Category: Bookkeeping

Are you a therapist striving to balance client care with business sustainability? In today’s world, where over 55 million Americans seek mental health services annually, managing the financial health of your practice is more needed than ever. One thing that many people going into private practice do not realize is that you do have to… Continue reading Bookkeeping for Therapists: Navigating Your Taxes in 2024

It’s particularly relevant when comparing W2 employment to independent contractors when it comes to determining income tax. Medicare taxes, also known as “hospital taxes”, is a federal employment tax. These federal employment taxes are used to fund a portion of the Medicare insurance program. Similar to social security tax, Medicare taxes are withheld from a… Continue reading How to Convince Candidates to Be Paid on W-2

In other words, how much is a company leveraging, or how much of its financing is coming from debt capital? Once we know this ratio, we can use it to determine how likely a company is to become unable to pay off its debts. A ratio greater than 1 shows that a considerable amount of… Continue reading Debt to Equity Ratio How to Calculate Leverage, Formula, Examples

A nonprofit audit is meant to ensure the accuracy of the organization’s financials, as well as the financial health of the organization. In addition, when audit results are published for the public, the results aid in financial transparency https://www.bookstime.com/ with your current and future donors. Internal controls not only limit cases of fraud, but often… Continue reading A Guide to Accounting for a Nonprofit Organization

The qualifications for these loans aren’t standardized and can vary widely from lender to lender. Most house flipping loans are interest-only to maximize the money available for making improvements. With an interest-only loan, your loan payments are only enough to cover the loan’s interest. This website is using a security service to protect itself from online… Continue reading Interest only mortgage explore flexible loan options

The qualifications for these loans aren’t standardized and can vary widely from lender to lender. Most house flipping loans are interest-only to maximize the money available for making improvements. With an interest-only loan, your loan payments are only enough to cover the loan’s interest. This website is using a security service to protect itself from online… Continue reading Interest only mortgage explore flexible loan options

Given that all prices tend to increase over time (inflation), businesses should probably look to undertake high-low modelling at least once a year. In sectors where prices change rapidly, businesses may need to undertake high-low modelling more frequently. The results of high-low modelling https://www.simple-accounting.org/ are only valid for as long as the data underpinning them… Continue reading High-Low Method: Cost Behavior

To prepare your pro forma income statement, you’ll need to determine your estimated revenue projections. In the business lending world, lenders will look at a company’s pro forma balance sheet to determine the debt-to-equity ratio for additional lending. Let’s suppose Blue Widget Corporation has introduced a new model widget. In summary, pro forma financial statements… Continue reading Pro Forma Financial Statements: What to Know Plus Examples

As a result, the state treasurer anticipates a decrease of $99 million in revenue from the state’s principal business taxes. This prompts state officials to cut the current and upcoming fiscal year revenue projections by a significant amount and, unless they can cut expenditures as well, they will be operating at a net loss. The… Continue reading Net Loss: Definition, Formula, And Examples

Accountant’s liability adds an element of pressure to an accountant’s performance of duties. An accountant’s actual participation in fraud can be hard to prove because management could be the ones committing the fraud, which the accountant can fail to notice. This makes the accountant legally liable for being negligent of fraud or misstatements, even if… Continue reading Types of Liability Accounts List of Examples Explanations Definition