Have you ever found yourself buried under a pile of receipts, invoices, and financial statements, struggling to keep up with your business’s bookkeeping? If so, you’re not alone. Many entrepreneurs and small business owners find bookkeeping to be a time-consuming and overwhelming task. Fortunately, there’s a solution: outsourcing bookkeeping! By delegating this essential task to…
What is the IRS 941 Form? 941 form is a quarterly tax form used by employers in the USA to report withholding taxes from employees’ wages, tips, and other compensations. The form also calculates and pays the employer’s share of Social Security and Medicare taxes. Employers must file a 941 tax form each quarter to…
1. What is Accounting Equation? The Accounting Equation is a fundamental principle in accounting that represents the relationship between a company’s assets, liabilities, and Equity. The accounting equation formula is Assets = Liabilities + Equity, which means that the total assets of a company must always equal the sum of its liabilities and Equity. 2….
What Is Supplemental Pay? Supplemental pay is any form of compensation, paid to employees apart from their regular wages or salary. That includes bonuses, overtime pay, shift differentials, commissions, and other forms of additional compensation. Employers often use supplemental pay to motivate and reward employees for their dedication. For example, a company might offer bonuses…
Expense report is a document used to record and report business expenses incurred by an employee during work-related activities. It typically includes information such as the date of the expense, the name of the employee who incurred it, the expense’s purpose, the expense’s amount, and any supporting documentation such as receipts or invoices. Now that…
What Is Inventory Valuation Inventory valuation determines the value of a company’s inventory or stock at a particular time. This valuation is important for financial reporting as it informs the company owners about its assets, cost of goods sold (COGS), and profitability. What are inventory valuation methods? Inventory valuation assigns value to a business’s goods…
When it comes to borrowing money, it’s essential to know the terms of the loan agreement. One key distinction is that a borrower should know the contrast of a “recourse vs nonrecourse loan”. These terms show the level of consequences that a borrower has to pay in case of not paying the loan in time….
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…
What is FTE? Full-time equivalent or FTE is used by businesses to calculate the full-time hours worked within their business among all employees. It would not be wrong if we say that a full-time employee working 40 hours equals 1 FTE whereas, a part-time employee working 20 hours is equal to 0.5 FTE. In order…
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,…
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