Category: Bookkeeping

Not every online bookkeeping service is the same, and ultimately, what makes sense for each small business will differ. Let’s take a look at the features you should consider when picking what makes the most sense for your venture. Pilot specializes in working with high-growth technology startups, among other small businesses. So, if you’re just…

For example, a business that makes single-use paper cups might see that data shows demand is increasing year over year. This means a forecast incorporates data-backed assumptions (quantitative) and expert opinion (qualitative) to create conclusions. Financial forecasting involves a wider array of information. With this information, the finance team sets expectations about future revenue. They…

A personal balance sheet lists current assets such as cash in checking accounts and savings accounts, long-term assets such as common stock and real estate, current liabilities such as loan debt and mortgage debt due or overdue, and long-term liabilities such as mortgage and other loan debt. A small business balance sheet lists current assets…

Conceptually, working capital represents the financial resources necessary to meet day-to-day obligations and maintain the operational cycle of a company (i.e. reinvestment activity). Working capital ratios quickly compare current assets to liabilities. However, current assets and liabilities can have different components depending on the nature of your business. Positive working capital is always a good…

The balance sheet must always balance, meaning assets are always equal to the sum of liabilities and equity. A balance sheet is a key financial statement that reports a company’s financial position at a specific point in time. By understanding the vulnerabilities in their balance sheets, they can implement measures to mitigate risks, such as…

Interest expense on bonds is calculated by multiplying the bond’s face value by its stated (coupon) interest rate. As a result of this change, a U.S. shareholder will no longer be allowed to increase its ATI by a portion of CFC income inclusions. How does a taxpayer make an election under the CARES Act? No…

Proper classification as ordinary repairs or capital improvements prevents distortion of business income and expenses for tax purposes. Minor routine repairs are likely selling expenses, while major upgrades that improve functionality are capital expenditures. In other words, ordinary repairs are simply maintenance costs to make sure the machinery or equipment is working properly . The…