Accounting Basics

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Understanding Accounting Methods

Officially, there are two types of accounting methods,which dictate how the company's transactions are recorded in the company's financial books: cash-basis accounting and accrual accounting. The key difference [more…]

Deciding between Cash-Basis and Accrual Accounting

Before you can start recording business transactions, you must decide whether to use cash-basis or accrual accounting. The crucial difference between these two accounting processes is in how you record [more…]

Reading Consolidated Financial Statements

Most major corporations comprise numerous companies bought along the way to create their empires. The financial statement reflects the financial results for all the entities it bought as well as the original [more…]

Choosing a Budget Method

A budget is nothing more than a written estimate of how an organization — or a particular project, department, or business unit — will perform financially. If you can accurately predict your company's [more…]

Converting Your Manual Bookkeeping to a Computerized System

If you're converting a manual bookkeeping system to a computerized system, your conversion will take a bit more time than just starting fresh because you need to be sure your new system starts with information [more…]

Basic Bookkeeping for Your Small Business

Bookkeeping refers mainly to the record-keeping aspects of accounting. Bookkeeping is essentially the accounting process (some would say the drudgery) of recording all the information regarding the transactions [more…]

How to Hire the Right Accountant for Your Business

A business's bookkeeper or accountant should have the skills and knowledge that he or she needs to perform the required functions. If you're going to hire an accountant, you need to know what qualifications [more…]

The Importance of a Bookkeeping Audit Trail

Good business bookkeeping systems leave good audit trails. An audit trail is a sequence of events leading up to a bookkeeping entry in your business's accounts. You start with the source documents and [more…]

How to Choose the Right Accounting Software for Your Business

Accounting software packages are available for businesses of every size, from small home-based businesses to multinational corporations. Accounting software is a booming business, which means you have [more…]

Examining Your Asset Accounts

The activities of a business involve inflows and outflows of cash, as you know. What you might not know, however, is that the profit-making process also involves four other basic operating assets, explained [more…]

Examining Your Business's Liability Accounts

The activities of a business involve inflows and outflows of cash, as you know. What you might not know, however, is that accountants use three different types of liability accounts to record a business's [more…]

Your Business's Intangible Assets Account

Many businesses invest in intangible assets — assets without physical existence, in contrast to buildings and computers, for example. Your business's intangible assets might include [more…]

How Assets and Liabilities Affect Your Business's Cash Flow

Your business's cash flow can be affected by asset and liability changes in your business. Changes in your assets and liabilities can affect cash flow in a way that signals serious problems: [more…]

Choosing an Accounting Method for the Cost of Goods Sold Expense

One main accounting decision companies that sell products must make is which method to use to record the cost of goods sold expense, which is the sum of the costs of the products sold to customers during [more…]

Finding Small Business Income Tax Help Online

If you feel overwhelmed by your small business's income tax statement, you're not alone. Taking care of your business's income taxes can be difficult, but you can find tax help from online sources geared [more…]

How to Find the Right Tax Forms for Your Small Business

Not all small businesses are created equal — the IRS makes sure of that. Which tax forms you must fill out depends on what type of small business you're in and how many employees it has. Federal tax forms [more…]

When to Pay Your Business's Estimated Taxes

You need to pay your business's estimated taxes on specific dates every year. If your business is anything but a corporation, the estimated tax due dates are April 15, June 15, September 15, and January [more…]

Which Business Expenses Can I Deduct from My Taxes?

Businesses can deduct a wide variety of business expenses from their taxes. The IRS specifies that, to be tax-deductible, business expenses must be ordinary and necessary for the operation of your business [more…]

How to Fit Sales Tax into Your Business

With more than 10,000 different sales tax rates nationwide, and these sales tax rates constantly changing, your business must keep up. If your business sells products or provides certain kinds of services [more…]

Setting a Budget for Your Business

Budgeting for a business requires you to set specific goals and develop a plan to achieve them. A business budget is an integrated plan of action for your business — not simply slap-dashing together a [more…]

How to Analyze Your Business's Profit

Analyzing your business's profit is not rocket science: Basically, you just need to determine how and why your business is (or isn't) making a profit. To figure out your business's profit history over [more…]

The Different Kinds of Business Costs

Business cost distinctions help you better appreciate the cost figures for the things that your business produces or sells. Correct product costs (for businesses that sell products, of course) are extremely [more…]

Paying Unemployment Taxes

The Federal Unemployment Tax (FUTA) fund and state unemployment funds require employers to pay taxes to fill those unemployment funds. For FUTA, employers pay a federal rate of 6.2 percent on the first [more…]

The Federal Tax Forms for a Sole Proprietorship

The federal government doesn’t consider sole proprietorships to be individual legal entities to be taxed. Sole proprietors report any business earnings on their individual tax returns — that’s the only [more…]

The Federal Tax Forms for a Partnership

If your business is structured as a partnership, your business doesn’t pay taxes. Instead, each partner pays taxes on the money earned by the business, which is split up among the partners. [more…]

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