Tag: Inventory
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Perpetual Inventory
Most small businesses use the annual inventory system to determine ending inventory value. Any adjustments are to the income statement inside the cost of goods sold formula. This is acceptable if management only wanted accurate financial statements once a year. But this is unrealistic for a small business.
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Inventory Management – Specific Identification Method
There are several methods used to manage and track inventory in retail. One of the most accurate inventory management tools is the specific identification method.
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Point of Sale System – Introduction
Almost all retail based operations require a Point of Sale (POS) System to properly record the customer and product activity. What is a Point of Sale System?
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Inventory – How to Finance
In financing a small business, there are a multitude of tools available. One way to finance inventory is by using the 30 day pay program with your vendors.
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Small Business Model Series Entry #4 – Basic Research
I spent a lot of time on the internet researching the industry as a whole. There are about 220,000 machines in the US that are owned by non-banking companies and individuals. My first thought is that this is about 1 machine per 1,000 individuals (there’s about 220 million adults in the US/220 thousand machines and you…
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Liquidity – What Does This Mean?
In business, liquidity is defined as the period of time it takes to turn assets into cash. It takes 20 minutes to turn the balance in the checking account into cash. You head on down to the bank and present a check. You get cash. But most businesses run on just more than the cash in the bank…