ADP RUN articles

Some companies distinguish between the different types of non-operating expenses listed in income statements. For example, interest payments may be listed separately from unusual or extraordinary non-operating expenses such as a one-time write-down of inventory or damage due to a natural disaster. Keeping these non-operating expenses and income separate on the company’s financial statements makes it easier to see how the core business performed during any specific accounting period. This […]

Net negative revenue churn is when a company’s expansion revenue is greater than the MRR lost from cancellations and downgrades. Net Negative Churn occurs when a SaaS or subscription-based company’s expansion revenue (e.g. from upselling, cross-selling) exceeds the lost revenue from churned customers and downgrades. You should also keep this in mind when it comes to how you view others. There might be times or domains where it’s not reasonable for you to pursue or achieve ne […]

In this article, we will be looking at how to calculate net accounts receivable. We will define what gross accounts receivable, allowances, discounts, and bad debts are, and explain their importance in calculating net accounts receivable. While convenient for both businesses and their customers, there is an expected amount of risk.
Here’s what to know about net 30, net 60, and net 90, and whether these payment terms are right for your business. The net accounts receivable refers to the […]

All companies don’t have to use a calendar year to open and close their books. This type of odd year end coincides with the business’ sales flow rather than the calendar. This makes sense because businesses wouldn’t want to close their books right in the middle of a business season just because it falls on the end of the year. These lower balances make it easier to audit the period-end accounting records of a business, and verify that its ending balance sheet figures are accu […]

Zt is the column vector of length n, denoting the values of the time series variables at time t. P is the order of the filter which is generally much less than the length of the series. The noise term or residual, Et, is almost always assumed to be Gaussian white noise.
The multiple regression model should be validated by checking its predictive power and assessing its performance on new or out-of-sample data. Multiple regression can help you identify which independent variables are most impor […]

The term manufacturing refers to the processing of raw materials or parts into finished goods through the use of tools, human labor, machinery, and chemical processing. Under jidoka, engineers design and build systems by hand to intricately understand the manufacturing process. Then, they carefully simplify operations and transition to leveraging machines.

Efficient manufacturing techniques enable manufacturers to take advantage of economies of scale, producing more units at a lower cost.
For […]