Bookkeeping

Amounts withheld from employees for federal income taxes are reported on the employer’s balance sheet as a current liability. When the employer remits the amounts to the federal government, the current wages payable liability is reduced. The first and foremost thing is to select the right account for the right…

Regardless of where the company sits, it’s important for business owners to review their competition as well as their own annual profit margins to ensure they’re on solid ground. New York University analyzed a variety of industries with net profit margins ranging anywhere from about -29% to as high as…

Third, we need to update the inventory balance to account for additions and subtractions of inventory. On 1 January, Bill placed his first order to purchase 10 toasters from a wholesaler at the cost of $5 each. Under the FIFO Method, inventory acquired by the earliest purchase made by the…

She is a former CFO for fast-growing tech companies with Deloitte audit experience. When she’s not writing, Barbara likes to research public companies and play Pickleball, Texas Hold ‘em poker, bridge, and Mah Jongg. Consistent follow-up on overdue invoices is essential, but it’s more effective when combined with a positive…