List of questions about [Money Management]

If you run a business—whether you're selling on Amazon, running a Shopify store, or even managing a traditional brick-and-mortar shop—you must understand Cost of Goods Sold (COGS). Why?

Because knowing how to calculate COGS isn't just about crunching numbers—it’s about understanding how much money you’re really making.

COGS is one of the most important accounting metrics that affects your profits, taxes, pricing strategy, and even inventory management. Yet so many business owners and aspiring entrepreneurs ask the same thing:

• What is cost of goods sold?
• How to calculate cost of goods sold?
• Is cost of goods sold an expense?
• What does cost of goods sold mean?

What is Cost of Goods Sold? The Foundation of Your Business’s Profitability

Cost of Goods Sold (COGS) refers to the direct costs of producing the goods or services a business sells during a specific period. These costs include raw materials, labor, and manufacturing expenses but exclude indirect costs like marketing or rent. Understanding what is cost of goods sold is critical for business owners because it directly impacts your gross profit and, ultimately, your bottom line.For example, if you run a coffee shop in the US, your COGS would include the cost of coffee beans, milk, sugar, and the wages of baristas preparing the drinks. In contrast, the rent for your shop or the cost of advertising on social media wouldn’t count as COGS. Knowing this distinction helps you answer, Is cost of goods sold an expense?

Yes, it’s an expense—but a specific one tied directly to production. By mastering COGS, you can:

• Accurately calculate your profit margins.
• Identify areas to cut costs without sacrificing quality.
• Make informed pricing decisions to stay competitive in markets like the US, UK, or Australia.

Why Should You Care About COGS?

Whether you’re a seasoned retailer in New York or a startup owner in London, understanding how to find cost of goods sold is essential for several reasons:

1- Profitability Analysis: COGS directly affects your gross profit, which is calculated as: Gross Profit = Revenue – COGS. A lower COGS means higher profits.

2- Tax Deductions: In many countries, including the US and UK, COGS is deductible, reducing your taxable income.

3-  Pricing Strategy: Knowing your COGS helps you set prices that cover costs while remaining competitive.

4- Inventory Management: Tracking COGS helps you monitor inventory levels, avoiding overstocking or shortages.

For instance, a UK-based clothing retailer might notice rising fabric costs impacting their COGS. By analyzing this, they can negotiate better supplier deals or adjust prices to maintain profitability in GBP.

How to Calculate Cost of Goods Sold: The Simple Formula

Let’s get to the heart of the matter: how to calculate cost of goods sold. The cost of goods sold formula is straight forward: COGS = Beginning Inventory + Purchases During the Period – Ending Inventory Here’s a step-by-step guide to make it crystal clear:

1- Determine Your Beginning Inventory: This is the value of your inventory at the start of the accounting period (e.g., January For example, a US bakery might start the year with $10,000 worth of flour, sugar, and other ingredients.

2- Add Purchases During the Period: Include all costs related to acquiring or producing additional inventory, like raw materials or direct labor. If the bakery buys $5,000 more supplies in January, this is added to the equation.

3- Subtract Ending Inventory: At the end of the period (e.g., January 31), calculate the value of unsold inventory. If the bakery has $3,000 left, subtract this amount.

4- Calculate COGS: Using the formula:

COGS = $10,000 (Beginning Inventory) + $5,000 (Purchases) – $3,000 (Ending Inventory) = $12,000

This $12,000 represents the bakery’s COGS for January, reflecting the cost of goods sold to generate revenue.

How to Find Cost of Goods Sold in Different Business Models

The process of how to find cost of goods sold varies slightly depending on your business type:

1- Retail Businesses: For retailers, COGS includes the cost of purchasing products from suppliers. A US-based electronics store, for example, would count the wholesale price of phones or laptops.

2- Manufacturing Businesses: Manufacturers include raw materials, direct labor, and factory overhead. A UK car parts manufacturer would factor in steel, assembly line wages, and machine maintenance costs.

3- Service-Based Businesses: Service businesses may not have traditional inventory, but COGS can include labor costs for service delivery. A freelance graphic designer in Australia might include software subscriptions or printing costs as COGS.

By tailoring your COGS calculation to your business model, you ensure accurate financial reporting, whether you’re dealing in USD, GBP, or AUD.

