The company’s income or activity has no impact on the franchise tax; it is required to stay in good standing. However, a “franchise tax” doesn’t necessarily mean that the company is part of a franchised business. This method allows the company to pay the lower of two calculated tax amounts. In some cases, https://www.quick-bookkeeping.net/ it may […]
Category Archives: Bookkeeping
In fact, it would be preferable to calculate the IRR to compare these two investments. The IRR for the first investment is 6 percent, and the IRR for the second investment is 5 percent. The answer is found by dividing $200,000 by $100,000, which is two years. The second project will take less time to […]
You simply provide your business information and choose the relevant options for accounting, invoicing tax, and payroll. You can then opt to link your bank account for managing transactions or choose to enter everything best free bookkeeping software manually (not that practical). You can then launch and tweak the settings from the dashboard at any […]
These loans could be long term in nature, but they are typically overnight loans to other banks. Since the bank is making money on your deposits, they typically pay you a small amount of interest to encourage you to leave the money in your account. Throughout the year, your cash balances earn interest that the […]
This means you bear the burden of exhaustion of the capital investment in the property. Therefore, if you lease property from someone to use in your trade or business or for the production of income, generally you cannot depreciate its cost because you do not retain the incidents of ownership. You can, however, depreciate any […]
Nevertheless, period costs are commonly incorporated into selling and administration expenditures on the statement of profit & loss during a specific period. There is no specific method or formula for calculation of period costs. This way the management could identify the expenses that could be classified as period costs and it will become easy to […]
However, it is logical to report $10,000 of expense in each of the 7 years that the truck is expected to be used. Depreciation is a non-cash item on the financial statements of a company. When depreciation is recorded, a company does not actually make a cash outflow. The units-of-production method depreciates equipment based on […]
The total variable cost is simply the quantity of output multiplied by the variable cost per unit of output. The total expenses incurred by any business consist of fixed costs and variable costs. Fixed costs are expenses that remain the same regardless of production output. Whether a firm makes sales or not, it must pay […]
If your company is earning commission, then it’s considered revenue (we’ll touch on this in more detail in the next section). In this article, we will answer basic questions like, “What is commission income? ” and then look at revenue recognition for commission income so you can ensure your books are always accurately reflecting your […]
While the net differential on its own does not provide many practical insights, the fact that the difference is expressed in percentage form facilitates comparisons to the company’s base period and to the performance of that of its comparable peers. For example, if a company’s current year (2022) revenue is $50 million in 2022 and […]