Choosing the right business structure is a pivotal decision for entrepreneurs, and one option that frequently stands out is the S Corporation (S Corp). This structure blends the liability protection of a corporation with the pass-through taxation of a partnership. In this comprehensive guide, we will delve into the nuances of how… Continue reading How Are S Corps Taxed? | An Ultimate Guide
The U.S. tax code is notoriously complex, with myriad forms, schedules, and deductions to navigate. For small business owners, one of the critical elements to understand is the Qualified Business Income (QBI) deduction, which can significantly impact your tax liability. Form 8995 is a key document related to this deduction, and in this… Continue reading What Is Form 8995? A Guide to Small Business Tax Rates
Depreciation is a fundamental concept in accounting, representing the allocation of an asset’s cost over its useful life. Various depreciation methods are available to businesses, each with its own advantages and drawbacks. One such method is the Double Declining Balance Method, an accelerated depreciation technique that allows for a more significant portion of… Continue reading Double Declining Balance Method for Depreciation (With Examples)
Proper record-keeping and documentation are crucial when it comes to managing your business’s tax affairs. The Internal Revenue Service (IRS) has specific requirements for maintaining receipts and other financial records to support your tax deductions and claims. In this comprehensive guide, we will explore the IRS receipt requirements, what a Business Tax Receipt… Continue reading What are the IRS Receipt Requirements?
Incorporating your business is a significant step that can have far-reaching implications for your company’s future. The state you choose for incorporation plays a crucial role in determining the legal and financial aspects of your business. In this guide, we will explore the best states to incorporate your business in 2023, the process… Continue reading 3 Best States to Incorporate Your Business in 2023
Cash flow is the lifeblood of any business. The ability to accurately forecast cash flow is crucial for maintaining financial stability, making informed decisions, and ensuring your business’s long-term success. In this comprehensive guide, we will explore cash flow forecasting in detail, including what it is, its benefits, types of forecasts, components, step-by-step… Continue reading Cash Flow Forecasting: A Guide with Examples & How To’s
Introduction Journal entries act as the building blocks of financial accounting, providing a chronological record of all transactions made by a business. They enable companies to keep track of all financial transactions and ensure that the accounts are balanced. Whether you’re a seasoned accountant or a small business owner acquiring accounting acumen,… Continue reading Journal Entry Examples (Easy-to-Understand)
In the world of finance and business management, the roles of bookkeepers and accountants are often used interchangeably, but they serve distinct functions. Understanding the differences between these two professions is essential for making informed decisions about your financial management needs. In this comprehensive guide, we will explore the roles, responsibilities, qualifications, and… Continue reading Bookkeeping vs Accounting: What’s the Big Difference?
When examining a company’s balance sheet, you may encounter a somewhat enigmatic item known as “goodwill.” This intangible asset can significantly influence a company’s financial health. In this comprehensive guide, we’ll delve into the intricacies of goodwill on a balance sheet, exploring its definition, various types, calculation methods, implications, and tax treatment. What… Continue reading What is Goodwill on a Balance Sheet? Definition & Examples
In today’s rapidly evolving commerce landscape, Direct to Consumer (DTC) business models have emerged as a disruptive force, reshaping how businesses connect with their customers. While the digital age has made it easier for brands to reach out directly to their consumers, it has also brought unique challenges in terms of accounting and bookkeeping.… Continue reading Direct to Consumer (DTC) Accounting & Bookkeeping Basics, Tips, & Tools