Cost of Goods Sold: Defining & Calculating COGS
A retailer like Shane can choose to use FIFO (first-in, first-out) or LIFO (last-in, last-out) inventory costing methods. Both have drastically different implications on the calculation. Last in, first out (LIFO) is a method that considers the most recently purchased items in a company’s inventory to have sold first. So, if a company paid $5 […]
W-8BEN: When to Use It and Other Types of W-8 Tax Forms
Generally, this will be the person from whom you receive the payment, who credits your account, or a partnership that allocates income to you. An FFI may also request this form from you to document your account as other than a U.S. account. Give Form W-8BEN to the person requesting it before the payment is […]
Free Towing Invoice Template Edit and Send
Price calculated for individual services provided, tax added over and above that. Car towing and repairing service offered at the client place or the mechanic shop. Let me take you further inside by throwing some light on towing receipt books. A collection of receipts bounded together to form a towing receipt book. You’ve got your […]
Cash vs Accrual Accounting: The Fundamental Differences
This method makes it easy to keep the unique situation of each sale or bill up to date, making adjustments when each item is satisfied or keeping notes of anything still outstanding. Cash accounting works well for many small businesses; however, if there is a concern over the health of the business and crucial details […]
State of Oregon: Blue Book Government Finance: Taxes
Oregon’s progressive tax system for 2023 features four brackets, with rates ranging from 4.75% to 9.9%. Each bracket applies to a specific range of taxable income, ensuring higher earners contribute proportionately more. Adjustments to income thresholds within these brackets reflect inflation and aim to prevent taxpayers from paying higher taxes without real income growth. To […]
What is the difference between accounts payable and accounts receivable?
Many accounting students get confused amidst these two terms, but there is a fine line of difference between account receivable and account payable. Accounts payable refers to all outstanding bills you owe for products and services your business purchased, excluding payroll costs. These expenses are not immediately paid and are considered “liabilities” in your accounting […]
How to Calculate the PV of Minimum Lease Payments
Amortization is an accounting technique used to periodically lower the book value of a loan or intangible asset over a set period of time. To calculate the present value of the leased trucks, the residual value must be factored in. The residual value is the value of the trucks after the lease period is over. […]
Expense Reporting Cheat Sheet: Best Practices DATABASICS
Expense reporting puts a standardized process in place where employees are made aware of what can and can’t be expensed, and it also gives organizations a faster way to determine if a claim is legitimate. Bookkeeping for Painters An itemised expense report with receipts attached acts as solid evidence about when, where, and how any expenses were […]
Decision Making Frameworks for Making Decisions As a Team
A successful RACI Grocery Store Accounting chart relies on properly understanding each role so there’s no confusion when it comes time to make a decision. RACI is an acronym that stands for Responsible, Accountable, Consulted, and Informed. (RACI charts are also regularly used to determine responsibilities for tasks and milestones). The DMF is not a […]