Tag: Quickbooks Online
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What are some of the reasons for a business to go bankrupt?
Business bankruptcy can occur for various reasons, and it’s essential to understand the underlying causes to prevent financial distress and bankruptcy. Some common reasons for a business to go bankrupt include: Poor Financial Management: Inadequate financial planning, budgeting, and cash flow management can lead to financial instability. Failing to monitor expenses, revenue, and profit margins […]
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What is year-end close bookkeeping?
Year-end close bookkeeping, also known as year-end closing or year-end accounting, refers to the process of finalizing a company’s financial records and preparing them for the end of the fiscal year. This process is critical for accurate financial reporting and tax compliance. Here are the key steps involved in year-end close bookkeeping: Review Transactions: Begin […]
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The importance of internal bookkeeping audits
Internal bookkeeping audits, often referred to as internal financial audits or financial statement audits, are a vital component of an organization’s financial management and reporting processes. These audits involve an independent and systematic examination of an organization’s financial records, transactions, and accounting practices. The importance of internal bookkeeping audits can be understood through the following […]
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Who really needs to work with a bookkeper?
Who really needs to work with a bookkeeper? Most businesses could benefit from working with a bookkeeper. Here are a list of who really needs one: Anyone who doesn’t have the time or knowledge to keep their books up-to-date or at least a monthly basis. Any small business owner who wants to make sure they […]
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Why Are Non Profit Agencies Tax Exempt
Nonprofit organizations, also known as tax-exempt organizations or 501(c)(3) organizations in the United States, enjoy tax-exempt status for several reasons, primarily because of the valuable services they provide to the community and the government’s recognition of their contributions to the public good. Here are some key reasons why nonprofit agencies are granted tax-exempt status: Promotion […]
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A Guide To Sending Out 1099s
Sending out 1099 forms is an important tax-related task for businesses in the United States. These forms are used to report payments made to non-employee service providers, independent contractors, and other individuals or entities. Here’s a business guide to sending out 1099s: Determine Who Needs a 1099: Identify all individuals or entities to whom your […]
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Job order costing vs process costing
Job order costing and process costing are two distinct methods used in accounting and cost management to allocate costs to products or services. They are particularly relevant in industries where products or services are produced or customized in different ways. Here’s a comparison of job order costing and process costing: Job Order Costing: Nature of […]
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What is the difference between a ledger and a simple journal entry?
A ledger and a simple journal entry are both important components of the double-entry accounting system, but they serve different purposes and have distinct characteristics. Here’s an overview of the key differences between the two: Journal Entry: Purpose: A journal entry is the initial record of a financial transaction in accounting. It is used to […]
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What is a Business Tax Code?
A business tax code typically refers to a set of rules, regulations, and tax laws that govern how businesses are taxed by the government. It outlines the specific tax obligations and responsibilities that businesses must adhere to, including how they calculate, report, and pay their taxes. The term “business tax code” is often used interchangeably […]
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Recording charitable contributions in bookkeeping
Recording charitable contributions in bookkeeping involves accurately documenting donations made by your business to qualified nonprofit organizations. These contributions may be eligible for tax deductions, so proper record-keeping is crucial. Here’s how to handle charitable contributions in your bookkeeping: Identify Qualified Charities: Ensure that the organizations you donate to are recognized as qualified charitable organizations […]