Contra expense accounts are used to reduce total expenses on your financial statements. These accounts track items that offset the costs incurred by your business, such as asset depreciation and the expiration of intangible assets. It carries a credit balance and is linked to the fixed asset account, which carries a debit balance. The accumulated […]

They are often viewed as an investment intended to generate increased sales in the future. Depending on a company’s financial strategy and historical performance, the SG&A figure can be estimated as a proportion of sales, a growth rate, or a fixed value. SG&A is a critical line on your income statement, and it gives investors […]

The request asked whether an entity capitalises subsequent expenditure (ie adds it to the carrying amount of the asset) or, instead, recognises subsequent expenditure as an expense when incurred. Categorizing expenses correctly helps ensure that you aren’t overlooking any fees and can identify areas where you can save money. Farm bookkeeping and accounting involve maintaining […]

These are the costs incurred in the day-to-day running of the business and generally provide economic benefit over a shorter period, usually one accounting period. These are similar to operating/ non-operating day-to-day business running expenditures. It’s important for businesses to carefully monitor their operating expenses to ensure they stay within budget while still being able […]

In other words, the primary distinction between the two concepts is that accounting is a theoretical discipline, whereas accounting is a practical one. Accounting elucidates the rationale and timing behind accountants’ use of specific techniques. Continue reading the article to gain a deeper understanding of accounting and to understand the reasons why these two concepts […]

The higher the contribution margin ratio, the more money you have to cover the business’s expenses—including fixed costs such as rent and materials. So ideally the percentage would be as close to 100% as possible, but it’s probably much lower than that in most cases. Appropriate ratios vary by industry, but many businesses operate at […]

While I’ve arbitrarily set the salary to $40,000, you absolutely must verify the salary you pick for a one-person corporation is reasonable. Use Oregon Form OR-PCR, Protective Claim for Refund, when your claim to a refund is contingent on a pending court decision or legislative action. Notify us within 90 days of the final determination […]

Lee J. Knoll, Jr. is a Certified Public Accountant and, since 2007, he has been the practice’s CEO. Mr. Knoll is an Advanced QuickBooks Certified Pro Advisor, and he is also QuickBooks Online Certified. He is a member of the Wheat Ridge Business Association, the West Chamber, and other community organizations. Sign up for our […]

Outsourced bookkeeping service involves delegating your financial record-keeping tasks to an external team of professionals. This solution allows businesses to streamline their accounting processes, reduce operational costs, and ensure compliance with financial regulations. By partnering with an experienced outsourced bookkeeping company, businesses gain access to expert support and advanced tools without the need to hire […]

Our team is ready to learn about your business and guide you to the right solution. If your organization operates in Florida or solicits donations from Florida residents, these rules are likely to apply to you. Even bookkeeping tampa if your nonprofit is based elsewhere, soliciting contributions from Florida may trigger compliance obligations. Form 990 […]