How To Use the Direct Write-Off Method

There are several advantages to using the direct write-off method, which make it an especially appealing choice for smaller organizations, especially those with relatively unskilled accounting personnel. First, it is quite simple – just charge a receivable to bad debt expense, and you are done. Second, a bad debt charge-off is easy to prove, since … Read more

COGS VS OPEX: A Comprehensive Comparison Of Operating Expenses And Cost Of Goods Sold

In the final step, we subtract revenue from gross profit to arrive at – $20 million as our COGS figure. As another industry-specific example, COGS for SaaS companies could include hosting fees and third-party APIs integrated directly into the selling process. For example, COGS for an automaker would include the material costs for the parts … Read more

What Are Assets?

These real, often tangible assets are attached to financial assets, such as commodity futures or real estate investment trusts (REITs), respectively. Your net worth will often grow over your lifetime with smart financial decisions and a bit of luck. At this point in time, your assets are a car worth $15,000, a checking account with … Read more

Standard Costing: Definition, Advantages, and Disadvantages

Thus, in a standard cost system, acompany assumes that all units of a given product produced during aparticular time period have the same unit cost. Logically,identical physical units produced in a given time period should berecorded at the same cost. Further investigation should revealwhether the exception or variance was caused by the inefficient useof materials … Read more

What is a Contra Expense Account?

These adjustments are crucial as they directly impact the company’s net income and overall financial performance. Various types of contra expense accounts exist, each designed to offset specific expenses and improve the accuracy of financial statements through precise expense recognition. The primary purpose of a contra expense account is to offset or reduce specific expense … Read more

Lancaster, CA Tax and Accounting Services

It is our goal to build a genuine & long-lasting partnership with you. Forensic accountants investigate financial crimes involving fraud, embezzlement and other issues. They often work closely with law enforcement and lawyers, and they can help determine the legality of financial activities, according to the BLS. We will ask good questions and be responsive to … Read more

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