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…
What is
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….
What Is Venture Capital? How It Works & Where to Get It
Venture capital (VC) is a type of financing that is provided to help scale high-potential startup businesses. Generally, this type of financial arrangement involves pooling funds from investors in exchange for equity within the company they’re financing. As a form of private equity, it’s usually offered by venture capitalists who are experienced investors and can…
What Is a Petty Cash Voucher or Slip?
A petty cash voucher, also referred to as a petty cash slip, is a formal document used to record small cash disbursements from a petty cash fund.
It is used to record small expenses paid with cash, such as office supplies, small repairs, courier fees, and small gifts for clients or customers. By implementing a petty cash voucher system, you can effectively track expenses, enhance financial control, and simplify the accounting process. Important Items on a Petty Cash Voucher A petty cash…
What Is the FIFO Inventory Method? First-In, First-Out Explained
First-in, first-out, also known as the FIFO inventory method, is one of four different ways to assign costs to ending inventory. FIFO assumes that the first items purchased are sold first. Companies must make an assumption about their flow of inventory goods to assign a cost to the inventory remaining at the end of the…
What Is Equipment Financing? Loans vs Leases
Equipment financing can be used to acquire equipment necessary for your business operations. You can get a loan or a lease, depending on whether you want to utilize it for short- or long-term business purposes. The main difference between the two is that loans allow business owners to retain ownership of the equipment once the…
A Simple Explanation of Section 1250 Property With Examples
Section 1250 property is your depreciable real property—like buildings—owned for more than one year and used in your business, trade, or rental activity. It’s important to identify your 1250 property because the gain on the sale of such property is taxed differently than ordinary assets, capital assets, and other 1231 assets. What Is Section 1250…