Articles and updates on accounts payable automation, invoice processing and finance operations.
What days sales outstanding (DSO) is, the formula, how to calculate it with a worked example, what a good DSO looks like, and how it differs from AR turnover.
Read articleWhat activity based costing is, the five steps, a worked example with cost pools and drivers, how ABC differs from traditional costing, and when it is worth it.
Read articleWhat standard costing is, how it works, the main cost variances, a worked example, and how it compares to actual costing for manufacturers and controllers.
Read articleThe difference between gross and net profit margin, the formulas, a worked example, where operating margin fits, and what counts as a good margin.
Read articleWhat contribution margin is, the formula, how to calculate it per unit and as a ratio, a worked example, and how it differs from gross margin.
Read articleWhat retained earnings are, how to calculate them with the formula, where they sit on the balance sheet, and how they differ from net income and cash.
Read articleThe four inventory valuation methods, how FIFO, LIFO, and weighted average cost change COGS and profit, and how to pick the right one under GAAP.
Read articleHow to calculate your break-even point in units and dollars, the formula, a worked example, and how contribution margin and fixed costs drive the number.
Read articleDeferred revenue is money collected before the work is done, recorded as a liability until earned. See the journal entries and examples.
Read articleCost of goods sold is the direct cost of the products a business sold in a period. See the COGS formula, worked examples, and the journal entry.
Read article