March 18, 2022
Charles Lutwidge
What is a Multi-Step Income Statement
An income statement, also called a profit and loss statement, is one of the three most significant financial statements businesses and organizations should prepare as part of financial accounting. A multi step income statement is one of two types of...
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March 17, 2022
Charles Lutwidge
CPA vs Accountant
You may have come across different terms, such as an accountant and a CPA. But what is the difference between these two? An accountant is someone who has a bachelor’s degree in accounting. But a CPA is a designation that...
March 16, 2022
Charles Lutwidge
Net Cash Flow Formula
The concept of “net cash flow” reflects the amount of cash generated or lost by a company during a specific period. The periods of calculating may be different: week, month, quarter, annual. In simple words, the concept reflects a business’s...
March 15, 2022
Charles Lutwidge
Taxes For Small Businesses
The taxable income of a small company varies depending on the business structure, location of the business, industry, etc. For example, companies registered under sole-proprietorship might meet a 13% federal tax rate. Businesses registered under a partnership or S-corporation structure...
March 14, 2022
Charles Lutwidge
Fixed Cost: Definition and Formula
Expenses are the basis for calculating the cost and planning the price of goods or services. Companies traditionally categorized expenses as fixed, variable, and irregular. Fixed costs reflect expenditures that aren’t affected by sales or production levels of the company....
March 11, 2022
Charles Lutwidge
Tax Form 1120 – What It Is, How to File It
Taxpayers need so many forms to fill out and send to the IRS, contractors, businesses that it can create a lot of confusion. Most small businesses claim that filing taxes is one of their biggest concerns when the end of...
March 10, 2022
Charles Lutwidge
What is a Tax Write-Off
A tax write-off, or in other words, a tax deduction, is a rather helpful option to use by taxpayers. Such taxpayers as self-employed individuals and small business owners get the most out of tax deductions. This option allows taxpayers to...
March 09, 2022
Charles Lutwidge
What are Solvency and Liquidity
Solvency vs. liquidity shows the differences between a company’s approaches to measuring the ability to use current assets to cover short-term or long-term obligations and debts. Solvency focuses on long-term objectives. It reflects the company’s ability to generate positive net...
