Managers must understand the terms and concepts behind managerial accounting for planning, directing and better decision making.
Tag: accounting
How to use breakeven for analysis and decision-making.
Breakeven analysis shows managers how much revenues needs to accomplish profits.
Creating Account Receivable Subsidiary and Aging
Using Microsoft Excel / Google Sheets Do you have credit sales? Do you feel cumbersome keeping track of due dates and aging accounts receivable? Would you like to have your clients on a worksheet easy to maintain? The answers to these and other questions can be answered with an Account Receivable Subsidiary with an Aging….
How to use the count() function in Google Sheets
The Different Counts Functions If you are familiar to Google Sheets and Microsoft Excel, you might have worked with functions. Most of us, have used several functions and typically we keep the ones that work for us. In this blog, I will show you six types of counts functions that you can use to automate…
How to create a LIFO spreadsheet
Using Google Sheets Last in, First out methodology The LIFO methodology assumes that items bought last will be sold first. LIFO holds true when inventory are kept in stacks; thus, the first one sold should be the last one acquired. Using this method, causes that last prices become your cost of goods sold, and older…
How to create an average cost inventory spreadsheet
Using Google Sheets Average Cost Calculation The average-cost method allocates the cost of goods available for sale on thebasis of the weighted-average unit cost incurred for a given period. Several businesses use this methodology when inventory units are similar in nature. Note, the calculated average does not refer to a per unit cost only; instead,…
How to create a FIFO Inventory Spreadsheet
Using Google Sheets Most of us work in businesses that already have their accounting software, that calculates for us all the account balances. We do not need to prepare agings, schedules, or inventory lists since the system takes care of us. However, several times your software does not accomodate your ideal solution for calculating an…
How to Manage a Business’ Accounts Receivable?
This site contains affiliate links to products and services. We may receive a commission for purchases made through these links. Definition: Amounts owed to the business by individuals or businesses. Receivables arise from credit sales of goods or services. To the company, these represent current assets; several companies have large amounts of accounts receivable. Financial…
How to Use the Accounting Equation
This site contains affiliate links to products and services. We may receive a commission for purchases made through these links. The accounting equation denotes the basic elements of what the business owns and what it owes. The resources that will yield probable future benefits are the assets, and those rights or claims are the liabilities…
What are adjusting entries in Accounting?
Adjusting entries are required transactions for proper financial statements preparation. There are two categories divided in four types.