If you see IRS code 570 on your tax transcript, this means that the IRS has frozen your federal income tax refund, pending further internal action. This transcript code (TC) means that there may be an anomaly or discrepancy in the information the IRS has on file for you and that further investigation must be…
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What Is Bonus Depreciation? How It Works & How to Calculate
Bonus depreciation is a form of accelerated depreciation that offers an immediate tax deduction, speeds up tax savings, and makes an asset that you placed in service more affordable.
You may see bonus depreciation referred to as the special allowance, the additional first-year deduction, or IRC §168 (k) depreciation. Congress created this deduction to stimulate business activity by encouraging business owners to purchase qualifying assets. Without the use of a special accelerated depreciation method, the deduction for the purchase of a business asset would…
What IRS Code 971 Means on IRS Transcript & How to Respond
IRS code 971 on your transcript means that the IRS has sent you a notice, generally indicating that more time or information is needed to resolve an issue. Notices can cover a wide range of topics, including tax return adjustments, document requests, and account changes. To respond to a transcript code (TC) 971 notice, you…
What Is Inventory Control? Types, Techniques & Systems
Inventory control is the process of continuously monitoring and adjusting the quantity of product you are stocking to keep costs as low as possible while maximizing customer satisfaction and store profits. Though the principles of inventory control overlap with those of inventory management, the two are distinct: Inventory control is concerned with ensuring that there…
Purchase & Sale of Equipment Effect on Cash Flow Statement
The cash purchase price and sales price of equipment are both shown in the investing section of the cash flow statement. However, if all or a portion of an equipment purchase is financed, that portion has no cash flow effect and is excluded from the cash flow statement—but it is reported either as disclosure in…
What Is Inventory Aging Report & Why It Matters
An inventory aging report—also called an aged inventory report or stock aging report—is a financial document that provides key metrics on how quickly your inventory moves.
The report is essentially a list of the items on hand, grouped by the length of time in inventory. It helps with Identifying slow-moving and nonmoving products: The report highlights products that are either slow to move or not moving out of inventory. It helps you determine why certain products sit in inventory longer than…
What Is Customer Service? Scripts & Tips for Happy Customers
Customer service is the support you provide across the buyer’s journey from initial contact throughout the customer’s lifetime of doing business with your company. Customer service includes phone support, in-person assistance, live chat, email, and other means of communication. Its basic principles are understanding customer needs, processing requests, and resolving concerns promptly and to their…
Depreciation: What It Is & How It Works [+ Examples]
Depreciation in accounting and bookkeeping is the process of allocating the cost of a fixed asset over the useful life of the asset. The cost of the asset should be deducted over the same period that the asset is used to generate income instead of deducting a large expense when it’s purchased. This provides a…