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Archives for Accounting

New Year Accounting Resolution for your Business

By Dipali Nishad for SKB Accounting

 

Each year, people all over the world have a new resolution to improve their mental health, physical health and career goals among many others. We are here to remind you of some business resolutions that you might not want to miss out on in 2022. 

  1. Reform Business & Marketing Plans: No business can stand out in the corporate world without an effective business and marketing plan. You must have stepped in your industry with one. However, with the passing time, it requires an update as your finances, business goals, competitors and range of a team change. If you wish to expand your business or start a new project, you may need to take a business loan. Revisiting your financial plan according to your changing requirements becomes crucial here.

    With the technology driven world, not riding on the latest marketing trends can cost a decline in your profits. You can analyse the success of the marketing plans you used last year and curate the best one for the new year. Brainstorming and designing marketing strategies with your team will give you an edge over competitors.
    Here are some marketing strategies that you shouldn’t miss out on.

  2. Take Professional’s Tax Planning Advice: Tax is complicated, that’s why a tax professional’s advice is essential. Tax planning is a legal process where a CPA or some other tax professional expert arranges and looks at all of your business expenses, revenues and activities to inform you of all the tax breaks or waivers available to you.  Tax advice is considerably a saving to your business. They help in restructuring your company finances to make them more tax-friendly.

  3. Clear unpaid Customer Invoices: Unpaid invoices directly affect your cash flow. If an invoice is unpaid for a very long time, don’t hesitate to give a gentle reminder. However, always verify that the invoice had clear details like due date, amount of invoice, customer’s name, course of action if the deadlines are missed, invoice is mailed/sent at correct address, etc.
  4. Prioritize Company Culture: The Alternative Board (TAB) stated in its survey of business owners that 86% of respondents say they believe company culture directly impacts productivity. As a small business owner, it’s important to understand and maintain good relations with employees. Your company culture influences individuals mindset, engagement and internal coherence in the actions of employees having diverse backgrounds.

    “Customers will never love a company until the employees love it first.” – Simon Sinek

    You can conduct surveys on an anonymous basis to get their take on the company culture. Then accordingly analyze and curate a culture that portrays your business value while also prioritizing the requirements of employees.

  5. Outsource Accounting Functions: In the last few years, did you ever feel that your employees or you are not able to make time for complex operations of the business due to in-house accounting?

    Yes, then outsourcing is your call.

    Outsourcing the accounting department can bring massive changes in your efficiency and performance because of the following reason:

  • Eliminates Cost & Time of Hiring & Training an in house accounting department
  • Get Expertise of Accountants and Professionals from different industries
  • Accounting firms use latest automation technologies which provides accuracy
  • Handles and gives best advices for your accounting department, so that you can focus on your primary operations

Schedule a meeting with us here to keep your business ahead of the curve this year! 

 

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Technological advancements in Accounting industry and their benefits for your business

By Anushka Menghwani for SKB Accounting

There have been dramatic changes in the Accounting Industry over time. With the continuous technological advancements, traditional ways of business functions are transforming.
Modern Accountants are not responsible for just tallying financial columns now; they act as Financial Managers of the Company. The principles of accounting have remained the same, but the technology adopted has changed drastically.

Before the automation of accounting functions, accountants did everything manually. There were higher occurrences of mistakes that would take hours to recalculate and reconcile. Accounting and bookkeeping were also much more of a cumbersome process than they are today.

Accountants have to adapt to changing technologies and upgrades continuously. E-business activities help integrate various business functions like sales, marketing, accounting, etc., resulting in streamlined processing. Cloud-based systems, ERP services, etc., make things available on a single portal with easy real-time access.

Here’s why you should take advantage of Virtual Accounting services and Automated Accounting:

  1. Modern Technology has simplified accounting for both accountants as well as clients. Accounting functions are now more streamlined with the integration of various software. These software tools help in better tracking and analysis of the financial transactions and data of any business.
  2. With Global digitization, the need for in-person communication and consultations has gone down. Clients can access real-time data whenever they want.
  3. Data crunching is now largely automated, allowing accountants to focus on and add value with other financial information vital to the businesses. They help managers formulate better business policies. After computerized accounting, the margin of error has been minimized. Instead of generating and recording the transactions, more focus can be put on their study and interpretation
  4. Automation does all the grunt work. It results in higher precision, accuracy and reduces the possibility of errors. It also saves time that an accountant would’ve spent doing work manually. By saving time, productivity increases.
  5. Gone are the days of accountants rummaging through storage rooms full of thousands of files. Now they access files virtually in seconds. All the information has become easy to categorize, store and filter through.

