What are retained earnings? Your retained earnings are the profits that your business has earned minus any stock dividends or other distributions. In terms of financial reporting, retained earnings account (also known as Member Capital) may be found on your balance sheet in the equity column, alongside shareholders’ equity. Companies […]
Understanding Balance Sheet – Definition and Examples
Balance sheets can help you see the big picture: the net worth of your company, how much money you have, and where it’s kept. They’re also essential for getting investors, securing a loan, or selling your business. So you definitely need to know your way around one. That’s where this […]
Understanding Income Statement (Definition and Examples)
How profitable is your business? The only way to really know is to create an income statement. Here’s how to put one together, how to read one, and why income statements are so important to running your business. What is an income statement? An income statement is a financial statement […]
Returns Vs Chargebacks
Returns and chargebacks are two unfortunate types of transactions that eCommerce entrepreneurs need to deal with. If you don’t enter and categorize them correctly, you could soon find your books out of whack. A return is simple: someone who purchased your goods wants to return it and receive a refund. […]
Customer Deposits : Why it is called Unearned Revenue?
Unearned income or Customer Deposits may appear to be a problem on the balance sheet, but it has numerous advantages for small business owners. To cover last month’s expenses, you’ll need an advance on a new project. Are you unsure whether retainers will give you the cash flow you require? […]
Cash basis Vs Accrual Basis Accounting
The difference between cash and accrual The difference between cash and accrual accounting lies in the timing of when sales and purchases are recorded in your accounts. Cash accounting recognizes revenue and expenses only when money changes hands, but accrual accounting recognizes revenue when it’s earned, and expenses when they’re […]
Should I use Invoice or Sales Receipt?
Depending on when you receive the payment, there are two ways to record sales transactions in Xoro: For a deferred payment, use Invoice and Invoice Payment. Think of this as a two-part transaction. First, you create the invoice to record the sale. Later, when your customer pays, you record a payment […]
How to handle customers with multiple Ship to Addresses?
There are two ways to set up customers who have multiple service locations in Xoro: multiple Ship to addresses (under one customer) and individual sub-customers or Customer Jobs. Multiple Ship to Addresses – This option will keep all of the addresses for a customer under one profile or parent customer. […]
Analytics Reports – Walkthrough
Inventory Valuation – Weighted Average Method
Introduction There are a number of different cost flow methods available for Inventory / Cost of Goods Sold (COGS) valuations. Perpetual systems continuously update the inventory, avoiding issues inherent with periodic-based systems. For cost flow, there are three (3) accepted cost methodologies: FIFO, LIFO, and Weighted-Average Cost (also commonly referred […]
