Eric Gerard Ruiz, CPA

We’ll provide you with 10 vendor onboarding best practices—from creating an onboarding plan and discussing business processes to sorting out required documents and documenting payment methods—that can help you design a smooth and productive onboarding process. We also have a free vendor onboarding checklist, as well as templates for vendor registration, credit card acceptance, and…

The retail method of accounting is an inventory estimation technique used to compute the value of ending inventory without having to take a physical count. Businesses with large volumes of inventory, like grocery stores, use the retail method because it’s quick and affordable to perform, unlike a physical count. Use the calculator below to compute…

We present 12 invoice examples that can inspire you to create a unique invoice to communicate with your customers clearly while further promoting your company. Having a well-designed invoice is an accounts receivable best practice that will encourage customers to pay on time. Besides being a request for payment, invoices can serve as promotional material…

Segregation of duties (SoD) in accounting is defined as developing a system where no person is performing tasks within more than one of three general functions. It’s an internal control mechanism that prevents fraud and error, and proper SoD ensures checks and balances within the business. When there is no SoD in place, opportunities to…

Sage Intacct is a cloud-based financial management and accounting suite that automates complex financial processes, including payroll, tax filings, and inventory management. It caters to a wide range of industries, including construction, real estate, financial services, professional services, and nonprofits. Sage Intacct prices are available upon request. Sage Intacct Deciding Factors Sage Intacct Alternatives Check…

The average cost method computes inventory cost based on total cost of purchases divided by the number of goods purchased. Since AVCO uses an average cost of goods in inventory, rather than tracking individual units, it’s simpler to use than first-in, first-out (FIFO) or last-in, first-out (LIFO). The main highlight of the average cost method…

The specific identification inventory method tracks the costs of individual items of inventory until they are sold to customers. The cost of goods sold (COGS) and cost of ending inventory are determined by the actual cost assigned to each physical unit of inventory. This guide discusses how the specific identification inventory method works, who it’s…

Straight line depreciation is the simplest way to compute depreciation expense. In computing straight line depreciation, we consider three elements: Cost of the fixed asset: The cost of the asset is its purchase price net of discounts taken, plus sales taxes, shipping costs, insurance, and so on. Useful life: Useful life is the estimated length…

Revenue and profit are items in the income statement that are measures of return. Revenue is the gross amount of earnings from the sale of products and services, whereas profit is the net amount or what’s left after deducting expenses and other charges. Terms You Should Remember Gross or total revenues: This is the total…

Cost of goods sold (COGS) represent the total costs in making or purchasing a product. In simpler words, COGS is the amount you paid when you produced or purchased the products that were sold during the period. Selling costs like commissions are not part of COGS. Rather, these are recorded as part of operating costs….

An early payment discount―also called a prompt payment or cash discount―is a reduction in an invoice balance when it’s paid before the due date. It provides an incentive for customers to pay their bills before they’re due. When used strategically, early payment discounts can speed up the bookkeeping process, increase customer loyalty, and improve cash…

In accounting, liabilities are debts your business owes to other people and businesses. Examples of liabilities include bank loans, IOUs, promissory notes, salaries of employees, and taxes. Liabilities are on the right side of the balance sheet, and these accounts have a normal credit balance. It means that crediting liability accounts increases their balances while…