An accounting cycle looks back in time at the end of a designated period (e.g., monthly, quarterly, or annually). There are several steps in the cycle, beginning when a transaction occurs and ending when you close your books. The second step in the c... Read more
So, as an employer, how do you know what counts as reportable fringe benefits? The value of a fringe benefit is subject to federal income tax, Social Security tax, Medicare tax, and FUTA, and the value must be included in Boxes 1, 3 and 5 of Form W-2... Read more
Securities trading is offered through Robinhood Financial LLC. Harold Averkamp has worked as a university accounting instructor, accountant, and consultant for more than 25 years.... Read more
A fiscal year is used in government accounting, which varies between countries, and for budget purposes. It is also used for financial reporting by businesses and other organizations. Laws in many jurisdictions require company financial reports to be... Read more
A creditor is an entity or person that lends money or extends credit to another party. A debtor is an entity or person that owes money to another party. Thus, there is a creditor and a debtor in every lending arrangement. The relationship between a d... Read more
A capital account reflects an owner's initial investment into their company. You can present this information to the bank by providing a bank statement or balance sheet, and if granted a loan, you can record any bank loans in their section of your ba... Read more
An activity is presumed carried on for profit if it produced a profit in at least 3 of the last 5 tax years, including the current year. Activities that consist primarily of breeding, training, showing, or racing horses are presumed carried on for pr... Read more
It looks a lot like yours, but I failed to break Travel out of the Cash (a.k.a. miscellaneous) category. Jonathon, does the savings category include pre-tax retirement savings (e.g. 401k)? I know you said you were stashing cash for a house purchase b... Read more
A bank reconciliation will also detect some types of fraud after the fact; this information can be used to design better controls over the receipt and payment of cash. The accountant adjusts the ending balance of the bank statement to reflect outstan... Read more
This post is to be used for informational purposes only and does not constitute legal, business, or tax advice. Each person should consult his or her own attorney, business advisor, or tax advisor with respect to matters referenced in this post.Deter... Read more
