August 2019
Intermediate to advanced
608 pages
15h 28m
English
Content preview from Bookkeeping All-in-One For Dummies, 2nd Edition
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Chapter 1
Buying and Tracking Your Purchases
IN THIS CHAPTER
Tracking inventory and monitoring costs
Keeping your business supplied
Paying your bills
To make money, your business must have something to sell. Whether you sell products or offer services, you have to deal with costs directly related to the goods or services being sold. Those costs primarily come from the purchase or manufacture of the products you plan to sell or the items you need to provide the services.
In addition to the costs to produce products or services, every business has expenses associated with purchasing supplies needed to run the business. The bookkeeper has primary ...
All companies must keep careful watch over the cost of the products to be sold or services to be offered. Ultimately, your company’s profits depend on how well you manage those costs because in most cases, costs increase over time rather than decrease. How often do you find a reduction in the price of needed items? Doesn’t happen often. If costs increase but the price to the customer remains unchanged, the profit you make on each sale is less.