The average collection period is the average number of days it takes for a credit sale to be collected. During this period, the company is awarding its customer a very short-term "loan"; the sooner the client can collect the loan, the earlier it wil... Read more
By subtracting the annual cost of goods sold from your annual revenue, you can determine your annual profits. COGS can also help you determine the value of your inventory for calculating business assets. The special identification method uses t... Read more
Establishing an allowance for doubtful accounts is super important for your financial stability. The actual payment behavior of customers, or lack thereof, can differ from management estimates, but management’s predictions should improve over... Read more
You must also have 120 semester units within the subjects listed below. For candidates who don’t meet the minimum education requirements, the IIA has made another way to CIA eligibility. Specifically, the IIA may approve candidates with at lea... Read more
If not, you need to go back and check the register for any transactions that may not have been posted to your account yet. Match the entries in your register with the transactions listed on your statement. Compare check numbers, dates, and dollar am... Read more
Each responsible employer must prepare and file without delay one specific form with the IRS, which is usually pointed at the end of the year, Form 1099. Tax form 1099 is what the IRS often refers to as the «Information Returns» form. Suc... Read more
The current ratio is a unique measure of the company's solvency, the ability to repay the current obligations. Lenders widely use this ratio to assess the organization's current financial position and the risk of issuing short-term loans. The ratio i... Read more
The self-employment tax is a special tax typically paid by small business owners to the federal government. It is levied to fund Medicare and Social Security. A self-employed individual is a person who runs a business for himself and takes responsibi... Read more
When a taxpayer's income isn't subject to withholding taxes, they must make estimated tax payments to the Internal Revenue Service (IRS) each quarter. If taxpayers earn income through wages, rent, interest, or dividends, and they don't have an emplo... Read more
Businesses have to calculate how much money must be withheld from employee paychecks to send to the IRS to cover tax payments. It's an important task as employers have to be careful and properly calculate everything to ensure that employees are taxed... Read more
