LedgerBench

  Operating expenses are incurred by businesses to keep the business going, includes staff wages, supplies not include manufacturing cost. Operating expenses does not include manufacturing cost or cost of goods sold (direct labor, material, manufacturing overhead) or capital expenditures (building or machinery)  What is included in Operating expenses? Following are included in operating expenses: Insurance Rent Research Utilities License fees Accounting fees Office supplies Attorney fees Vehicle expenses Travel expenses Payroll for staff excluding labor for manufacturing  Marketing including social media channels such as Facebook Building maintenance and repairs Property taxes on real estate Operating expenses are reflected in the company's income statement. What does an increase in operating expense mean? An increase in operating expense would mean less profit for a business. Often operating expenses receive ...

In the wake of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the United States has conferred an additional $310 billion funding to the Paycheck Protection Program (PPP) that was almost running out of funds in April. The importance of PPP is ever-important in these times of economic uncertainty as PPP is one of the few opportunities that small businesses have to obtain forgivable loans to sustain employees on the Payroll services . But, there are so many questions that are yet to be answered and cleared for entrepreneurs, especially in the light of the forgivable nature of the PPP loans . Another burning issue here is the grey area, where many public companies confessed to having taken the PPP loan which was truly meant for small businesses with employees less than 500. To contain such malpractices, the federal government has come out with the briefing that the authorities will audit any company that levies for loans more than $ 2 Million. This blog will pr...

  What is vendor reconciliation  - definitely accounts related job. It’s part of accounts payable activity where one has to reconcile vendor balance in his books of accounts. The vendor reconciliation process in AP is a procedure aiming to clear misstatements and errors that might’ve occurred during the period between the last reconciliation and the current date. We usually carry out AP reconciliations as part of audit procedures during annual financial statements audit or other agreed-upon procedures. The focus is on ensuring accounts payable is neither under- nor overstated. The process is based on fraud risk assessment for the entity or its vendors, and we carry it out under the relevant audit standards (e.g., ISA here in Europe). The aim is to make sure that all invoices, payment transactions, advances, and any other liabilities or accrued expenses, are correctly disclosed in the financial information of the company. When performing the reconciliation procedures, t...

A general ledger is the backbone to your accounting activities. Read the blog to know what it is, how to maintain & it benefits your business. Ever since business and trade continue to exist in the modern-day world, so do General Ledgers! Whether the mode to assemble one’s business financials was on an abacus, on paper, or in the current day world of computers; the general ledger has continued to be of importance regardless, the day and age you are in. For every business, it is important to know the pivotal role played by a general ledger as it includes the culmination of all your financial reports and statements. Businesses use ledgers to document the money that they are paying or are being paid to them. What is General Ledger? The general ledger summarizes all the information about your business. It includes all the company’s accounts and transactions and is the financial foundation of the business. The ledger is divided into 5 categories: Assets Liabilities Equity Reve...

  The Ethical Accounting Turns Away Bad Business to Remain a Priceless Addition to Any Business What would you do if one of your clients owed a huge amount of money in back taxes and they subsequently asked you to delete their QuickBooks® file, create a new one under a false name with no liabilities on the books and tell their creditors that they had moved out of the country? That may seem pretty far-fetched, but the shocking truth is that this actually happened to a bookkeeper at our firm. While situations as outlandish as this one probably don’t come across our paths every day, the reality is we are all faced with having to choose, on some level, between ethically sound practices and retaining revenue that pays our bills! Looking for - Bookkeeping services for small business So, where do we draw the line? As a business in a highly competitive marketplace where the lowest price always seems to win, how do we make the hard decision to turn down revenue because we simply can...

With student debt being higher than ever before and a record number of student loans falling into default, it’s become clear that people need assistance with paying down their student loans. No one wants to start their post-education lives struggling under the weight of crippling debt, but many do. Companies like Financial Preparation Services have made a name for themselves by helping their clients with finding all the helpful government programs available to them and customizing a new loan repayment plan that fits each individual client’s financial needs and goals. Following  Financial Preparation Services  will keep you up to date on just how you can get in contact and restart your loan repayment journey today. Financial Preparation Services: What They Do? Financial Preparation Services is in the loan-repayment industry for their clients. They are a private company that has nothing to do with the government, loan-service providers, or the Department of Education. After on...

