Accounting Services in Miami Review LIFO Rules
During inflationary times Accounting Services in Miami can reduce company’s taxable income by using the last-in, first-out (LIFO) cost flow for inventories
gross profit
For households and individuals, gross income is the sum of all wages, salaries, profits, interest payments, rents, and other forms of earnings, before any deductions or taxes. It is opposed to net income, defined as the gross income minus taxes and other deductions.
Bookkeeper
Bookkeeper oversees financial data maintaining financial transactions by establishing accounts; posting transactions; ensure legal requirements compliance
How to read an Income Statement
Income statement (also referred to as profit and loss statement (P&L), revenue statement, statement of financial performance, earnings statement, operating statement, or statement of operations) is a company’s financial statement that indicates how the revenue (money received from the sale of products and services before expenses are taken out, also known as the “top line”) is transformed into the net income (the result after all revenues and expenses have been accounted for, also known as Net Profit or the “bottom line”). It displays the revenues recognized for a specific period, and the cost and expenses charged against these revenues, including write-offs (e.g., depreciation and amortization of various assets) and taxes. The purpose of the income statement is to show managers and investors whether the company made or lost money during the period being reported.
WHY IS CASH FLOW MORE IMPORTANT THAN PROFIT
Cash Flow More Important is the Income Statement or Balance Sheet, Profit indicates business success, cash flow measures day-to-day basis staying power
Accountants Can Help Key Performance Indicators
Key performance indicators are fundamental for measuring performance and accountants can help with creating and measuring them