CategoryAmountRevenueSales revenue$1,000COGS$100Gross Profit$900ExpensesInterest expense$100Electricity expense$50Maintenance expense$50You sold $1,000 worth of popsicles. If popsicles cost $4 each (they’re vegan, gluten-free, and organic, after all), that means you sold 250 popsicles. Here’s an example of what a balance sheet looks like if you’re a Bench customer. This post is to be used for informational purposes only and does not constitute legal, business, or tax advice. E […]
Fortunately, you don’t have to become a tax law expert or live in fear of IRS auditors knocking at your door. We’ve prepared the following guide to small business taxes for dummies (and savvy business owners who want to take advantage of tax-saving strategies). When it comes to corporations, the income was typically taxed similar to income tax of individuals. When you’re getting your business started, keep track of all of your income and expenses from day one. Corporations in […]
These interpretations provide guidance for CPAs as the profession becomes more technologically dependent. CPAs should spend some time each year reviewing the updated interpretations and guidance to ensure they’re staying up to date on any relevant updates. In 1999, the nearly 120 existing committees underwent a re-organization with approximately half of the standing committees being replaced with a volunteer group model that placed an increased emphasis on the use of task forces. The incr […]
Gusto, in particular, is a prime example of an accounting service bent on payroll, but also with numerous other features. There are many instruments to cover. Obviously, you’ll need to know what you’re dealing with because there are many …
Sonya Livshits has been working as a Certified Public Accountant for a long time. Realizing that she can do more, she enlists the help of her husband, Jacob Livshits, who is a well-experienced technology entrepreneur, to set up what would then be cal…
Debits and credits allow you to quickly scan through a financial statement and see how much value was lost or gained after the transaction. That being said, if you want to not just read the statements but also understand what they mean, you need to s…
In short, the average collection period shows how fast the company can collect the money owed to them by the clients. Lower ACP means it doesn’t take long for the specific business to receive money from the sales done on credit, while higher AC…
The credit risk is, simply put, a risk associated with the borrower’s inability to pay back what they owe. Naturally, if that’s the case, the lending party won’t just lose whatever it is they are owed, but also the potential revenue…
Free on board (or FOB) refers to the order at which the transition of goods from one owner to the other happens in relation to their overseas delivery. In short, who owns the goods while they are being transported via waterways? That’s a critic…
This account includes both direct costs and indirect costs. Direct costs are pretty straightforward – they include money you had to pay for materials and money you had to pay your workers to work. All the indirect costs for the production process its…