Technology has changed the present and future of Accounting. By moving to cloud-based accounting systems, businesses can save 30-70% on IT costs. Having virtual accountants and bookkeeping services also helps save costs and time.

Similarly, SKB Accounting helps you focus on running your business. You can give maximum time and attention to the core functions of your business while our experts take care of your accounting and bookkeeping needs. When you are relieved of the accounting functions being taken care of, your time and funds can be redirected towards the business’s operations.

Our bookkeeping services are designed to achieve accuracy and precision along with saving costs. We believe in acting as your partner, providing tailor-made services , which are not limited to just numbers.

Click here for more information on our Accounting and bookkeeping services.

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4 Benefits of virtual bookkeeping services

Bookkeeping functions are the base of a strong accounting foundation for any business. While Production, Distribution, Sales, and marketing can be the core functions of any business, Accounting and Bookkeeping require maximum precision and accuracy. The finances of the business need to be in good hands. By hiring a virtual bookkeeper, you can avail yourself of multiple benefits like reduced costs, increased productivity, and more time to focus on critical areas of the business.

More than 1/3rd of small businesses are outsourcing their bookkeeping functions and here’s why:-

  • Save on costs 

You can save on costs like Payroll, Employee Benefits, Training costs, and Recruiting expenses. Hiring an in-house bookkeeper involves considerable additional expenses, which can be avoided by hiring virtual bookkeeping services. You can spend these funds more on employees who support the core functions of your business and increase productivity.

  • Flexibility and Customized services

You can have your work done on time and according to your schedule. You can have quick access to all financial reports & analysis with specifics and key information about your business and its Financial Health according to your needs. SKB Accounting provides tailor-made services to suit your needs. You can customize the package of services you receive by adding payroll, Virtual CFO services, Accounts receivable, etc. or any of our other services. We can work with various software like Quickbooks, Xero, Buildium, etc

  • Proficient Technical Support

SKB Accounting offers professionals equipped with the latest technology and updated accounting tools. You get the latest technological support at all times without spending extra on technical updates. We are Quickbooks certified proadvisors and provide strategic insights with an unbiased perspective and professional experience of 25+ years.

  • Ehanced Efficiency

SKB Accounting helps you focus on running your business. You can give maximum time and attention to the core functions of your business while our experts take care of your accounting and bookkeeping needs. When you are relieved of the accounting functions being taken care of, your time and funds can be redirected towards the business’s operations.

Our bookkeeping services are designed to achieve accuracy and precision along with saving costs. We believe in acting as your partner, providing tailor-made services , which are not limited to just numbers.

Click here for more information on our Accounting and bookkeeping services.

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Future of cloud accounting

By Nivedita Verma for SKB accounting

What is cloud accounting?

Cloud accounting means storing, editing, and accessing your accounting and bookkeeping data over the internet or ‘in the cloud’ instead of a physical hard drive/computer.

The companies who use cloud accounting can login online to access their data securely through their cloud service provider or software. You can also integrate third party softwares with your core cloud accounting server to further increase your productivity and quality of work if your cloud accounting has an open Application Programming Interface.

What are the benefits of cloud accounting?

Before the cloud, accounting softwares were desktop-based, the application would be installed and run from the hard drive of your office desktop computer. This system needed constant software updates and periodical backing up of all the information.

Online accounting moves the whole accounting process to the cloud and improves it. Here are some perks of cloud accounting~

  1. Seamless collaboration: Cloud based accounting enables you to work with anyone who has access to your cloud software. You can edit documents together, share annotations and upload data, all in real time. This allows you to collaborate seamlessly with a co-worker or a client anytime remotely.
  2. Flexible: With cloud accounting softwares you can access your updated data anytime and anywhere. This allows the flow of information-based wise decisions and data analysis whenever needed. Your accountants can work-from-home or on a vacation if need be without stressing about being in the office to access the desktop.
  3. Scalability: The flexibility of cloud accounting helps the users to meet the growing demands of their business. You will have access to additional features, support, and storage immediately. Desktop-based softwares lack this feature and often fail to support the rapid business pace. If your cloud accounting software has an open API, you can also integrate with third party software
  4. Security: Cloud accounting means that your data is not stored in a physical device, instead it is backed up on one or more servers at a time. Your data is immune to corruption, destruction, or theft as long as you use a secure cloud accounting software.
    Other benefits of cloud accounting are automation of repetitive tasks, cost efficiency, and easy to learn user interface that comes with understandable tutorials.

