Kategorie: Bookkeeping

If you have a mix of full-time and part-time employees, the full-time equivalent (FTE) lets you represents the full-time hours that all of the employees in your business work. FTEs are important for checking HR metrics and determining tax statuses for your business, but luckily they’re pretty easy to calculate on your own. Keep reading…

More specifically, the treasurer communicates directly with the chief financial officer of the organization and assists, when needed, with the budget preparation and introduction of the budget to the board. He reviews the audit process and answers any questions board members might have about the audit report. A good treasurer is familiar with the activities…

Organizations that file Form 990 or Form 990-EZ use this schedule to provide information on certain financial transactions or arrangements between the organization and disqualified persons under section 4958 or other interested persons. This schedule is also used to determine whether a member of the organization’s governing body is an independent member. Tax-exempt organizations with…

If a taxpayer’s payment to a donee organization is matched by another payor, and the taxpayer receives goods or services in consideration for its payment and some or all of the matching payment, those goods or services will be treated as provided in consideration for the taxpayer’s payment and not in consideration for the matching…

For instance, a small consulting firm might allocate administrative costs directly to client projects based on billable hours, providing a straightforward way to manage expenses. Another important aspect is the differentiation between product and period costs. Product costs are directly tied to the creation of https://www.bookstime.com/ goods or services and include expenses like raw materials,…

High gross profits indicate that a company is doing well in balancing sales revenue and manufacturing costs (or cost of sales). Low or negative gross profits mean that costs exceed income and that a company may need to reassess its strategy. Net profit calculations include revenue and Cost of Goods Sold, as well as fixed…

It sheds light on how much money a company earns after factoring in production and sales costs. New businesses will usually have a smaller gross profit margin as they establish their practices and build their customer base. This doesn’t mean the business is doing poorly—it’s simply an indicator that they’re developing their systems. It’s important…