A W-9 tax form, in a nutshell, is a form that is used by a person to report a certain kind of taxable income. This form help businesses obtain important information regarding the payees to prepare the information returns for the IRS. Let’s have a look at this W-9 form in detail. What Is A…
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…
Accounting software are gaining popularity rapidly, especially among small and large enterprises. However, there are a lot of accounts that are unfamiliar to business owners; one such account is opening balance equity. This account is not found in traditional bookkeeping, regardless of whether it’s done on paper or on any other platform like Excel. Opening-balance…
“Startups don’t fail because they lack a product; they fail because they lack customers and a profitable business model.” -Steve Blank Profitability models matter regardless of the size of a business. These models illustrate how you plan to upscale your business and your goals to make the business profitable. You might be familiar with revenue…
Cost recovery plays a crucial role when it comes to defining a business’s taxable income, and it can impact the decisions related to investment. To understand better, let’s dig in to find out what actually is a cost recovery method. What Is A Cost Recovery Method? Cost recovery is a method in which a business…
Depreciation is a devaluation of an asset over a period of time. Your tangible assets like equipment, vehicles, building, furniture, and machinery are all examples of depreciable assets. If you own an asset used for income-producing activity, it will depreciate as well. According to the IRS, you have to deduct an amount from the asset’s…
A tax invoice is a vital piece of evidence that a seller gave services or goods to a buyer. A customer can demand a tax invoice for their own record, but if the seller is not registered, he would not be able to produce one. To understand more about what is a tax invoice, let’s…
It is not easy to manufacture something, and definitely not cheap. There are so many costs that go behind the manufacturing of a product that it becomes very hard to keep track. All of these costs are known as manufacturing overheads. Let’s look in detail at what manufacturing overhead is, its formula, and how to…
As per Self Financial, a financial technology company, Americans pay on average $525,037 each in taxes over a lifetime? Out of which about 65% is the income tax. Sale, property, and auto are other taxes contributing to the average tax rate. However, $525,037 doesn’t give a definite answer to how much does the average American…
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