Predetermined Overhead Rate Formula Calculator with Excel Template
One of the advantages of predetermined overhead rate is that businesses can use it to help with closing their books more quickly. This is because using this rate allows them to avoid compiling actual overhead costs as part of their closing process. Nonetheless, it is still essential for businesses to reconcile the difference between the […]
Become a Freelance Accountant: 9 Tips to Succeed in Freelance Accounting
A bookkeeper only needs a basic understanding and certification in the field of accounting to help record transactions and financial data while keeping daily responsibilities organized. Accountants are experts in the field, with in-depth insight into accounting and taxes, allowing them to provide financial business advice. Whether you use an accountant for tax season or […]
What is Capital Expenditure? Definition
Depreciation is the periodical allocation of a tangible asset’s cost on the balance sheet. Amortization functions in the same way, but is more focused on intangible assets. Capital expenditures are not deducted as an https://simple-accounting.org/best-accounting-software-for-nonprofits-2023/ expense on the month in which they were incurred, instead, they are amortized or depreciated over the span of their […]
What Is an Outstanding Check?
And if you suspect that an official check you’ve received and deposited into your account is fraudulent, contact your bank right away to minimize any fees you may be charged for insufficient funds or returned payments. By the time the bank realizes that the check you received is fraudulent, you may have written checks or […]
Glossary of Banking Terms and Phrases
Typically, the term cashier’s check is used in the US and banker’s draft is used in the UK and most of the Commonwealth. The mechanism differs slightly from country to country but in general the bank issuing the cheque or draft will allocate the funds at the point the cheque is drawn. This provides a […]
Accumulated Other Comprehensive Income Loss Definition
Years of low-interest rates have put pension assets of a number of large corporations’ plans below the obligations they must cover for current and future retirees. Examples of these differences can demonstrate just how big the impact can be on a firm. Bear in mind that OCI is not the same as comprehensive income, though […]
Inventory Turnover Ratio Inventory Turnover Calculator
DSI is calculated as average value of inventory divided by cost of sales or COGS, and multiplied by 365. Competitors including H&M and Zara typically limit runs and replace depleted inventory quickly with new items. There is also the opportunity cost of low inventory turnover; an item that takes a long time to sell delays […]
Employee or independent contractor: Whats the difference? Resources
While that does complicate your personal income taxes, it’s also an opportunity to take advantage of deductions and credits designed to ease the tax burden of small businesses. If you are concerned about worker classification and have in the past or intend to classify future workers as independent contractors, it is best to consult a […]
How is absorption costing treated under GAAP?
Absorption costing is an easy and simple way of dealing with fixed overhead production costs. It is assuming that all cost types can allocate base on one overhead absorption rate. The absorption rate is usually calculating in of overhead cost per labor hour or machine hour. In the previous scenario, all fixed manufacturing overhead would […]
How W2 Employees Are Taxed Differently Than 1099 Contractors
If you file your taxes with TurboTax, you’ll have the option to record or import your W-2 form right away, and easily search for each of the other Form 1099 options. As a result, your 1099 form won’t show the taxes you’ve already paid to the government—just your income from each client. They decide what […]