What Is an Accounting Firm?

These services are centered around providing your clients with proactive, forward-looking guidance and advice. This differs from traditional compliance work in that tax returns and related activities report on what happened in the past. Offering your clients proactive advice through accounting advisory services is especially important as the regulatory and legislative landscape continues to become […]

How to Create a Cash Flow Projection for Your Business

Labour costs, such as commissions and wages, and costs of goods sold, including parts, shipping, and utilities, can vary based on your sales. Once you establish your business, you can generally rely on past figures to project future sales, but keep in mind industry trends and competitor activities that can impact sales year over year. […]

Retained Earnings: Definition, Formula & Example

Retained earnings represent a useful link between the income statement and the balance sheet, as they are recorded under shareholders’ equity, which connects the two statements. The purpose of retaining these earnings can be varied and includes buying new equipment and machines, spending on research and development, or other activities that could potentially generate growth […]

Analyzing Accumulated Depreciation on the Balance Sheet

Depreciation Expense appears on the income statement; Accumulated Depreciation appears on the balance sheet. The total value of all the assets of a company is listed on the balance sheet rather than showing the value of each individual asset. Calculating the proper expense amount for amortization and depreciation on an income statement varies from one specific […]

What Are Current Liabilities? Definition

Both current and non-current liabilities are reported on the balance sheet. On the other hand, current liabilities are the short-term financial obligations of the business and can be very important for investors to understand and use when evaluating the financial health of businesses. Below, we’ll provide a listing and examples of some of the most […]

What will cause a change in net working capital?

However, these strategies require sophisticated processes and reliable suppliers. A change in working capital is the difference in the net working capital amount from one accounting period to the next. A management goal is to reduce any upward changes in working capital, thereby minimizing the need to acquire additional funding. Net working capital is defined […]

California Tax Calculator 2022-2023: Estimate Your Taxes

If the amount repaid under a “Claim of Right” was not originally taxed by California, you are not entitled to claim the credit. Follow the instructions below to figure the amount of excess SDI to enter on Form 540, line 74. If you are married/RDP and file a joint return, you must figure the amount […]