That can be an important deciding factor in the product mix the retailer keeps on their shelves. A SKU is used to track inventory in your retail store. They are very valuable in helping you maintain a profitable retail business. Typically, SKUs are broken down into classifications and categories.
Many retailers use the next series of numbers in the SKU to group products together for analysis. For example, xxx are gas ovens and xxx are electric ovens. The next number might be a color indicator.
The company has simply attached a unique SKU with all of its identifying traits to each product. So when you look at a blender it can display other blenders you might like. But you won't see just any blender, you'll see ones that have the same features based on the SKU information. Insights and Inspiration to Grow Your Business.
Managing Money. Cash Flow. Getting Customers. Customer Relations. Digital Tools. Social Media Strategy. Building Your Team. Company Culture. Planning for Growth. Growth Opportunities. Find a Solution. Net Income Closely related to cash flow is your net income, which is also known as your net earnings and net profit. Sales Given that generating sales is the reason most entrepreneurs operate small businesses, this figure is a given on the critical number's list.
Gross Margin Also known as your gross profit—and related to price point—this figure reflects how much money remains after the actual cost of your merchandise is subtracted from the selling price. A version of this article was originally published on June 09, Photo: Getty Images. Want to Dig Deeper?
About the Author. A group of interacting, interrelated, or interdependent elements forming a complex whole. Accounting System: n. The people, procedures, and resources used to gather, record, classify, summarize and report the financial information of a business, government or other financial entity. Double-entry bookkeeping: n. The practice of recording a business transaction in two equal parts, called debit and credit entries.
Debit refers to the left column and credit refers to the right column, in an accounting journal. Each transaction describes both : the object of the transaction - such as rent, telephone, or payroll expense; sales, fee or interest revenue. Money eventually changes hands in almost all transactions, either at the time of the transaction, or perhaps at a future date in the case of items purchased on credit. Adjusting and closing entries are an exception and not typical, and represent special entries made by accountants to prepare financial statements, and reset certain accounts at the end of a fiscal year.
Sometimes a transaction involves cash directly, at the time of the event, such as a cash sale at a grocery store. It is more common, and safer, to use a checking account for routine purchases. These are all considered part of the Cash account. Many, and perhaps most, transactions in a business take place on a credit basis. Businesses usually purchase their supplies and merchandise on a day account, known as a trade account, or Accounts Payable.
Sales are typically made in a similar fashion, called Accounts Receivable. Accounting was born before writing or numbers existed, some 10, years ago, in the area known as Mesopotamia, later Persia, and today the countries of Iran and Iraq.
Typically, SKUs are broken down into classifications and categories. The legal plan is available in most states. Four-week periods, on the other hand, are always 28 days with four Fridays and four Saturdays. These financial snapshots give you the power to take action, in real-time with minimal effort. LegalZoom provides access to independent attorneys and self-help services at your specific direction.
This area contains the Tigris Euphrates river valley, a large fertile area 10, years ago with a large thriving population and active trading between towns and cities up and down the two rivers. Writing and numbers would be not be invented for about another 5, years. And what happens next will directly lead to the invention of both writing and number systems. At that time, merchants faced many of the same problems businesses face today.
They had to ship their merchandise up and down the rivers, and that meant trusting a boatman with their goods. Unfortunately, not all boatmen were honest, and disagreements often arose about how much was shipped versus what was received at the other end.
It is hard for us today to imagine a world without writing and numbers. Try to imagine yourself in their position To deal with the problem, merchants came up with an ingenious plan. They made small clay tokens, in various shapes and with various markings, to indicate different products. One would mean a basket of grain, another would mean a pot of oil, etc. They had over such tokens to indicate a large variety of common goods, including food, leather, clothing, utensils, tools, jewelry, etc.
Before shipping their goods, a merchant would take one token for each item in the shipment, and encase the tokens in a ball of clay, called a "bollae" pronounced "bowl-eye" - meaning ball. The ball would be dried in the sun, given to the boatman, and then broken by the buyer on the other end of the transaction.
The buyer would match the tokens with the items in the shipment, to verify that everything sent was accounted for. This is the function of protection of assets , and is a major function of all modern accounting systems. It was important 10, years ago and is just as important now. Today we see merchants doing the same thing as their counterparts 10 millennia ago - today they get a bill of lading - a listing of the merchandise entrusted to a shipper. The system of using bollae continued for almost 5, years, all before the invention of writing or numbers.
One day, probably by accident, a wet clay bollae was rolled over a loose token, laying on the ground. The impression of the token was left in the wet clay. Merchants began pressing the tokens on the outside of the bollae, in addition to putting the tokens inside the ball.