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Double Taxation – Not an Issue in Small Business


In the world of big business corporate earnings are taxed twice under the Internal Revenue Code.   The first layer of taxation occurs with the traditional corporate income tax.   The second tier of taxation happens when dividends are issued to [...]

Economies of Scale


Of the basic business principles, economies of scale has the greatest impact on profitability over any other business principle.   As an enterprise’s investment is spread over higher volume the cost per unit of production decreases.   The [...]

Bookkeeping – Payroll Cycles (Lesson 32)


Similar to the bookkeeping cycle, the payroll cycle has many frequent activities, fewer incremental requirements and one important end of the year report.   This lesson explains these respective cycles and how they tie together for the final year [...]



EBITDA is an acronym for Earnings Before Interest, Taxes, Depreciation and Amortization.   The value is generally known as operational profit before capital expenditures and tax obligations.   EBITDA is frequently used for estimating value of [...]

Bookkeeping – A Simple Payroll (Lesson 31)


In Lesson 30 I explained the payroll account structure using parent-child accounts.   This lesson is a part of the daily operations section of bookkeeping illustrating an actual payroll entry.   If you haven’t done so yet, please read: [...]

P&L Statement – Best Format for Salons


An owner of a hair salon needs a well organized and properly formatted profit and loss statement (income statement) to properly evaluate performance.   There are multiple presentation formats used in the service industry, but after 21 years of [...]

Bookkeeping – Payroll Structure (Lesson 30)


Every bookkeeper needs to understand how to process a payroll.   This is one of the many regular tasks in the bookkeeping cycle.   In this lesson I’m going to illustrate a payroll structure as it pertains to the chart of accounts.   But [...]

Debt or Equity in Small Business – Fundamentals


Small business books and manuals explain the formula used to determine whether additional debt increases the return for investors commonly known as return on investment (ROI).   I find this laughable in our modern economic times given the low cost [...]

Job Descriptions


Job descriptions act as the framework for the relationship between the employer and employee.   It is the starting point for the human resources officer in addressing proper matching of needs and resources.   If properly written the description [...]

Bookkeeping – Accounting Cycles (Lesson 29)


The bookkeeping cycle is like a huge giant clock with several dozen gears from a multiple cog gear rotating the most frequently turning cog cascading into the one large gear that once turned changes the timer one year forward.   The [...]
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