Bookkeeping

Many firms flagged as “losers” take on additional short-term debt to fund their operations during the shock period. By subtracting the dividends paid from the net income, you can see how much profit the company has reinvested in itself. By looking at these items, you can understand a company’s performance over time and dividend policy.

When it comes to salary, you don’t have to worry about estimated or self-employment taxes. However, a draw is taxable as income on the owner’s personal tax return. Owner’s draws are usually taken from your owner’s equity account. It’s not a salary in the technical sense, but more of the owner’s equity in the business.

It ensures that all outstanding bills and invoices are accurately recorded, providing a clear picture of your financial position. Once the data has been compiled, it’s essential to review reports with the entire team for accuracy and completeness. This step is key in ensuring that the financial statements are consistent month end close process and

This section summarizes recently enacted federal legislation affecting the financial reporting of income taxes and new and proposed FASB guidance on accounting for income taxes. ​On May 28, 2014, the FASB and IASB issued their final standard on revenue from contracts with customers. The standard outlines a single comprehensive model for entities to use in

For this reason, the asset must be documented as a receivable account and not cash. The revenue account is increasing, as is the assets account. Understanding accounting basics is critical for any business owner. Read on to understand debit and credit accounting, the concept of double-entry accounting and a few accounting best practices. This discussion

The more tax deductions and credits you claim, the less money your employer will withhold from your paycheck. So, it’s important to make sure you accurately fill out your W-4 Form and that you update your information on that form when needed. The Social Security and regular Medicare taxes owed are unaffected by the number

EBITDA gained notoriety during the dotcom bubble, when some companies used it to exaggerate their financial performance. Consider enrolling in Financial Accounting—one of three courses comprising our Credential of Readiness (CORe) program—which can teach you the key financial topics you need to understand business performance and potential. Now that we know how to calculate earnings

It should be noted that the adjustment is made irrespective of the balance already on the allowance account, and for this reason the allowance account balance can build up irrespective of the level of accounts receivable. Accounts receivable represent amounts due from customers as a result of credit sales. Unfortunately for various reasons, some accounts