Category: Bookkeeping

Be sure to consult a CPA or other tax professional before sending your return to the IRS. You must report on your tax return all income you receive small business tax deductions checklist from your business unless it is excluded by law. In most cases, your business income will be in the form of cash,…

Investment activities are about how to grow a business and make more money in the future. Investment can be through the purchase of new machines or acquisitions, and both require payment. And financing such investments, for example, by issuing shares or bonds, is a cash flow component of financing activities. As the statement of cash…

Short-term debt may be preferred over long-term debt when the entity does not want to devote resources to pay interest over an extended period of time. In many cases, the interest rate is lower than long-term debt, because the loan is considered less risky with the shorter payback period. This shorter payback period is also…

Unlike managerial accounting, payroll accounting requires no complex analysis on which to base business decisions. Regardless of how the employment relationship has ended (termination, end of contract, etc.), there are certain obligations still in place for the payroll accounting department. They are obliged to notify tax authorities that the employee is no longer working there,…

Thus, the contribution margin in our example is 40%, or ($10,000 – $6,000) / $10,000. On the other hand, internal management may be most interested in the costs that go into manufacturing a good that are controllable. The net profit margin shows whether increases in revenue translate into increased profitability. Net profit includes gross profit…

As with Antarctica, large increases in concentrations in reactive chlorine have been measured in Arctic regions where high levels of ozone destruction occur. Like depreciation and amortization, depletion is a non-cash expense that lowers the cost value of an asset incrementally through scheduled charges to income. Where depletion differs is that it refers to the…

Sales to government employees are taxable regardless of the fact that the employees may be reimbursed by the government for the expenses incurred. Gross sales are the grand total of sale transactions within a certain time period for a company. Net sales are calculated by deducting sales allowances, sales discounts, and sales returns from gross…

Today, it’s a part of our financial vocabulary, reflecting a wide range of purchase options. Once the credit card company has reported to the credit bureaus, you’re taken off the accounts. The account information is reflected in your credit score and remains on your credit report for seven years. The positive payment history can offset…