Here at Patriot Software, we try to answer any and all questions you might have about accounting and your small business responsibilities. Want to see what kind of topics we’ve covered this year on our accounting blog? Take a look at our top 10 most-read accounting articles 2019.
Most-read accounting articles 2019
If you have accounting-related questions, you’ve come to the right place. Take a look at the headlines that are drawing in the crowds. And, read a brief description of what the article is about below.
Margin and markup are two common accounting terms related to profit. But, do you know the difference between them?
Margin shows you the revenue you earn after paying your cost of goods sold (COGS). Markup, on the other hand, reveals how much more a product’s selling price is than its COGS.
Your margin and markup percentage will never be equal. This article is chock-full of the details you need to calculate your business’s margin and markup. And, be sure to check out the detailed chart and infographic.
If you don’t know your business’s cost of goods sold, you will have trouble setting profitable prices.
COGS shows you how much it costs to produce your products or services. It includes direct expenses like direct material and labor.
Use our article to learn the COGS formula and why it’s essential to calculate your cost of goods sold. And, find out where to record COGS on your small company’s financial statements.
Your business’s profit margin shows you how much money you’re making. You can use it when making decisions and examining your financial health. But, how do you find it?
Here, you’ll learn the three steps to calculating profit margin and see an example to help you through the process. And, find out standard margins in some common industries and tips and tricks for improving your profit margin.
Do you ever pay for items before actually receiving them? If so, you’ve dealt with prepaid expenses in your business. And if you deal with prepaid expenses, you need to know how to record them in your accounting books.
Examples of prepaid expenses include small business insurance policies, the equipment you pay for before receiving it, and estimated taxes.
Use this article as your resource when you need to create journal entries for prepaid expenses.
If you want to compare your business’s growth in one period to the same period in the previous year, you need to calculate year-over-year (YOY) growth.
You can use your YOY growth to determine how well your business is performing. And, investors likely want to see your year-over-year numbers so they can determine if your business is a good investment.
Find out how to calculate YOY growth, see actionable examples, and more by reading this top-read article.
Does knowing the difference between your company’s gross and net profit matter? Absolutely it does.
Your business’s gross profit is what you get when you subtract your COGS from revenue during a time period. And, your net profits show your business’s revenue after you deduct all expenses—not just your COGS.
Businesses include both their gross and net profit on their income statements. Learn the formulas for both in our article.
Everybody makes mistakes. But when you make an error on a tax form, you must correct it as soon as you can.
If you make a mistake on Form 1099-MISC, you must issue a correction. Form 1099-MISC is an information return that reports payments made to independent contractors and other types of miscellaneous income.
So, what’s the process for filing a corrected Form 1099-MISC? It depends on the type of mistake you make. This article breaks down your responsibilities for filing 1099 corrections.
What’s in a name? When it comes to business, a lot is in a name. Some ventures operate under their business name, while others are known by their trading name. So, what’s the difference?
A business name is your venture’s legal name. It’s the name of the person or entity that owns the business. On the other hand, a business’s trading name is the name it operates under in public. Trade names are also called doing business as (DBA) names.
If you want to change the name of your business and register for a DBA name, follow the five steps in this article.
Businesses conduct market analyses to learn more about their industry. A market analysis can show you who your potential customers and competitors are.
You can use the results of a market analysis to make critical business decisions, like pricing and marketing strategies. Use the seven steps in this article to start your market analysis for business.
Every journal entry a business makes has debits and credits. Before you can update your books accurately, you need need to know how these standards work.
When you debit one account, you must credit the corresponding account (and vice versa). A debit increases asset and expense accounts and decreases liabilities, equity, and revenue accounts. A credit decreases asset and expense accounts and increases liabilities, equity, and revenue accounts.
Once you understand debits and credits, you’re on your way to keeping accurate accounting records. Get a detailed overview and see examples in our article to get started.
Overwhelmed by accounting? Patriot’s online accounting software is specifically geared for small business owners. Track your incoming and outgoing money, create invoices, print 1099s, and more. Get your free trial today!
This is not intended as legal advice; for more information, please click here.