The future potential of cloud accounting

As more and more businesses are moving towards cloud accounting software, the ones who have still not upgraded will have to catch up to remain competitive. Cloud accounting can never replace the whole job of accountants as some complex issues still need human understanding. The developments in the accounting sector have taken place due to the growth of the AI world and the benefits it provides to enhance the job of accountants. The future of accounting is safe and bright with the right technologies at play.

Get started with us today

We at SKB are Quickbooks Pro Certified accountants with 25+ years of experience. We provide expert services in Accounting, Bookkeeping, CFO, Payroll, and Reporting Automation.

Book a free consultation call with us today to see what suits your business the best!

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Important Accounting Considerations for a Law Firm

Important Accounting Considerations for a Law Firm

We all know how different accounting considerations are important for different modes of businesses, right? However, when you talk about a law firm, the considerations needed to be made might be a bit “too” different from the rest, owing to the nature of the business. Here are some of the important accounting considerations that law firms need to make:

Attorney Hours

One of the most important things that a law firm needs to consider is the time each individual is spending for generating revenue for the business. However, it’s a bit trickier than what you might initially think. The fact of the matter is that the working hours of an attorney are not as easily determined. If you tend to classify the time an attorney spends in their office as “working hours” then you might be mistaken. Why? Well, it’s because an attorney will not bring in revenue simply by sitting inside their office. Rather, the revenue that they bring in will depend, typically, upon the time the attorney spends with their clients. To put it simply: when making decisions factoring attorney hours, a law firm will need to bring other considerations into play as well.

Reimbursements

Most law firms offer reimbursements to their clients in case a case doesn’t go their way. I mean…that’s what makes the law firm seem trustable and competitive, right? However, the fact of the matter is that law firms don’t like reimbursing clients, for obvious reasons. When it comes to reimbursements, the management of law firms needs to keep a close watch on not only the reimbursements made but also the attorney who handles that case. Why is this important? Well, having an attorney who consistently creates a need for reimbursements needs to be held accountable. Such considerations will not only make the law firm more profitable but boost the competitiveness of the attorneys as well.

Attorney Profitability

Ultimately, a law firm will need to consider the profitability that each attorney is bringing in for the law firm. In case the profitability generated by an attorney doesn’t justify the expenses made by the company, over a period of time, then it points towards the fact that there’s a need to consider the future of the attorney with the law firm. The law firm is a business after all, and the purpose of every business is to generate profits, at the end of the day, right? If you think about it, factoring the profitability of an attorney will aid the business in making important business decisions. For example, the growth of attorneys who are extremely profitable will, obviously, be much greater than attorneys who’re not doing as well,. Such a consideration also aids the law firm in deciphering the right set of attorneys that will be catering to the most important clients.

There are countless other accounting considerations that are important for a law firm, if it wishes to maximize its profitability. For expert advice on the matter, you can schedule an appointment with the experts at SKB Accounting.

