Incidental expenses (IE) are also known as incidentals. They are the minor fee and the main cost of the services, items, or any paid event during business activities. IE supports the costs of lodging, meals, and transportation costs and is quite common when an employee travels for business. For example, a worker who takes a…
Accountants and CPAs have their Places within a business. Both are finance experts who help firms achieve compliance with the laws, balance cash flows, and utilize financial data. However, they have distinct statuses, powers, licenses, and responsibilities. For instance, an accountant tracks routine transactions, creates budgets, performs cost analyses, and prepares financial statements. In contrast,…
Taxpayers can maximize their returns in multiple ways. There are numerous tax credits and deductions, like the IRS Mileage Rate 2023, to help ease the tax burden on self-employed and business individuals. However, most seldom capitalize upon these opportunities and pay more than they should. In particular, the IRS Mileage Rate is a deduction that…
In the ever-volatile global economy, recessions remain a possibility. You cannot turn blind to the likelihood of an economic downturn and envision an ideal tomorrow. The best is to prepare for the worst and recession-proof your business before it is too late. According to a McKinsey survey, 81% of CEOs think a recession is an…
Accrual-based accounting is the go-to method for public and private businesses as it is simple. However, tracking finances this way is easier said than done, as expenses or revenues don’t always match payments and earnings. That’s why every business needs to know what is deferral in accounting and how to use it right. This blog…
Small and medium businesses long for ways to win a competitive edge and beat the market. Economies of scale enable them to do the same and help them target a mark at which mass production turns profitable. However, to use economies of scale for your benefit, you must first know how to calculate marginal costs….
You cannot overstate how vital cash disbursements journal is for small and medium-sized businesses. This journal records the cash payments made through a check, e-check, or Automated Clearing House (ACH). More so, anything that deducts from your business debit account then and there goes into it. That’s why these journals are also called cash payments…
Business success relies upon the business owner’s ability to survive testing times and cope with rising costs. Inflation has led to the downfall of many firms and continues to derail more from the winning track. The year 2022 was the most inflated in recent times, with the average inflation rate in the USA rising to…
Are you a small business dealing in goods and services which are subjected to excise tax, like fishing equipment, gasoline, or air transportation? If the answer is yes, then you must have a pretty good idea of what Form 720 is. You must have filed Form 720 on a quarterly basis in order to pay…
It is extremely vital for a business to have a clear understanding of the company’s accounting liquidity. In order to achieve that, you need to explore liquidity ratios. The question arises what is a good liquidity ratio, and more importantly, what does a good liquidity ratio aim for? Let’s dig in to find out all…
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