Expense Accounting
FEATURED ARTICLES
All articles in this category pertain to expense accounting. Expense accounting is the act of recording the cost of operating a business, such as employee wages or factory leases. Companies present their expenses as a reduction of their revenues on the income statement. Expenses are recorded via cash basis or accrual basis methods.
Learn more about expense accounting below.
Recent articles
Tax on Tipping: How Restaurants and Bars Should Report Employee Tips
In most restaurants and bars, employees have the potential to earn a majority of their wages in tips. To make sure this tipped income is reported for tax purposes, certain food and beverage establishments are required to file Form 8027 at tax time. Below we dig into...
Tax Considerations for Short-Term Rentals
February 24, 2022 By Amanda M. Mills, CPA, Tax Senior Manager Vacation Rental Amenities May Impact Tax Obligations Turning a spare room or vacation home into a short-term rental arrangement has proven to be a lucrative business opportunity and an income generator,...
When is an accrual needed if you track accrued paid time off?
Many companies provide paid time off to employees, however not all employees use the entirety of their time off within the company’s fiscal year and roll over time to be taken in the following year. When this happens, it is the responsibility of the employer to track...
What is an income tax provision?
<!--What is an income tax provision?--> Buckle your seatbelts because we’re about to go on an income tax provision ride. In this blog, we will be primarily focusing on current versus deferred portions of an income tax provision. Let’s begin by defining some...
Accretion Expense Accounting Explained with Full Example and Journal Entries
What is accretion in accounting? Accretion is the periodic recognition of an expense associated with an increase in the present value of a liability over time. This expense is recognized as an operating expense in the statement of income. In practice, accretion...
Considerations for Nonprofit Startups
While in many ways similar to for-profit corporations, nonprofit organizations are bound by legal, tax, and accounting laws that are unique to them and them alone. As they navigate through their business lifecycles they will face many different challenges, of which...