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The practice of accounting is pretty much standardized, but when it comes to the important indicators for different kinds of businesses, there ought to be a difference, right? What might be an important consideration for one kind of business might be completely irrelevant for another. Keeping that in mind, here are some of the accounting information that might be important for a gym franchise: Revenue Split by Memberships Revenue is important for all businesses, right? However, for most businesses, revenue is a quantitative number which little to do with qualitative information. With gym franchises, on the other hand, revenue serves as a qualitative indicator as well. Why? Well, because gym franchises have a need to understand, exactly, how much of their revenue sources comprises of long-term customers. Such a revenue split is essential for the long-term planning of the gym, especially if there are plans of expansion in place. If a majority of the revenue sources comprises of short term sources, for example, then the business will need to think twice before setting any plans for expansion into action. Retail Sales Most gym franchises are into the retail selling of bodybuilding products—such as muscle supplements—as well. For such gym franchises, the head of retail sales is of utmost importance. The reason is obvious, isn’t it? The retail selling is not the primary offering of a gym franchise, right? Therefore, they’d only be willing to pursue it if it adds to their profits, right? If the retail sales figures remain low for an extended period of time, then the gym franchise would have to consider the abandonment of the retail selling venture altogether. The business doesn’t depend upon it, right? Then what good is putting in that extra focus, effort, and resources in it if it fails to bring in profits? Personal Training Most gym franchises have got a number of packages for their customers to choose from. Some of these packages offer the services of a personal trainer and some don’t. If a majority of the customers opt for such packages that don’t offer the services of a personal trainer, then the franchise seriously needs to consider if it needs to offer the services of a personal trainer, in the first place, or would it be better off by not hiring a personal trainer at all. A cost benefit analysis can be used to effectively answer such questions. Expenses Split by Departments A gym franchise comprises of multiple departments, right? Some of these departments—such as the training department—are profit drivers while departments—such as bookkeeping—are cost drivers. Since the number of cost drivers exceed the number of profit drivers for most kinds of businesses, it’s essential for almost all businesses to keep tabs on their expenses in cost drivers. It’s essential, therefore, for a gym franchise to keep their expenses split by departments always under check, so that all unnecessary expenses may be cut down. This will provide the gym franchises a better control on their cost drivers. If you’re the owner of a gym franchise who is looking for expert advice on how you can maximize the profitability of your business, through emphasis on the right accounting heads, then SKB Accounting has got you covered!

The Accounting Needs of a Gym Franchise

The practice of accounting is pretty much standardized, but when it comes to the important indicators for different kinds of businesses, there ought to be a difference, right? What might be an important consideration for one kind of business might be completely irrelevant for another. Keeping that in mind, here are some of the accounting information that might be important for a gym franchise:

Revenue Split by Memberships

Revenue is important for all businesses, right? However, for most businesses, revenue is a quantitative number which little to do with qualitative information. With gym franchises, on the other hand, revenue serves as a qualitative indicator as well. Why? Well, because gym franchises have a need to understand, exactly, how much of their revenue sources comprises of long-term customers. Such a revenue split is essential for the long-term planning of the gym, especially if there are plans of expansion in place. If a majority of the revenue sources comprises of short term sources, for example, then the business will need to think twice before setting any plans for expansion into action.

Retail Sales

Most gym franchises are into the retail selling of bodybuilding products—such as muscle supplements—as well. For such gym franchises, the head of retail sales is of utmost importance. The reason is obvious, isn’t it? The retail selling is not the primary offering of a gym franchise, right? Therefore, they’d only be willing to pursue it if it adds to their profits, right? If the retail sales figures remain low for an extended period of time, then the gym franchise would have to consider the abandonment of the retail selling venture altogether. The business doesn’t depend upon it, right? Then what good is putting in that extra focus, effort, and resources in it if it fails to bring in profits?

Personal Training

Most gym franchises have got a number of packages for their customers to choose from. Some of these packages offer the services of a personal trainer and some don’t. If a majority of the customers opt for such packages that don’t offer the services of a personal trainer, then the franchise seriously needs to consider if it needs to offer the services of a personal trainer, in the first place, or would it be better off by not hiring a personal trainer at all. A cost benefit analysis can be used to effectively answer such questions.

Expenses Split by Departments

A gym franchise comprises of multiple departments, right? Some of these departments—such as the training department—are profit drivers while departments—such as bookkeeping—are cost drivers. Since the number of cost drivers exceed the number of profit drivers for most kinds of businesses, it’s essential for almost all businesses to keep tabs on their expenses in cost drivers. It’s essential, therefore, for a gym franchise to keep their expenses split by departments always under check, so that all unnecessary expenses may be cut down. This will provide the gym franchises a better control on their cost drivers.

If you’re the owner of a gym franchise who is looking for expert advice on how you can maximize the profitability of your business, through emphasis on the right accounting heads, then SKB Accounting has got you covered!

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Choosing Between LIFO and FIFO Accounting

Choosing Between LIFO and FIFO Accounting

The two most commonly used techniques for the valuation of inventory are the FIFO and LIFO methods of accounting. The difference between the two is simple, no doubt, but the fact remains that your choice will have serious implications on your business. Bearing this in mind, here is an account of these two methods of inventory valuation and when they should be employed:

FIFO

FIFO stands for “first-in, first-out”. What this means is that when you end up making a sale, you account for the value of inventory that was received first. The company will assume that the items it purchased or manufactured first are the items that it sold first as well. When you take things into perspective, the usage of the FIFO method of accounting appears to offer a more natural approach to doing things, owing to how it presents a straight-line approach for keeping track of inventory and sales. Ultimately, the usage of FIFO accounting simplifies the accounting required for tracking of items in the inventory.

