Bookkeeping

Under the indirect method, the figures required for the calculation are obtained from information in the company’s profit and loss account and balance sheet. Using the indirect method, calculate net cash flow from operating activities (CFO) from the following information. However, the cash flows relating to such transactions are cash flows from investing activities. Indirect […]

Operating expenses are your employees’ salaries and the amount spent on equipment and supplies. The below glimpse is taken from the same financial report of the Code for Science & Society that we shared earlier. The first and most desired financial statement is the Statement of Financial Position. Nonprofits use this statement to share what […]

A solid understanding of debits and credits helps keep financial records clear and effective. Accounting transactions change general ledger accounts through these entries. This shapes the financial story of both personal and business finances. Forecasting, on the other hand, uses normal balances to estimate the financial outcomes of various scenarios. By applying expected transactions to […]

However, this income will still be taxed by Medicare and income taxes. S Corporation is a tax classification that LLCs may select instead of their default structure. While still a pass-through entity, S Corps have special rules applied by the IRS. This income is subject to federal employment, income, franchise, and payroll taxes. Qualified dividends […]