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what is operating income

What is Operating Income? A Guide to Calculation and Reporting


Q: Is operating income the same as EBIT? A: Almost, but not quite. EBIT (Earnings Before Interest and Taxes) includes any non-operational income, whereas operating income focuses solely on earnings from core business activities.

Q: Can operating income be negative? A: Yes, a negative operating income indicates that a company’s operating expenses exceed its gross revenue, signaling operational inefficiencies or challenges.

Q: Why is operating income important? A: Operating income provides a clear view of a company’s operational efficiency and profitability, independent of external financial activities. It’s a crucial metric for investors, creditors, and management to assess the health and performance of a business.

State of Accounting 2024

The State of Accounting

The State of Accounting: The Imbalance in the Industry

The accounting industry, often seen as the backbone of financial management, faces a significant imbalance. Beyond the traditional balancing of books, the profession struggles with a demographic shift that threatens its sustainability. The exodus of talent, coupled with challenges such as long hours, outdated technology, and limited career progression, paints a sobering picture of an industry needing transformation.

In this article, we delve into the state of accounting, exploring the reasons behind the talent drain and proposing solutions to steer the profession toward balance and prosperity.

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Streamline Invoicing with the Best Finance Automation Software

In the fast-paced world of finance and accounting, precision and efficiency are staples of a good finance automation software. Simplifying the invoicing process is one of the best ways to streamline your financial management.

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Best of Sage Intacct Alternatives

There are many Sage Intacct alternatives for medium and large-sized businesses, and it is worthwhile to search through them to find the solution that fits your company best.

As businesses grow beyond small-business finance and accounting software solutions like Xero, QuickBooks, and Sage 50, they must look to upgrade to a more comprehensive solution. Enterprise resource planning (ERP) solutions are the next step up.

Sage Intacct can seem like an easy switch, especially if the company was previously on Sage 50. However, Sage Intacct has limitations that could make it an inadequate option for many businesses.

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Sage Intacct vs. Xledger

Sage Intacct and Xledger are two accounting and finance software solutions designed to streamline financial management processes, but there are key differences between them. While both aim at making a business more efficient, Xledger offers key advantages that make it an ideal solution for organizations seeking a more comprehensive and customer-focused solution.