Bookkeeping

As you balance your financial aspirations, understanding the difference between a CPA and an accountant becomes crucial. Both play pivotal roles in managing finances, yet their paths and expertise diverge in ways that could surprise you. Accountants, on the other hand, can provide valuable financial advice and help with tax preparation, but may not possess …

CPA VS Accountant CPA 2025 Requirements by State CPA Exam and Accountant Education Read More »

Payroll service providers only handle making payments to your employees. Some mistakenly believe outsourcing payroll services include HR services that help you hire new people, but HR and payroll outsourcing are different. Human resources can be outsourced to a separate service, and while some companies offer both (like Deel), a payroll company only handles owners …

What is payroll outsourcing? definition, considerations, and best practices Read More »

Just be sure to follow these steps and do your due diligence in your research and response. Always work with an experienced tax professional, like a tax attorney, when you get a notice in the mail and you’re not sure what to do. You never want to risk taking a misstep or doing something that …

What You Should Know About the IRS Automated Underreporter Read More »

High numbers indicate long collection periods, low numbers indicate efficient collection of receivables. Profit Margin is used to determine the profitability of each dollar of sales that company makes. Gross Profit Margin (Gross Margin) is used to assess a firm’s financial health by revealing the proportion of money left over from revenues after accounting for …

Financial Ratio Analysis Calculator Read More »

High numbers indicate long collection periods, low numbers indicate efficient collection of receivables. Profit Margin is used to determine the profitability of each dollar of sales that company makes. Gross Profit Margin (Gross Margin) is used to assess a firm’s financial health by revealing the proportion of money left over from revenues after accounting for …

Financial Ratio Analysis Calculator Read More »

Before we jump into the essential bookkeeping checklist for small business owners, let’s quickly touch on why it’s so important to have a bookkeeping checklist in the first place. As a small business owner, there are few tasks that are more important to successfully manage your business than bookkeeping. Monthly closings help maintain accurate records …

Accounting Tasks Spreadsheet Free Templates and Checklists Read More »

To calculate COGS, add the cost of products produced for the time to the dollar worth of initial inventory. With a higher COGS under absorption costing, gross margin is lower compared to variable costing. Tracking both types of costs allows companies to understand the full cost of production under absorption costing principles aligned with GAAP. …

Absorption Costing Formula: Accounting Explained Read More »