Generally Accepted Accounting Principles

Like many professions, accounting has established principles to standardize its conduct despite jurisdiction. These rules help ensure consistency in concepts and procedures. The Generally Accepted Accounting Principles ( GAAP) are these standards. They apply only to financial reporting in the …

The Accounting Profession

Many small business owners try to juggle the role of entrepreneur and accountant. While some are skilled at it, others need to hire an accountant to be responsible for the processing, reporting and auditing of their business’ financial information. Accountants …

Escrow Funds

Managing escrow funds doesn’t apply to every company. Mainly attorneys and realtors are under strict regulations about how they handle escrow funds for their clients. The rules for managing escrow funds are mandated by state law and the rules of your …

Selling and Retiring Fixed Assets

Tangible, long-term assets like computers, office equipment, and company cars wear out. (They are classified as long-term because they have been in use for more than a year.) Everyday life produces wear and tear on a company’s possessions. When tracking …

Partnership Equity

When starting a business venture, there are different ways to classify your entity. Business owners are wise to consult an attorney and accountant before deciding on the most advantageous classification.  Some vary in tax advantages and their different ways of …

Managing Retainer Accounts

The word retainer is most often associated with the law profession. But businesses that provide ongoing professional services use retainers as well. For example, attorneys, accountants, financial advisors, and technical support companies, to name a few, collect retainers. A retainer …

Recording Sales Tax

Not all states have sales tax. But if your company sells goods or services that are taxable in your state, sales tax must be collected from customers. Sales tax also applies if your company sells goods or services in any …

Managing Inventory Accounts

Just because a company sells items to customers on a typical day of business doesn’t necessarily mean it needs to track its inventory.  The main types of businesses where it is important to track inventory are manufacturers, wholesale distributors, and …

Depreciation and Amortization Transactions

Accurately tracking a company’s assets is essential for determining its net worth. Assets are things owned by the business. There are current assets like cash that can be easily liquidated. There are long-term assets like an office building that are not easily …

Vendor and Contractor 1099 Tax Forms

Come the first month of the year, every employee in your company must receive a W-2 form with which to file their own tax return. However, what do you do for an independent contractor and his/her earned wages? According to …