After each payroll, employers are responsible for submitting FICA taxes—both the employees’ share and the employers’ share. Some employers may submit FICA taxes monthly as opposed to semi-weekly. Your total tax liability for the four quarters ending on June 30 of the previous year will determine if you file monthly or semi-weekly. As a small[…]

Both approaches are allowed under standard accounting rules. What matters is that readers look at the figures and understand the amounts. We have measures like meters and kilometers to express bigger distances, like the distance between two cities, the height of mountains, lengths of rivers, etc. The longer the focal length, the narrower the angle[…]

For example, the Zoho CRM can be integrated with Zoho Books to allow real estate professionals to add their contacts and develop a profile for each of them. Users can then keep track of client or tenant purchase patterns, payment details, credit history and more. Then, they can automatically send tenants or clients invoices from[…]

Sage 300 also suffers from scarce updates, which makes the whole user experience feel a bit outdated. Amanda helps to educate investors on how to maximize their tax savings. For example, did you have other rentals that are expected to create tax losses this year? Maybe tax losses can be created strategically through cost segregation[…]

If you are unfamiliar with ASC 606, I strongly recommend you read the related article for now and take the time to go over the entire document with your accountant at some point. Harold Averkamp (CPA, MBA) has worked as a university accounting instructor, accountant, and consultant for more than 25 years. He is the[…]

And this reduction in book value per share reduces the market price of the share accordingly. In fact, both management and the investors would want to retain earnings if they are aware that the company has profitable investment opportunities. And, retaining profits would result in higher returns as compared to dividend payouts. These are the[…]

The good news is that margins and markups interact in a predictable way. This means that you marked up the price of the electric scooters 122% from their original cost. Like margin, the higher the result, the more profit your business is earning. Before we discuss margin and markup, take a minute to familiarize yourself[…]

Depending on how those prices impact a business, the business may choose an inventory costing method that best fits its needs. Cost tracking is essential in calculating the correct profit margin of an item. Your profit margin is the percentage of profit you keep from each sale. Understanding your profit margins can help you determine[…]

This group of people is responsible for leading the company to achieve its objective. Cost of goods sold is usually the largest expense on the income statement of a company selling products or goods. Cost of Goods Sold is a general ledger account under the perpetual inventory system. When multiple goods are bought or made,[…]

While the basic formula is simple, there are a number of variables to consider as well as choices about accounting methods to use. It’s not important for many service providers that do not make or sell products. For instance, attorneys, consultants, designers, programmers and similar firms don’t use COGS. Calculating Cogs can be complex for any[…]