Categoría: Bookkeeping

One way to think about net income is to see it as the “spendable” cash that actually flows through to your checking or savings account every month. Net income is also useful in developing a monthly budget since your regular after-tax expenses, both fixed and discretionary, will come from your net income. Their annual income […]

This formula depends on VLOOKUP function in «approximate match mode». When in approximate match mode, VLOOKUP will scan through lookup values in a table (which must be sorted in ascending order) until a higher value is found. Then it will «step back» and return a value from the previous row. In the event of an […]

Direct costs typically are direct labor, direct machine costs, or direct material costs—all expressed in dollar amounts. Each one of these is also known as an «activity driver» or «allocation measure.» If you plan on using direct labor hours, you’ll need to calculate the total labor hours worked for the month. The same goes with […]

Moreover, the cost of such software can be substantial, making it crucial to make an informed investment decision. Now that we have gained a deeper understanding of the theoretical foundations of the manufacturing accounting process flow, let’s explore how it functions in real-world scenarios. You need accurate financials to correctly forecast cash flow and ensure […]