ADP RUN articles

This will help you determine how much profit you’ll make on each sale and your overall profit margin. When setting a selling or sale price for a product, the average selling price (ASP) is often used as a benchmark. ASP is the average of all the prices at which a particular product has been sold over time. The actual selling price can tell you how much to price your high-tech cell phones. If you are not using sales tracking software, the average selling price is still painless to calcula […]

This philosophically counters the competitive dynamic that typically arises between these two parties. After all, under traditional circumstances, buyers attempt to delay payment, while sellers look to be paid as soon as possible. For petroleum gases, the standard cubic foot (scf) is defined as one cubic foot of gas at 60 °F (288.7 K; 15.56 °C) and at normal sea level air pressure. The pressure definition differs between sources, but are all close to normal sea level air pressu […]

Learn how to use the sales revenue formula so you can gauge your company’s continued viability and forecast more accurately. So, a lot of sales teams rely on ARR to predict the next 12 months of their organization’s revenue. But many important variables are left off of that envelope, which can lead to some seriously off-base estimates. If you’re in the midwest, planning your Memorial Day weekend barbecue in January because you expect a repeat of last year’s warm tempera […]

This is particularly true if the transaction takes place between businesses with a pre-existing contractual relationship. Some contracts will contain clauses that punish either party for rendering a rubber check, such as by entitling the recipient to a discount on the services rendered. Other approaches, such as accruing interest on the amounts unpaid, are also used.

In the meantime, he suspends business with ABC and requests interest from ABC for its unpaid balances.
Steve is the manager of […]

Reversing entries are usually made to simplify bookkeeping in the new year. For example, if an accrued expense was recorded in the previous year, the bookkeeper or accountant can reverse this entry and account for the expense in the new year when it is paid. The reversing entry erases the prior year’s accrual and the bookkeeper doesn’t have to worry about it. Another example of a reversing entry would be if you accrued a $10,000 expense in February, but the supplier does not send t […]

When an annual revenue budget is detailed by month, each month’s actual revenues can be compared to the budgeted amount. Similarly, the actual year-to-date revenues can be compared to the budgeted revenues for the same period. In other words, monthly revenue budgets allow you to monitor revenues as the year progresses instead of being surprised at the end of the year. The income part of the budget, also known as government revenue, consists of spending and revenue from taxes and other so […]