Category: Bookkeeping

Also be on the lookout for an increase in the allowance for doubtful accounts. If companies aren’t able to collect from customers anymore, they won’t be able to pay their bills. Companies are required to anticipate the percentage of accounts receivables that will go unpaid based on historical losses. This number is called the allowance […]

In this case, an adjusting entry must be made at the end of the current period in order to accrue the commission earned but not yet received. It helps you keep track of the money you’ve earned but haven’t received yet. Accrued revenue is an important concept for beginning investors to learn and understand. But […]

Find out why you should get connected with a Pro to file your taxes. The taxpayer Bill of Rights is grouped into 10 easy to understand categories outlining the taxpayer rights and protections embedded in the tax code. See IRS.gov – ITIN Updated Procedures Frequently Asked Questions. Whether you want to pay less interest or earn […]

It is important to advise taxpayers about potential consequences. The IRS Disclosure Statute (I.R.C § 6103 (c) et al.) prohibits the sharing of information but has many exceptions. When filing for an ITIN number, all CAAs helping taxpayers should include the W-7 Certificate of Accuracy (CoA) form. Naturally, the IRS needs all of your basic […]

These are the extra expenses involved in producing or offering a product or service in an additional unit. Particularly in sectors with fluctuating production costs, these expenses are frequently considered’ while making short-term decisions. However, the difficulty is in determining which costs should be included. The answers to these questions depend on the negotiations between […]

It refers to the expenses, including wages and other benefits, that you incur for employees that directly work on the projects such as the laborer, rigger, foreman and pipefitter. Since how to calculate depreciation expense for business cannot be traced back to a specific product or service, the related cost can’t be billed to the […]

The accounting rate of return (ARR) is a formula that shows the percentage rate of return that is expected on an asset or investment. This is when it is compared to the https://www.simple-accounting.org/ initial average capital cost of the investment. Every business tries to save money and further invest to generate more money and establish/sustain […]

In order to properly calculate the metric, one-time fees such as set-up fees, professional service (or consulting) fees, and installation costs must be excluded, since they are one-time/non-recurring. The project looks like it is worth pursuing, assuming that the projected revenues and costs are realistic. For multiple customers, repeat the same calculation for each customer […]

By receiving a tax credit, your tax liability is smaller, allowing you to save money on your taxes. The residential clean energy credit added a credit for qualified battery storage technology. Battery storage technology costs are allowed for the residential clean energy credit for expenses paid after December 31, 2022. See Qualified battery storage technology […]

Some leases place the burden on a tenant while others put the entire load over to the property owner. A lease is an implied or written agreement specifying the conditions under which a lessor accepts to let out a property to be used by a lessee. The agreement promises the lessee use of the property […]