New Zealand Corporate Other taxes
When you register for GST you choose how often you file your GST returns (your filing frequency) and how you record your GST (your accounting basis). The short-form alternate rate applies at a rate of 49.25% to all non-attributed benefits and a rate of 63.93% to all attributed benefits. In general, a benefit is attributable […]
Cost of Goods Sold COGS Formula + Calculator
However, those service providers who do not offer goods for sale will not include the cost of sales on their income statements. Cost of goods sold (COGS) is calculated by adding up the various direct costs required to generate a company’s revenues. Importantly, COGS is based only on the costs that are directly utilized in […]
How to Determine Fixed Asset’s Salvage Value
You’ve “broken even” once your Section 179 tax deduction, depreciation deductions, and salvage value equal the financial investment in the asset. Depreciation allows you to recover the cost of an asset by deducting a portion of the cost every year until it is recovered. Depreciable assets are used in the production of goods or services, […]
Pro Forma Financial Statements: Why Business Owners Want Them
When presenting these ideas to other partners, lenders or to a board of directors, pro forma projections can clarify things. Keep in mind, it is illegal to use pro forma financials to mislead investors. Furthermore, when management has to gauge the probability of success or failure and decide if a potential return is worth the […]
The Guide To QuickBooks Desktop Pricing
This plan is designed for freelancers who file a Schedule C IRS form to report their income as sole proprietor. There are six different versions of QuickBooks, including QuickBooks Online, QuickBooks Self-Employed, QuickBooks Pro Plus, QuickBooks Premier Plus, QuickBooks Enterprise, and QuickBooks Mac https://www.business-accounting.net/what-is-amortization/ Plus. If a specific version of QuickBooks stood out to you, […]
Prepaid Insurance: Is It an Asset or Owners Liability?
This payment represents a prepaid expense, but its classification as an asset might surprise you. The most important calculation regarding prepaid insurance reflects the unexpired portion of the policy. We’ve outlined the procedure for reporting prepaid expenses below in a little more detail, along with a few examples. Prepaid expenses are classified as assets as […]
Is prepaid insurance an asset? Why?
The same applies to many medical insurance companies—they prefer being paid upfront before they begin coverage. Prepaid insurance (and how it’s accounted for in the balance sheet) isn’t something the majority of us need to worry about. However if you are using the accrual basis accounting method at your company, then prepaid insurance might come […]
Journal Entries Examples Format How to Explanation
Journal entries are always dated and should include a description of the transaction. If you purchased a computer system and printer for $5,000, cash is withdrawn from your bank account and transferred to the business branches of accounting you bought it from. In double-entry bookkeeping, you took $5,000 from your cash account and moved it […]
Small Business CPA & Accounting in Lancaster, PA
John was the Editor/ Publisher of the SC Tax Council’s newsletter The Tax Councilor with a circulation of over 3,000. Through SCTC, NATP and a variety of other continuing education courses, he maintains his tax education each year by attending Bookkeeping Services in Lancaster seminars and update schools. For a small monthly fee, we will […]
Salvage Value Learn How to Calculate an Asset’s Salvage Value
There are six years remaining in the car’s total useful life, thus the estimated price of the car should be around $60,000. The carrying value of the asset is then reduced by depreciation each year during the useful life assumption. salvage value meaning Companies can also get an appraisal of the asset by reaching out […]