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How Outsourced Accounting Can Manage Business Tax Workflows

Office workspace for business. Tablet pc and reports. Table closeup. Business financial accounting concept. Outsourcing refers to the process of hiring a third party to perform services usually done by the company’s employees or staff. Companies that outsource are...

What is After Tax Operating Income (ATOI) And How to Calculate It

Companies earn revenues from their operations. However, they must also incur expenses to generate sales. The difference between both these represents the profit or income for a company. Another term used to describe this income or earnings is profits. Companies...

What are Agency Costs? Definition, Explanation, and Example

An agent is a person or entity with the legal empowerment to act on another person or entity's behalf. Usually, agents are employees of the principal and must perform duties in their best interest. A client may employ the agent to represent them in negotiations and...

What is the Meaning of Aggregation in Accounting and Finance?

Due to the vast amount of information available, it is easy to get lost. Usually, this data comes from several sources, which makes it challenging to collect. Most users looking for specific information must go through all those sources to ensure they cover all bases....

What is the Advertising to Sales Ratio? And How to Calculate It?

Financial ratios are numerical values that calculate the relative magnitude of one financial figure to another. Usually, it looks at the comparison between two financial items. These items may relate to the balance sheet or income statement. In some instances, they...

What is the Advertising Budget?

Advertising is a marketing tactic used by companies to promote a product, service, or cause. This tactic involves using media and other channels to spread awareness among customers. Through advertising, companies can influence existing customers and make new ones....

What Is the Average Advertising Budget for Small Businesses?

Advertising is a necessary expense that companies must incur for future success. Usually, this expense includes the costs that relate to promotional activities. Companies use these costs to promote their products and services. Through this, they can attract more...

What Is Advance Rent, and How Does It Work?

A prepayment is an amount paid in advance to a supplier of goods or services. Usually, it encompasses the customer’s commitment to initiating a contract. In some cases, suppliers may require this advance payment to ensure the customer will pay them later. In others,...

What Is Advanced Internal Rating-Based (AIRB)?

All entities face uncertainties that can hinder their objectives or goals from materializing. These uncertainties are known as risks. Usually, these come from several sources or can generate from different factors. The term risk represents the difference between...