Category Archives: Bookkeeping

Businesses are then responsible for remitting it to the government. On average, the impact of sales tax on Americans is about 2 percent of their personal income. Sales tax provides nearly one-third of state government electing s corporation status for … Continue reading →

It’s an essential metric for businesses because it plays a key role in determining a company’s gross profit. For example, airlines and hotels are primarily providers of services such as transport and lodging, respectively, yet they also sell gifts, food, … Continue reading →

Regardless of your position, learning how to create and interpret financial statements can empower you to understand your company’s inner workings and contribute to its future success. A cash flow statement is a financial statement that provides aggregate data regarding all cash … Continue reading →

So based on nominal interest rate and the compounding per year, the effective rate is essentially the same for both loans. For example, you can set any additional fees that mostly arise in mortgage loans. Therefore, by considering such extra … Continue reading →

But you’d rather err on the side of estimating a higher lead time and delivering early than estimating too low and dealing with missed deadlines and disappointed customers. It’s always better to underpromise and over-deliver, rather than the other way … Continue reading →

Below is an example from General Electric’s (GE)’s 2017 financial statements. As you can see in the screenshot, GE declared a dividend per common share of $0.84 in 2017, $0.93 in 2016, and $0.92 in 2015. However, it’s not a … Continue reading →

You can also determine sales tax by dividing the total tax you pay as a customer by the item’s price before tax. If you know the total value of the item after-tax, you can deduct the pre-tax price and subtract … Continue reading →

The CTA requires the disclosure of the beneficial ownership information (otherwise known as “BOI”) of certain entities from people who own or control a company. Details of our scholarships and bursaries for students starting in 2025 are not yet available. … Continue reading →

Startups need rigorous accounting to ensure they survive the threats they face as fledgling businesses. These include limited cash flow, as-yet-unproven market fit, and spiraling costs. The most common reasons startups fail include running out of cash and failing to … Continue reading →

However, modern accounting as a profession has only been around since the early 19th century. In accounting, liquidity describes the relative ease with which an asset can be sold for cash. Assets that can easily be converted into cash are … Continue reading →