Accounting & Bookkeeping

Depreciation represents the contribution an asset makes to your business over time. When a business buys a building and uses it for several years, it’s not practical to expense the entire cost in the acquisition year. Instead, depreciation allows you to spread this cost over the asset’s useful life. Why Depreciation Matters Depreciation is essential […]

If it was possible to call up the Internal Revenue Service (IRS) office for a discount on tax payments, their phones would probably ring all day. But it’s not, so smart independent contractors have to explore more feasible ways to reduce income tax and keep more of their business profit. This is where tax avoidance […]

Every year, more and more small business owners structure their companies as a limited liability company (LLC). In fact, the number of registered LLCs has grown every year since 2004, according to data from the Internal Revenue Service (IRS). And according to estimates, there were close to 21.6 million LLCs operating in the U.S. in […]

Whatever your reason for starting a business, there’s one thing that’s certain—you want to succeed. But Fundera reports that “about 20% of small businesses fail in their first year,” and 50% close up by year five. Boost your chances of success by learning how to find retained earnings—your business’s profits minus shareholder payments. Retained earnings […]

You want to take care of your business’s bookkeeping yourself. That’s great! You’re not the only one: over 64% of small business owners turn to bookkeeper software. But with so many different options out there, it can feel overwhelming to determine which accounting software is the right fit for your small business. To save time […]

If you’re a business owner waiting on payments, you’re not alone. According to a 2021 Melio survey, over 50% of entrepreneurs have gotten paid late before. With bills to pay to keep your small business afloat, chasing down payments is stressful. Encourage on-time payments by adopting Net 30 terms. This period gives clients a reasonable […]

How do you know if your small business is financially healthy? One clear sign is it’s making more money than it’s spending. This accounting metric is most commonly referred to as cash flow. According to a recent Facebook study, 33% of small businesses cited cash flow constraints as one of the greatest near-term challenges they […]

The term “freelancer” was originally used to describe a medieval mercenary whose lance wasn’t sworn to the service of one lord. And while they’re no longer hired assassins, freelancers are still “killing it.” According to Payoneer, a freelancer’s average hourly wage in 2022 was about $28, almost double the national average. While freelancing may improve […]

If you’re a small business owner who likes to do their own bookkeeping, you’re not alone. According to a recent report by Clutch, a majority of small businesses (62%) prefer to do their accounting in-house. Luckily, you don’t have to be an accountant to assess your business’ financials. Use these tried-and-true accounting formulas to quickly […]

Disclaimer: This blog post is intended to provide generalized information designed to educate a broad segment of the public. It’s not personalized tax, investment, legal, or other business or professional advice. If you have questions, speak with a qualified professional. Every month, employers all over the US withhold taxes from their employees’ paychecks. But for […]