Running a small business is not always easy. With many demands on your time, it’s easy to lose focus and try to do everything all at once, rather than to concentrate on what really matters one step at a time. Productivity can suffer as a result, affecting your business’s competitiveness and profitability; in challenging economic […]
As a conscientious small business, you work tirelessly to deliver your products or services to your customers on time so, when invoice deadlines pass without payment being received, it’s frustrating. But overdue invoices aren’t simply an inconvenience; when clients don’t pay by the due date, your business’s cashflow can suffer. It becomes harder to settle […]
In business, two main factors affect profitability: revenue and expenses. Companies with high levels of spending find it more challenging to turnover a healthy profit which limits their versatility, restricts Research and Development (R&D) and, ultimately, can put their very existence in jeopardy. Implementing cost controls helps to lower your business’s overall expenditure, so that […]
Being a freelancer often tends to mean that you are the sole person responsible for your business – in every aspect. A common obstacle that many sole proprietors face is trying to reduce time spent day-to-day tracking time on projects, invoicing, billing, managing tickets etc… all things that typically detract businesses from growing their bottom […]
If you earn below a certain threshold each year, it’s possible that you won’t have to pay federal income tax. The exact amount you can earn before paying taxes depends on a number of factors, including your gross income, your age, dependency and filing status. In 2019, any single person below the age of 65 […]
Once you’ve accounted for all returns, sales discounts and allowances, what remains of your gross sales figure is your net sales. A business with gross sales of $50,000, discounts of $3,000, sales allowances of $4,000 and sales returns of $2,000, for example, would have net sales of $41,000. Net sales is the amount of revenue […]
Every small business with employees needs to calculate withholding tax so that they can deduct the correct amount from each employee’s paycheck to cover their tax obligations as defined by the IRS. In order to calculate withholding tax, employers will refer to the IRS’s income tax withholding table and each employee’s W-4 form to ensure […]
In accounting terms, when we talk about gross profit, we are referring to the income that a business has left over after paying all the direct costs related to manufacture of a product. The formula to calculate gross profit is: Let’s remind ourselves what some of those terms mean. REVENUE When a business sells a […]
Gross profit is the money a business has remaining after it has paid off the direct costs of manufacturing a product or service. Calculating the gross profit margin is done by subtracting the Cost of Goods Sold (COGS) from the total revenue, and dividing the sum by total revenue. It can also be calculated as […]
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