Articles posted in Bookkeeping

  • Understanding Balance Sheet Statement Part

    Content Examples of Accumulated Losses in a sentence What is Accumulated Amortization? Heavy Machinery and Equipment Accumulated Amortization vs. Accumulated Depreciation What are retained earnings and what do they mean for your balance sheet? If an asset can return some gain at the end of its service life, determine the depreciation on cost minus the estimated salvage value. Enter the total purchase cost, including any costs to ship, install or costs that ensure the safe and serviceable function of an asset. No asset exists in the initial planning and R&D stages, so you must expense costs. During product development, expense costs spent directly towards creating product. Capitalize only the cost of development and test team salaries and other costs spent directly on the product. The board of directors or senior managers of an organization should create a capitalization policy with a dollar amount threshold. The new asset is unique, gets Read More

  • Direct vs indirect cash flow forecasting

    Content Main Difference between Direct and Indirect Method of SCF ESMA publishes 26th enforcement decisions report Video Explanation of Cash Flows How to calculate operating cash flow using the direct method Step 1: Record your net income and adjust for non-cash expenses What Is the Difference Between Direct and Indirect Cash Flow? What Is Business Cash Flow? When you look at your income statement, you see sales of $20,000, which is an increase of 50 percent over last month! Why then, are you needing to take money out of your working capital line of credit to cover payroll? The direct cash flow technique highlights the main sources of cash financing and receipts, which might be of use to creditors and investors. Manage a business successfully, so owners have sufficient cash on hand to fund operations. In short, without a regularly prepared cash flow statement, it will be difficult to see Read More

  • Married Filing Separate status On Your Income Tax Return

    Content Eligibility requirements for married filing separately Real tax experts on demand with TurboTax Live Basic Can I Claim My Domestic Partner on My IRS Form as a Dependent? All about filing taxes while going through a divorce. What Is Married Filing Jointly? Community property The IRS will issue an ITIN to a nonresident or resident alien who doesn’t have and isn’t eligible to get an SSN. To apply for an ITIN, file Form W-7, Application for IRS Individual Taxpayer Identification Number, Filing A Joint Tax Return When Married & Living Apart with the IRS. Allow 7 weeks for the IRS to notify you of your ITIN application status (9 to 11 weeks if you submit the application during peak processing periods or if you’re filing from overseas). The ITIN is entered wherever an SSN is requested on a tax return. The IRS used to consider alimony to be income that Read More

  • What is Financial Forecasting + How to Do It 7 Steps

    Content Financial Statement Format for Financial Projections How to create financial projections What to Include in a Financial Projection Types of Financial Forecasting By subscribing, you agree to ProfitWell’s terms of service and privacy policy. Gain in-demand industry knowledge and hands-on practice that will help you stand out from the competition and become a world-class financial analyst. All you can do is project expenses to the best of your ability, and maybe tack on an additional 15% to your initial number. For those working from history, you can predict with some certainty what your fixed expenses are, such as your rent or mortgage, along with recurring expenses such as utilities and payroll. The income statement, or profit-and-loss statement, tells you how much money comes in to the business, and how much goes out. The cash flow statement shows how the money is turned into a profit. The balance sheet helps Read More