LIFO

LIFO stands for “last-in, first-out”. In contrast to the FIFO method of accounting, LIFO method means to account for the value of inventory that was received last, when you end up making a sale. Or, in other words, the LIFO method of accounting assumes that the most recently received inventory items are the first to have been sold. When you take things into perspective, the LIFO method of accounting appears to give a much more realistic picture of things, considering how companies sell their inventory items shortly after they have been purchased.

Need To Make things Easier? FIFO

As has already been discussed, FIFO helps in making the tracking of your inventory items easier. LIFO, on the other hand, causes a discrepancy in the reported and the actual numbers and prices, owing to how you are working back towards the inventory you had received earlier. What this means is that the accurate prediction of the company’s operating activities will be much more difficult. The case of modeling the company’s inventory activities would be similar.

Need To Reduce Tax? LIFO

When you speak of the LIFO method of accounting, it is quite understandable that it results in a lower tax liability, owing to how the company’s costs are overestimated. For those who don’t know, the company’s costs are estimated because the last purchased item is assumed to be sold first, owing to how the recent purchases usually have higher prices, especially in times of inflation. FIFO accounting, on the other hand, underestimates your cost of goods sold, meaning that your profits are, ultimately, overstated. And you know what overstated profits mean, right? You owe more tax to the state!

When you take the differences into consideration, there are multiple considerations that need to be made, when choosing the best accounting system for your company. This can be a difficult job, which the financial experts at SKB Accounting can make easier, as well as more streamlined, for you!

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The Inventory Valuation Method for Times of Rising Prices

The Inventory Valuation Method for Times of Rising Prices

During times of inflation and rising prices, businesses benefit not only from the additional business but the receipts that they receive for their business offerings. In short, a business’ profitability improves, more or less. However, with the increasing profitability comes the scourge of taxation that has got to be dealt with also. Bearing this in mind, a business would benefit a whole lot if it could somehow overestimate its costs for the purpose of reducing its overall profitability on paper. This is where LIFO comes into the picture. Here is an account of how it can help businesses in saving on their tax bills:

How LIFO Works

LIFO stands for ‘Last-in-First-out’. It is a method used for the valuation of inventory, dictating that the newest product is the latest to be sold, for valuation purposes. Or, in other words, LIFO assumes that the sales that you make are from the top of your pile, considering how the newest items are lined up on the top. In times of inflation, however, the cost of every succeeding product is greater than the cost of the preceding ones, which is the reason why the employment of LIFO for inventory valuation bears such good benefits. The resultant profits would, thus, be understated, meaning that the tax liability of the business will not be as great as it would have been otherwise.

The Matching Principle

Businesses that make use of LIFO are better equipped to make use of the matching principle, unlike the companies that make use of FIFO. It is because LIFO charges costs and revenues from similar time periods. FIFO, on the other, charges costs from such a time period that might not even be relevant anymore. LIFO allows the accounting practices to be performed on the most recent currency values, which is in line with the matching principle.

Better Pricing Decision

We all know the importance of pricing products at the most optimum level, right? Well, LIFO can help a business in doing exactly that. If a business is making use of cost plus pricing, the usage of LIFO would mean that the cost of goods sold would be determined on the basis of the most recently purchased goods. This will help in covering the material costs in a much suitable and better manner than the usage of FIFO, for example. What this ultimately means is that the price of the product, based on LIFO, will recover material costs in a much better manner than the usage of FIFO, owing to how all of the estimations are made on the latest cost trends, rather than the trends of the past!

When you take it all into perspective, LIFO certainly does appear to be the ‘perfect’ inventory valuation solution, right? Well, it is important to remember that there is no such thing as ‘perfect’ and everything has got its share of pitfalls. If you would like advice on what the best inventory valuation method might be for your business, the experts at SKB Accounting would love to be of assistance!

