Can We Live Without LIFO?

Now Government wants to eliminate LIFO. LIFO stands for Last In, First Out. It is an inventory costing methodology. The last in, first out, or LIFO method, selects the most recent purchases whose quantities add up to the total number of items sold during the year. The last in, or most recent purchases, are the first charged out to expense. The primary theory of the LIFO method is that products sold have to be replaced to continue in business and that the most recent (i.e., the last in) costs are the closest to the costs of replacing the products sold. From a tax standpoint, LIFO minimizes tax consequences by using the highest cost of inventory which reduces reported profit.

Accounting - Explaining The Balance Sheet

What are the different sections of the balance sheet including assets, debts or liabilities, and owner's equity? What is the difference between tangible and intangible assets, as well as short term and long term liabilities? For owner's equity, a brief explanation of different types of ownership structures are given.

Accounting for Your New Business

An easy homemade accounting system designed for business in the test marketing phase, or other very small businesses with few transactions and no debt.

Dirty Little Secret of Workers Compensation Insurance

Workers Compensation Insurance agents are paid commission based on the size of your company premium. The bigger the premium you pay the bigger your agent's commission. Your agent may never cause your premium to go up unnecessarily but has he done everything he can to reduce it and reduce his commission?

Accounting - Explaining The Income Statement

What is meant by the income statement? The components of the income statement are revenues, cost of goods sold, expenses, and net income. What is in each of these components? Find out what costs have some subjective valuation methods. What is meant by depreciation? Why is it important to understand the income statement?

Netsuite and VOIP - The Future Of Small Business Growth

With new features of Netsuite, it is now possible to integrate your DeskTop PC Phone solution with netsuite, contacts, customers, leads and other records. This new change enables companies, including my own, to leverage cheaper calling features of VOIP whilst not having to move away from a customer or contact screen, effectively allowing me to see all my customers 360' information whilst clicking their onscreen phone number to call them directly.

What is Owner's Draw in QuickBooks? How Does Owner's Draw Work?

If you are a sole-proprietor, you may have wondered about the Owner's Draw account and how it works. I'll try to explain it in a way that makes sense to people who use QuickBooks.

Cost Benefit Analysis-Whether You Should Outsource Your Bookkeeping To Professional Book Keeper

In order to summarize the results of a business activity, each financial transaction must be recorded in a bookkeeping system. An entrepreneur has option to employee of bookkeeper in their organization or outsource the whole bookkeeping system to a professional firm. This article highlights the cost benefit analysis available with the entrepreneur in relation to maintenance of the books of accounts by a bookkeeper.

Accounting Business Outsource Process is a Good Approach

Accounting business outsource process can prove successful for your business .It will meet all the requirements of your business solutions by proper maintaining the accounts department of your company. You also need to keep a timely check on them by looking into the pattern and procedures of handling your work

Accounting - Three Major Areas

There are three major functional areas in accounting for any business. All three go hand in hand for effective business management.

Managing Small Business Finances

It's easy to get lost in the bigger picture when you run a small business. It's easy to forget the important little things that make all the difference. Here are some tips to help you along the way.

Introduction to Financial Accounting and GAAP

This article provides an introduction to financial accounting, its purpose, the four basic financial statements, and the concept of generally accepted accounting principles (GAAP) which is used to prepare these financial statements.

A Basic Introduction to Accounts Receivables

Accounts receivables can be the biggest headache that a business has to manage. Here is a beginner's article about accounts receivables.