Accounting / July 15, 2018 / Willow Mccoy
The good news is that you don’t have to be an accountant or a financial planner to negotiate in the world of business finance. Here are some business finance terms and definitions that will help you find your way to successful small business funding.
In the context of corporate financial reporting, the income statement summarizes a company's revenues (sales) and expenses, quarterly and annually for its fiscal year. The final net figure, as well as various other numbers in the statement, are of major interest to the investment community.
You need to be able to track what you owe a supplier, what you’ve sold and what your customer owes you, especially in a large company that manages hundreds of different transactions a day.
Cost of Sales For a manufacturer, cost of sales is the expense incurred for labor, raw materials, and manufacturing overhead used in the production of goods. While it may be stated separately, depreciation expense belongs in the cost of sales. For wholesalers and retailers, the cost of sales is essentially the purchase cost of merchandise used for resale. For service-related businesses, cost of sales represents the cost of services rendered or cost of revenues
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