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Bookkeeping – Other Taxes (Lesson 59)


There are several more taxes that small businesses must adhere to each year.   This lesson explains these other taxes including: * Real Estate Taxes * Business Property Tax * State Franchise Tax * State Licenses or Fees * Unique Production or [...]

Working Capital Management – Production and Sales Flow


There is no single management style to address the multitude of working capital cycles existing in the various business sectors and the underlying industries.   Taking raw resources and turning them into consumer goods has different time frames [...]

Bookkeeping – Tracking Income Taxes (Lesson 58)


It is important for the bookkeeper to track income taxes for the business and the owners.  Tracking includes apprising management of current status and pending obligations.  In addition, the bookkeeper must make sure the payments are made to the [...]

Bookkeeping – Franchise Fee and Revenue Taxes (Lesson 57)


Lesson  56 through 59 cover various business and income taxes along with the appropriate bookkeeping functions.   This lesson focuses on the accounting procedure for franchise fees and the formula used for revenue taxes    What is interesting [...]

Bookkeeping – Meals Tax (Lesson 56)


A major source of local government revenue is the meals tax.   Most states authorize the right of local governments to raise revenues utilizing a meals tax.   It is defined differently in each state.   If a business is involved in the food [...]

Net Profit


No other business term is so misunderstood, misstated, misleading or deceiving as the words ‘net profit’.   Accounting defines net profit as the amount earned after all associated costs and expenses are subtracted from the associated [...]

Bookkeeping – Loan Accounting (Lesson 54)


Almost every small business borrows money.   The most common reason is to purchase a fixed asset of some sort.   The amount borrowed is most often a long-term liability.   There are several steps involved in recording the original loan and then [...]

Bookkeeping – Amortization (Lesson 53)


Amortization is similar to depreciation whereby an asset’s cost is allocated to the expense over time.   There are several differences with amortization.   Amortization is used with intangible assets and the method is almost always straight [...]

Bookkeeping – Book and Tax Depreciation (Lesson 52)


One of the differences between book income and taxable income is depreciation.  In general Section 168 of the Internal Revenue Code allows businesses to accelerate their depreciation for tax purposes.  This increases the expenses of the business [...]
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