Business Accounting Blog

Even external audits can help you stay on good terms with shareholders, investors, and lenders. As far as IRS audits go, they are nothing to fear either, as long as you are accurate about your income and deductions. At the end of the day, the best way to prepare for any business audit is to keep well organized financial records.

If you take several deductions, claim losses for multiple years in a row, or report high income levels, these are all risk factors for an IRS audit. If you’re ch […]

Not only will this help offset some upfront expenses, but it will also contribute to your business’s overall credit. Also, Corporations and LLCs are required to have a separate line of credit outside their personal accounts. We recommend opening two accounts — one checking account and one savings account, the latter in which you’ll stash money for taxes and unforeseen expenses. And remember, before you can open any business accounts, you must have a registered business (more… […]

Noncurrent assets are things a company does not expect to convert to cash within one year or that would take longer than one year to sell. Fixed assets are those assets used to operate the business but that are not available for sale, such as trucks, office furniture and other property.

Subtract the selling and administrative expenses total from the gross margin. Subtract the cost of goods sold total from the revenue total on your income statement. This calculation will give you the gross marg […]

This form of ownership is most commonly used for small businesses. Once a business increases in size, its proprietor is more likely to switch to an alternative legal form for the business in order to protect his or her personal assets, such as a corporation. A sole proprietorship has no separation between the business entity and its owner, setting it apart from corporations and limited partnerships. A sole trader is the simplest type of business structure defined in UK law. It refers to an indi […]

Distributions signify a reduction of company assets and company equity. Stock purchases or partnership buy-ins are considered capital because both are comprised of cash contributions made by the owners to the company. Capital accounts have a credit balance and increase the overall equity account.
This process is known as mappingthe acquiree’s information into the parent’s chart of accounts. Companies that make profits rarely distribute all of their profits to shareholders in the for […]

A receipt is proof that a transaction happened.It’s what you give your customers after a transaction is complete. Subtract the total expenses from your gross profit to get your operating profit. Accountants are members of statutory organizations and registered accountants might call themselves CPAs or CAs . They are primarily responsible for preparing statutory returns, advising on legal entity structure and giving general business advice. A sole proprietor vs LLC for you small business f […]

Some of the earliest unions in the US were formed by women in the textile industry in cities such as Lowell, Massachusetts. The National Labor Union was the first American federation of unions formed in 1866. In these early days, unions lobbied against dangerous work conditions and for regulations around the work conditions of women and children. New kinds of labor interest groups are developing to represent workers outside of the mainstream workforce, such as low-wage or freelance workers. Cou […]

Extraordinary repairs are capitalized, which means the repair cost increases the book value of the fixed asset that was improved as a result of the repair. The extraordinary repair cost may be added to the original fixed asset or it could be identified as a separate fixed asset item directly underneath the original, in order to keep clean accounting records. As a result of this transaction, ABC’s accountants will debit their fixed asset account and credit accounts payable by $400,000. The […]

Accredited In Business Valuation is a professional designation awarded to CPAs who specialize in calculating the value of businesses. Even if you are not actively looking to buy, sell or merge with an existing business, you should have a current understanding of what your business is worth. Tom attended Michigan State University on a hockey scholarship and went on to play for the St. Louis Blues, Chicago Blackhawks and Tampa Bay Lightning professional (more…) […]

A list of special orders matching the entered criteria opens. To select the special order from the list, continue with Step6. Items that are shipped to the customer must be paid in full in the same transaction in which the order is created.

A representative of the local high school recently approached Tony to ask about a one-time special order. The high school will be hosting a statewide track and field event and is willing to pay Tony’s T-shirts $17 per shirt to make 200 custom T-shirts […]