If you’re opening a store, one of your first steps will be to register with the relevant state tax agency. They will help you find out exactly what taxes you are required to charge, based on your type of business and your inventory. Using a POS such as Lightspeed will enable you to charge customers…
All Accounting Articles - Page 18
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…
Units of Production Depreciation: How to Calculate & Formula
Units of production depreciation is a depreciation method that is designed for manufacturing equipment or machinery. It calculates depreciation expense based on the number of products that your machinery or equipment can output each year. Units of production depreciation cannot be used to get a tax deduction. However, it is one of the six methods…
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…
What is Depreciation, And How Does Depreciation Work?
Depreciation is an income tax deduction that allows you to recover the cost of assets like cars, furniture, and equipment that you purchase and use in your business. Depreciation can also be reported for accounting purposes so that your financial statements accurately reflect your investment in fixed assets. Generally, any fixed asset–a long term asset…
Multi Currency Account vs. Foreign Currency Demand Account for Small Businesses
There are two primary options if your business needs the ability to hold, pay, and receive foreign currency: a multi currency account or a foreign currency demand account. A multi currency account allows you to hold multiple currencies within a single account. A foreign currency demand account allows you to hold a single foreign currency…
How to Run an Accounts Payable Aging Report in QuickBooks Online
Welcome to the Fit Small Business QuickBooks Online training course! In this lesson, we’re going to cover the importance of reviewing your Accounts Payable Aging report and how to run an A/P Aging Report with samples, in QuickBooks Online. You can follow along on your own QuickBooks Online account. If you don’t have one already,…
How to Run an Accounts Receivable Aging Report in QuickBooks Online
Welcome to the Fit Small Business QuickBooks Online training course! In this lesson, we’re going to cover the importance of reviewing your Accounts Receivable report and how to prepare an A/R Aging Report, with accounts receivable aging report examples, in QuickBooks Online. You can follow along on your own QuickBooks Online account. If you don’t have…
How to Run a Statement of Cash Flows in QuickBooks Online
Welcome to the Fit Small Business QuickBooks Online training course! In this lesson, we’re going to cover the importance of reviewing your statement of cash flows and how to prepare a statement of cash flows with examples in QuickBooks Online. You can follow along on your own QuickBooks Online account. If you don’t have one already,…