Is Cost of Goods Sold an Expense? Clearing Up the Confusion

A common question is, “Is cost of goods sold an expense?” The answer is yes, but it’s a specific type of expense. COGS is classified as a direct expense on your income statement, distinct from operating expenses like rent or utilities. This distinction matters because COGS directly ties to revenue generation,

making it a critical metric for assessing business efficiency. For example, a Canadian e-commerce store selling handmade jewelry would list the cost of beads, wires, and packaging as COGS,

while their website hosting fees would fall under operating expenses. Understanding this helps you optimize both direct and indirect costs.

Common Mistakes to Avoid When Calculating COGS

Even seasoned business owners can stumble when calculating COGS. Here are pitfalls to watch out for:

1- Mixing Up Direct and Indirect Costs: Don’t include expenses like marketing or office supplies in COGS. Stick to costs directly tied to production.

2- Inaccurate Inventory Counts: Errors in beginning or ending inventory can skew your COGS, leading to faulty financial decisions.

3- Ignoring Currency Fluctuations: If you operate internationally, account for exchange rates (e.g., USD to EUR) when calculating purchases.

4- Overlooking Labor Costs: For manufacturers or service providers, direct labor (e.g., wages for production workers) must be included in COGS.

By avoiding these mistakes, you’ll ensure your COGS calculations are accurate and actionable.

Pro Tips to Optimize Your COGS and Boost Profits

Now that you know how to calculate cost of goods sold, let’s explore ways to optimize it:

• Negotiate with Suppliers: Bulk discounts or long-term contracts can lower raw material costs, whether you’re in the US or Australia.
• Streamline Production: Invest in efficient processes to reduce labor or manufacturing expenses.
• Monitor Inventory Closely: Use inventory management software to avoid overstocking, which ties up capital and increases COGS.
• Analyze COGS Regularly: Track COGS monthly or quarterly to spot trends and adjust strategies, ensuring profitability in any currency.

For instance, a small business in London might switch to local suppliers to reduce shipping costs, lowering their COGS and boosting profits in GBP.

Ready to Take Control of Your Business Finances?

Understanding what is cost of goods sold and how to calculate cost of goods sold is more than just number-crunching—it’s a game-changer for your business.

cost of goods sold formula, you can make informed decisions that drive profitability and growth. Whether you’re a retailer in the US, a manufacturer in the UK, or a service provider in Australia,

COGS is your key to financial success.

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A Capital One account restricted notice is stressful, but these steps—understanding the cause, contacting support, addressing issues, and preventing recurrences—can restore access quickly. Whether you’re paying bills or trading crypto, proactive security keeps your finances smooth. Always verify suspicious alerts and use trusted platforms. Want to boost your financial security or explore crypto? Visit BYDFi for tutorials, tips, and tools to manage your money and digital assets confidently.

Online lenders like Kabbage and Fundbox offer quick access to capital with less stringent requirements than traditional banks. These are great for women entrepreneurs with less-than-perfect credit.

3- Women-Focused Lenders

Organizations like the Women’s Business Development Center and Grameen America provide microloans and financial education specifically for women. These programs often prioritize underserved communities and first-time entrepreneurs.

FAQs About Women Small Business Grants

Q: Are women small business grants hard to get?

A: Grants are competitive, but preparation is key. a strong business plan and tailored application can set you apart.

Q: Can I apply for multiple grants?

A: Yes! Applying for multiple grants increases your chances, as long as you meet each program’s eligibility criteria.

Q: How do I know if my business qualifies as women-owned?

A: A women-owned business is typically defined as one that is at least 51% owned and operated by women. Check with programs like the SBA for certification.

Q: What’s the difference between a grant and a loan?

A: Grants don’t require repayment, while loans do. Grants are ideal for early-stage businesses, while loans suit those needing larger capital.

Final thought

Final Thought: Don’t let funding fears stop your entrepreneurial journey! With countless women small business grants and loans available, now is the time to seize these opportunities. Take the first step , research, apply, and believe in your vision.

Your women-owned business has the power to change the game. Start today, and turn your dreams into reality!

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1. Chase Bank: More than $180

Open a new checking account, set up direct deposits of at least $500, and keep your account open for 90 days to score $200. Plus, enjoy no monthly fees with qualifying activities. Perfect for those seeking a straightforward switch.

2. SoFi Checking and Savings: Up to $300 Bonus

SoFi offers a $300 bonus for new accounts with qualifying direct deposits. Their debit card is ideal for teens, with parental controls and no overdraft fees, making it a great choice for families.

