Category Archives: Bookkeeping

Solved: Schedule C Query Ought To Worker Wages Go In Price Of Products Offered Part, Or Business Expenses? It Seems Like A Duplication To Put In Each Section?

On most revenue statements, price of products offered appears beneath sales income and before gross profits. You can determine internet earnings by subtracting bills (including COGS) from revenues. If your working expenses are too high, you would possibly contemplate cutting back on non-essential prices or discovering methods to streamline your operations. Every enterprise that sells…

How to Record Sales Returns and Allowances? Explanation and Journal Entries

Therefore, companies must account for them as a reduction in sales rather than credit the account with the amount. It is one of the similarities between sales returns and allowances. In the income statement, sales returns and allowances are subtracted from sales, along with any sales discounts, to calculate your net sales. Sometimes, you’ll only…

Understanding Outstanding Checks: What They Are, How They Work, and Their Risks and Implications

You give the bank a list of your issued checks, and they only clear the ones that match. If you’ve kept up on doing the Bank Feed throughout the month, then there really shouldn’t be any questions when it comes time to Reconcile. You put in the date, closing balance, tell QBs to ignore future…

What Are the Different Types of Liabilities in Accounting?

Non-current liabilities, also known as long-term liabilities, are obligations that are not due within the next 12 months. These typically support capital expenditures and long-term financial planning. A liability typically refers to an obligation that one party owes to another, which remains unpaid or incomplete. Beyond financial debts, the concept of liability also extends to…

What Is Accounts Receivable? Accounting for Money Owed to You

When a company owes debts to its suppliers or other parties, those are accounts payable. To illustrate, Company A cleans Company B’s carpets and sends a bill for the services. The more accounts receivable process improvement ideas you take advantage of, the (hopefully) more quickly you will receive customer payments and fill your pockets. When…

Tax Accounting: Definition, Types, vs Financial Accounting

However, you can avoid paying tax on the interest each year by depositing money into a traditional IRA instead where the interest will accumulate tax-free. When you do, you might also be also eligible to claim a deduction each year for a certain amount of contributions you make to the account. Tax planning isn’t just…

dividends definition in stocks and how payments work 9

Dividends: Comprehensive Guide on Definition, Types, and Payment Mechanisms in Stocks Financial Terms Explained Investments in T-bills involve a variety of risks, including credit risk, interest rate risk, and liquidity risk. As a general rule, the price of a T-bills moves inversely to changes in interest rates. Although T-bills are considered safer than many other…

Invoice And Accounting Software For Small Businesses

Best Cloud Accounting Software for Small Businesses The software maintains payment records and maintains due date documentation as Invoice And Accounting Software For Small Businesses it enforces payment timeliness for vendors. Businesses can maintain organization through single invoice storage alongside reduced manual errors. The accounts payable software enables business entities to track payments toward vendors…

How to calculate retained earnings formula + examples

Similarly, retained earnings are a part of the equity that demonstrates how much of the company’s assets have been financed by reinvested profits, rather than being an asset itself. An increase or decrease in revenue affects retained earnings because it impacts profits or net income. A surplus in your net income would result in more…

Filing Tax Form 1099 3

How to File Form 1099-MISC in 2025: A Complete Compliance Guide for Payers So if you have tons of forms to file, they are way, way cheaper than a lot of the other options out there. You can go ahead and download them and you can send them to the contractors themselves. Go ahead and…