Categoría: Bookkeeping

To calculate the effective income tax rate for the state of Illinois, we simply divide the previously calculated income tax estimate by our initial $70,000 in wages. The study also found Illinois state and local governments levy the nation’s second-highest gas taxes and second-highest effective property taxes on residents. Illinois now levies the nation’s highest…

It’s a check that has been intentionally voided to ensure that it can never be cashed. voided checks reveal crucial banking information that if not shredded or disposed off properly can serve as linchpin to more dangerous scams. Voiding a check is a simple way of providing such financial information. When you void a check…

That information can be used to gauge if your expenses are too high or your prices are too low. Take a restaurant that incurs an operating expense related to food and labor. Those expenses are listed on the income statement and can give you an idea of whether your pricing is spot-on or it’s time…

Households can claim a tax credit for 30% of the costs of buying and installing a heat pump, up to $2,000 including support for any electric system upgrades needed to make the home heat-pump-ready. Households can receive a tax credit to cover up to 10% of the cost of insulation materials and other energy efficient…

This alignment tends to occur because an asset is most heavily used when it’s new, functional, and most efficient. The U.S. income tax regulations allow a business to use accelerated depreciation on its income tax return while using straight-line depreciation on its financial statements. For profitable corporations, this likely results in deferred income tax payments.…

This metric provides valuable insights into the efficiency of the company’s accounts receivable management. A company’s days sales outstanding (DSO) is the average number of days it takes the business to collect payment over a period following a sale. Days sales outstanding is also sometimes referred to as “days sales in receivable”. Days sales outstanding is…

Although it looks very simple on the face of it, Managing receivables from Debtors can be a very complex task depending on the nature of our business. As our business grows and as our offering gets complex the process of collecting the payments needs to be designed accordingly. There are very few businesses, which have…

On the other hand, the range for an Enrolled Agent starts from $32k and goes up to $82k. This includes base salary, bonus, profit sharing, and commission. Both the EA and the CPA credentials come with a strict code of ethics and professional standards. However, the EA license is regulated at the federal level while…

For example, if a department manager is considering purchasing a company vehicle, he may have the option to either buy the vehicle outright or get a loan. A managerial accountant may run different scenarios by the department manager depicting the cash financial accounting outlay required to purchase outright upfront versus the cash outlay over time…

In this roundup, we’ve gathered six time-tested tools, frameworks and principles for making high-quality decisions at fast-moving startups. They include strategies for distilling the information needed to make a decision, testing potential solutions and reconciling clashing perspectives. We hope they’ll help take the dread out of decision-making and lend you clarity on choices that can…