Category: Depreciation
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5 Real-Life Examples to Make Accounting Concepts Stick for Better Financial Understanding
5 Real-Life Examples to Make Accounting Concepts Stick This section shows how people use common accounting ideas in everyday business situations. It covers transactions, revenue, depreciation, inventory, and matching expenses with income in real settings. Simple Transaction: Buying Office Supplies A company buys office supplies and records the purchase as an expense or asset, depending…
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Most Urgent Things Accountants Need to Know
Critical Regulatory and Compliance Updates Accountants face significant changes in tax regulations, financial reporting standards, and audit requirements that demand immediate attention. The IRS has implemented stricter enforcement measures while new reporting standards create additional compliance obligations. Navigating the Latest Tax Laws and the IRC The IRC has undergone substantial updates that affect how accountants…
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Turnover, Gross Profit, Net Profit, EBITDA and EBIT
Knowing the difference between gross profit and net profit matters for 2 main reasons: And that’s because it records the difference between your sales and what is costs you directly to make those sales. That difference represents your sales margin or markup. It is the first indicator of profitability in a business. A while back…
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Depreciation and Capital Allowances
Depreciation is the amount an asset has reduced depending on age, wear and tear, and current market value. It is a core part of bookkeeping, and usually applied at year end (for larger businesses it is often calculated every month as part of management reporting). When you record the purchase of an asset such as equipment or buildings…
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Accounting for Depreciation
Depreciation is really important yet few bother to do it. Why? because it seems so hard to do. But the reality is that it is really very simple. But first we need to look at what it is, and why we need to do it. The Value Of Assets Everything you buy to use for…