Sales margin is essential to a business because the higher the sales margin, the more profit the business makes. The way companies calculate their sales profit can vary. You can use standard calculations to determine the amount of profit from a service or product, which is vital for long-term growth and survival. Calculating Sales Margin Read More
In business, you want to know how much you spend, earn, and how much is left. When working with a nonprofit organization, you also want to make sure that your income and expenses are allocated. Fund accounting is a method used by a nonprofit organization that illustrates accountability rather than profitability. Organizations that receive income Read More
Every organization is different. Most nonprofits need to do the following to get their accounting system up and running: Find a nonprofit accounting solution; Find an accounting solution to track funds; Open a separate bank account; Start doing bank reconciliations; Record in-kind donations; Start budgeting; Prepare and analyze financial statements. Nonprofit accounting is a unique Read More
After-tax income is the net income amount available to invest, save, or consume after applying federal, state, and withholding taxes. It is a person’s disposable income. Companies, and individuals, make economic decisions in light of how they can best maximize their after-tax income. Understanding After-Tax Income Simply put, after-tax income is essentially total paycheck minus Read More
Net income is the accounting profit amount that a company has left after paying its expenses. It is determined by net sales revenue and cost, general and administrative expenses, depreciation and amortization, interest expenses, taxes, and other expenses. Net income is the last line on the income statement itself. Some income statements will have a Read More
