Separating Your Personal and Business Finances You can separate your personal and business finances by using several options, including splitting the difference between what you owe to cover your personal and business expenses. You could also use an online service like Mint to track your transactions, making it easier for you to stay on top…
Importance of Government Regulations All companies must adhere to federal, state, and local statutes, necessitating government regulations on business. Regulatory bodies enforce these regulations at the legislative level. Some of these regulations impact how a company reports their income or pays taxes, while others regulate how they dispose of their excess materials or waste. Regulations…
What are debit card processing fees? Debit card processing fees refer to the fees charged by payment processors, banks, and card companies (Visa, Mastercard, etc.) when a customer pays with a debit card. These fees typically include the following: These fees may vary depending on the size of the bank that issued the card, the…
A Guide to Debt vs. Equity Financing Debt vs. equity financing. Which is the better choice for your business? There is no easy answer to this question. The answer depends on several factors, including your business’s stage, industry, and personal preferences. However, this guide will explore the pros and cons of debt and equity financing…
What is marginal profit? Marginal profit is a concept in microeconomics that refers to the increase in a company’s profit from selling one additional unit. It is expressed as the difference between marginal revenue (the increase in revenue from one additional unit) and marginal cost (the increase in the cost of producing one additional unit)….
How does cross collateralizing a loan work When you borrow money, the lender will usually require some collateral. This allows them to recoup their losses if they cross default on the loan. Cross collateralization is when you use more than one asset as collateral for a loan. For example, if you have a home equity…
Bank reconciliations may not be the most exciting topic, but they are essential for accounting. In essence, bank reconciliation is the process of comparing your company’s bookkeeping records with the actual transactions that have taken place in your bank account. This helps to ensure that there are no discrepancies between the two systems and that…
What is an Accountant? Definition: An accountant is a professional who maintains and examines business accounts. For instance, they record transactions, revenue, and expenses in a restaurant. Expanded Definition: Accountants handle financial records. Their responsibilities encompass various aspects including: Types of Accounting Forensic Accounting Forensic accounting is a specialized branch of accounting that combines the…
What is tax day? Tax day is when individual federal income tax returns are due to be submitted to the federal government in the United States. It usually falls on April 15th but may be extended in the event of a weekend or public holiday. How do you know if you need to file a…
What are debits and credits? In accounting, debits and credits are ways of recording financial transactions. Transactions are recorded as either a debit or a credit, depending on what is happening in the transaction. What does debit mean? Debits are typically used to record assets, while credits are typically used to record liabilities. For example,…
