Financials

Shareholders of a corporation must hold shareholder meeting once a year. When more than one shareholder exists in a corporation it is important to have an agenda when calling a meeting.  A shareholder meeting agenda communicates the date and information of an upcoming meeting while the meeting minutes keep the formal record of the meeting. Agenda An agenda communicates the purpose and importance of the meeting and keeps everyone on

As a business owner you sometimes buy products with the intention of reselling it. When you buy a product for resale it is called inventory. Inventory becomes cost of goods sold Inventory is classified as an asset in the balance sheet until it is sold. When sold it becomes cost of goods sold. This is consistent with the matching principle. The matching principle aims to match expenses with revenue. Here

Business owners can easily create legal structures for themselves using services like legal zoom. However, what these business owners don't understand are the accounting or tax ramifications of choosing one structure over the other. A business owner may hear from a friend that a certain structure is good and then they adopt that structure without understanding what it means for their business. Depending on what structure you choose, the way

If you have been in business long enough, you have heard the term closing your books. What does this mean? Closing your books means zeroing out the income statement and dividend accounts at the end of the year so you start fresh in the next year. Why are profit and loss accounts closed? Closing the profit and loss account is comparable to your personal annual wages you earn on the

With interest rates reaching an all-time low, the question of whether or not to refinance your home comes into existence. Depending on your circumstances, refinancing could or could not put you ahead financially. In general, mortgage interest is deducted on Schedule A, Form 1040. This is limited to a mortgage of $1million dollars at any time. On the other hand, if the debt is a home equity debt there is a $100,000