Section 145 recapture applies to most business assets, like equipment and vehicles. The recapture amount is taxed as regular income, which usually means higher tax rates. From the IRS perspective, $40,000 of the sale price ($80,000 – $40,000 depreciated value) is a gain. This gain is subject to depreciation recapture rules, which often mean higher […]

The ideal order size to minimize costs and meet customer demand is slightly more than 28 pairs of jeans. A more complex portion of the EOQ formula provides the reorder point. The ordering costs are the costs that are incurred every time an order for inventory is placed with the supplier. Examples of these costs […]

This makes it a great option for new small businesses or solopreneurs. So you can see where the money is coming in and out of your business. You can even set tax categories to organize them and save time during tax season. QuickBooks Contractor Payments It has everything from the Plus plan but with more […]

Maintaining consistency in your COA from year to year is the most important thing when dealing with charts of accounts. This consistency ensures that accurate comparisons of the company’s finances can be made over time. The financial world is filled with terms that can seem intimidating to someone without a strong finance background. The chart […]

This is particularly beneficial for managing a COA efficiently, as it allows for real-time updates and minimizes discrepancies in financial data. Modern accounting systems offer tools for automating data entry, generating reports, and even suggesting account categorizations based on transaction types. The structure of a COA not only facilitates accurate financial recording and reporting but […]

If you choose LIFO, you can further select from one of several submethods, including dollar-value LIFO, or DVL. When the adjusted ending inventory exceeds the beginning inventory, it indicates additional purchases, and a new layer is created for the amount of the increase. Choose a base year for the Dollar Value LIFO method, as it’s […]

This system also simplifies the process of reconciling accounts, as any discrepancies can be quickly identified and corrected. Moreover, the double-entry system supports the generation of detailed financial reports, which are essential for decision-making and strategic planning. As business transactions occur during the year, they are recorded by the bookkeeper with journal entries. What is […]

After negotiating hard on the last day of the sales quarter, Lucy pays $12,000 upfront for this annual subscription and 2% of each transaction processed – because after all, CitrusOne is also a fintech company. Since she is paying for the software in advance and will receive the benefits over a period of twelve months, […]

This software is best suited for freelancers, allowing them to track income and expenses, track mileage, estimate quarterly taxes, and run basic reports. All Plus features for up to 25 users, plus a dedicated account team, advanced business analytics, employee expense management, batch invoicing, workflow automation and more. Both QuickBooks and Quicken are aimed at […]

Businesses whose home currency is not GBP are currently not supported. Simplify your books with the ability to track paper check numbers, right in QuickBooks. They can also be deployed through a browser window for entirely web-based how to calculate the effective interest rate for discounted bonds access. Quicken has four plans, and has a […]