This is a continuation of Break-even Analysis – Part 1.
In a service business, you’re selling time, so you take a slightly different angle than to retail or manufacturing business. As a general rule, a service business should calculate to bill an average of four to five hours a day. This does not look much, but it is… Continue reading
A break-even analysis explores the relationship between expenses and revenues. Revenues are the amounts you earn for selling your product or service. Expenses are your operating and production costs. But before we start figuring at what point we can break even, let’s go back over some accounting terminology:
- Variable expenses are tied to your revenues. Revenues go up, variable… Continue reading
Here’s the 2016 Tax Facts
Filing a past due return may not be as difficult as you think.
Taxpayers should file all tax returns that are due, regardless of whether full payment can be made with the return. Depending on an individual’s circumstances, a taxpayer filing late may qualify for a payment plan. It is important, however, to know that full payment of taxes upfront… Continue reading
As of Jan. 1, 2016, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) are:
- 54 cents per mile for business miles driven, down from 57.5 cents for 2015
- 19 cents per mile driven for medical or moving purposes, down from 23 cents for 2015
- 14 cents per mile driven in service… Continue reading
Does the mere mention of accounting ratios may put your teeth on edge, and bring back bad memories of Accounting 101? It shouldn’t as ratios can help you quickly determine how your business compares against others.
Banks often use ratios to analyze your financial statements as part of the loan approval process, so it’s helpful to know in advance how… Continue reading
Yet another calendar? Yes. It’s a good idea to use QuickBooks’ calendar to stay on top of your financial transactions.
These days, some of us find ourselves updating multiple calendars. There’s the Outlook calendar or other web-based solution for scheduling and task management. Maybe a smartphone app to track to-do’s on the road, and a paper calendar as backup.
But… Continue reading
Accounting is about more than just numbers. QuickBooks lets you make documents available from within the program itself.
You could call QuickBooks a “green” computer program. It can conserve reams of paper by storing customer and vendor records, for example, emailing transaction forms, and accepting online payments.
Most small businesses are a long way from being “paperless offices,” despite the… Continue reading
As this year comes to an end, below is a checklist for QuickBooks year-end closing.
- Get Organized – Finding all of your receipts for any deductions you may be claiming on your tax return.
- Review Personal Bank Statements – For any business charges you paid for out of your personal account.
- Review Business Bank Statements – For any personal charges… Continue reading
If you sell services to your customers, you’ll need to understand how to use QuickBooks’ time-tracking features.
Small businesses that sell products have to do a constant balancing act. Keep too much inventory on hand, and you’re sitting on potential profits. If you don’t order enough and you run out, your customers may go to a competitor. QuickBooks provides tools… Continue reading