Operating a Business

Filing federal taxes on cash income involves basically the same procedure as filing taxes on income you receive in the form of checks and credit cards: Keep track of your income and expenses, and...

As a small business, you must pay city and state excise taxes on your gross sales, federal--and sometimes state and local--income tax on your net income, and employment taxes on your payroll....

There are three primary kinds of small business taxes: income taxes, revenue taxes and employment taxes. Income taxes accrue on the amount of profit your business earns. If you earn no profit, you...

Investing in multi-unit apartments can be a great way to generate passive income and wealth or a hair-pulling and poverty-inducing experience. Before you buy any multi-unit building, make sure...

The Financial Accounting Standards Board sets forth rules and regulations for how businesses must account for their business operations and other business interests. If a business owns or shares...

This is an article on how to diversify business income streams.

State income tax can add up to an undesired amount unless you attend to all of your reductions. The basic parts in state income tax are state income, income deductions, income exemptions, tax and...

A business financial forecast is an important piece of financial information often used by lenders or vendors to assess your business's stability before they agree to do business with you. A good...

If you're the sole proprietor of a small business, then you may not have invested in accounting software, choosing instead to use spreadsheets to record your business's financial information. If...

Increasing your income will be the next step after having your candy machines business up and running.

Pro forma cash flow statements are business documents prepared to give investors an idea of what a company's average cash flow may look like during a given period. Pro forma is Latin meaning "as a...

A limited liability company (LLC) is a hybrid type of business classification that is a cross between a corporation and a sole proprietorship. As the name implies, owners have limited personal...

Corporations and sole proprietors differ in the legal and tax structure of the business. Sole proprietors are not required to file documents with federal and state authorities when starting the...

Corporate tax returns appear in the same format as other financial data, making it difficult for uninformed readers to comprehend the information. Corporate tax returns are comprised of a variety...

The accrual basis of accounting is one of the two basic methods of reporting income and expenses in use today. Under the accrual method, income is recognized when earned, and expenses are...

Simply put, the degree of operating leverage (DOL) is a measure of how sensitive operating income is to changes in sales. The ratio looks at asset utilization for insight into income potential by...

Companies measure their income performance using a financial statement called a profit and loss (P&L) statement. This statement lists all sales, cost-of-goods (COGS), and expenses generated by...

While there are slight differences between a C Corp and an S Corp, the main differences have to do with the tax benefits. Before deciding how to establish your business, you should consult a tax...

The formula for deciding what to charge for lawn care can seem a bit ambiguous. When you're computing the amount you will charge, remember that it should cover a full mowing in front and back,...

Closing the accounting books is an important and necessary function for maintaining the integrity of accounting data. Before the accounting books are closed for the month, a thorough review of all...

The news is filled with stories about the financial woes of major corporations. Companies have filed bankruptcy while top managers insist they have no knowledge of how it happened. A business can...

Since you are an employee of yourself you can deduct your training costs. If you buy eBook, or if you subscribe to a webmaster content site, you can deduct these/. Home Business Office - working...

In order to run a successful department in any organization, designing an accurate budget is a must. Designing a training budget requires organization, review of past years' history and also...

The vending machine industry has spawned numerous businesses with high profits, but machine placement--a process and expense known as location--can quickly eat into the income produced. With some...

There are so many alternative ideas for making money these days that can help you take control of your personal finances. A little extra income can go a long ways towards getting out of debt and...

Gross profit is equal to the total income minus the cost of goods sold. Subtract the cost of goods sold from the sales and that will equal the gross profit.

Financial statements provide information about a company that give the viewer an overall sense of the financial health of a company. To prepare a financial statement, you must have as much...

Self-employed individuals in America must register as a business---you can file as one of several different entities, which will affect what forms you must fill out and how your business as a...

Income taxes payable is a current liability account involving money that an employer has deducted from an employee's paycheck. This money is held by the employer, then submitted to the proper...

Benjamin Franklin once said there were only two things in life which were certain: death and taxes. With the tax code the way it is today, now it seems the only thing certain is death. The tax...

A sole proprietorship is a business owned fully by one person. It is perhaps the most common business type to be found in the United States today, as more and more people choose to work for...

A payroll-tax expense is a tax paid on payroll, either by the employer or the employee. Payroll-tax expenses add a significant amount to employer payroll beyond simple employee pay, and also...

Insurance companies provide immediate assistance for many low probability but unfortunate occurrences. Thus, the investment strategy is developed to maximize the financial return according to...

Whether you are a sole proprietor, a small business or a corporation, there are a number of business expenses that are legitimate income tax deductions. Typically any ordinary and necessary...

Federal income taxes must be filed each year. You must figure out how much your taxes are and file a federal tax return with the IRS (Internal Revenue Service). Using the available online income...

The cash flow statement is a formal financial report that outlines where income is coming from, and where it is being spent. Unlike the balance sheet and income statement, the cash flow statement...

Your day has to be filled with money-making activities. You must make sure that every action you engage in can result in adding value, to lead ultimately to your success. Failure to plan is a...

When a business owner is looking at his profit margin, he wants to look at how his productivity this quarter or year compares with quarters or years in the past. Because the income tax rates...

While starting a new business brings a variety of opportunities, it also brings many new challenges for the entrepreneur. One of the most important tasks facing business owners is preparing and...

A money market fund is a specific type of mutual fund that typically makes money by investing in short-term interest-bearing securities. In the United States, these funds are required by law to...

Anything valuable that a company owns is an asset on the balance sheet. With the exception of inexpensive goods consumed during the accounting period. Some examples of inexpensive goods a company...

Companies earn operating income by engaging in the production of goods, delivery of goods, or providing services in exchange for compensation. The compensation is usually monetary but may consist...

SECA tax, or Self-Employment Contributions Act tax, is the self-employed individuals' contribution to Social Security and Medicare. When a person has an employer, the employer handles these taxes...

Learn how to calculate financial performance of a company using horizontal analysis of the financial statements.

Tax preparation for the trucking industry can seem complicated and confusing at times. In the trucking industry, you are subject to at least three to five different types of taxes just on your...

When a business calculates its profits, it must consider all revenue produced by sales of its products. Income from loans or investments is generally not considered as these funds carry a...

Even if you hire an accountant to do your taxes for you each year, you still are responsible for keeping accurate records and storing away receipts. This may seem overwhelming at first, but if you...

An income statement shows how much revenue is coming into a business and how much money the business is spending. It measures how much profit the company is making over a certain period, usually...

The goal of most people who open a business is to earn a profit. To earn a profit is to take in more money from sales or services than you are paying out for expenses. Profit is an...

Prepare closing entries at the end of the fiscal year to bring temporary account balances to zero and transfer these balances to balance sheet accounts. Temporary accounts include revenue, expense...