Author Anfisa Dmitrieva Posted on Posted on: 17.10.2023Categories Business Accounting BlogEven 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 […]
Author Anfisa Dmitrieva Posted on Posted on: 17.10.2023Categories Bookkeeping 101Publicly traded firms list the number of shares outstanding on their balance sheets. Companies must provide regular reports of their balance sheet to investors as well as federal regulators like the Securities Exchange Commission (SEC). One is that you can use shares outstanding to calculate the market capitalization, the total value, of a corporation. Multiply … Continue reading “Shares Outstanding vs Floating Stock: What’s the Difference?”
Author Anfisa Dmitrieva Posted on Posted on: 17.10.2023Categories Business Accounting BlogNot 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… […]
Author Anfisa Dmitrieva Posted on Posted on: 16.10.2023Categories Income StatementIn other words, GAAP determines the taxable profits, except where a tax rule determines otherwise. Such adjustments typically include depreciation and expenses which for policy reasons are not deductible for tax purposes, such as entertaining costs and fines. Understand how the rules of FASB ASC 740 establish guidelines for accounting for income taxes, including income tax expense, classification of deferred tax accounts, and related disclosures — all updated for tax reform. First, a company&rs […]
Author Anfisa Dmitrieva Posted on Posted on: 16.10.2023Categories Business Accounting BlogNoncurrent 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 […]
Author Anfisa Dmitrieva Posted on Posted on: 16.10.2023Categories Business Accounting BlogThis 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 […]
Author Anfisa Dmitrieva Posted on Posted on: 16.10.2023Categories Income StatementFor example, there could be another company with similar growth potential in the same industry. In that case, taking the tax loss and purchasing the other stock is advantageous. If you do have a wash sale event, the rules do not permanently prevent a deductible loss. The disallowed loss simply increases your cost basis in the new holding. The rule, therefore, delays any tax efficiency benefits from realizing the loss, which generally defeats (more…) […]
Author Anfisa Dmitrieva Posted on Posted on: 16.10.2023Categories Business Accounting BlogDistributions 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 […]
Author Anfisa Dmitrieva Posted on Posted on: 16.10.2023Categories Income StatementWhen bonds are sold between interest dates, part of the sales price represents interest accrued to the date of the sale and must be reported as interest income. Amounts received in excess of the original issue discount upon the retirement or sale of a bond or other evidence of indebtedness may under some circumstances constitute capital gain instead of ordinary income.
Considered to be United States Government obligations (12 USCS section 2288, 31 USCS section 3124).In the meantime, though insu […]
Author Anfisa Dmitrieva Posted on Posted on: 16.10.2023Categories Income StatementIn the example from the previous step, assume your restaurant gave $10,000 in discounts during the most recent quarter. Allowances – If a product has a small defect or was damaged before a sale, a customer may still be willing to buy it with a price reduction, or an allowance. However, some companies report gross and net sales both on the income statement itself. The table below shows an excerpt from a sample income statement. These are rewards (more…) […]
