Category Archives: Bookkeeping

In his freetime, you’ll find Grant hiking and sailing in beautiful British Columbia. The time to maturity for LTD can range anywhere from 12 months to 30+ years and the types of debt can include bonds, mortgages, bank loans, debentures, etc. A balance sheet is the summary of a company’s liabilities, assets, and shareholders’ equity […]

The ratios may be modified to compare the total assets to long-term liabilities only. Long-term debt compared to total equity provides insight relating to a company’s financing structure and financial leverage. Long-term debt compared to current liabilities also provides insight regarding the debt structure of an organization. In general, on the balance sheet, any cash […]

To calculate the ratio, divide net sales or revenues by average total assets. Your accounts receivable turnover ratio measures your company’s ability to issue a credit to customers and collect funds on time. Tracking this ratio can help you determine if you need to improve your credit policies or collection processes. Learn these and other […]

If it takes five hours to make a product, and you pay your employees an average of $15 per hour, your direct labor cost would be $75. A budget is an estimate of your expenditures over a certain length of time, often tracked using accounting software. You may include standard costs in a budget, but […]

Despite this, not using its earnings balance may not be a good thing as this money loses value over time. Therefore, the balance in the account may be a good indicator of the company’s financial performance and health. Some companies may spend this money on paying off loans, similarly reducing their interest expenses. Cyclical companies […]

An average tax rate is the ratio of the total amount of taxes paid, T, to the total tax base, P, (taxable income or spending), expressed as a percentage. If a company pays different rates on the first $100,000 in earning than the next $100,000, it will sum up the total tax paid and divide […]

Of course, in the restaurant industry, you’ll need to factor in tips along with the standard tax considerations for employees. Tips (not including automatic gratuities, which work differently) are considered employee income, not restaurant income, and are not subject to withholding. The easiest way for a restaurant to maintain its books is to use one […]

In the United States, it is required to follow the Generally Accepted Accounting Principles (GAAP). If your business is seasonal, like lawn care or snow removal, your retained earnings may fluctuate substantially from one quarter to the next. Therefore, the calculation may fail to deliver a complete picture of your finances.The other key disadvantage occurs […]

Churches might rely on volunteers or have payroll staffers who are not fully trained accountants. This isn’t the end of the world, but it is important to provide the proper training on the latest regulations and best practices. Workforce Payhub offers comprehensive payroll training materials to our clients. These materials can keep your payroll staffers […]

For the latest information about developments related to Pub. 334, such as legislation enacted after it was published, go to IRS.gov/Pub334. Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. Here is […]