A contra asset account is an account in the balance sheet that offsets the balance of a regular asset account. Contra accounts are used to reduce the value of the original account directly to keep financial accounting records clean. This type of account could be called the allowance for doubtful accounts or a bad debt…
read moreIt’s impossible to know how much money you’re making on the goods and services you sell if you don’t calculate your cost of goods sold. This information can also alert you if you’re overspending on products or materials, and allows you to make proactive adjustments to increase your net profit. As an added bonus, your…
read moreCortes & Baker has over two decades of experience serving the Columbus, OH community. We work with businesses, entrepreneurs, non-governmental organizations, and individual citizens. Contact us to learn more about our services and start your partnership with us. We do not make software, because our sole focus is giving you superior bookkeeping services. That said,…
read moreBarbara is the managerial accountant in charge of a large furniture factory’s production lines and supply chains. At that price, the homeowner would exactly break even, neither making nor losing any money. Once the break-even number of units is determined, the company then knows what sales target it needs to set in order to generate profit and reach…
read moreThe break-even point (BEP) helps businesses with pricing decisions, sales forecasting, cost management, and growth strategies. A business would not use break-even to measure its https://www.quick-bookkeeping.net/what-is-a-three-way-match-in-accounts-payable-gep/ repayment of debt or how long that repayment will take to complete. Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives…
read moreThe break-even point can be affected by a number of factors, including changes in fixed and variable costs, price, and sales volume. The contribution margin represents the revenue required to cover a business’ fixed costs and contribute to its profit. Through the contribution margin calculation, a business can determine the break-even point and where it…
read moreBefore entrusting someone with your private financial and personal information, do some research on their qualifications. The IRS has a searchable database where you can verify the background and credentials of your income tax preparation professional. Once you have selected someone, ask about their service fees and confirm their availability. Graham J S Bookkeeping Tax…
read moreUnlike fixed assets, current assets are not depreciable, which means they won’t lose value over the course of time. Subsequently, current assets will be sold or moved to make a profit or take a loss, depending on the price set by the market. For investors, firms with high return on assets (ROA) ratios signify a buy and…
read moreState and local property taxes are generally eligible to be deducted from the property owner’s federal income taxes. Deductible real estate taxes include any state, local, or foreign taxes that are levied for the general public welfare. They do not include taxes charged for home renovations or for services like trash collection. The state and…
read morePrimarily, they bring financial clarity and accuracy, ensuring meticulous maintenance of records, compliance with regulations, and timely financial reports. By entrusting these tasks to specialized professionals, businesses can focus on core operations, fostering growth and enhancing productivity. If you are running a business and want to expand or just find a more efficient and more…
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