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The three main types of financial statements are the balance sheet, the cash flow statement, and the income statement. The income statement and balance sheet accounts are compared with each other to see how efficiently a company is using its assets to generate profits. Company debt and equity levels can also be examined to determine whether […]

Then, he can deduct the remaining $17,000 ($20,000 – $3,000) of his capital loss in $3,000 increments from income every year from then on until the entire amount has been deducted. You usually do not pay Capital Gains Tax on assets you give or sell to your spouse or civil partner. After netting, Alex has […]

Whether you’re a startup guru or new to the inventory scene, we’re unpacking everything you need to know about DSI. It’s all about turning stock into cash flow and keeping your business agile in a market that never sleeps. Get ready to dive into how DSI works, why it matters, and how nailing it can […]

We recommend keeping the accounting files of the last three years, to protect the business. We know it might be tempting to throw out bills and receipts once you’re done with them. Also, in case the IRS audits you, it is good to have them as a backup. Now, if you hold this receipt against […]

A variance is the difference between the actual and planned amount of a budget item. A variance can be positive or negative, depending on whether the actual amount is higher or lower than the planned amount. A positive variance indicates that the actual amount is more favorable than the planned amount, while a negative variance […]

In theory, the book value of equity should represent the amount of value remaining for common shareholders if all of the company’s assets were to be sold to pay off existing debt obligations. In comparison, the market value of equity refers to how much the common equity of a company is worth according to the […]