Positive (and increasing) cash flow from operating activities indicates that the core business activities of the company are thriving. It provides as an additional measure/indicator of the profitability potential of a company, in addition to the traditional ones like net income or EBITDA. Cash flow forms one of the most important parts of business operations …
University instructors and accounting supervisors put a lot of effort into teaching this. They use tools like accounting online resources to help tell the financial story accurately. Following best practices in accounting is crucial for accurate financial records. Groups like the Financial Accounting Standards Board (FASB) and the American Institute of Certified Public Accountants (AICPA) …
Normal Balance of Accounts: Definition and Examples Read More »
If the amount is more than 10% as of the most recent fiscal year-end, then it is considered significant. Since the asset had a net book value of 3,000 the profit on disposal is calculated as follows. For example, if a company exchanges an office building worth $500,000 for another of equal value, no immediate …
Disposition of Property, Plant, and Equipment Accounting Services Read More »
Financial statements, including those showing comprehensive income, only portray activity from a certain period or specific time. A balance sheet with classifications (groupings or categories) such as current assets, property plant and equipment, current liabilities, long term liabilities, etc. A current asset whose ending balance should report the cost of a merchandiser’s products awaiting to …
As you continue to grow your business, remember the key considerations highlighted in this guide. Quality accounting services for startups extend beyond mere numbers crunching or tax preparation—they’re the cornerstone of your financial stability and growth. A reliable accounting service ensures that Legal E-Billing your business remains on solid financial footing, empowering you to make …
Accounting for Startups The Ultimate Startup Accounting Guide Read More »
What Is Petty Cash In Accounting And How To Handle It The petty cash custodian is charged with distributing the cash and collecting receipts for all purchases or any uses of the funds. A check is requested from the organization’s main cash account, equaling the total expenditures supported by the receipts. Once received, this check …
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Our team is officially registered with the IRS, making sure that we’re always up-to-date with the latest laws, forms, and requirements. Bank reconciliation ensures that your financial records match your bank statements, helping to identify discrepancies, detect fraud, and prevent errors. Regular reconciliation maintains the accuracy of your financial data. Driving your financial success with …
H & S Accounting LLC CPA Firm in Phoenix, Sun City, AZ Read More »
Tax deductions should not be confused with tax credits, which directly reduce your tax bill. If you calculate your taxes due as $14,000 and are eligible for a $1,000 tax credit, your bill is cut by $1,000 to $13,000. “If you’re unmarried and supporting a dependent, you may qualify for head of household status. Some …
For 2024 tax returns, the student loan interest deduction starts to phase out when your modified adjusted gross income hits $80,000 (single filers) and $165,000 (joint filers). The decision to itemize deductions typically comes down to whether your eligible itemized deductions exceed the value of your applicable Standard Deduction. If you have minimal expenses, you’re …
COGS is found on a company’s income statement, usually appearing directly below sales revenue. COGS excludes indirect expenses such as marketing, sales, or administrative costs, which are accounted for separately as operating expenses. If we consider that there are 365 days a year, we can see the days it takes for the firm to transform …
How to Calculate Inventory Days: A Step-by-Step Process Read More »
