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 …
What is a Reasonable Salary for an owner of an s-corporation? Read More »
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 …
What is a General Ledger? How is it Used & Examples Read More »
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 …
