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Act technical references. Forex. Stock. 3 keys to profitability: cost of goods sold, markup, and margin - Support. Stan Snyder, CPA and expert bean counter Margin and markup are terms that are commonly used in retail businesses.

3 keys to profitability: cost of goods sold, markup, and margin - Support

They are also commonly misused and misunderstood. For a business that sells products, the wholesale cost of the product sold is known as cost of goods sold or the cost of sales. Margin is the difference between the sales price of the product and the cost of the product. Markup relates to the process of calculating the price of the product based on its cost. This article will present five concepts that you need to know to understand cost of goods sold, margin, and markup. Our Thoughts On. Financial Ratios. If you monitor your financial ratios on a regular basis, you will gain insight into how effectively you are managing your business.

Financial Ratios

Lenders also like to evaluate risk by using several sets of ratios; ratios of assets to liabilities, and ratios of lender-investor dollars to owner-investor dollars. Recognize that ratios are indicators and that only you can tell the full story about your business. So the more adept you are at explaining your financial ratios to your lender, the better they will understand your business as they makes a credit decision. Liquidity Liquidity ratios measure a business' capacity to pay its debts as they come due. Current Ratio Definition: The ratio between all current assets and all current liabilities; another way of expressing liquidity.

Safety Indicator of the businesses' vulnerability to risk. Debt to Equity Definition: Shows the ratio between capital invested by the owners and the funds provided by lenders. Efficiency Also called Asset Management ratios. How to Comply With the New Revenue Recognition Rules. Fusion-io, a fast-growing start-up based in Salt Lake City, needed a more efficient way to provide its investors and bankers with a clear picture of its revenues.

How to Comply With the New Revenue Recognition Rules

The company, which launched in late 2005, makes cutting-edge flash storage memory devices and also provides year-long maintenance contracts. The old accounting rules required Fusion-io to spread out its recognition of the revenue for both product sales and maintenance throughout the life of the service contract, which didn't accurately reflect their revenue realities.

So when the accounting standards were updated earlier this year, Fusion-io was quick to embrace them. These new accounting standards were developed by the Financial Accounting Standards Board (FASB), the non-profit group recognized by securities regulators in the U.S. to set accounting rules for public companies. The new guidance is part of a larger accounting standards overhaul spelled out in a 170-page draft that is expected to be finalized in 2011. How to Use EBITDA to Value Your Company. Looking to the future, can you envision a time when you might want to sell your business?

How to Use EBITDA to Value Your Company

"The best way to build a company is to build it as if you're going to sell it," says veteran entrepreneur and Inc. columnist Norm Brodsky. "It has to be built to last. " One place to start measuring your company's potential value in a sale is determining your EBITDA, or earnings before interest, taxes, depreciation, and amortization. It's certainly a mouthful, but the equation itself is really quite simple: subtract expenses from revenue (excluding interests and taxes) without depreciation and amortization (what you pay for tangible and intangible assets).

The remaining number paints a basic picture of your profitability as well as your ability to pay off what it owes. "It's a quick and dirty way to assess the firm's ability to pay back interest or debts," says Gil Sadka, assistant professor of accounting at Columbia Business School in New York. BoF – The Business of Fashion. Cliff Williams (Cliff_Williams) Tips for Effective Cross-Cultural Emails. Email Share Sharebar 3 Email Share So what are the ingredients for successful email communications?

Tips for Effective Cross-Cultural Emails

Your responses to my last post prompted me to think about how we can more effectively communicate across cultures via technology. Here is my top-5 list 1. 2. MoneySense. Accounting - Business and Employment. Information for the World's Business Leaders - Forbes.com.

Which Penny Stocks To Buy?   : Stocks Trading Zone. Email Marketing Blog for Small Business: 11 Email Marketing... The Tax Center, Income Tax Help from TurboTax. The 10 Most Overlooked Tax Deductions Don't overpay taxes by overlooking these tax deductions.

The Tax Center, Income Tax Help from TurboTax

See the 10 most common deductions taxpayers miss on their tax returns so you can keep more money in your pocket. Business & Finance. KnowledgeLeader: Resources for Internal Audit and Risk Management Professionals. IMA - The association for accountants and financial professionals working in business. New Hampshire : ThisWayToCPA : AICPA. Exam & LicensureColleges These are the schools in your state that are accredited by the AACSB (The Association to Advance Collegiate Schools of Business) and/or ACBSP (Association of Collegiate Business Schools and Programs).

New Hampshire : ThisWayToCPA : AICPA

Accreditation means the schools’ business and/or accounting programs have passed a national set of standards. Where's my college? If you don’t see a school listed, it may not be accredited by the AACSB or ACBSP. You can learn more by contacting your state board of accountancy. last updated 4/27/2012 Requirements Notes Education requirement will change effective July 1, 2014 to 150 hours (including B.A.) The Es of CPA-hood When it comes to licensure requirements, don't forget your Es: education, experience, examination and—depending on your state—ethics. CPA Review. 10 Blogs Every Accountant Should Be Reading.