How To Do Accounting for Your Startup: Steps, Tips, and Tools The Hustle

Individual tax returns are filed by individuals for personal income tax purposes, while limited company tax returns are specific to business entities and focus on corporate income tax. Individual tax returns report an individual’s personal income, deductions, and credits. In contrast, limited company tax returns are concerned with the financial activities of a legal business […]

A Guide To Tax Treatments of Roth IRA Distributions

If you remove any excess contributions after you file your taxes, you may need to file an amended tax return. If John takes a distribution of $25,000, the first $10,000 comes from his regular Roth IRA contributions and is thus tax-free and penalty-free. The additional $15,000, however, comes from his taxable conversion assets. Because these […]

Accrued Liabilities: Overview, Types, and Examples

Then, the company theoretically pays the invoice in July, the entry (debit to Utility Expense, credit to cash) will offset the two entries to Utility Expense in July. Remember, this is because the accrual accounting method requires you to record your expenses as they arise, accrued liabilities not as you pay them. Since you won’t […]

LEASING Definition & Usage Examples

This may include extending the lease on the same vehicle, exercising a purchase option to buy the vehicle at an agreed-upon price, or signing a new lease on a different vehicle. You’ll have limited mileage, and if you exceed the limit, you’ll owe extra fees. You’ll make a payment when the contract starts, and you’ll […]