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When you leave a comment on this article, please note that if approved, it will be publicly available and visible at the bottom of the article on this blog. For more information on how Sage uses and looks after your personal data and the data protection rights you have, please read our Privacy Policy. Discover what you need to know about doing the accounting and bookkeeping for your small business. Complete our home office template with your rent, utilities, property […]
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Other companies simply require employees to use their PTO or lose it to simplify calculations. There is no set amount of PTO an employer is required to give an employee. According to the Fair Labor Standards Act (FLSA), benefits are matters of agreement between an employer and an employee. The FLSA does state that an employer does not have to pay workers for time not worked, like vacations, sick leave, federal or other holidays. The first step to paying employees […]
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This skill is foundational in maintaining accurate financial records through meticulous record-keeping, ensuring that every transaction is accurately documented and categorized. Attention to detail is also a key component in error prevention, allowing accountants to identify and rectify mistakes before they can lead to financial discrepancies or compliance issues. Hiring an account can be a costly venture, however, the rate you’ll pay entirely depends on the type of accountant you want to hire, their level of expertise, and the demand […]
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Unpaid wages are wages which have been earned by an employee but which have not yet been paid at the end of the accounting period. Under the accruals accounting concept expenses should be matched to revenues, so an adjusting entry is required to post the unpaid wages for the period. This adjusting entry increases both the Payroll Expenses reported on the income statement and the Accrued Payroll Expenses that appear as a liability on the balance sheet. The week’s worth […]
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This expense is incurred for all insurance contracts, including property, liability, and medical insurance. Property, liability, and casualty insurance is usually sold as a bundle. Obviously, property insurance covers the building and land that a company owns, as well as whatever is inside. Casualty and liability insurance deals mainly with the company’s workers and anything that may happen to them while they are working. As accountants come out of a “hard market” for professional liability insurance while continuing to face […]
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You are in the business of renting personal property if the primary purpose for renting the property is income or profit and you are involved in the rental activity with continuity and regularity. For royalty property, enter code “6” on line 1b and leave lines 1a and 2 blank for that property. If you own a part interest in a rental real estate property, report only your part of the income and expenses on Schedule E. The passive activity loss […]
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Paying the expense after the money has been encumbered doesn’t affect the amount of the appropriations. But, if the encumbrance amount has to be altered for any reason, that will either increase or decrease the appropriations account. Another trend is the shift towards cloud-based encumbrance accounting software. It is difficult to transfer an encumbered property, so the property owner has a strong incentive to settle the underlying claim. An encumbrance can also restrict the uses to which property can be […]
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Content Trust Accounting: The Basic Principles for Lawyers and Law Firms What to look for in a legal bookkeeper Notifying the State Bar Intermingling Personal & Business Expenses Fundamentals of Accounting for Lawyers Legal Accounting and Bookkeeping Best Practices Once you’ve determined what kinds of payments your firm will accept, you’ll then need to choose a payment provider to work with. The first thing you should do if you think you’ve messed up is to contact a practice management advisor […]
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The ratio rose modestly during the pandemic to almost 82%, before falling back to 73% in 2023’s first quarter, the most recent quarter with available data. Consumer debt hovered around 100% of gross domestic product — the total of all economic activity in the U.S. — from late 2007 to late 2009. The best way to stay out of debt trouble is to have a plan for paying it off. That starts with not taking on too much debt in […]
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Content TurboTax Tax Freedom: Free Online Tax Filing for You! Tax professionals share horror stories The IRS, TurboTax, and Industry Partners Announce National Tax Security Awareness Week 2022 The most common way to steal customer data Using stolen taxpayer data, thieves file fraudulent returns that are harder to detect. Identity thieves are technically sophisticated and are backed many times by well-funded and tax-savvy criminal syndicates, both here and abroad. “As the IRS, the states and the tax industry improve our […]
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