The 1099-MISC is a common type of IRS Form 1099, which is a record that an entity or person — not your employer — gave or paid you money. If you paid your vendor via cash transfers with providers such as Zelle, Venmo, or CashApp you need to issue them a 1099-NEC. If you receive...Read More
While the income statement shows revenue and expenses that don’t cost literal money (like depreciation), the cash flow statement covers all transactions where funds enter or leave your accounts. In the first step of the accounting cycle, you’ll gather records of your business transactions—receipts, invoices, bank statements, things like that—for the current accounting period. These...Read More
Gross income refers to the total earnings of an employee before any deductions. However, the employee’s take-home pay, also known as net pay, is the amount left after all deductions have been accounted for. For example, an employee with an annual salary of $90,000 who gets paid over 24 pay periods would have a gross...Read More
You have to handle product creation, inventory purchases, retail negotiations, and much more. It’s no surprise if you put accounting best practices on the back burner while you focus on growing your business. Since there can be high competition, consumer packaged goods companies often compete on price, which can affect margins. If operating margins are...Read More
The National Taxpayer Advocate has identified the complexity of the tax code as the most serious problem facing taxpayers and the IRS alike. A recent review of the tax code revealed that it includes 3.8 million words and that there have been 4,428 changes to the code over the preceding ten years, an average of...Read More
These costs would be included when calculating the contribution margin. The contribution margin measures how efficiently a company can produce products and maintain low levels of variable costs. It is considered a managerial ratio because companies rarely report margins to the public. Instead, management uses this calculation to help improve internal procedures in the production...Read More
Owner equity, assets, and liabilities are shown in the financial statement as a percentage of total assets. This type of financial statement makes it simpler for analysts to evaluate the profitability of a company over time. Common size ratios are used to compare financial statements of different-size companies, or of the same company over different...Read More
