Depreciation Expense: Calculate and Understand Fixed Asset Value

calculatorFinancial accounting is cumbersome. Interpreting the reports, keeping good records, crunching numbers – it’s all a part of the day-to-day routine of an accountant. As a business owner, it’s important to understand accounting basics to ensure you are doing the best you can do for your company.

An operating business will have assets, and these assets can be current or fixed. Current assets include cash, inventory and accounts receivable. Fixed assets include the equipment you use to run the show. The items and materials that make up the fixed assets category often incur something called value depreciation. Calculating the company expense of an asset’s lost value is the concept we’ll discuss in the scope of this article.

Before getting started, try the course financial accounting basics to get familiar with financial terms and concepts.

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How to Make Coffee at Home: Save Money and Get Caffeinated

how to make coffee at homeIt’s the nectar from the gods, or, that thing that – if you don’t have – causes major pains for the people around you: coffee. Nowadays a cup o’joe from Starbucks will run you a couple dollars and if you’re anything like me one cup of coffee a day isn’t going to cut it. So then you end up spending $5 a day on coffee, seven days a week…well, it’s expensive. Not to mention not that good. My recommendation? Learn how to make your perfect cup of caffeine for a fraction of the cost in the comfort of your own home. There’s two methods of brewing I’ll discuss here, and another for you go-out-and-get-‘em types. Learn everything you ever wanted to know about coffee in this coffee crash course.

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Revenue Formula: How to Calculate Company Income

businessstrategyexamplesRevenue is the top line or the number that indicates how much overall income the business made in a given time period. This does not include any deductions, expenses, or costs. Calculating revenue is relatively easy, if you know the price of your goods and how many were sold. Keeping good records of all transactions is the key to tip-top financial management. Learn more about financial management basics in this course.

In the most basic sense, the revenue formula is:

Quantity x price = revenue

Of course, there are other income variables like rental income and investments that also contribute to the total revenue of a company. But let’s focus on the basic principal of revenue, which is how many items did you sell and how much did they cost?
Keeping good track of your finances in a business is top priority. In the course Business by the Numbers learn the most efficient ways to track and monitor company money.

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Net Revenue: Profit Gain After Damaged and Returned Goods

calculator with finance statementIn financial accounting there are a lot of terms that get used interchangeably by layman when they are in fact quite different. Likewise, there are terms that are used by companies that sound different and mean the same thing. Net revenue is one of the latter. It also called net sales and sales revenue. The bottom line is that net sales, sales revenue and net revenue all capture the amount of money being made through sales less the costs of damaged goods, discounts and returns. In the course financial accounting, you’ll learn all about these terms and what they mean for your business.

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How to Make Filter Coffee: Beans, Coarseness and Filters at Home

how to make filter coffeeCoffee is one of those things, if you like it – you probably have a hard time starting your morning without it. For the non-coffee drinkers out there, it’s certainly an acquired taste and it’s one worth working towards. I know that unless I have my morning cup of French press coffee I’m not going to be getting much done. It helps you focus and gives you a little boost of energy. Some argue tea does the same thing, and I suppose it does, but nothing can beat the enchanting smell and rich flavor of a good home brewed cup of joe.

The most popular method of home brewing is to make drip coffee with the use of a filter. The French press method is slightly more work but also well worth it. Additionally, some who brew coffee from home use filters to brew cold coffee. Don’t say no before you try it, it’s delicious for iced coffee and for making iced espresso drinks – depending on the type of bean and how long it sits for. Learn everything you ever wanted to know about coffee in this coffee crash course.

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Your Valued Customer Deserves More: Business Language that Sells

customerWhen you’re a consumer, you get swarmed with advertisements and appeals to win you over. Some are a bit more sincere than others. There are certainly tactful ways to go about showing your customers you appreciate their business and I have to say – dubbing them a “valued customer” isn’t one of them.

Sure, it shows they are grateful for your business, but loyal customers usually have names and it’s not the beloved business title of valued customer. And what about the flip side? What if you’ve only been a customer since 2 o’clock today and you get a marketing email with the greeting “Dear valued customer” doesn’t that seem a bit, oh I don’t know, not genuine? There is a way to show appreciation with stepping over the boundary of being tacky and disconnected and it’s all in the language. Learn what not to do if you want more customers in the course Finding Your Ideal Customer.

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Gross Revenue: Overall Company Sales and How to See Your Profit

gross revenueA business exists to make money, right? That’s probably why you decided to own one. You get to call the shots, sell what you want and (sometimes) create your own schedule. The only downside for most is dealing with all of the accounting that comes along with making money. Don’t let the terms confuse you, there are a lot of names for the same thing that get tossed around and can make you feel a bit crazy. Gross revenue is important because it allows you to see how much money is coming into your business as a total. However, this figure is not indicative of the amount of money that you are going to be bringing home. Learn more about accounting and how it’s important for business in this course.

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Procurement Job Description: Purchase Company Goods

 job descriptionTo procure, is to acquire or obtain. So if you are in a position of procuring, you are probably in a position of acquiring or obtaining goods and materials for the business. We’re not talking about going clothes shopping and getting paid for it (although retail stores do need purchasers), it’s more like buying company equipment, dealing with wholesalers for inventory and overseeing all purchases in accounts receivable and payable. Don’t know what AR and AP are? Take the course an introduction to financial accounting to find out. Ever wonder how a store chooses what to carry? Those kinds of decisions are typically made by those in the procurement department. Like most jobs, there are management roles, assistant roles and clerks.

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Revenue Accounting 101: The Basics

revenue accountingAccounting is a fundamental component to the operation of a business. Without it, you’d never know how much money was coming or going which would paint a very vague picture of overall profit or debt. Revenue is a financial accounting term that means incoming money. This is different than profit which is incoming money less expenses. It’s important to understand the differences between these two terms as they are often used synonymously but they are actually distinct financial keywords. Revenue accounting is the process of tracking, receiving, accounting for and collecting funds coming into the company. In the course Financial Accounting Basics learn accounting fundamentals.

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6 Procurement Methods: Obtaining Quality Goods and Services

procurement methodsThe procuring department is responsible for acquiring goods and services for a business. This may involve shopping for goods at competitive prices, handling all legal procedures associated with obtaining a contract, budgeting costs for the goods and studying financial trends to ensure that company money is being spent wisely.

Learn accounting to Understand Business is a course that can help you better analyze company financial trends. Choosing which suppliers a business will use isn’t as easy as it sounds. A good sounding product and a good price doesn’t necessarily mean it’s a green light for signing on a new supply customer. So what methods does a procurement team member use during the selection process?

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