Κατηγορία: Bookkeeping

If a subsidiary is 100% owned by a larger company, it is called a wholly owned subsidiary. In most cases, the subsidiary company is legally and financially independent of the parent company but still under considerable control of the parent company. Subsidiary companies will be owned by either a parent company or a holding corporation. A wholly-owned subsidiary company will be entirely owned by the parent or holding corporation. Google’s Russian subsidiary has been under pressure in Russia for failing to delete content Moscow deems illegal and for restricting access…

When you reconcile your January books, you will notice that $500 is missing from your January bank statement. Maintaining a balanced checkbook is one way to avoid this occurrence. If the payee decides to cash the check later, this can help avoid any unnecessary NSFs. You had a list of Accounting for Startups The Ultimate Startup Accounting Guide that hadn’t been cashed yet, and as the 180-day mark approached for each check, you’d simply void it. When you wrote a check to a vendor and they didn’t deposit it within…

In a survey of 1,000 organisations, 74% of respondents in the US reported delays in shipping and longer lead times during the coronavirus pandemic. Lead time is a vital business metric that directly impacts customer satisfaction, workflow efficiency, and delivery time accuracy. Your processing time is your Cycle Time, which should ideally match your Takt Time. You’ve worked on tweaking your workflow, and now your time tracking results show that your processing time for each product equals the perfect 10 minutes you need to finish 55 products in a day.…

In our example, the sales revenue from one shirt is $15 and the variable cost of one shirt is $10, so the individual contribution margin is $5. This $5 contribution margin is assumed to first cover fixed costs first and then realized as profit. Variable costs are those costs that vary per unit of production. Direct materials are often typical variable costs, because you normally use more direct materials when you produce more items. In our example, if the students sold 100 shirts, assuming an individual variable cost per shirt…

It is challenging to standardize and centralize cash management processes when a company deals with multiple banks, ERPs, and financial systems. Without a centralized system to synchronize various systems, standardizing can be difficult. If your overhead costs are too high, your small business is going to experience cash flow problems. Costs like high rental costs, expensive car leases and travel can eat into your profits quickly. You have to sell more just to cover your overhead costs and break even. Some business loans are available even to businesses with bad…