Category: Bookkeeping

Accrued curiosity is interest that has been incurred however not yet paid by the top bond interest expense formula of an accounting period. If your corporation makes use of accrual accounting, document the curiosity as an expense on the earnings statement; otherwise, observe it on the P&L till you’ve paid it. An analyst or accountant...

The major drawback of the corporate type of group is the double taxation. It means that the income earned by the corporation is taxed on the corporate stage, after which, when it’s distributed as dividends to the shareholders, it’s taxed again on the personal degree. Whether Or Not you’re just beginning out or your corporation...

The liability would be considered a short-term liability if the expected settlement date is within one year of the balance sheet date. If it is beyond the one year point, the liability would be considered a long-term liability. The amount that the company should accrue is either the most accurate estimate within a range or–...

The allowance for doubtful accounts is recorded as a line item on a company’s balance sheet. The allowance for doubtful accounts is an estimate of the portion of accounts receivable that your business does not expect to collect during a given accounting period. Accounting teams build-in these estimated losses so they can prepare more accurate...

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The first step in calculating tax provisions is to obtain your business’s income statement. This report provides a breakdown of your company’s revenues, expenses, and net profits for a specific period. You can usually find this information in your accounting software or by contacting your accountant. How to Calculate Provision for Income Taxes: Complete Accounting...

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It’s important to check industry standards in your jurisdiction to ensure your valuation method meets regulatory compliance. The type of inventory that a business holds can influence its choice of FIFO or LIFO. For example, businesses with a beginning inventory of perishable goods will usually choose FIFO, since it’s in their best interest to sell...

For businesses entering into net sales the realm of government contracting, it is crucial to grasp the nuances of DCAA compliance, as they are often the linchpin to successful and sustainable growth in this sector. For instance, proper timekeeping and labor distribution, detailed invoicing, and comprehensive internal controls are just a few of the many...