So they will help you make financial decisions about your small business with confidence. When your business finances are in order, you have an accurate view of how much money is coming and going. You can also create more accurate forecasts for future revenue and expenses, so you can make sure you...

Retained earnings is the residual value of a company after its expenses have been paid and dividends issued to shareholders. Retained earnings represents the amount of value a company has “saved up” each year as unspent net income. Should the company decide to have expenses exceed...

Big corporations tend to prepare the multi-step income statement due to the size and complexity of their businesses. These businesses, such as large manufacturing companies and giant retailers, usually have various revenue streams, and they will need to record down the income in different accounts....

The distributor offers this type of discount to the retailer and not to the end customer. He offers these products to a retailer who runs a unit or a shop selling the product at a reduced price. Series of discounts offered to the customers are called successive discounts. In case when successive...

The Internal Revenue Code (IRC) allows you to deduct from your taxable income the expense of purchasing this kind of business-related asset. Learn the key terms that apply to depreciable business assets, and how to tell them from assets that can’t be depreciated....

The annual accounting period for your income tax return is called a tax year. The IRS will issue an ITIN if you are a nonresident or resident alien and you do not have and are not eligible to get an SSN. The ITIN will expire for any taxpayer who does not file a federal income … Continue...

IAS 20 does not stipulate whether the conditions of the grant must be met for an entity to recognize the grant. However, if the conditions of the grant are not met, the enterprise grant accounting may have to return the grant. Success in the nonprofit world means fulfilling the mission you have set...

Companies can still suffer from issues beyond the scope of GAAP depending on their size, business categorization, location, and global presence. Without regulatory standards, companies would be free to present financial information in whichever format best suits their needs. With the ability to...

Hence, such an investigation helps you to avoid looking for errors later. Furthermore, such a comparison becomes a lot easier with an online accounting software like QuickBooks. Thus, it forms the basis of your financial statements and helps you in evaluating the financial affairs of your firm. So,...

Essentially, accounts expenses represent the cost of doing business; they are the sum of all the activities that hopefully generate a profit. The IRS treats capital expenses differently than it treats operating expenses. According to the IRS, operating expenses must be ordinary (common and accepted...