Buying services or goods for your own use – the accounting treatment is the same.
Essentially something you must realize is that you’re making an expense for your business. Even if it’s buying goods that you will use for your own business, i.e. office supplies or some such, it’s an expense for your accounting. Continue reading
When buying goods there are two types of goods you can buy – ones you use yourself in your business or the ones you sell to your customers. Since first are treated as buying services really, we’re not going to focus on those in this post, but the second one. Continue reading
In essence a payable is an obligation or a liability you’ve got against another party. This “party” can be your supplier, your employee, regulators, owners and so on. Continue reading
First and obvious answer would be that at the time you’ve paid your payable and the other party has no remaining receivables against you. Continue reading
Payables are something you owe to your suppliers, employees, and so on, and why not your customers in certain circumstances. As such, on the balance sheet, they are recognized under liabilities. Continue reading
You received goods into your warehouse and now they’re just lying there all boxed up. In order not to mess things up, you should do some things in order and be careful. Your course of actions: Continue reading
No doubt your aim is to make profit. Essentially what a profit is is a net result from your revenue when you’ve deducted all expenses incurred during the same period. It’s what you earned at the very bottom; it’s your net profit after all expenses. Continue reading