To compensate for this problem, accountants have developed “allowance methods” to account for uncollectible accounts. Importantly, an allowance method must be used except in those cases where bad debts are not material (and for tax purposes where tax rules often…

Each metric offers a unique perspective and by regularly analyzing both, you can uncover actionable insights to optimize performance and boost profitability. By carefully tracking net income, entrepreneurs can effectively evaluate store success, measure the impact of strategies, and understand…