3. HSBC Advance:  

Switch to HSBC using the Current Account Switching Service and get £175 plus ongoing cashback on debit card spending. Ideal for those who want both immediate rewards and long-term perks.

4. Citi Checking: 1% APY + Up to $200 Bonus

Citi’s checking account offers a competitive 1% APY and a $200 bonus for new customers who meet deposit requirements. A solid pick for those prioritizing interest earnings.

5. First Direct:

£150 BonusFirst Direct’s switching offer includes £150 for new customers who meet basic criteria, like setting up direct debits. Known for stellar customer service, it’s a great option for long-term banking.

Always read the fine print. Some banks charge early closure fees if you shut your account too soon after claiming a bonus, so plan to keep it open for the required period.

Does Closing an Account Hurt Your Credit? The Truth Revealed

One of the biggest questions when switching banks is, “Does closing an account hurt my credit?” The good news: Closing a bank account in good standing won’t directly impact your credit score. Bank accounts (checking or savings) don’t appear on your credit reports from major bureaus like Experian, Equifax, or TransUnion, so closures aren’t factored into your FICO or VantageScore.

However, there are scenarios where closing an account could indirectly hurt your credit:

- Negative Balances: If you close an account with an unpaid overdraft or fees, the bank may send the debt to collections. This can appear on your credit report and damage your score for up to seven years.

- Missed Payments: If your old account was linked to automatic payments for loans or credit cards, forgetting to update these could lead to missed payments, which can significantly lower your score.

- Credit Products Tied to the Account: Some banks require a checking account to maintain a credit card or loan. Closing the account might disrupt these, potentially affecting your credit.

Why does closing an account hurt credit in these cases?

It’s not the closure itself but the ripple effects—like unpaid debts or missed payments—that cause the damage. To avoid this, follow these steps:

- Open a New Account First: Set up your new account and transfer direct deposits and automatic payments before closing the old one.

- Clear All Balances: Ensure your old account has no pending transactions, overdrafts, or fees.

- Monitor for a Few Months: Keep an eye on your old account for stray charges and confirm all autopayments have switched.

- Request Written Confirmation: Ask your bank to confirm the account closure in writing to avoid future disputes.

Debit Cards for Teens: A Smart Banking Move

If you’re switching banks for your family, consider accounts offering debit cards for teens. These accounts teach financial responsibility while giving parents control. For example:

• SoFi Teen Debit Card: No fees, parental monitoring, and instant transfers make this a top pick.
• Experian Smart Money™ Debit Card: Links to Experian Boost® to help teens build credit with eligible bill payments, a unique feature for young users.

When switching to a teen-friendly account, ensure the bank offers robust mobile apps and spending limits to keep things manageable. These accounts can also qualify for switch bank account offers, doubling the benefits for your family.

How to Switch Banks Without the Stress

Ready to grab one of the best bank switch offers? Here’s a foolproof guide to make the transition smooth:

- Research Offers: Compare bonuses, fees, and perks to find the best fit. Sites like Be Clever With Your Cash provide updated lists of switching deals.

- Open Your New Account: Use the Current Account Switching Service (available with many UK banks) for a seamless transfer within seven days.

- Transfer Funds and Payments: Move your money, direct deposits, and autopayments to the new account.

- Close the Old Account: Once everything’s settled, request closure and confirm it’s complete.

- Enjoy Your Bonus: Watch that cash hit your account and celebrate your smart financial move!

Why Are Banks Offering Free Money?

You might wonder: Why would a bank just give me $300 for switching?

Simple answer: Customer lifetime value. If they can win you over with a one-time bonus, you might stick around for years — getting loans, using credit cards, and investing through them.

But it’s not all free money. You have to meet the fine print:

• Direct deposit usually required
• Must keep the account open for 90+ days
• Sometimes you must use your debit card a few times or have a certain number of transactions

Final Thoughts:

Switching banks in 2025 is a golden opportunity to boost your finances with the best bank switch offers. Whether you’re chasing a $200 cash bonus, setting up a debit card for teens, or simply streamlining your accounts, you can do it without hurting your credit score. By addressing concerns like “why does closing accounts hurt credit” and following our expert tips, you’ll navigate the process like a pro.

Ready to make the switch? Explore the offers above, open your new account today, and unlock the rewards waiting for you. Have questions or want to share your bank-switching success story? Drop a comment below—we’d love to hear from you!

