Category: <span>Bookkeeping</span>

The inventory (asset) will decrease by $250 and a cost of sale (expense) will be recorded. (Note that, as above, the adjustment to the inventory and cost of sales figures may be made at the year-end through an adjustment to the closing stock but has been illustrated below for completeness). After six months, Speakers, Inc....

In the interim, the business could have been mistakenly spending money it didn’t have. Single-entry bookkeeping is what you do in your checkbook, recording checks and deposits in one register. For businesses using single-entry, you record income and expenses once, hence the name. Single-entry accounting is only practical single entry bookkeeping vs double entry for...

In simple terms, gross profit margin shows the money a company makes after accounting for its business costs. This metric is usually expressed as a percentage of sales, also known as the gross margin ratio. A typical profit margin falls between 5% and 10%, but it varies widely by industry. It is similar to gross...

If the IRS determines that the deduction you claimed is illegitimate, you’ll have to pay the IRS $1200. That’s $1000 to make up the difference, and $200 for the penalty. The penalty is typically 20% of the difference between what you should have paid and what you actually paid in income tax. If there are...

The AALTCI says only 19% of LTC insurance claims begin before a person is 75 years old. It’s wise to buy long-term care insurance before your 50s, so you can have it in place if you need long-term care. Long-term care insurance can be expensive, but that’s because long-term care, like nursing homes and assisted...

The company may also face higher borrowing costs due to perceived risks, compounding the financial strain. In severe cases, the lack of financial solvency can lead to insolvency proceedings, such as bankruptcy, which signals to the market that the company is not a viable entity. When analyzing the role solvency plays in a company, it’s...

Many organizations implement computerized maintenance management system (CMMS) software to manage maintenance on their equipment and facility assets. CMMS software stores all maintenance data in one spot, allowing maintenance professionals to easily create and manage work orders, view asset history, track demand for spare parts, and much more. Activities include assembly, setup, testing, inspecting, and...

A public charity described in section 170(b)(1)(A)(iv), 170(b)(1)(A)(vi), or 509(a)(2) that isn’t within its initial 5 years of existence should first complete Part II or III of Schedule A (Form 990) to ensure that it continues to qualify as a public charity for the tax year. If it fails to qualify as a public charity,...

Lawhorn Accounting is committed to providing accounting and bookkeeping services to small businesses and individuals throughout the Greater Indianapolis area. Also, if you need advice on maintaining the health of your small business operations, Lawhorn is here for you. MAccounting is a progressive cloud-based firm that serves clients in the Indianapolis area. The revolutionary business...