Tag: tax

Pitfalls to Avoid When Growing Your Business

A strong economy drives business growth. I think most of us can agree on that. Growth is usually good… But if it is not controlled growth, it simply will not be sustainable. In this blog, Pitfalls to Avoid When Growing Your Business, I outline several pitfalls to avoid when growing your business (especially in a

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Tax Brackets

See Also: Marginal Tax Rate Prepaid Income Tax Ad Valorem Tax Deferred Income Tax Cash Flow After Tax Tax Brackets What are tax brackets? Tax brackets are levels of taxation determined by income. Individuals with income falling within a certain tax bracket pay taxes according to the stated rate for that bracket. Typically, lower income

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Fiscal vs Monetary Policy

Fiscal vs Monetary Policy What is Fiscal Policy? Fiscal policy is essentially how the government decides to collect and spend money to impact the economy. This is studied in Macroeconomics to better understand the relationship between the economy and governmental influence. The study of fiscal policy is useful in speculating the reaction to changes in

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Tax Efficiency

See Also: Federal Unemployment Tax Act (FUTA) Tax Brackets Prepaid Income Tax Marginal Tax Rate Cash Flow After Tax Ad Valorem Tax Tax Efficiency Definition Tax efficiency, defined as the process of organizing an investment so that it receives the least possible taxation, is as important in general investment as it is in business. Business,

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Tax Abatement

Tax Abatement Definition Tax abatement, defined as the decreasing of the tax responsibility of a firm by government, is one of the tools which government uses to motivate behavior in a firm. A tax abatement credit is generally given to a firm when the government wants the saved money to be spent in another way:

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Prepaid Income Tax

In accounting, Prepaid Income Tax is defined as an asset listed on the balance sheet that represents taxes that have been already paid despite not yet having been incurred. It is also called a deferred income tax asset. Prepaid Income Tax Explanation Prepaid income tax is a form of prepaid expense. The most common reason

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Modified Accelerated Cost Recovery System (MACRS)

See Also: Straight Line Depreciation Double Declining Depreciation Method Accelerated Method of Depreciation Financial Accounting Standards Board (FASB) Generally Accepted Accounting Principles Modified Accelerated Cost Recovery System Definition The modified accelerated cost recovery system (MACRS) method of depreciation assigns specific types of assets to categories with distinct accelerated depreciation schedules. Furthermore, MACRS is required by

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Nexus Overview

Nexus Overview “Nexus” is a connection between a state and a taxpayer, sufficient enough to allow the state to subject the taxpayer to its taxing jurisdiction and require the taxpayer to file tax returns and pay taxes. The concept is fairly straight forward, and easily understood, by companies doing business solely within the boundaries of

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Managed Sales And Use Tax Audit Programs

See Also: Auditor Audit Committee Choose a CPA/Auditor Allowance for Uncollectible Accounts Are You Collecting Business Data? Managed Sales And Use Tax Audit Programs A managed audit is an agreement with a state’s taxing authority in which a company self-examines its own books and records. A managed audit agreement allows the company, or an outside

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Develop a Controller

See Also: Hire a CFO Controller How to Compensate Sales Person How to Form an Advisory Board Train People For Success How to write an Action Plan Skills to Develop a Controller 1. Accounting Skills Keep up to date on the latest accounting rules and know which rules apply to your company. Are you publicly

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Deferred Income Tax

See Also: Marginal Tax Rate Prepaid Income Tax Flat Tax Rates Tax Brackets Deferred Revenue Cash Flow After Tax Deferred Income Tax Definition In accounting, the deferred income tax definition is a liability listed on the balance sheet. It represents an obligation to pay taxes. Deferred Tax Asset and Liability Most large corporations prepare two sets

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Cash Flow After Tax

See Also: Marginal Tax Rate Prepaid Income Tax Tax Brackets Flat Tax Rates Deferred Income Tax Cash Flow After Tax In finance, analysts calculate after-tax cash flows to determine the cash flows of an investment or corporate project. Basically, the analyst calculates the after tax earnings of the investment or project, and then adds back

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