Fixed costs

It seems that they do not have much importance (they are just that, informative) and besides it costs us a world to put all these data in order, to present one more form, that besides annoying, harbors a danger that will lie in wait for us for a long period of time: the crossings of data with the rest of the declarations of our company and of the third parties involved.

We will leave aside for another article the models affected by the IRPF, since they are neither as complex, nor lend themselves to as much casuistry as the VAT, and we will go a little deeper into this indirect tax whose simple mention makes us nervous and puts us on the defensive every time we have to pay it.

In itself, it constitutes the main tax contribution of funds to the coffers of the state, far above the rest of the taxes that exist in our country. And it is also the tax where most people defraud, which is why our tax authorities are redoubling their efforts so that this effect is gradually reduced.

Profit margin interpretation

To define an appropriate price for your product or service, the first thing to do is to calculate the cost of sales. The price is key to compete and allows you to know the profit margin you can obtain.

Knowing the cost of sales also helps to define the Monthly Recurring Revenue (MRR). This is the revenue you receive each month. Many times they are subscription payments.

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Many startups and established brands use MMR as their main source of revenue. And to make it stable, they put permanence conditions on subscriptions. Examples are companies like Netflix, online media, gyms, etc.

In the B2B sector, another strategy to build loyalty among recurring customers is to give a large initial discount. This allows you to beat the competition. And the cost to acquire the customer is offset by the expense they make in the long run. The key to making this strategy work is to qualify customers with a high lifetime value.

Production costs pdf

In this post you will find out why the traditional invoice approval process is obsolete and the advantages that an efficient supplier invoice management can bring to the company thanks to digitalization.

Many companies are talking about digital transformation as an essential objective for 2021. In this post we want to talk about the advantages of digitalization in the invoice management process, and specifically in the management of supplier invoices. Digitalization has transformed accounting and today we want to tell you a secret: the 7 advantages of efficient supplier invoice management. Are you going to miss it?

Optimizing the process of managing and approving supplier invoices strengthens the economy of any organization, as it adds efficiency to the entire accounting process. Some of the main advantages of efficient supplier invoice management are:

The most obvious advantage of invoice automation solutions is the ability to speed up payment approvals. This will make suppliers more satisfied and relieve the A/R accounting teams of the workload.

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Types of costs

You want to put your business in order, optimize processes, reduce costs and, of course, bill more. That is why it is very important that you know some accounting concepts to properly plan your business finances. One of them is gross profit.

In short, in the case of commercial companies, gross profit is equal to the value of sales minus the acquisition cost of goods sold. In industries, gross profit is equal to the value of sales minus the cost of production of the products that were sold. This value is important for calculating the selling price.

To calculate this rate you must know the fixed costs of your business. Again in the example of the juice factory, the fixed cost is the one obtained with the sum of all the products that do not vary according to the production.

The salary of the employees, the rent of the building and some taxes are the fixed costs of your business. With this data and the gross profit in hand, you can arrive at the net profit of your company:

By Rachel Robison

Rachel Robison is a blogger who collects information on court filings and notices.