Category: Bookkeeping

The above entry reduces the retained earnings balance and creates a dividend liability for the company. Dividends are often expected by the shareholders as a reward for their investment in a company. Dividend payments reflect positively on a company and help maintain investors’ trust. “Dividends payable” is a liability that appears on a company’s balance sheet representing unpaid dividends that a company owes to its shareholders – the dividends have been declared, but not yet paid. By carefully monitoring financial performance and aligning dividend decisions with long-term business goals, companies…

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One common metric is the salary expense to revenue ratio, which helps gauge how much of a company’s revenue is consumed by employee compensation. A lower ratio suggests a more efficient use of labor, while a higher ratio could indicate potential overstaffing or the need for productivity improvements. By implementing these strategic management practices, you can optimize your salaries and wages expense, ensuring that every dollar spent contributes to your business’s success. This approach helps maintain a motivated and productive workforce while keeping costs under control. If your business does…

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Danielle Bauter is a writer for the Accounting division of Fit Small Business. She has owned Check Yourself, a bookkeeping and payroll service that specializes in small business, for over twenty years. She holds a Bachelor’s degree from UCLA and has served on the Board of the National Association of Women Business Owners. She also regularly writes about business for various consumer publications. Don’t forget to track your business-related driving, as it can be quicken bookkeeping a tax deduction. element.setAttribute(‘alt’, element.src); If you’re searching for accounting software that’s user-friendly, full…

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This will summarize the auditor’s findings and evaluation of those findings. See how forward-thinking finance teams are future-proofing their organizations through AP automation. We test right and obligation assertion to see whether the client actually has liability for accounts payable reported. Likewise, we can test this assertion by vouching a sample of payable accounts to supporting documents. Comparing payable balance at the current year to the previous year is the procedure to test the reasonableness of the changes. Management Conducting an accounts payable (AP) audit is no longer optional—it’s a…

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Whether you’re a Sole Proprietorship with a Schedule C, or an S-Corp with an 1120s, we’ve got your business taxes covered. Never overpay in tax, and get the aggressive tax reduction planning your business deserves. Don’t settle for a year-end or reactive tax accountant, we’ll help throughout the year to lower your taxes. Click on any of the report categories listed below to find practical, unbiased information to help you reach your financial goals. Our services are contextualized by our specialties in the following areas. After we put this list…

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If new funds are needed, the cashier writes a new check to fund the petty cash drawer and takes, in exchange, the receipts from the purchases that depleted the cash. Ananya heads to her desk and opens the petty cash box—allocated specifically for urgent, small-scale needs like this. She quickly withdraws the required amount, issues a petty cash voucher to document the transaction, and informs the IT technician to buy the monitor immediately. Within an hour, the replacement monitor is installed, and the IT team resumes their work, ensuring the…

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Deciding between itemized and standard deductions is an important choice when filing taxes. TurboTax assists with this by evaluating your specific financial situation. The standard deduction offers a fixed amount that reduces your taxable income. Collecting your tax documents is an important part of getting ready to file your taxes. It helps streamline the filing process by having everything you need on hand. What tax forms do I need for online tax filing? You’ll have to make sure you think through the year to determine if your new tax situation…

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