Category Archives: Bookkeeping

When property taxes exceed a certain percentage of a taxpayer’s income, the circuit breaker mechanism reduces the tax liability, much like an electrical circuit breaker prevents overload. In Illinois, the average effective property tax rate is 2.11%, which is one of the highest rates in the country, and median property taxes exceed $5,000. The Earned […]

Most loans also have provisions regarding the maximum amount of interest, in addition to other covenants, such as the length of time before repayment is required. Loans may be for a specific, one-time amount, or they may be available as an open-ended line of credit up to a specified limit. Loans come in many different […]

Most loans also have provisions regarding the maximum amount of interest, in addition to other covenants, such as the length of time before repayment is required. Loans may be for a specific, one-time amount, or they may be available as an open-ended line of credit up to a specified limit. Loans come in many different […]

Many countries also offer preferential tax treatment to dividends, where they are treated as tax-free income. A dividend reinvestment plan allows you to automatically purchase new shares of a company’s stock when you receive that company’s dividend. Investors seeking steady income and potentially lower volatility may find dividend stocks attractive. You can find the best […]

In the absence of proper bank reconciliation, the cash balances in your bank accounts could be much lower than the expected level. Bank reconciliation is the process of comparing accounting records to a bank statement to identify differences and make adjustments or corrections. In the case of personal bank accounts, like checking accounts, this is […]

The report provides helpful information when assessing a company’s financial stability. Financial ratios are used to calculate the business’s financial position, including liquidity and gearing ratios. Banks and suppliers use them to determine if they can offer a loan, overdraft or credit facility. Balance sheets are important financial statements that provide insights into the assets, […]

If the actual quantity of materials used is less than the standard quantity used at the actual production output level, the variance will be a favorable variance. A favorable outcome means you used fewer materials than anticipated, to make the actual number of production units. If, however, the actual quantity of materials used is greater […]

These entries transfer balances from temporary accounts—such as revenues, expenses, and dividends—into permanent accounts like retained earnings. In the next accounting period, these temporary accounts are opened again and normally start with a zero balance. In a general financial accounting system, temporary or nominal accounts include revenue, expense, dividend, and income summary accounts. Permanent Accounts […]

These include rental expenses (office/factory space), monthly or yearly repairs, and other consistent or “fixed” expenses that mostly remain the same. For example, you have to continue paying the same amount for renting office or factory space even if your company decides to lower production for this quarter. Manufacturing overhead costs are the indirect expenses […]

Options can help investors who are holding a losing stock position using the option repair strategy. Learn how to use the sales revenue formula so you can gauge your company’s continued viability and forecast more accurately. The sales leaders want to know the number of vacuum cleaners they’d need to sell to break even on […]