Bookkeeping 101

Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master’s in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He … Continue reading “How much does a cpa cost: How much should I expect to pay a CPA to help me?”

The method you use to value the ending inventory determines the cost of goods sold. A lower inventory value results in a higher costs of sales and a lower profit; conversely, a higher ending inventory decreases the cost of goods sold and results in a higher profit. If COGS are higher and profits are lower, … Continue reading “How to calculate fifo and lifo: FIFO: First In First Out Principle: Method + How-to Guide”

If you don’t pay enough tax by the due date of each of the payment periods, you may be charged a penalty even if you are due a refund when you file your income tax return. You had no tax liability for the prior year if your total tax was zero or you didn’t have to file … Continue reading “How to calculate estimated taxes: Calculating Quarterly Estimated Taxes”

If the lookup value (sales amount) were a negative number, then the vlookup would return an error. We can use a VLOOKUP formula to calculate the payout rate for a given sales amount (lookup value). For this to work we need to set the last argument in the vlookup [range_lookup] to TRUE. He/she will earn … Continue reading “How to calculate commission: How to calculate a commission”

In other words, the giver of the benefit is a liability to the one who receives it. Designed for freelancers and small business owners, Debitoor invoicing software makes it quick and easy to issue professional invoices and manage your business finances. The practise of ensuring that the amount in the control accounts and the amounts … Continue reading “How to balance purchase ledger: Is purchase ledger control account a debit or credit?”

In the example above, adding $30/month for cloud accounting software into “doing your own bookkeeping” equation will have you saving $121/month by hiring a bookkeeper (like Bench). Not every self-employed worker or small business owner needs a bookkeeper. Maybe you’re new to the 1099 world, or have simple finances you don’t mind managing on your … Continue reading “How much does bookkeeping cost: How Much Does Bookkeeping Cost For A Small To Medium Sized Business?”

The amount of interest expenses your company accrues can affect your profitability. Where your company has a high level of debt, it will be difficult to keep up with payments if the economy experiences a downturn. In these periods, it is recommended that you seek professional advice to examine your financial situation to determine whether … Continue reading “How to calculate interest expense: How to calculate interest expense”

It’s a seemingly simple question, but the answer is actually full of nuance and potential determining factors. Understanding how to calculate the taxes you’ll pay on your small business is vital to a good accounting strategy. With proper knowledge and planning, paying your federal income tax doesn’t have to be a blow to your business … Continue reading “How much do small businesses pay in taxes: How Much Taxes Do Small Businesses Pay?”

Even if you can’t pay the taxes owed, filing your returns and working out a payment plan with the IRS is better than waiting and accruing failure-to-file fees. Filing a tax return on time is important to avoid or minimize penalties, even if you can’t pay the balance you owe. If you don’t file your … Continue reading “How many years can you file back taxes: How Do I File Returns for Back Taxes?”

They will receive payment according to the agreements they have between themselves and their clients. Furthermore, the long hours, demand from clients, and pressure to lower fees can all contribute to added stress. So, if you don’t have much experience in accounting, doing it freelance could be hard for you. Many of these accountants are … Continue reading “Freelance accountant: Freelance Accountant: Job Description, Income & How To Apply”