Bookkeeping

This information is important for lenders and creditors when they are considering whether to approve a loan or credit application. Gross income is the sum of all incomes received from providing services to clients before deductions, taxes, and other expenses. Business News Daily provides resources, advice and product reviews to drive business growth. Our mission […]

If assets are always maintained at the original cost, then adjustments are unnecessary. Using the fair value method, costs and assets will continue to fluctuate as the market changes. Revenue expenditures represent expenditures for ordinary repairs and maintenance. The assumption is that the benefit from the expense incurred will be used up in the current

In this scenario, we can use the formula to calculate the depreciation expense for the first year. However, note that eventually, we must switch from using the double declining method of depreciation in order for the salvage value assumption to be met. Since we’re multiplying by a fixed rate, there double declining balance method will

For example, imagine that a business’s Total Assets increased by $500. This change must be offset by a $500 increase in Total Liabilities or Total Equity. The formula defines the relationship between a business’s Assets, Liabilities and Equity. That could be an individual owner — as with a sole proprietorship — or a large group,

Instead, it is simply an analysis concept used to optimize decisions. A fixed cost is one that stays relatively fixed, irrespective of the activity level of a business. For example, a firm will incur rent expense for its premises, no matter what level of sales it generates. Depending on the business, it may have a

Here’s what you need to know to make an informed decision when choosing a contractor. Retail salespeople who sell directly to consumers are typically considered employees, paid by commission, salary, or by the hour. The U.S. Department of Labor looks differently at outside sales people (those selling remotely) and inside salespeople (those working at the

This team of experts helps Finance Strategists maintain the highest level of accuracy and professionalism possible. Our team of reviewers are established professionals with decades of experience in areas of personal finance and hold many advanced degrees and certifications. As a result, the understanding gaap vs ifrs challenge lies in anticipating future scenarios and crafting

EAs can be seen in an office, in front of the IRS, or sitting down with clients. They work in accounting firms of all types and sizes, with many EAs starting their own businesses. An enrolled agent is an individual who is certified to represent taxpayers before the Internal Revenue Service. Some examples of enrolled

Improving the Accounts Payable Turnover Ratio can strengthen the creditworthiness of an organization, giving it more power to buy more goods and services on credit. After having understood the AP turnover ratio and its dependency on various factors (both internal and external). However, a high ratio also indicates the company is not quickbooks vs xero