Importance of Trade Receivables Analysis  Trade receivables, aka accounts receivable, represent the amount a company has billed customers for goods or services delivered but has yet to receive.  Here’s why trade receivable analysis is important:    Trade analysis comes down to one key question: How likely is it that this customer will pay on time? A […]

Fundraising Expenses  Fundraising Expenses are the costs incurred by organizations, especially nonprofits, to raise funds for their operations. These expenses cover activities and materials directly related to fundraising efforts.   Fundraising involves both direct and indirect expenses, and understanding the full scope of costs is crucial for evaluating an event’s effectiveness. While some expenses are obvious, […]

Manufacturing Cycle Efficiency Manufacturing Cycle Efficiency (MCE) measures the proportion of the manufacturing process, which converts raw materials into finished goods. MCE highlights areas of improvement by identifying non-value-added activities like waiting or inspections.    It is calculated using the formula: MCE = Value-Added Time / Total Cycle Time To determine MCE, you divide the value-added […]

Independent Contractor Accounting  Independent Contractor Accounting refers to the practices that contractors/freelancers use to manage their finances. The process includes income tracking, expense management, taxes, invoicing, and preparing financial reports.    Unlike employees, independent contractors are responsible for their own financial records, tax payments, and business compliance. So, before filing your tax return, selecting the right accounting […]