By using payroll software, you can manage and run your own payroll (even as your business grows) without eating up your time or adding unnecessary frustration. Last year, the IRS charged over $6 billion in fines and penalties related to employer payroll tax issues, and the largest portion of those went to small businesses. If…
Continue ReadingIt’s straightforward but ignores the cost of goods or services sold. In Jack’s case, he initially receives a $2,000 draw against his future commissions. To determine his take-home pay for the month, he must first « repay » the $2,000 draw. The remaining $1,000 is what he gets to keep as his additional earnings for that month….
Continue ReadingThe transaction is expected to be accretive in 2025 after achieving synergies and completing integration efforts. As a business, you rely on transportation to bring employees and products to their destinations. If your company cannot effectively purchase transportation, it can be difficult to efficiently run your business. In this article, we will discuss the importance…
Continue ReadingBy providing a snapshot of multiple transactions and accounts, they paint a clear and cohesive picture of financial activity, making it accessible to various stakeholders, from business leadership to external auditors. This type of visibility encourages openness and reduces the chance of misunderstandings or miscommunications about the company’s financial health. It’s the account that is…
Continue ReadingInstead, you’ll have to consider things like perceived value, shipping costs, transaction costs, and how much your competitors are charging. Therefore, for John to achieve markup vs margin the desired markup percentage of 20%, John would need to charge the company $21,000. Using your gross margin as a baseline makes it easier to predict profitability. Imagine…
Continue ReadingThe neural network learns the patterns of input data by reading the input dataset and applying different calculations on it. But the neural network doesn’t make it only once, it learns, again and again, using the input dataset and leaned results from the previous trials. To my understanding, when you need to train a NN,…
Continue ReadingOnce you locate these items, you’ll need to adjust your G/L balance to reflect them. The easiest way to check for this is to print a check register for the month and compare it to the checks that have cleared the bank. Any checks that have been issued that haven’t cleared the bank must be…
Continue ReadingMany sole proprietors hesitate to claim the home office deduction because they’ve heard this deduction is a red flag and makes their return more susceptible to audit. If you run a home-based business, however, you are entitled to this deduction, and it can have a significant effect on your tax liability. With this deduction, though,…
Continue ReadingIf you’ve decided a small business accountant can help your organization, follow these best practices to choose the right financial professional for your needs. Before you make your final decision, ask to speak with current and past clients, ideally in your industry. Reach out to gauge satisfaction with the accountant’s services and fees. You want…
Continue ReadingMost companies with a healthy retained earnings balance will try to strike the right combination of making shareholders happy while also financing business growth. Retained earnings (uncovered loss) account is included under stockholder’s equity in the balance sheet. It reflects information on the amount of net profit that remained at the disposal of the company…
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