Gross profit and net profit are two key financial metrics that businesses use to measure their profitability. Understanding the difference between these two measures is important for anyone who is trying to evaluate a company’s financial health or performance. Gross profit is a company’s total revenue minus the cost of goods sold (COGS). COGS includes … Read more
Cost of sales, also known as the cost of goods sold (COGS), is a key metric for businesses that sell products. It represents the direct costs associated with producing or purchasing the goods that a company sells to its customers. Calculating cost of sales is important because it is a key factor in determining a … Read more
Preparing a monthly financial report can help you keep track of your company’s financial health and make informed decisions. Here are the steps to prepare a monthly financial report: Collection of financial data: Collect your financial data from the accounting system, including income statement, balance sheet, and cash flow statement. Analyze financial data: Analyze financial … Read more
Thanks to the monthly financial reports, keeping track of your company’s financial health has been easy. They give an overview of all the crucial data and assist in making informed decisions. We have gathered some of the simplest steps you can follow to design the monthly financial reports. Let us begin. Your Comprehensive Guide to … Read more
Operating cash flow is a measure of a company’s financial health and ability to generate cash from its daily operations. It is an important metric for investors, creditors, and management, as it shows the company’s ability to fund its ongoing operations and pay its bills. Operating cash flow is calculated by taking the net income … Read more
The finance department’s business process is crucial to any company as it serves as the link between all departments. A well-run finance department can facilitate the growth of an organization by providing financial transparency. There are 3 key benefits of streamlined financial affairs in any organization; How to develop business process of well running finance … Read more
A method by which the depreciation of an asset is calculated over a period is known as straight-line depreciation. The fact that the depreciation rate stays consistent over the useful life of an asset gives it the name of a Straight line. It is the most painless method to calculate depreciation over time. It is … Read more