When pricing your products, you must consider the cost of making the product, including the direct costs. Find out below what direct costs are, including examples and how to calculate them.
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Accounting Articles
Accounting Tips, Training, and News
Tangible vs. Intangible Assets
November 2, 2022All businesses have assets. Assets can be broken down into two categories: tangible and intangible. Understand the difference between tangible vs. intangible assets to keep your accounting books and financial statements accurate.
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What Is a Retained Earnings Statement?
November 1, 2022When it comes to managing your business’s finances, you can never be too organized. Creating financial statements paints a picture of your company’s financial health. Financial statements help with decision making and your ability to get outside financing. One statement you could create is the retained earnings statement.
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What Is Operating Income?
November 1, 2022When you are tracking your business’s financial health, you will track many indicators. And if you are seeking money from investors and creditors, they will want to see these numbers, too. Operating income is one of the numbers you should calculate.
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How to File a Business Tax Extension
November 1, 2022If you are rushing to complete your income tax return, consider filing for a business tax extension. Filing taxes for small business can be difficult, and an extension allows you more time to file your business’s tax return. Learning how to file an extension for business taxes is simple. And, you can avoid mistakes that […]
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Fixed vs. Variable Costs
November 1, 2022Business expenses are categorized as either fixed or variable costs. You should identify your company’s fixed and variable expenses for accurate books. Learn the difference between fixed vs. variable costs to help with budgeting, pricing, and decision making.
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Accounting for Startup Costs (Plus How to Handle Taxes)
November 1, 2022New businesses typically incur expenses before the business is up and running. You might need to research your market, hire a consultant, travel to potential suppliers, or open a facility. These are startup costs. When you incur startup costs, you must accurately record the corresponding ledger entries in your accounting books. And, you must properly […]
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The 411 on Tax Shelters for Small Business
November 1, 2022Whether you’re a business or individual, you can’t escape taxes. As a small business owner, your taxes depend on the type of business structure you have, such as sole proprietorships or partnerships. Regardless of your business entity, there are legal tax shelters for small business that can reduce your taxable income.
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What Is Split Payment: Definition, Types, and Benefits
November 1, 2022Have you ever gone to a restaurant with friends and split the check at the end of the night? If you have, you’ve used a type of split payment. But, what is a split payment? Companies use split payments to make it easier for customers to pay for products or services. Read on to learn […]
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How to Price a Product
October 31, 2022Product pricing can make or break your small business. If you set prices higher than what customers are willing to spend, you lose sales. But if you set prices too low, you don’t earn at your highest potential. Price points need to meet somewhere in the middle to generate the most revenue. Do you know […]
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