Business Management

A line of credit is similar to a credit card. The bank allows a business access to a set amount of money which the business can use as needed, up to the credit limit. This differs from a loan...

A pro forma profit and loss statement, also known as a pro forma income statement, is a projection of a business' anticipated profitability. It is a management tool to help forecast a company's...

A cash budget estimates cash inflows and outflows for a business for a specific period of time. Monthly cash budgets let you know what your available cash reserves are for a given month so you...

A manufacturing company's financial statements are comprised of three sections: Balance Sheet, Income Statement and Cash Flow Statement. These financial statements are prepared in compliance with...

Barter can occur as a direct, one-one-one trade of goods and services between individuals and businesses, or as an indirect trade of goods for barter credit or script issued on a third-party basis...

Audit plan creation can begin as early as six months before the business's audit year starts and can require considerable staff and management resources. Audit plans should consider all areas of...

Business tax returns calculate the net taxable income that your business has earned and the amount of tax you are liable to pay on that income. Whether your business is a corporation or a sole...

Small businesses struggle with finding their bottom line. "How much money did we make this year?" Simply finding the income is easy enough, but finding out the actual profit made is much harder....

Simply running a business can be difficult, never mind helping your employees plan for retirement. A SEP IRA is a low-cost option for providing an employer-funded retirement plan for businesses...

The accounting rules involving foreign exchange differences and derivative instruments can be very complex. The Statements of Financial Accounting Standards (FAS) 52, 133 and 138 all must be...

Corporate tax credits are more beneficial to organizations that tax deductions because credits are awarded no matter what level of income is reported; whereas, deduction amounts often decrease as...

OK! Enough.. I am asked weekly how to make a business work. Well you can find a billion books about business, but most of us need the basics to determine the needs. Sooo...I am writing about the...

In these trying times, small businesses are suffering tremendous losses. When the economy is stable, there is little time to worry about issues like the debt to income ratio and break-even points...

A financial report is meant to report, both internally and externally, the expenditures and receipts for an organization. Financial reports can be daily, weekly, monthly, quarterly and annually....

The business opportunity of renting a property has its ups and downs. Complicating this kind of business venture, management of property can be applied in one of two approaches: managing the...

In recent year more people are looking online for an income. There are many different ways to do this. Once you have found your source of online income, you will then have to manage it. Here are a...

Business organizations operate under various forms of business. Closely held organizations are owned by only a few persons; usually family-owned and operated. Publicly held organizations are owned...

The Internal Revenue Service, or IRS, requires businesses to file informational returns reporting gross proceeds paid to unincorporated taxpayers. Form 1099-MISC is one of the most common...

The following are techniques that will allow you to stay in the clear. This post will show you habits to keep you from falling into the trap of bad debt. Practiced daily you will see results.

Income producing property can provide some tax advantages for its owners. The expenses the owner incurs in its operation, improvement or maintenance is deductible against the income that the...

One of the most important pricing decisions for a business to make regards transfer pricing. Transfer pricing, or intracompany pricing, is the pricing of goods (and sometimes services) to a firm's...

Accruals are used in accounting to record income when it is recognized, whether or not it has been received, and expenses when they are incurred, whether or not they have been paid. Accrual...

The bottom line on a profit and loss statement can be significantly affected by whether an entity is using the accrual or cash method of accounting. Under the cash method, income and related...

Because of its more accurate matching of income and expenses, accrual-based accounting provides a more powerful analytical tool than cash basis accounting. Accrual-based accounting keeps better...

Accounting is the method of tracking money transactions in business or for personal use. It monitors income, expenses and assets. An accountant can have a job as simple as a bookkeeper running a...

Begin writing your business proposal with a brief summary that is generated from an outline. In the outline identify who will be performing the day-to-day duties; identify the manager of the...

A farm is a small business developing a product to sell in an attempt to earn money. Farms, like any business, have expenses necessary to produce their product. The Internal Revenue Service allows...

Net operating income (NOI) is the income you derive from your business after you have deducted your operating costs. In effect, it is your income before taxes and interest have been deducted. NOI...

Businesses create financial statements at the end of each month, quarter and fiscal year. These financial statements tell the story of how well the business has done over a certain period of time....

Farmers are in the business to make money. Whether they raise livestock or grow vegetables, they are working to earn a living for themselves and their families. Like any businesspeople, farmers...

Have a small business or a home business and just can't seem to make ends meet? Just can not seem to get a handle on how to control the cash flow or expenses or prepare the necessary tax forms...

It is commonly believed that double-entry accounting was created by merchants during medieval times, but the first known document explaining the theory of double-entry accounting was written in...

You can save money in taxes by filing as an S-Corporation; however, you also have additional audit risks surrounding shareholders. The Internal Revenue Service, or IRS, forces you to maintain a...

While it is true that being an author is something of an artistic pursuit, no matter what genre you write, it is also a business. As an author, you not only need to write well, actively pursue...

Budgeting is a specialized form of planning. It uses historical figures and matches them to estimates in demand and spending forecasts. A budget serves as both a guide and strategic tool. Setting...

NOPLAT stands for net operating profit less adjusted taxes. NOPLAT is similar to NOP but is used exclusively in investment banking and mergers and acquisitions calculations, whereas NOP is a...

The first step in starting a non-profit organization is to create a mission statement. This outlines the overall purpose of the organization. The mission statement should state why the...

A fiscal year refers to the 12-month accounting period for an organization. A fiscal budget refers to the yearly budget. Some fiscal budgets start in January, and others start in June, depending...

One indication of success is financial status, and business credit is a measure of this success for your lender. It's how they will determine your financial health. If you don't have good business...

An operating budget is used to track expenses incurred during the operation of a business. It is considered a short-term budget, in that only day-to-day income and costs are included, rather than...

How to become a successful real estate entrepreneur.

A bookkeeping ledger is an accounting tool used to create a record of an organization's or individual's cash flow. It can be fairly simple or complex, depending on the amount of data tracked and...

LIFO and FIFO are used as descriptions for inventory. LIFO stands for "last in first out," which means that the product put into the warehouse last or more recently is what will leave the...

An income and expenditure account lists a company's sales and expenses during a period of time. A tally of this account measures a company's net income. Some income and expenditure accounts are...

Payroll tax liability is the tax liability that arises from an employer and employee relationship. Several different types of taxes arise under U.S. law. Part of these taxes must be deducted from...

The marginal tax rate is the percentage of tax you pay on the last dollar of your income. In many countries, tax rates are tiered so you might pay 10 percent of your first $10,000 of income in...

What exactly is a margin? Margin is a percentage of the whole. In financial terms, the "whole" is total sales, and margin is used to refer to the amount of profit made. Financial analysts...

Net operating losses (NOLs) occur when tax-deductible expenses exceed taxable revenue for a particular tax period. If an entity generates taxable income in a different period, the entity can use...

Unrelated Business Taxable Income (UBTI) was created in 1950 to include unrelated business taxable income. This closes the loophole a non-profit engaging in unrelated business might use to evade...

Income property owners have two main and distinct goals when putting together a property portfolio. The first aim is to maximize their capital return over the term of their holding. To many...