May 2015
Beginner
488 pages
11h 58m
English
Content preview from Bookkeeping and Accounting All-in-One For Dummies, UK Edition
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Chapter 3
Buying and Tracking Your Purchases
In This Chapter
Tracking stock and monitoring costs
Keeping your business supplied
Paying your bills
In order 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 manufacturing of the products you plan to sell or the items you need in order to provide the services.
In addition to the costs to produce products or services, every business has additional expenses associated with purchasing supplies needed to run the ...
All businesses must keep careful watch over the cost of the products they sell or the services they offer. Ultimately, your business’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? It doesn’t happen often. When costs increase but the price to the customer remains unchanged, the profit you make on each sale is less.