A BIA or business impact analysis emphasizes the most important processes of your company that could threaten your normal business operations in case of a deficit or outage. These processes allow you to evaluate the consequences of a crisis more effectively and devise strategies…
The profit and loss account (P&L) is also called an income statement. All general ledger accounts are summed up with expenses subtracted from the income to leave a profit or loss amount for the period, which is usually one financial year. Daily operating expenses are summarized…
“Agile working” is currently one of the biggest trends in the corporate world. It’s seen as the best way to master the challenges of digitalization. How does the agile approach work? What opportunities and risks does it involve? And what role will this hot topic play in the…
Supply and demand determine pricing in a free market. Demand has an influence on supply and vice versa. With no demand, any supply is redundant, and with no supply, demand is ineffective. When they are in equilibrium, prices remain stable and goods are affordable. But how exactly…
Which business documents are subject to retention? Who is obligated to store them? 2 years, 6 years, 10 years: How long is long enough? The requirements for retaining commercial documents and their relevance to tax law can be confusing. We will guide you through the process and show you what needs to be kept by whom and for how long, as well as how to properly store business documents.
Many U.S. companies must comply with records management or face hefty penalties. The Sarbanes-Oxley Act was passed in 2002 to crack down on corporate fraud and to regulate accounting in companies. Read on for more information about the requirements and what the act aims to achieve.
Starting a new business comes with a great deal of new responsibilities and paperwork – wising up on the relevant administrative requirements for your business is a good way to avoid issues in the future. This is certainly the case for declaring tax – and to collect tax for your company you will need to register for an employer identification number (EIN), otherwise known as a sales tax number, or...
Do you want to bring a new product onto the market or offer a service that’s in demand? Then you first have to calculate the sales price. Doing this involves many factors. All conceivable costs as well as your profit margin must be incorporated into the price calculation. What are all the things that you should keep in mind?
Letting employees go is hard on all parties, but it can be made a lot easier if you plan which layoff criteria to use beforehand so you’re ready if the worst case scenario presents itself. There are five main methods employers can use to work out who to keep in the company and who sadly has to be laid off. The defined criteria is taken into account and each employee can be evaluated according to a...
Customer care is one of the corner stones of a successful company – whether you are running an online store or offering bank accounts. Even smaller companies can benefit from the use of CRM tools, which help to organize customer- or buyer data. These software systems automate and optimize the process of customer relationship management.
A properly prepared trial balance is the key to accurate company valuations and is also the basis of your annual balance sheet. For this reason, it is very important that there are no errors. Your trial balance should consist of a list of all assets and liabilities. But what exactly is a trial balance? We will explain what you need to look out for and show you an example of what your trial balance...
For companies, there is no sweeter sound than when the cash drawer jingles. But the IRS requires a detailed listing of your operating revenue and expenditures at the end of each year. This includes cash transactions. A cash book will help you to keep track of your cash drawer. This guide explains how to properly keep a cash book and what benefits you can enjoy by using professional software.
Would you like to judge the price of a product or service appropriately, but you don’t know its corresponding overhead costs? In contrast to direct costs, overheads such as factory rental costs cannot be directly assigned to a product or service. Instead, you must calculate the overhead rate to determine the appropriate percentage of overhead costs and, subsequently, the total expenses which...
The option to make use of a cash discount is an incentive for both customers as well as sellers to promptly pay an invoice. Offering a cash discount is not a requirement, but rather an act of goodwill on the part of the supplier or seller. The size of the cash discount and its deadline varies. In order to make use of a cash discount, it’s sometimes even advisable to take on credit with a bank...
A solid business growth strategy is paramount for any business owner. This category focuses on all the aspects that follow the establishment of a company; from business strategy and growth, to recruitment, bookkeeping, and taxes.
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