Labor Burden Rate: The Hidden Cost That’s Quietly Wrecking Your Pricing The $25 That Was Never Really $25 A contractor bids a renovation job. His lead carpenter earns $25 an hour, so he prices the labour component of the job at $25 an hour, adds his usual markup, and submits the quote. Six months later, […]
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Accounting Concepts: 14 Fundamental Principles Every Accountant Must Know What Are Accounting Concepts? Every profession has a set of foundational rules that everyone in the field agrees to follow. In medicine, it is evidence-based practice and the Hippocratic principle of doing no harm. In law, it is precedent and due process. In accounting, these foundational
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Notes Payable: Definition, Journal Entries & the “0% Interest” Trap The “Interest-Free” Loan That Isn’t Here’s a deal that sounds too good to pass up: a supplier offers to sell your company a piece of equipment for $100,000 but instead of paying now, you sign a note agreeing to pay the full $100,000 in two
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What is a Timesheet? Definition, Types, Format & Purpose Explained What is a Timesheet? Every hour an employee works has a cost. But before that cost can be recorded, calculated, or paid, someone needs to track it. That tracking tool is called a timesheet. A timesheet is a document, physical or digital, that records the
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Prepaid Insurance: Definition, Journal Entry, Adjusting Entry & Examples What is Prepaid Insurance? (Simple Definition) Imagine your company’s insurance policy runs from 1 October 2024 to 30 September 2025. You pay the full year’s premium $12,000 on 1 October 2024. But your accounting year ends on 31 December 2024. By 31 December, only three months
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How to Price Items for Resale: The Accountant’s Method Most reselling advice tells you to triple your cost, or “keystone” it (double it), and move on. Here’s why that quietly loses you money and how to price the way an accountant would, so the margin you think you’re making is the margin you actually keep.
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Carriage Inward vs Carriage Outward: Meaning, Treatment & Journal Entries A Promise Kept In our article on Return Inward and Return Outward, we noted that carriage inward and carriage outward are entirely different concepts despite the similar “inward/outward” naming and promised a dedicated article. Here it is. If “carriage” sounds old-fashioned to you like something
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What is Reimbursement? Meaning, Types, Process & Journal Entry What is Reimbursement? (Simple Definition) You attend a business conference on behalf of your company. You pay for the flight, hotel, and meals from your own pocket — spending $850 of your personal money. When you return, your company pays that $850 back to you. That
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VAT Registration in Bangladesh (2026): Thresholds, Process & Turnover Tax — Accurately Explained What Is VAT — and Why Registration Matters Value Added Tax (VAT) is an indirect tax charged on the value added to goods and services at each stage of the supply chain, from manufacture through to final sale. It’s governed in Bangladesh
Drawings Account: Debit or Credit? Personal, Nominal or Contra-Equity? (Settled) First, What Are “Drawings”? Drawings are cash or goods withdrawn by the owner (proprietor or partner) from the business for their personal use. When a sole trader takes $2,000 out of the business bank account to pay a personal bill, or takes goods off the
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