By outsourcing accounts receivable and payable, you can ensure that an experienced accountant handles your cash flow. And if you don’t have an in-house accounting professional with the required skills, you can hire an offshore accounting service. Offshore accounting firms such as those in India work under strict measures in a controlled environment to protect their client’s data. [...]

This ratio keeps a margin of safety for any potential losses that might occur during the realization of the current assets. It can be calculated as the ratio between the Current Assets and Current Liabilities. To measure the liquidity, we need to calculate the liquidity ratios. These ratios give a short-term answer as the creditors [...]

Gross merchandise volume is a metric commonly used by e-commerce businesses to measure total sales transacted through their platforms. In China, e-commerce giants Alibaba and JD.com both use GMV to measure transactions conducted during its shopping events, such as Alibaba’s Singles’ Day on November 11 and JD.com’s 618 shopping festival. GMV measures the total revenue [...]

If you recall, Hector’s bakery is located in the sunny state of California. California has one of the highest state income tax rates in the country. There are nine tax rates in California , starting at 1% and going up to 12.3%. Similar to calculating federal income taxes, taxpayers have to make adjustments to their gross [...]

For example, a company with $0 of fixed costs will automatically have broken even upon the sale of the first product, assuming variable costs do not exceed sales revenue. For example, if a product sells for $200 each, and the total variable costs are $80 per unit, the contribution margin is $120 ($200 - $80). [...]