Recent Articles

October 2014

At-Risk Rules – An Elementary Understanding

10/28/2014

Code Section 465 of the Internal Revenue Code defines ‘At-Risk’ as the financial value the taxpayer has in jeopardy related to the business activity the taxpayer is invested in as some form of an owner.  Effectively, the taxpayer may only take [...]

Phantom Income

10/27/2014

Those small businesses using partnership or S-Corporation formats issue Form K-1 to the respective owners.  When income is assigned to the owner and there is no corresponding cash related to that income, then this income is referred to as [...]

Cost Drivers in Small Business

10/19/2014

The textbook answer defines cost drivers as those factors that determine the overall cost of operations.  As an example, in manufacturing the cost drivers may be processing time or number of steps to produce the product.  In service, the cost [...]

Project Accounting – Introduction and Value

10/17/2014

In the world of accounting, project accounting is a subset of financial accounting.  Many folks believe it is a form of cost accounting and it is not.  Cost accounting is more formally a function of manufacturing and deals with large quantities of [...]

Heads on Beds – Hotel Management

10/15/2014

The hotel business has one tenet that stands above all other hospitality based business standards.  Get heads on beds.  Why does this one business standard have so much more value than any other?  Well, it is simple, the fixed cost of [...]

Variable Costs

10/14/2014

Variable costs are those business related expenditures that vary in proportion to production.  The most common examples of variable costs include raw materials, labor, packaging and distribution expenses related to producing and delivering the [...]

Nobel Prize – Economics

10/07/2014

In the world of science and higher thinking, no award can compare to the Nobel Prize.  Awarded each year in December, the selected individual or individuals are announced during the 2nd week of October.  The award for economics is not a Noble [...]

Stock

10/02/2014

The one single term mostly equated to capitalism is ‘Stock’.  When a business is incorporated, stock is the core medium of exchange for the investment.  The company issues a certificate referred to as stock in exchange for the investment – [...]