If you’re a small business owner, there’s a good chance you’ll have to choose between biweekly and semimonthly payroll. But what’s the difference? And which is better for your business? Here’s a look at the differences between biweekly and semimonthly payroll, so you can make the best decision for your company. What is a semimonthly […]
A business line of credit is a revolving line of credit that allows you to borrow up to a certain limit and pay the money back over time. The best way to understand how a business line of credit works is to think about it as a personal line of credit. A personal line of
Depreciation is the decrease in the value of an asset over time. This can be caused by factors such as wear and tear, age, or changes in the market. When an asset is depreciated, its value is reduced for accounting purposes. There are several methods that can be used to calculate depreciation. The most common
Many people have heard that the S Corp is one way to save on business taxes. While this is true to an extent, there is a lot of misinformation, so let’s try and clear up what S Corporation actually means, the tax advantages and some common pitfalls. What is an S Corporation? Let’s start with
Double Taxation Definition Double taxation is a term that refers to when a company’s income is taxed and then the distributions or dividends that are paid to shareholders are also taxed. The C-corporation is the only business structure that undergoes double taxation. Since a C-corporation is an entity established separately from its owners and its
The basic accounting equation is a simple formula where assets are equal to liabilities plus shareholder equity, but this basic equation can be made more granular to provide greater insight into equity transactions. The type of business impacts the expanded accounting equation format, but the concept is still the same – a detailed accounting of
What is a General Ledger? How is it Used & Examples Accountants use a standardized record keeping system to monitor business transactions and financial data relevant to an organization. The general ledger can be kept in a spreadsheet, but it’s often a part of a financial accounting software package. Below are details and an example
During the purchasing and accounts payable process, cash disbursements are often-times remitted using business checks. These instruments are among the oldest and most commonly used to pay for everything from raw materials and payroll to capital projects. Bank reconciliations and cash disbursement reports are part of the accounting system used to track outstanding checks, helping accountants and business owners
Discounts and rebates are offered by sellers of goods and provider of services to incentivize buyers and speed up the cash collections process. Trade practices and cash discounts each have advantages related to generating revenue and enhancing cash flow. Below are the key differences between these techniques and how they impact the bottom line. Trade
The inventory record consisting of business operation transactions such as merchandise purchases and purchase returns may be simple or complex, given the size and type of business and the resources available to the accounting department. The key is to start with a well-accounted for beginning inventory and tracking it all the way to the ending