Relying on a city or ZIP code is not the most reliable way to calculate sales tax rates. It’s worth noting that this change doesn’t happen automatically. States must pass a law similar to South Dakota’s to require that out-of-state companies collect sales taxes. How do I calculate sales tax backwards from the total? More […]
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If it were positive, then the company would be losing more than gaining by making that decision. Opportunity cost is different from sunk https://www.quick-bookkeeping.net/ cost because opportunity costs are not actual expenses. Let’s say you’re trying to decide what to do with $11,000 in retained earnings. How we make money If it were positive, then the […]
The easiest way to check for this is to print a check register for the month and compare it to the checks that have cleared the bank. Any checks that have been issued that haven’t cleared the bank must be accounted for under your bank balance column. That means your account could quickly become overdrawn, […]
Companies can also use it to see where they can make improvements by cutting costs and/or improving sales. A high gross profit margin is desirable and means a company is operating efficiently while a low margin is evidence there are areas that need improvement. By subtracting its cost of goods sold from its net revenue, […]
You can learn more about the variations of such documents by checking out our article and examples below. Harkening back to the previous section, a company can use a pro forma income statement, balance sheet, and cash-flow statement to project how these events might affect its financial position. Pro forma financial statements are used in […]
Though a given individual may truly earn at the EAR, their true return may be reduced by 20% or higher based on what individual tax bracket they reside in. The EAR calculation assumes that the interest rate will be constant throughout the entire period (i.e., the full year) and that there are no fluctuations in […]
Payments should indicate whether they are personal to family and friends or a business transaction for goods and services. All Things Considered is the most listened-to, afternoon tax season drive-time, news radio program in the country. Each show consists of the biggest stories of the day, thoughtful commentaries, and insightful features brought alive through sound. […]
Discount bonds may come with a higher risk of default depending on the financial status of the issuer. A company may opt to issue bonds after exhausting all other means of raising capital. A bond rating agency may also lower the rating of the issuer if it is convinced that the probability of the company […]
It also submits your end-of-year tax paperwork at no additional cost, which HR-first providers like ADP and Paychex don’t. Gusto also has more versatile employee benefits than most payroll providers, and its online payroll service is popular enough to sync with most accounting software options. The payroll software makes it easy to set up and […]