If your business maintains inventory there are a few accounting and business practices you should be aware of. Generally Accepted Accounting Principles ( GAAP ) as well as IRS rules require you to either count your complete inventory on an annual basis or implement a perpetual counting system. With good computerized inventory systems, the perpetual counting system (often called “cycle counting”) can save money, increase accuracy of the count, and reduce disruption in your operation during the count. The reasons most often cited in favor of cycle counting is that the complexity of doing an annual physical inventory is much greater and therefore there is more chance for error.
Chris Bjorklund: Hello, I’m Chris Bjorklund for the Virtual Business Center. Today, I’m talking with Jan Triplett, the CEO of the Business Success Center in Austin, Texas. Lots of consumers are potential customers for any kind of business, Jan. How do I choose the best kind of customer for my business?
Every industry in the United States has a North American Industry Classification System (NAICS) code. The code is used for a variety of purposes that may affect your bottom line as well as your ability to access business loans.
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Having a current and detailed cash flow forecast can mean the difference between thriving and closing your doors in a rough economy. Even in a fast growing business having a strong cash flow forecast can mean insuring that ever changing working capital needs will be met.
Even the best managed company will occasionally need to use the services of a commercial collection agency. Picking one that fits your company’s personality while still being effective in collection efforts can require some research and homework.
Nearly all businesses require some kind of travel by their employees using their personal vehicles. The IRS recognizes several methods for allowing deductions by your business or the individual employee. Knowing what is required is crucial because it is one of the IRS’s most looked at deductions for businesses.
The banking industry has undergone monumental technological changes during the past ten years. One of the most exciting has been bringing electronic funds transfer (EFT) to nearly any business that can benefit from using it. Also called ACH, which stands for Automated Clearing House is a network that electronically processes collections and payments. Though there are a number of types of ACH transactions, ACH debit (also called direct debit) and ACH credit are the most common.
With capital as tight as it is and revenues for many companies down, calculating your company’s breakeven sales is a skill that can help you better plan and manage your fixed and variable costs. Small business owners who are struggling with profitability should calculate their breakeven sales so they have an accurate understanding of how much they need to sell each month in order to make a profit. The exercise is pretty easy but you have to know some terminology:
When evaluating your company’s overall risk of sustainability, examining your company’s product lines or services you offer may help determine ways to minimize risk. Single product companies face several challenges not faced by companies offering two or more product lines or services.