The base year thus facilitates the comparison of data from different periods by eliminating the effects of inflation and ensuring that prices, production, and value data are expressed in real terms. An Escalation Clause is often referred to as an Annual Increase Clause, an Annual Rent Increase or an Annual Rent Bump. If in 2016 […]

But despite this limitation, the periodicity assumption is a fundamental concept in accounting that helps to provide timely and relevant financial information. The business needs to comply with the provisions of regulations related to accounting, compliance, and taxation. For instance, banking regulators required deposit reports, maturity analysis, gap analysis, and maturity analysis on varying periods, […]

Securities and Exchange Commission pronouncements, mandate that the business classify land in the “property, plant and equipment” section. Other PPE accounts include commercial establishments — such as shopping malls and office buildings — residential dwellings, computer hardware and production machinery. Unlike land, most PPE accounts are subject to depreciation — a mechanism that allocates asset […]

Although the amortization of loans is important for business owners, particularly if you’re dealing with debt, we’re going to focus on the amortization of assets for the remainder of this article. As we explained in the introduction, amortization in accounting has two basic definitions, one of which is focused around assets and one of which […]

That number indicates whether a business is actually growing or contracting. Next, subtract interest expenses from the operating margin to find pretax income. Allowances are price reductions that the customer initiates because of an issue with their order. That can range from problems with quality, incorrect items, or longer than expected shipping http://ectaskforce.org/About_Us.htm times. Though […]

Moreover, Bookkeeper360 offers add-on solutions for CFO advisory, payroll, taxes, HR, and back-office. You can also work with them to create a custom service package. Collaborate with your peers, support your clients and boost your practice. Make sure the bookkeeper you choose has experience working with small businesses. Determine how accessible the bookkeeping service will […]

It scales to your needs and integrates easily with other business systems. QuickBooks Enterprise provides multi-user access and deep inventory, warehouse management, and accounting functionality. The total distribution costs are deducted from the company’s gross profit to calculate the net profit or loss of the company for the period. For example, say the company determines […]