How to Calculate Commission on Sales

If you are salesman or you have hired salesmen, you need to calculate the commission on sales. It is the earning of salesman but it is the expense of company who hires the salesmen. Following are steps of the calculation of commission on Sales.

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10 Benefits of Never Give Up

In my life, there were so many times when I tired and gave up courage. After research, I found, I was wrong. Now, I am trying to become so positive by following great quote "Never Give Up." There are lots of benefits of never give up which I am writing in following list.

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Net Earnings

Net earnings are the net incomes which get after deducting all operating expense, interest and dividend  from net sales. Actually, if are just providing service and there is no expense, then whole earning will be net earnings. But it is impossible because for doing business, we have to pay operating, administrative and financial expenses. So, we deduct all these expenses from sales and we get net earning or net profit.

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How to Calculate EBITDA from Income Statement

To calculate EBITDA is so important to the banker who provides debt and company who gets debt from financial institute. Banker will give debt to that company who is earning good money on their investment before interest and tax and depreciation. It is also helpful for company because if EBIDA is at high level, it can get loan at low rate. So, earning before interest, tax and depreciation is calculated by all the companies and debt providing companies.

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How to Stop Creative Accounting

In accounting area, there are two main meaning of creative accounting. One is to cheat or to behave unethical with interested parties by taking the advantages of loopholes of accounting records. Second is to make accounting process more enjoyable and productive. This second type meaning is used in accounting teaching.

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A Payroll Clearing Account

Payroll clearing account is the account which is used for payment the salary to employees. In this account, only total estimated future salary will be added. Any employee can clear their check from this account when his salary will due. This account is useful for big companies and organisations who have thousands of employees for their work.

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How to Make Managerial Accounting Reports

To make management accounting reports are very necessary for all the interested parties of business. But most important to management who has to take best decision relating to investment, future planning and future budgets. So, accounting department has to take one more step after showing financial results in the form of financial statements.

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Interlocking Accounting System

Interlocking accounting system is a system in which company records his transactions on the basis of financial accounting principles and cost accounting principles separately. It means, there will be two records of accounts. One is financial accounts record and second is cost accounts record.

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How to Convert Accrual to Cash Basis Accounting

If you have to keep accounting record of your organisation, you have to follow any one method out of two main method of accounting, one is accrual basis accounting and second is cash basis accounting. In accrual basis accounting, we record both income received in cash and income receivable but still not received in cash. In this method, we also record all expenses which has been paid in cash  and all the expenses which are payable. Other side, in cash accounting, we record only incomes which received in cash and expenses which have been paid in cash.

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Month End Accounting Checklist

At the end of every month, company makes month end accounting checklist for knowing whether company's financial position and financial progress is OK or not. So, company will include all the important financial items in it for close monitor on the company.

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How to Be A Positive Teacher

Today, one of the reader has called me on phone. Actually, he was interested to become a positive teacher. His sources are limited. He had also become failure as a perfect teacher. Due to this, he had to loss his source of income. Now, he wants to get guidance from me for becoming a positive teacher.

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Why You are not Successful in Life

Whether you are accountant, account manager, businessman or professional. You can see unlimited numbers of successful persons. Every person's measurement of success in life may be different but if you think, you are not successful in life, you again rethink its main reason. We can also help you to explain common 12 reasons behind this.

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Aggressive Accounting Vs Conservative Accounting

Aggressive accounting and conservative accounting both are the practice for using the method of accounting. With this, financial performance will change and it is less change to understand the differences due to these practices. Only expert can analyze this. For understanding the effect of these on financial performance, you should understand the differences between aggressive accounting and conservative accounting.

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Cross Age Rule of Accounts Receivable

As per cross age rule of account receivable, if any debtor does not pay more than the certain limit of his payable account, his whole account will be overdue. When any debtor's account will be listed under overdue category, company can change his credit policy relating to him.

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How to Reconcile Clearing Account

To reconcile clearing account is necessary because there may be difference between actual record general ledger account and temporary record in clearing account. Like other type of reconciliation process, we also follow the process of clearing account reconciliation. Before, explaining its process, you should understand the clear meaning of clearing account.

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Application of Financial Management in Joint Stock Companies

What is the application of financial management in joint stock companies? Please explain in details.

Abrar from Bahrain ( Dated : 5/23/2014 )

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Solution of Problem on Self Balancing Ledgers

Sir, I can't understand about entries u gave at last like Dr.debtors ledger adjustment account.

Siddanth from India (Dated : 6/20/2014 )

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How to Learn SAP Accounting Software - Part 2

Due to managing all type of business activity, popularity of SAP is increasing day by day. It can also integrate with any international branch because it support multicurrency and metalanguage. So, all big organisation are choosing this ERP for their business's digital record. So, it is the need to learn this software completely. Here, we providing second part of our tutorial for learning SAP accounting software step by step. Before this, learn first part of Learning SAP Accounting Software Tutorial.

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How to Learn SAP Accounting Software

SAP accounting software is one of best in the list of accounting software. It is ERP database and SAP company is working in more than 130 country for providing his services. In SAP, you can record the transactions, correct the mistake in real time and track financial data in different ways. So, it is very necessary that every accounting profession should learn this accounting software.

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How to Learn Sage Accounting

Sage accounting is done by Sage 50 Accounting software which has been developed by Sage group and it is sold mainly in USA and Canada. In past, this software were called Sage Peachtree software. If you want to learn this software, following steps, you should follow.

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