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You know that feeling when you’re about to hit “buy” on a cart full of goodies, but the total makes your heart sink? That was me, staring at a hefty bill for new sneakers and home decor on ASOS . Then, I stumbled on a voucher code that slashed 20% off my order in seconds. It felt like finding money in my pocket! If you love shopping online in the US, UK, or anywhere else, voucher codes are your ticket to saving big on everyday buys. Let’s dive into how they work and how you can score the same deals.

Context: What Is a Voucher Code for Online Shopping?

When checking out on websites like Amazon, Walmart, or Zara, a voucher code is a special combination of letters and numbers that you enter to get discounts, free shipping, or exclusive deals. These codes are similar to digital coupons that help you stretch your budget if you're a casual shopper or bargain hunter in the US, UK, or elsewhere. However, how can one use them without getting burned and where can one find them?

Climax: The Quest for the Best Deals

Saving money online feels like a treasure hunt. I scoured X for retailer posts, checked email newsletters, and browsed trusted coupon sites like RetailMeNot. Some voucher codes offered 10% off; others gave free delivery. The challenge? Codes can be region-specific (e.g., US-only) or expire quickly. My big win came with a verified code from Target’s newsletter, instantly dropping my bill by $15.

Resolution: How to Use Voucher Codes Like a ProHere’s how you can save on everyday online buys:

1. Visit Retailer Sites: Check the “Promotions” tab on stores like Macy’s or eBay.

2. Use Coupon Aggregators: Platforms like Honey or Coupons.com list verified coupon codes.

3. Sign Up for Newsletters: Brands often send exclusive promo codes to subscribers.

4. Stay Safe: Avoid shady sites promising “unlimited codes” to protect your data.Pro tip: If a voucher code doesn’t work, check its terms—some require a minimum spend or are category-specific (e.g., electronics only).

That first voucher code win taught me that small savings add up, whether you’re buying clothes, gadgets, or groceries online. Understanding coupon code meaning unlocks a world of deals. Start hunting for codes today to make every purchase a steal.

Visit RetailMeNot or Honey to grab the latest voucher codes and save on your next online shopping spree!

• For Budgeting: Look for a reloadable debit card with no monthly fees, like Bluebird or PayPal Prepaid.
• For International Travel: Choose a prepaid Visa card with no foreign transaction fees and multi-currency support.
• For Online Shopping: Opt for a card with strong security features, like Netspend or PayPal.
• For Teens or Students: Greenlight or similar cards offer parental controls and low fees.

Consider your country and currency needs. For example, US residents might prioritize USD-based cards, while UK or Canadian travelers may need cards supporting GBP or CAD.

Common Pain Points and Solutions

Hidden Fees: Always read the terms to avoid monthly, reload, or ATM fees. Cards like Bluebird minimize these costs.

International Acceptance: Stick to prepaid Visa cards or Mastercard for global use, as they’re accepted in more places than Amex.

Reloading Hassles: Choose cards with multiple reload options (e.g., direct deposit, retail locations, or mobile apps).

Security Concerns: Look for cards with fraud protection and the ability to lock/unlock via an app.

Final Thoughts: Take Control with the Right Prepaid Card

Whether you’re jet-setting across the globe, teaching your teen financial responsibility, or simply avoiding bank fees, a prepaid card can be a powerful tool. From reloadable Visa cards for international adventures to prepaid debit cards with no fees for daily budgeting, there’s a card for every need. By understanding your goals—be it travel, online shopping, or financial control—you can pick the best reloadable prepaid card to fit your lifestyle.

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Tip: Shop around for lenders in your country (e.g., U.S. banks like Chase or online platforms like SoFi). Compare APRs to save money.

2. Credit Cards: Quick but Costly

Credit cards are a fast way to borrow money, especially for smaller amounts. You can use existing cards or apply for new ones with introductory 0% APR offers.

Pros: Instant access to funds, rewards programs , cons: High interest rates (often 15-25% APR) if unpaid within the grace period , best For Short-term borrowing or emergencies under $1,000.

Tip: Look for cards with 0% introductory APR in the U.S. or Canada to avoid interest for 12-18 months.

3. Payday Loans: Fast Cash with a Catch

Payday loans promise quick cash, often within hours, but they come with sky-high interest rates (sometimes 400% APR or more).

