Bookkeeping

Once you identify the indirect costs, get detailed expense data for each of these overhead cost categories for a specific period, such as a month or a year. You can track expenses by looking at your invoices, receipts, and records of all expenditures related to manufacturing overhead. ProjectManager is award-winning project management software that helps […]

Notably, a business does not want to have a quick ratio that is too high, which indicates an excess of cash that could be more prudently invested. As a result, construction companies often find it difficult to match the efficiency of companies that make the same products repeatedly in a controlled location. Management should provide

While we strive to provide a wide range of offers, Bankrate does not include information about every financial or credit product or service. Income tax deductions are expenses that can be deducted from your gross pre-tax income. Using deductions is an excellent way to reduce your California income tax and maximize your refund, so be

These can cover programs like short- and long-term disability, workers’ compensation, paid medical or family leave and more. Even if you’re self-employed with no additional employees, you’re still required to remit payroll taxes on your own salary. As you’ve probably learned by now, taxes are an inevitable part of doing business in the United States.

They ensure compliance with tax laws and maximize deductions, reducing the risk of penalties and optimizing tax liabilities. Accountants utilize financial data to develop forecasts and models that help businesses make informed decisions. They perform financial analysis and scenario planning to assess the potential outcomes of various business strategies. This ongoing process provides a clear

Total debt service refers to current debt obligations, meaning any interest, principal, sinking fund, and lease payments due in the coming year. On a balance sheet, this will include short-term debt and the current portion of long-term debt. Of course, the lending decision is not based on the debt service coverage ratio (DSCR). The commercial

Capital expenditures aren’t directly tax-deductible but they can indirectly reduce a company’s taxes through the depreciation they generate. A company could include $100,000 of depreciation expense each year for 10 years if it purchases a $1 million piece of equipment with a useful life of 10 years. This depreciation would reduce the company’s pre-tax income by

Reach out to clients proactively as soon as a payment becomes overdue. A friendly phone call or email can often clear up misunderstandings or identify any underlying issues. The aging of receivables method and the percentage of sales method are both used to estimate uncollectible accounts, but they differ in focus and approach. The aging

Record $100 as a journal entry by debiting Vacation Payable and crediting the Cash account (5 hours x $20 per hour). You can structure leave accrual differently for each type of employee. You might allow team members to accrue additional time based on seniority or years of service—for example, getting an extra 8 hours of