Archive for August, 2010

Inventory Accounting

Inventory Accounting

Inventory always seemed like a huge undertaking for me, but  learning about it actually became very straightforward and easy to understand.

I First started with the inventory I had on hand.  No matter when I sell my product, the value of my inventory will remain constant based on different methods of inventory accounting.

Those methods are:

Weighted average

First in/First out

Last in/Last out

Weighted average – calculated the total cost of items in inventory that are available for sale divided by the total number of units available for sale.  I always do this calculation at the end of my accounting period.

For example:

Seventy five pairs of shoes @ $20 each  = $1,500

Thirty seven pairs of shoes @ $10 each = $  370

 Total number of shoes  = 112

 Average shoe cost = $1870 / 112 = $16.69

  $16.69 is the average cost for each pair of shoes.                             

 First in/First out – I was confused on this method until an accounting friend of mine explained it.  FIFO is the abbreviation used in the accounting world.  So, first in/ first out means that the first pair of shoes I put into inventory will the first ones sold.  This is based on the principle that most businesses tend to sell the first set of goods that come into inventory.

Example: suppose I purchase five pair of shoes @ $10 a piece on March 17 and purchased another five @ $20 a piece on march 20.  I then sold the first pairs of shoes on March 30.  Using FIFO  method, the five shoes I purchase @ $10 would be sold first.  This left me with the five shoes purchased for $20 and now my inventory value reads $100.

Last in / First out -  This method is referred to as LIFO.  This method is based on the assumption that the most recent units purchased will be the first ones sold.  The advantage of last in/first out accounting is that typically the last shoes purchased were at the highest price and that by considering the highest priced items to be sold first, a business is able to reduce its short-term profit, and hence, taxes.

Example:  suppose I purchased five shoes @ $10 a piece on March 10 and five more @ $20 a piece on March 15.  I then sell five shoes on April 12.  The value of my inventory, using LIFO, would be $50, since the most recent pair of shoes purchased at a total value of $100 on March 10 and were sold on April 12.  I was left with the five pairs of shoes valued at $10 each.

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Posted by nooshin - August 29, 2010 at 1:41 pm

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Paper Clutter Solution

Paper Clutter Solution

Transform receipts, business cards and other documents into searchable, organized, and useful data.

If you work in the business world, you surely have receipts, business cards, bills, and other paper documents floating around your office and car, or tucked inside your wallet. All these pesky pieces of paper are critical for tax preparation, surviving IRS audits, and sales or networking, but they are a huge pain to organize and are always easy to lose. Pushing these receipts or contracts through an expensive scanner or manually entering information into spreadsheets is tedious and time-consuming, as is hiring an assistant. And according to Price Waterhouse Coopers (www.pwc.com), businesses spend $20 in labor to file a paper document and $120 to find a misfiled document.

Visit www.Shoeboxed.com, a company that transforms receipts, business cards and other paper documents into searchable, organized and useful data. With Shoeboxed, you’ll never waste another minute on scanning and data entry, or lose an important paper document again.

www.Shoeboxed.com is a robust paper clutter solution that comes with mobile, email and mail-in options to submit documents for processing. After users send documents to Shoeboxed, everything is scanned, data entered and human-verified. The extracted information is then organized and uploaded to the Shoeboxed web application, a secure site  where users can access their individual accounts online from any computer. In the account, users can print copies of documents, generate expense reports and export data to QuickBooks, Quicken, Excel, PDF, Outright.com, FreshBooks, Outlook, Address Book, Salesforce and more. Since Shoeboxed is an IRS-accepted electronic storage system, receipts are always tax and audit-ready, and the hard copies can be discarded after processing.

Shoeboxed Mobile is great for travelers or any smartphone user. You simply snap a photo of a receipt or a business card on the spot, and forward the image to your unique Mobile email address. The image will be data entered, organized and categorized in your account. For iPhone users an application is available in the iTune store for submitting receipts.

Shoeboxed offers a 30 day free trial, try it now and  Save $10 on any Shoeboxed Mail-In plan.

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Posted by Administrator - August 26, 2010 at 2:52 pm

Categories: Receipt Scanner   Tags: , ,

Business Growth

Need Corporate Capital? Take Your Company Public

by James Scott

Most companies who are on the venture capital trail are not set up properly to attract investors. When an investor looks at your business plan and private placement memorandum they are looking for certain things. Of course funding sources look for the obvious, a solid business model, positive cash flow, industry genre with solid future growth, recession proof business (if there even is such a thing) and minimal debt.

Countless companies are turned down for funding because they lack the basics such as: an advisory board, board of directors, solid executive staff with a well groomed pedigree, reasonable share price, business plan and PPM that spell out the risks for the investor and an original marketing strategy that covers all the angles. These are just a few of the most common mistakes that companies make out of naivety and by not taking the time to hire an expert to properly structure them to make the entity appeal to investors.

Seasoned expansion and turn-around consultants can step into a company and immediately zone in on the issues that will hinder a client’s investment magnetism. Often times it only takes 2 to 3 weeks to completely reorganize a company to make it stand out like a beacon in the turbulent finance industry. If you are seriously considering the idea of raising capital with a private placement memorandum, traditional institutional loans, venture capital or a public offering don’t be penny wise and dollar foolish.

Spend some money and hire a consultant who is completely submerged in the finance industry to take control of the elements of your corporation that are seen as ‘black eyes’ to investors so that you can achieve the capital you’re seeking.

The reality is, raising capital for your company is easy and straight forward if you’ve taken the time to examine your business objectively and sought out the expert analysis of an industry expert consultant who will run your company through a formula and make the necessary changes to increase your ability to raise capital. – 40533

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Posted by See Below - August 13, 2010 at 2:26 pm

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Client and Employee Relations

Collar Pins – Creative And Effective Corporate Gifts

by Myra Price

A corporate gift is an essential tool for building permanent relationships with clients and employees. It plays a multi-purpose role in an organization and that is the reason why it is so important to choose the right gift.

Collar Pins, by virtue of their variety in terms of colour and design, apart from being appealing, fit the bill perfectly. New design technologies in collar pins further add to the versatility of these pins as they can even have a company’s name engraved on them. They can also sport the company’s tagline and can be casted during manufacture to resemble a specific product.

Owing to their variety, they have a great effect on employees and clients. They make employees appreciate that they are valued by the management, while the clients feel closer to the service provider, and thus they generate the loyalty of these two key groups of people.

Price is a critical aspect while picking a corporate gift. The perceptive value of collar pins as effective gift items is much higher than their cost, therefore money spent on them is always worth the money. The usefulness and functionality of collar pins ensure that they are happily carried around by people on different occasions and are not just placed at one place for decorative purposes. As they can be put on daily when going to work, they are noticed by a lot of people and hence the brand’s promotion also takes place effectively.

The companies, however, have some key points to keep in mind before they give away collar pins as corporate gifts. Most importantly, they should be sturdy enough to endure repeated use.

The design of collar pins must be such that the owner is persuaded to wear them in the public to make a style statement. Being loud or having an asymmetric design may not be appreciated by the people. The practicality and suitability of use must be emphasized during the creation of design of collar pins so that the wearer doesn’t face any inconvenience.

Corporate gifts are an effective way for a company to reach out to its target audience, as such gifts have great exposure and circulation among the public. Collar pins perfectly fit such needs. They have been used widely by organizations for a long time and have always come out as winners. Considering all the exclusive qualities that collar pins have as corporate gifts, companies that have been reluctant in making use of them must wake up to their potential. – 40533

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Posted by See Below -  at 10:35 am

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