They can also issue equity to raise capital and reduce their debt obligations. This tells us that Company A appears to be in better short-term financial health than Company B...
There are various companies that rely on debt financing to grow their business. For example, Nubank was backed by Berkshire Hathaway with a $650 million loan. When using the D/E...
To avoid this pitfall, those who hedge both inventories and final sales should realize that they should start with the sales and determine how much of the sales they want...
But if you’re applying during tax season, it could take longer. If your application is approved, your ITIN will arrive by mail. ITINs can also sometimes be used for other...
(52) Horizontal analysis revealed a decline in the company’s gross profit margin. That would mean for every $1 of revenue the business gets $0.20 as gross profit. According to a...
A foreign entity that completes Form SS-4 in the manner described above should be entered into IRS records as not having a filing requirement for any U.S. tax returns. Failure...
From an accounting standpoint, the depreciation expense is debited, while the accumulated depreciation is credited. Small businesses have fixed assets that can be depreciated such as equipment, tools, and vehicles....
You’ll also find savings accounts for kids and specialty savings accounts, such as a Christmas Club account. Savings accounts, certificates of deposit and money market accounts can all be solid...
It’s smart to always have three to six months’ worth of your average monthly revenue on hand. For example, if you typically bring in $500,000 per month in contracting work,...
One of the major challenges in construction accounting is managing work-in-progress (WIP) calculations. We address this by carefully tracking project progress and evaluating both direct and indirect costs to ensure...
