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Published on April 10, 2023 by Billwaze

Earning Money Without Paying Taxes

If you earn below a certain threshold each year, it’s possible that you won’t have to pay federal income tax. The exact amount you can earn before paying taxes depends on a number of factors, including your gross income, your age, dependency and filing status. In 2019, any single person below the age of 65 […]

Published on April 10, 2023 by Billwaze

Calculating Net Sales

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 […]

Published on April 10, 2023 by Billwaze

A Step-by-Step Guide to Calculate Withholding Tax

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 […]

Published on April 10, 2023 by Billwaze

Gross Profit – What it is and How to Calculate it?

In accounting terms, when we talk about gross profit, we are referring to the income that a business has left over after paying all the direct costs related to manufacture of a product. The formula to calculate gross profit is: Let’s remind ourselves what some of those terms mean. REVENUE When a business sells a […]

Published on April 10, 2023 by Billwaze

What is the Gross Margin Formula?

Gross profit is the money a business has remaining after it has paid off the direct costs of manufacturing a product or service. Calculating the gross profit margin is done by subtracting the Cost of Goods Sold (COGS) from the total revenue, and dividing the sum by total revenue. It can also be calculated as […]