Pros  No credit check, instant approval , cons  Predatory rates, short repayment terms, debt traps , best For: Avoid unless absolutely necessary.  

Tip: Explore alternatives like credit unions or borrowing from family first.

4. Home Equity Loans or Lines of Credit (HELOC)

If you own a home, you can borrow against its equity. This is a great option for large expenses like home renovations.

Pros: Lower interest rates, large loan amounts , cons: Risk of foreclosure if you can’t repay; not available to renters , best For: Homeowners with significant equity.

Tip: Check with local banks or credit unions for competitive rates.

5. Borrowing from Friends or Family: A Personal Touch

Asking loved ones for a loan can be a low-cost option, but it requires clear communication to avoid strained relationships.

Pros: No interest or flexible terms , cons: Potential for personal conflicts; no formal contract , best For: Small, short-term loans.

Tip: Draft a simple agreement to outline repayment terms.

6. Peer-to-Peer (P2P) Lending: The Modern Approach

Platforms like LendingClub or Prosper connect borrowers with individual investors.

Pros: Competitive rates, flexible terms , cons : Fees and credit requirements vary , best For: Tech-savvy borrowers with decent credit.

Tip: Research platforms available in your country; U.S. and Canadian options are widely available.

FAQs About Borrowing Money

Can I Borrow Money with Bad Credit?

Yes, options like payday loans, secured loans, or P2P lending cater to lower credit scores, but expect higher rates. Improving your credit before borrowing can save thousands.

How Can I Borrow Money Fast?

Online lenders, credit cards, or borrowing from family are the quickest options. Always compare terms to avoid high costs.

What’s the Cheapest Way to Borrow Money?

Borrowing from friends/family or using a 0% APR credit card (if repaid before the promotional period ends) is often the cheapest.

How to Borrow Money Fast: Tips for Speed and Safety

When time is of the essence, you need solutions that deliver fast cash without compromising your financial future. Here’s how to borrow money quickly and safely:

1- Check Your Credit Score: A higher score (e.g., 670+ in the U.S.) unlocks better rates. Use free tools like Credit Karma to check.

2- Compare Lenders: Use comparison sites like NerdWallet or Finder to find the best rates in your region.

3- Avoid Predatory Lenders: Steer clear of payday loans or lenders with vague terms.

4- Apply Online: Online lenders like Upstart or Avant often approve loans within 24 hours.

5- Prepare Documents: Have ID, income proof, and bank details ready to speed up processing.

Pro Tip: In the U.S., credit unions like Navy Federal or PenFed often offer faster approvals and lower rates than big banks. In Canada, check out providers like Mogo for quick online loans.

Common Pitfalls to Avoid When Borrowing Money

Borrowing money can solve immediate problems, but missteps can lead to long-term headaches. Here’s what to watch out for:

1- High-Interest Traps: Payday loans and high-APR credit cards can spiral into unmanageable debt.

2- Overborrowing: Only borrow what you need to avoid excessive repayment stress.

3- Ignoring Terms: Read the fine print for fees, prepayment penalties, or variable rates.

4- Scams: Be wary of lenders asking for upfront fees or personal information without clear credentials.

Did You Know? In 2023, the U.S. Consumer Financial Protection Bureau reported that 1 in 5 payday loan borrowers defaulted, highlighting the risks of predatory lending.

How to Choose the Best Way to Borrow Money for You

Amount Needed: Small sums ($500-$2,000) may suit credit cards or family loans; larger amounts ($10,000+) may require personal loans or HELOCs.

Repayment Timeline: Short-term needs favor credit cards; long-term needs suit personal loans.

Credit Profile: Poor credit may limit you to payday loans or P2P lending.

Urgency: For instant cash, credit cards or online lenders are fastest.

Example: If you’re a U.S. resident needing $5,000 for a medical bill, a personal loan from a credit union with a 7-10% APR could be ideal. For a Canadian needing $1,000 for car repairs, a 0% APR credit card might work if repaid quickly.

Final Thoughts: Make Borrowing Work for You

Borrowing money doesn’t have to be stressful. By understanding the different ways to borrow money and aligning them with your needs, you can secure funds quickly and affordably. Whether you’re in the U.S., Canada, or elsewhere, always prioritize reputable lenders, compare rates, and read terms carefully. Ready to take the next step? Start by checking your credit score and exploring trusted lenders in your area to find the best way to borrow money for your unique situation.