As a business owner, you are responsible for the livelihood of those employed. Thus, it is a must for you to know the difference between gross pay and net pay. Two terms are present in every paycheck, yet they are often mixed up. The lack of clarity confuses many employers, and as a result, they…
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…
The year 2022 saw the pandemic subside and record-high inflation steals the limelight. Believe it or not, the US is nearing a recession as the economy remains volatile and the GDP is on its way down. At such times, small and medium businesses need to be on their toes to survive the upcoming economic downturn,…
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…
A security or bond that pays dividends or returns ad infinitum is perpetuity. In the business world, the term helps businesses know their market value and acts as a guide for stakeholders and investors to assess investment opportunities on the fly. Over time, perpetuities have faded from the limelight, and less than a handful of…
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…
Being a small business owner, it is extremely important to compile and report your financial data accurately. When you have complete clarity about your finances, you can check out the insights of the business and also determine the areas which require improvement. You might have heard about trailing twelve months or TTM. TTM or trailing…
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