IRS Form 4562 is used for filing tax returns, it’s an amortization and depreciation form.  Depreciation refers to the calculated loss of an asset though its working life span.  Amortization refers to an expensive purchase whose costs must be spread out over a number of years to lessen the impact on a company’s profit for the tax year it was purchased.  Do I need to file the IRS Form 4562? You may need to file the form 4562 depreciation and amortization form for the purchase of the following for your business: Vehicles Renovations Patents Manufacturing equipment Intellectual Property Specified Plants Office equipment including computer hardware and software Office furniture, fixtures and carpet Real estate (buildings, excluding land. Land does not decrease in value) The form can also be used for expenses related to films, television and live theatrical productions. Whether the purchase was made in full or financed, it wouldn't matter for the purpose of amo...

IRS Form 1099 is the IRS form for filing taxes. It is used by companies to report payments made other than salaries, regular wages or tips which are reported through W-2 form. The 1099 form is generated by the payer and must be sent to the payee by January 31st of each year, to reflect transaction amount from the previous year.  There are many types of 1099 forms, the one used to depend on what the payment was for.  Who gets the IRS form 1099? The most common form a company issues IRS Form 1099-MISC. A business is required to fill it out for anyone they have paid $600 or more in a calendar year who is not an employee. For example, if a company has paid 50 different contractors over $600 then they are required to fill out and provide form 50.  It applies to payment made for: Rent Freelance Workers Attorney Payments Cash prizes and awards Other income payments Medical and Healthcare payments Crop insurance proceeds Fishing boat proceeds Cash payments for purc...

  “If we are growing, we’re always going to be out of our comfort zone.” Quoted by John Maxwell This is never more true in the world of businesses. This year you may have planned different growth strategies but pandemic has taken a turn over all your decisions, it has prevented your business from seeking its full potential. But certainly, there are several other ways to ensure manageable and profitable small business growth for your small business even in unprecedented times like covid-19. Creating a growth strategy for your business will ensure sustainability. A growth strategy is beyond just envisioning long-term success. If you’ve no tangible plan then you’re actually losing business or increasing your chances of losing business to competitors. There is no specific recipe for instant results and nothing is guaranteed. But you can accelerate growth and reach milestones with clear goals and strategies.   Take the following crucial steps to ensure the growth of yo...

The unanticipated Corona outbreak has left the global economy and businesses in a state of anarchy. While businesses are still trying to figure out the best way to survive during these tough times, a Business Continuity plan can be their best bet to pull them out of this crisis.  So let’s discuss in details what is a BCP and how it can be of help: What Is Business Continuity Planning (BCP)?  A Business Continuity Plan (BCP) is designed to pull out companies from potential threats and risks. It ensures that assets and personnel are kept protected so that they are able to function efficiently during tough times and make sure business operations aren’t hampered. BCP assesses each and every risk that can cause a failure to the businesses operations process and plans out risk management accordingly. Risks can be either natural disasters like fire, flood etc or can be man made like cyber attacks. While every company and industry has a different set of driving factors ...

Outsourcing your bookkeeping services has never been so accessible and compelling than it is today. The introduction to new technology, cloud computing has changed the way we do business today. The common reason small businesses neglect their financial accounts is time and cost. They have neither time nor knowledge to carry out necessary bookkeeping tasks themselves. Yet they are reluctant to either outsource bookkeeping services or burden their business with in-house bookkeepers.  Bookkeeping is essential for all sizes of business but it’s also time-consuming. Delegating tasks to a qualified bookkeeper helps focus on the core mission of your business. Outsourcing bookkeeping services can help you save time, money alleviates the hassle of managing books.  The undervalued benefits of outsourcing your bookkeeping are: The value of service-based bookkeeping: Using an outsourced bookkeeping service doesn’t mean buying software and working the system yourself. Th...

  Small businesses use IRS Form 8941 in order to claim a tax credit for the health insurance premiums they pay for their employees. To qualify for this tax credit, the business must have fewer than 25 employees with an average annual wage exceedingly not more than ,000k. The tax credit is maximum for 50% of the premium paid or for tax-exempt employers, with a maximum of 35%.  Will IRS Form 8941 reduce my taxes? The form 8941 can help to reduce taxes or small businesses by providing a tax credit for the health insurance coverage that an employer has provided to his employees. This credit is an incentive for small businesses to provide coverage.  Following are the requirements to qualify for the tax credit: The annual average wages of employees should not exceed ,000K The small business must have paid at least 50% of its employee’s insurance premium costs. The company must have fewer than 25 employees.  The tax credit is maximum for 50%...