Accounting adjustments can be a red flag for an auditor. If a company has an experienced accounting staff and strong internal controls, they’re going to get most things right. Each accounting entry is supported by sources documents, such as invoices, receipts, and purchase orders. Accounts are reconciled in a timely manner, and the financial […]
How to Use Activity-Based Costing (5 Video Links)
in Accounting/by Kenneth W. BoydNot all costs can be assigned directly to a product or service, and that makes it harder to compute the total cost for an item that you sell. Say, for example, that you manufacture baseball gloves. You spend money to purchase leather as a raw material, and you incur labor costs to run machinery […]
What Pier 1’s Bankruptcy Teaches Us About Return on Assets (blog post, graphics)
in Accounting/by Kenneth W. BoydWhat’s the rate of return? It’s a common investor question. When you’re investing in stocks, bonds, or mutual funds, it’s helpful to know the investment’s historic rate of return. You compare the investment risks to the rate of return, and use that analysis to make a decision about investing. A business owner […]
What Airbnb’s Profit Struggles Teach Us About Contribution Margin (Blog post with graphics)
in Accounting/by Kenneth W. BoydI like Airbnb, and I’ve used the service multiple times. The company has huge brand awareness, but was struggling to produce consistent profits in early 2020. What Happened The Wall Street Journal wrote about Airbnb’s 2020 profit struggles, as it considered launching an IPO. Here are some quotes: “The company is […]
What the $4.1 Billion Juul Writedown Teaches Us About Goodwill (Blog post, graphics)
in Accounting/by Kenneth W. BoydGoodwill is one of the most misunderstood accounting concepts, and the stakes for getting goodwill accounting right are very high. Altria, the cigarette manufacturer, took a huge financial hit in early 2020 on its investment in Juul, the firm that produces the smokeless/ vaping product. What Happened This Reuters article explains that: […]
What to Know Before You Buy a Pre-Selling House and Lot
in Personal Finance/by Kenneth W. BoydBuying a home is one of the biggest financial milestones in every Filipino’s life. A house is a costly yet worthwhile investment, but it doesn’t need to be so expensive. There are tons of options that will save you money, while still allowing you to get the house of your dreams. One option is a […]
Give Yourself an Edge in Your Accounting Career
in Accounting/by Kenneth W. BoydA career as an accountant can certainly be a lucrative one. If you’re able to work with numbers and help businesses keep their finances in order, being an accountant can be rewarding. It is also a competitive career, with plenty of other accountants vying for work. If you want to be sure that you […]
What a Pentagon Scandal Teaches Us About Accounting Changes (Blog Post, Graphics)
in Accounting/by Kenneth W. BoydAccounting adjustments can be a red flag for an auditor. If a company has an experienced accounting staff and strong internal controls, they’re going to get most things right. Each accounting entry is supported by sources documents, such as invoices, receipts, and purchase orders. Accounts are reconciled in a timely manner, and the financial […]
What the Amazon/ Fed-X Dispute Teaches Us About Cost Allocation (Blog post, graphics)
in Accounting/by Kenneth W. BoydDo you notice all of the delivery trucks on the road? At one point the other day, I saw Amazon Prime, USPS, and Fed-X trucks: all in the same block. The volume of trucks increased during the pandemic. Sure, online business is booming, but a big factor is shipping costs. How to you […]
Expand Your Brand’s Reach in the Area Beyond Your Physical Store
in Entrepreneurship/by Kenneth W. BoydIf you’ve ever felt that the static location and four walls of your store or office have limited your ability to spread brand awareness physically, then don’t be afraid to branch out. Your physical marketing and branding efforts don’t have to start and end in the physical space that your store occupies, after all. Hire […]
Helping Out Employees in Times of Need
in Entrepreneurship/by Kenneth W. BoydAlthough you might not see your employees much outside of work, there’s no denying that they also have personal lives. In fact, things that are happening in their personal lives can often affect their performance at work. While the simplest thing to do might be to tell your employees to leave their personal issues at […]