Overhead Costs: Calculating Overhead Costs per Each Billable Hour

Any expenses that do not relate directly to your product or service, are considered overhead. If you make custom shirts, for example, the cost of the shirts and the ink is not overhead. Anything that is directly related to the product you sell is considered part of the product cost.

What Is Deferred Revenue? | Honest Buck Accounting

Deferred revenue, also known as “Unearned Revenues,” is how businesses classify revenue they have received that has not yet been earned. Customer deposits are an excellent example of unearned revenue. While your business may have the money in hand, you cannot count it on your earned income statement because it remains unearned. Therefore, it must be deferred to your balance sheet and reported as a liability.

Bench Accounting: Reviews, Pricing, and Alternatives | Honest Buck Accounting

Designed with small businesses in mind, Bench Accounting is a digital subscription that touts itself as a full-service online bookkeeping service. Subscribers gain access to a bookkeeper who works with them remotely to process bank statements, prepare other financial statements, and fulfill transactions on a monthly basis. If you’re considering Bench Accounting, it’s worth reviewing the service’s features, pricing, and comparable alternatives.

Accounts Receivable: Definition and Best Practices

Accounts receivable is typically held by companies that invoice for goods or services to be paid at a later date. Cash businesses, or those who receive payment at the time of delivery of the good or service, won’t have an accounts receivable. A consumer-facing retail shop that sells goods for immediate payment, for example, likely won’t have A/R.

Everything You Should Know About Accounts Payable

Accounts payable is generally defined as a current financial liability. It is usually money that a company owes to one or more of its vendors or suppliers. According to Less Accounting, how efficient the accounts payable system is in any organization affects the company’s reputation and financial stability. Accounts payable is sometimes thought of as short-term debt payments.

FUTA: What Is FUTA? | Overview of the Federal Unemployment Tax

FUTA stands for Federal Unemployment Tax Act. It?s one of the payroll taxes that the government collects in order to provide benefits to workers. Other payroll tax examples include Social Security and Medicare. The purpose of FUTA is to provide unemployment benefits for workers who lose their jobs through no fault of their own.