However, the way the two accounting standards classify cash flow activities differs. Income statements also called profit and loss (P&L) statements confirm how profitable a company is. These statements also show the total change from the beginning to the end of the period. Investing activities refer to investments the company makes using cash, not debt. […]

The other half of the HVAC Bookkeeping COGM formula accounts for the work in process or WIP Inventory. WIP is a current asset in the company’s balance sheet and represents the total value of all materials, labor, and overhead of unfinished products. COGM is a critical component of profit and loss statements and measures the cost […]