Welcome to the Fit Small Business Xero training course! In this lesson, we’re going to cover how to import customer invoices in Xero. You can follow along on your own Xero account. If you don’t have one already, to sign up for a free 30-day trial and follow along below. To complete this lesson, you…
Small Business Accounting: Accrual vs. Cash Methods
When it comes to managing the books of your business, one of the most important decisions you need to make is which accounting method to use. Luckily there are just two options: cash-basis accounting and accrual accounting. With cash-basis accounting, the moment that you pay a bill or receive a check from a customer, you…
Straight Line Depreciation: How to Calculate & Formula
Straight line depreciation is the simplest way to calculate an asset’s loss of value (or depreciation) over time. It is used for bookkeeping purposes to spread the cost of an asset evenly over multiple years. It can also be used to calculate income tax deductions, but only for some assets, like nonresidential property, patents and…
Sales & Use Tax Guide for Small Businesses
Sales tax is a tax you charge to customers when they purchase products or services from you. As a business owner or seller, you are responsible for calculating, collecting, reporting, and remitting sales tax to the appropriate state and local tax authorities. Use tax is a tax that you have to pay if you purchased…
Double Declining Balance Depreciation Method & Formula
Double declining balance depreciation is a method of depreciation that allows you to expense more depreciation in the early years of the life of an asset and less in later years. This can be beneficial for assets like cars and computers which lose a greater portion of their value in the early years after you…
How to Calculate Sum of the Years Digits Depreciation Method
Sum of the years digits depreciation (SYD) is an accelerated depreciation method that lets you expense more of an asset’s cost in the early years of use than its later years. SYD depreciation cannot be used for tax purposes or to calculate your tax deduction. However, it is acceptable for accounting purposes. It is especially…
MACRS Depreciation Tables & How to Calculate
MACRS stands for “Modified Accelerated Cost Recovery System.” It is the primary depreciation methods for claiming a tax deduction. Of course, like all things accounting, depreciation can be tricky and it’s impossible to remember all the intricate details. Click below to download our free ultimate guide to Macrs depreciation. Download Our Free Guide If you’d…