Recent Articles

Profit and Loss

A standard financial statement also known as the income statement, statement of financial position, or revenues in excess of expenses.

P&L Statement – Best Format for Salons

02/01/2017

An owner of a hair salon needs a well organized and properly formatted profit and loss statement (income statement) to properly evaluate performance.   There are multiple presentation formats used in the service industry, but after 21 years of [...]

Profit and Loss Statement Using Class Accounting

09/27/2015

Class accounting breaks down sales and the associated cost of sales into functional groups.  Whether you use divisions or departments or product/service lines class accounting allows you to identify those more profitable areas of operations.  This [...]

Cost of Sales – Various Formats

01/27/2015

Many business owners misunderstand the use of term ‘Cost of Sales’ by restricting it to just simply ‘Cost of Goods Sold’.  Basically, most business entrepreneurs and even accountants don’t realize that it has several different names and [...]

Cost Drivers in Small Business

10/19/2014

The textbook answer defines cost drivers as those factors that determine the overall cost of operations.  As an example, in manufacturing the cost drivers may be processing time or number of steps to produce the product.  In service, the cost [...]

Profit

06/17/2014

Profit refers the earnings from the business operations.  It customarily means the bottom line of the business income statement or its profit and loss statement.  For many business owners, it refers to the amount earned before income taxes are [...]
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