Selling Your Company
Tax Preparation Compliance and Audit Risk. IRS aims to balance the burden on the taxpayer with the potential benefit of the compliance effort.
balance sheet
BALANCE SHEET is a summary of the financial balances and reflects the entities Assets, liabilities and ownership equity.
BALANCE SHEET In financial accounting or a balance or BALANCE SHEET is a summary of the financial balances of an individual or organization, whether it be a sole proprietorship, a business partnership, a corporation, private limited company or other organization such as Government or not-for-profit entity. Assets, liabilities and ownership equity are listed as of a specific date, such as the end of its financial year. A BALANCE SHEET is often described as a “snapshot of a company’s financial condition”. Of the four basic financial statements, the balance sheet is the only statement which applies to a single point in time of a business’ calendar year.
A standard company BALANCE SHEET has two sides: assets on the left, and financing on the right–which itself has two parts; liabilities and ownership equity. The main categories of assets are usually listed first, and typically in order of liquidity. Assets are followed by the liabilities. The difference between the assets and the liabilities is known as equity or the net assets or the net worth or capital of the company and according to the accounting equation, net worth must equal assets minus liabilities.
Another way to look at the BALANCE SHEET equation is that total assets equals liabilities plus owner’s equity. Looking at the equation in this way shows how assets were financed: either by borrowing money (liability) or by using the owner’s money (owner’s or shareholders’ equity). Balance sheets are usually presented with assets in one section and liabilities and net worth in the other section with the two sections “balancing”.
A business operating entirely in cash can measure its profits by withdrawing the entire bank balance at the end of the period, plus any cash in hand. However, many businesses are not paid immediately; they build up inventories of goods and they acquire buildings and equipment. In other words: businesses have assets and so they cannot, even if they want to, immediately turn these into cash at the end of each period. Often, these businesses owe money to suppliers and to tax authorities, and the proprietors do not withdraw all their original capital and profits at the end of each period. In other words, businesses also have liabilities.
What is Cost Accounting
What is Cost Accounting a systematic procedure for recording and reporting measurement of the unit cost of manufactured goods in the aggregate and in detail
5 Things to Talk to Your Accountant About
5 Things to Talk to Your Accountant About to Save Taxes, improve cash flow, asset protection, financing via debt or equity, and inventory turn over
How to Understand the Cash Flow Statement
The Cash Flow Statement Shows Sources of Cash and cash equivalents and breaks the analysis down to operating, investing, and financing activities
WHY IS CASH FLOW MORE IMPORTANT THAN PROFIT
Cash Flow More Important is the Income Statement or Balance Sheet, Profit indicates business success, cash flow measures day-to-day basis staying power
What is Your Startup Company Worth?
Pre-revenue startup valuation can be a tricky endeavor. There are many things to take into consideration, from the management team and market trends to the demand for the product and the marketing risks involved. After evaluating everything, even with the most effective pre-money valuation formula, the best you can hope for is still just an estimate
The Outsourced Accountant: Four Ways to Add Value
The Outsourced Accountant saves you money by eliminating employee benefits such as insurance and payroll taxes not to mention increased productivity
Accountants vs. Lawyer Where They Overlap
In the tax area, the lines between accountants and attorneys can be blurred. Some lawyers prepare tax returns, and many accountants help structure business transactions in order to achieve optimum tax benefits
How to Simplify Income Tax Accounting
The Financial Accounting Standards Board has issued two proposed accounting standards updates meant to Income Tax Accounting