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The 3 Important Accounting Considerations for a SaaS Company

The 3 Important Accounting Considerations for a SaaS Company

Business models of companies that offer software as a service (SaaS) vary greatly from those  of other businesses. It’s important, for smaller or new companies to understand the important aspects of such a business, so that they may start off on the right track. Here are some of the important aspects of a SaaS company that require consideration:

Churn Rate

Churn rate is one of the most important factors in the growth of a SaaS company. Churn rate is the annual percentage of such customers who discontinue their subscription. Owing to the meaning that it holds, churn rate is also known as the rate of attrition. When you talk about the growth of any company, the basic principle remains the same. Companies grow when they attract new customers and increase profit margins. Similar is the case with SaaS companies. That’s the reason why the percentage of new customers, in any given year, needs to be greater than the churn rate for a SaaS company to grow. If it doesn’t, then it points towards the fact there are some business issues that the management might need to address. The consideration of the churn rate can do wonders for the decision making of a SaaS company, if used correctly, and can be of utmost importance in matters like the pricing of subscriptions.

Deferred Revenue

Most companies follow the accrual basis of accounting, right? Well, according to the accrual basis of accounting: revenue is supposed to be recorded as soon as it has been earned and not when it is received. What this means is that the figure of revenue for a SaaS company, for any given month, will be the sum total of the total income EXPECTED from the subscriptions, in the simplest of terms. But is there a possibility for a scenario when a subscriber doesn’t pay the subscription charges for any given month? Yes, it can. Under such a scenario, the monthly subscription of the client will show up in the SaaS Company’s revenue, when actually it hasn’t been received. What this means is that there is a high chance for a SaaS company’s revenue to be overstated. Therefore, it’s important for the management to consider the figure for deferred revenue, as well, when making business decisions.

Marketing Expenses

It’s also important for a SaaS company to consider its marketing expenses, owing to the importance of marketing to the overall model of the business. A SaaS Company might have hundreds of applications and software for customers to benefit from, but it won’t get any subscriptions unless the customers know about it, right? When you talk about marketing expenses, in general, it is important for a business to always keep them under check. SaaS companies need to remember, before spending extravagantly on marketing campaigns, that marketing expenses are as good as useless if they don’t translate into more subscriptions.

These are some of the important accounting considerations for a SaaS company. However, they form only the tip of the iceberg. If you’re looking for in depth advice, however, the experts at SKB Accounting would love to be of assistance!

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The Important Accounting Needs for a Wholesale Business

The Important Accounting Needs for a Wholesale Business

The formats of financial statements are, pretty much, standardized for most types of businesses. However, when it comes to the importance of different accounting heads for different kinds of businesses, it’s a different story altogether. What this means is that what might be an important consideration for one kind of business might not even matter for another. Here are some of the important accounting heads and considerations for a wholesale business:

Volume of Sales

One of the most important accounting heads, for a wholesale business, is the volume of sales. Why is that the case? Well, when you talk about a wholesale business, the backbone of the generated revenue (and profits) lies in the volume of the goods sold. It’s because the difference between the cost of the goods and the price at which they are sold, in the case of a wholesale business, is not as significant as it might be in other modes of business. Keeping an eye, therefore, on the volumes of the categories of goods sold is important, when it comes to making the relevant business decisions.

Commission

Commission is the percentage of profits from sales that is given to the designated sales teams responsible for the sales, both inside and outside the agency. When you talk about a business, the business would obviously wish for the amount of proceeds paid as commission to be minimal, right? The amount of commission paid out to the sales teams varies according to category of goods under consideration. If the goods under consideration already have a thriving market, then the commission paid out to the sales team would understandably be lower, right?

Discounts

Discounts are something that wholesale businesses are on the lookout for…always! If everything else is held constant, wholesale businesses tend to lean towards such brands and suppliers that offer them discounts on their products. The utility of these discounts to wholesale businesses is more than the mere saving of a little cash. If you think about it, if wholesale businesses get discounts on their purchases, they’ll be able to forward those discounts to their customers. This, in turn, will make the wholesale business standout among its competitors, which will benefit the overall business.

Marketing and Selling Expense

When you talk about the marketing and selling expenses, a wholesale business would prefer them to be as low as possible. Why? Well, because it will ultimately come out from the commission that the wholesale business receives for the selling of goods. If, for example, the marketing and selling expense per item, under a category of goods, exceeds the commission received for the sale of that item, then it means that the business would have been better off if it hadn’t sold that good in the first place, right? When making the decision on what to sell and what not to sell, marketing and selling expense should play an important role.

A wholesale business can be lucrative, no doubt, but that doesn’t mean that there’s no need for some expert accounting advice. If you are in need of some expert advice, then SKB Accounting has got you covered!

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