FOB Shipping Point vs FOB Destination: What’s the Difference?

International commercial laws have been in place for decades and were established to standardize the rules and regulations surrounding the shipment and transportation of goods. Having special contracts in place has been important because international trade can be complicated and because trade laws differ between countries. FOB, or “free on board,” is a term that […]

36 Business Expense Categories for Small Businesses and Startups

To keep assets in optimal working condition, they must undergo regular repairs and maintenance. Depending on where the asset is being utilized, these expenses can be categorized as selling and distribution expenses, general expenses. Yes, they are expenses, but in accounting, there are different types of expenses. If an expense is for both business and […]

What Are the Notes to Financial Statements?

[1] In June 2016, the FATF welcomed Iran’s high-level political commitment to address its strategic AML/CFT deficiencies, and its decision to seek technical assistance in the implementation of the Action Plan. Since 2016, Iran established a cash declaration regime, enacted amendments to its Counter-Terrorist Financing Act and its Anti-Money Laundering Act, and adopted an AML […]

Units of Production Depreciation: Definition and How to Calculate

Thus, a business may charge more depreciation in periods when there is more asset usage, and less depreciation in periods when there is less usage. It is the most accurate method for charging depreciation, since this method is linked to the actual wear and tear on assets. However, it also requires that someone track asset […]

Out-of-Pocket Maximum: What It Is & How It Works

TAS works to resolve large-scale problems that affect many taxpayers. If you know of one of these broad issues, report it to them at IRS.gov/SAMS. Go to IRS.gov/Notices to find additional information about responding to an IRS notice or letter. Your deduction for qualified conservation contributions (QCCs) is limited to 50% of your AGI minus […]

How To Start A Bookkeeping Business

With a well-written profile and a few simple messages, I’ve found that you can get great results from LinkedIn. If you plan to run your bookkeeping business or accounting firm off of Xero, then Xero Practice Manager could be worth looking into as it integrates very well into it. It’s not as user-friendly as the options above […]

What Is a Disbursement Account?

Money paid by an intermediary, such as a lawyer’s payment to a third party on behalf of a client, may also be called a disbursement. Accounts payable personnel work in tandem with corporate treasurers and financial managers to monitor how much comes out of disbursement accounts and figure out why the organization must dole out […]

What Is Inventory? Raw Materials, WIP, & Finished Goods

Raw materials inventory is any material directly attributable to the production of finished goods but on which work has not yet begun. Work-in-progress inventory consists of all partially completed units in production at a given point in time. Over 1.8 million professionals use CFI to learn accounting, financial analysis, modeling and more. Start with a […]

How To Calculate Opportunity Cost With Examples

Trade-offs take place in any decision that requires forgoing one option for another. So, if you chose to invest in government bonds over high-risk stocks, there’s a trade-off in the decision that you chose. Opportunity cost attempts to assign a specific figure to that trade-off. A firm may choose to sell a product in its […]

How to calculate a commission

It may also include brokerage fees paid to advisors or managers in other circumstances. For example, these may involve portfolio managers or investment pandl accrual vs cash accounting advisors. If an employee is receiving a commission, then the company withholds income taxes on the amount of the commission paid to the employee. A commission is […]