Lessors maintain ownership rights but their ability to access the asset is limited by the lease. The fundamental difference between a lessor and lessee lies in the ownership and usage rights of the leased asset. The lessor retains ownership of the asset being leased, while the lessee obtains the right to use and possess that…
An IRS tax extension is a formal request to the Internal Revenue Service (IRS) to extend the deadline for filing your tax return. This can be a helpful option if you’re self-employed or are dealing with other extenuating circumstances that make it impossible to file your taxes on time. If you were affected by a…
In 2018, Company PQR’s total assets would be $17.8 million, while its accrued liabilities would be Certified Bookkeeper $5.6 million. By subtracting the company’s obligations from its assets for that fiscal year, the shareholders equity will be determined. Add the current obligations, such as accounts payable and short-term debts, and the long-term liabilities, such as…
Your written agreement should deal with the areas CRA test and monitor when making their determination of a worker’s employment status. It also signals that the contractor is acting like a business person and not as Accounting For Architects a employee. Examples are fees paid to your freelance bookkeeper, accountant and lawyer or janitor. Service fees…
Construction firms who work on public projects commonly have to navigate prevailing wage payroll, often called “Davis-Bacon payroll” after the landmark Davis-Bacon Act. For most contractors, retainage is simple enough on paper, even though, by nature, it’s an exception to the rule. Among other areas of guidance, these standards help contractors identify whether they should recognize…
Federal law does not have different overtime rates for night shifts or weekends, although employers can offer higher rates for these hours if they choose to. Even if an employee agrees to work overtime for their regular rate, their employer is still legally obligated to pay their overtime. The employee gets time-and-a-half for their overtime…
You can also deduct the cost of hiring accountants or tax professionals on the same line. Reconciling the books is the practice of checking information recorded in your general ledger against information recorded in your bank statements. And by analyzing your balance sheet alongside your P&L for each reporting period, you can see the impact…
The choice between accrual and deferral accounting affects not only the immediate financial statements but also long-term business strategies, budgeting, and forecasting. Understanding these methods is essential for stakeholders who rely on accurate financial information to make informed decisions. This entry reflects the increase in cash and the corresponding liability for unearned revenue. As services…