financial […]
Five Factors to Consider When Selecting an Accounting Firm
Each plan comes with a finance expert, automated transaction imports, P&L, balance sheet and cash flow statements. You’ll also get burn rate calculations, which is helpful for startups that need to closely track their spending. Bookkeeper360 integrates with third-party accounting and bookkeeping firms tools, such as Bill, Gusto, Stripe, Shopify, Xero, Brex, Square, Divvy and […]