A compiled financial statement (FS) is a set of FS prepared by a certified public accountant (CPA) without giving any kind of assurance. Companies need to enter a compilation engagement with a CPA to have their FS compiled. Given that it’s a nonassurance engagement, the CPA will not issue any kind of opinion to the…
What is
Payroll Compliance: Important Payroll Laws to Know
Payroll compliance refers to the legal obligation businesses have to adhere to local, state, and federal laws related to employee compensation. It’s not just about paying your employees on time, but also ensuring that you’re withholding the correct amounts for taxes, providing the right benefits, and complying with labor laws. When you have remote workers,…
What Is a Portfolio Loan? Types, Rates & Terms Explained
A portfolio loan is a type of mortgage loan that a lender retains and does not sell on the secondary market. Since it is never sold to another investor, a lender has more control over the eligibility criteria it deems acceptable. This makes a portfolio loan a good option if you do not qualify for…
What Is Fixed Asset Impairment in Accounting?
Fixed asset impairment is a reduction in the value of a long-term fixed asset (like property, plant, or equipment) when its book value exceeds its recoverable amount. This reflects a decrease in the asset’s future economic benefits. Impairment can happen due to various reasons, such as physical damage, economic downturns, obsolescence, and changes in business…
What Is FICA Tip Credit & How to Calculate
The FICA tip credit is an income tax credit claimed by employers in food and beverage industries to offset the cost of the employer FICA they pay on reported tips. It encourages employer reporting of tip income by providing an income tax credit based on the amount of payroll tax paid on employee tip income…
What Is a Business Money Market Account & How Does It Work?
A business money market account (MMA) is a flexible, low-risk method of saving money while maintaining access to the funds you have on deposit. It functions like a savings account by offering an APY equal to or higher than most regular business savings accounts. It has features similar to a checking account, such as check-writing…
Section 179 Deduction for Property, Equipment & Vehicles
The IRS Section 179 deduction lets business owners deduct the full amount of the cost of qualifying new and used machinery, furniture, vehicles, and certain improvement property up to $1,220,000 in 2024. Property purchased in excess of that threshold is eligible for regular depreciation. In the absence of Section 179, the cost of that same…
Do I Need Accounting Software for My Small Business?
You need accounting software if you’d like to avoid time-consuming report generation and manual data entry, improve organization, stay compliant, have a scalable accounting solution, and benefit from mobile access, among other things. The decision of whether your company needs accounting software hinges on several factors, including business size, complexity, financial acumen, and time constraints….