If you need to balance your business’s books, understanding debits and credits is key.
Yes! The government requires banks to report all cash deposits greater than $10,000.
Devaluation is the value of an asset to a business over the useful lifetime of that asset. There are three ways to calculate depreciation, but in essence, it is the cost of the asset, minus its salvage value, divided by its useful lifetime.
When written on an invoice, “net 30” simply means that the customer has 30 days from the date of the invoice in which to make payment. If, for example, “net 30” is written on an invoice dated March 1st, then payment is due on or before March 30th. Net 30 is not the only option […]
For small and midsized businesses (SMBs), a healthy financial situation can be make or break. Unlike larger businesses, smaller enterprises often have fewer resources or less resilience to resist external pressures, such as disrupted supply chains or economic uncertainty. Therefore, assessing all aspects of your business to identify areas for improvement is crucial to reduce […]
Running a small business is not always easy. With many demands on your time, it’s easy to lose focus and try to do everything all at once, rather than to concentrate on what really matters one step at a time. Productivity can suffer as a result, affecting your business’s competitiveness and profitability; in challenging economic […]
As a conscientious small business, you work tirelessly to deliver your products or services to your customers on time so, when invoice deadlines pass without payment being received, it’s frustrating. But overdue invoices aren’t simply an inconvenience; when clients don’t pay by the due date, your business’s cashflow can suffer. It becomes harder to settle […]
In business, two main factors affect profitability: revenue and expenses. Companies with high levels of spending find it more challenging to turnover a healthy profit which limits their versatility, restricts Research and Development (R&D) and, ultimately, can put their very existence in jeopardy. Implementing cost controls helps to lower your business’s overall expenditure, so that […]
Once you’ve accounted for all returns, sales discounts and allowances, what remains of your gross sales figure is your net sales. A business with gross sales of $50,000, discounts of $3,000, sales allowances of $4,000 and sales returns of $2,000, for example, would have net sales of $41,000. Net sales is the amount of revenue […]
Every small business with employees needs to calculate withholding tax so that they can deduct the correct amount from each employee’s paycheck to cover their tax obligations as defined by the IRS. In order to calculate withholding tax, employers will refer to the IRS’s income tax withholding table and each employee’s W-4 form to ensure […]