By investing capital into the company, owners are providing the company with the resources it needs to operate and grow, which can help ensure its long-term success. It’s important for a company to carefully manage its non-current liabilities because they can significantly impact the company’s financial health over the long term. In that case, it…
You might also have an accrued expense if you incur a debt in a period but don’t receive an invoice until a later period. If you want to keep your business running, you need to fork over some cash to buy goods and services. And sometimes, you might use credit to make these purchases, resulting…
You’ll need to submit the 1099-NEC when you file your taxes, but remember, estimated tax payments are usually required throughout the year. Every U.S. taxpayer must pay Social Security and Medicare taxes on his or her income. For self-employed individuals, these taxes are called self-employment taxes. Self-employment taxes are calculated on the individual’s federal income tax…
Owners of a limited liability company (LLC) can take advantage of operational flexibility and income benefits, and they also have limited liability. LLCs are similar to a limited partnership; however, there are many legal and statutory differences with what is a royalty how payments work and types of royalties a limited liability company. An LLC…
If your company offers commissions (a percentage of a sale’s proceeds granted to staff or the company as an incentive), these will be variable costs. This is because your commission expenses depend entirely on how many sales you make. Understanding your variable costs is essential for small and mid-sized businesses. The higher your variable costs,…
This liability is a common line item on the balance sheet, as it is a legal obligation that must be settled in the future. Understanding interest payable is essential for maintaining accurate financial records and for the proper execution of adjusting entries at the end of an accounting period. Managing financial health is a multifaceted…
In 2024, the department issued refunds to 7.3 million taxpayers for tax year 2023 for a total of $14.2 billion. Income tax deductions are expenses that can be deducted from your gross pre-tax income. Using deductions is an excellent way to reduce your New York income tax and maximize your refund, so be sure to…
So, an organization looking for a robust accounting process must move to this reporting for better understanding. Some of the most common contra assets include accumulated depreciation, allowance for doubtful accounts, and reserve for obsolete inventory. In revenue reporting, contra accounts like sales returns and allowances adjust gross sales to present net sales, ensuring revenue…
Fixed costs are costs that are incurred independent of how much is sold or produced. Buying items such as machinery is a typical example of a fixed cost, specifically a one-time fixed cost. Regardless of how much it is used and how many units are sold, its cost remains the same. However, these fixed costs become a smaller percentage of each…
Working with Enterprise Accounting Partners isn’t just about hiring an accounting firm; it’s about forging a partnership that propels your financial growth and stability. Our suite of services is designed not just to meet your needs but exceed your expectations. Comprehensive tax planning strategies and tax preparation services to you save money and IRS resolution…