The percentage of sales method provides a straightforward way to forecast financial figures. This helps businesses get a sense of their short-term financial outlook. With a revenue of $60,000, she’s not running a corporation, but she should still expect to run into a small amount… Read More »Financial Forecasting using Percent of Sales Method & How to Calculate Projected Retained Earnings
When Business Returns Are Involved – The IRS is aware that businesses have the biggest potential for non-compliance, which is why they closely scrutinize business returns. Rohit has extensive experience in credit risk analytics and data science. He spent years building credit risk and fraud… Read More »How Far Back Can You File Taxes and Claim a Refund?
ROE is considered a measure of how effectively management uses a company’s assets to create profits. Retained earnings are part of shareholder equity and are the percentage of net earnings that were not paid to shareholders as dividends. Think of retained earnings as savings since… Read More »Owners Equity Learn How to Calculate Owner’s Equity
Start with a free account to explore 20+ always-free courses and hundreds of finance templates and cheat sheets. Depreciation charges for the first two years of the asset are $45,000 and $30,000 respectively (refer the solution of the example above in case of confusion). Deskera… Read More »Sum of Years Digits Method of Assets Depreciation Pros, Cons
Conversely, small businesses may opt for the Direct Write-Off method for its simplicity, especially if they deal with minimal credit sales or if the impact on financial statements is negligible. The process of recording an inventory write-off affects a company’s financial performance measures, primarily impacting… Read More »Understanding Inventory Write-Offs: Direct Method vs Allowance Method for Valuation Adjustments
Nonprofit accounting provides financial information that is essential for maintaining a stable financial position. When analyzing a non-profit organization’s balance sheet, it is important to identify any changes in the financial position over time. This can provide valuable insights into the organization’s financial health and… Read More »Analyzing Non-profit Organization’s Balance Sheet: Key Considerations
Refunds will be issued only in the event of overpayment, duplicate payments, or a payment made when no tax was due, and a refund was requested on your return. Payments not received within five (5) business days after the due date will be considered late. A second… Read More »Oregon Tax Tables 2024 Tax Rates and Thresholds in Oregon
Managing accounts payable with outdated systems often means navigating loads of inefficiencies and uncovering hidden costs. A leading provider of better-for-you foods that also taste great, Simple Mills’ small AP team struggled with processing a growing volume of invoices using their previous AP system. By… Read More »How To Master Changes To Your Accounts Payable Software
The best accounting software for contractors includes project management and inventory normal balance tools to gauge the profitability of a job. Unfortunately, QuickBooks’ features—at least those included with its base plan—aren’t quite enough to justify its high starting price. And you’d think a company as… Read More »The 7 Best Accounting Software for Freelancers in 2023
This can be sufficient for very small businesses that aren’t incorporated. As a business owner, you’ll most likely have to create a complete financial report at least once a year, for tax purposes. However, there are plenty of reasons to make quarterly, or monthly financial statements as… Read More »The Best Books for Starting a Business