Interest Rate Risk Between Long-Term and Short-Term Bonds

Changes in short-term versus long-term interest rates can affect various bonds in different ways, which we’ll discuss below. Credit risk, meanwhile, is the risk that the issuer of a bond will not make scheduled interest or principal payments. Interest rates and bond prices have an inverse relationship. When interest rates go up, the prices of […]

Manufacturing Overhead: A Small Business Guide

So, if your company manufactures wood desks, your cost of goods sold would include the cost of the wood to manufacture the desks, and the direct labor costs to build the desks such as line operator wages. Once you set a baseline to capture your schedule, planned costs and actual costs can be compared to […]

Understanding Income Statements

It is also intended to provide context for the financial statements and information about the company’s earnings and cash flows. It’s management’s opportunity to tell investors what the financial statements show and do not show, as well as important how to calculate cost of inventory trends and risks that have shaped the past or are […]

How to Create a Business Budget: 6 Simple Steps

The February cash budget uses some of the same assumptions for sales and inventory purchases. The ending cash balance for February is also the March beginning cash balance. You can’t predict when you’ll need to pay for an emergency expense or how much it might cost, but you can set aside a cash reserve to […]

What is a basis point?

It does not matter if there is an increase or decrease in rates because such a small move in rates will be about the same in either direction. The word basis in the term basis point comes from the base move between two percentages, or the spread between two interest rates. Since the changes recorded […]

How Does Payroll Withholding Help a Companys Employees?

For example, a pre-tax 401(k) plan contribution may be deducted at this point. In this case, taxes are paid on the contribution upon withdrawal. In addition, 10 steps to effective conflict resolution in some states, garnishments are deducted from employees’ gross pay. Refer to plan details and court orders to determine what deductions apply at […]

Yes, You Can Still Apply For The Employee Retention Credit

LITCs represent individuals whose income is below a certain level and need to resolve tax problems with the IRS, such as audits, appeals, and tax collection disputes. In addition, LITCs can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. Services are offered for free […]

Capital Expenditure

However, with effective planning, the right tools, and good project management, that doesn’t have to be the case. Here are some of the secrets that will ensure the budgeting of capital expenditures is efficient. Capital expenditures have an initial increase in the asset accounts of an organization. In most cases, managing your expenses is a […]

How To Determine What Your Business Is Worth In Five Minutes Or Less

You start with the company’s accounting balance sheet and review the assets and liabilities. You do so to figure out the true market values of the company’s assets and liabilities. Your analysis may include important off balance sheet items such as internally developed intangible assets and contingent business liabilities. By adding the first three […]