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You figure the SL depreciation rate by dividing 1 by 2.5. You reduce the adjusted basis ($480) by the depreciation claimed in the third year ($192). You cash box accounting figure the SL depreciation rate by dividing 1 by 3.5. Maximum Depreciation Deduction The following example shows how to figure your MACRS depreciation deduction using […]

As a business owner, you need to understand certain fundamental financial ratios to manage your business CARES Act efficiently. These core financial ratios include accounts receivable turnover ratio, debts to assets ratio, gross margin ratio, etc. The best contribution margin is 100%, so the closer the contribution margin is to 100%, the better. Mistake #2:

Accrual accounting recognizes revenue at the point it is earned—typically when a product is delivered or a service is performed—regardless of when payment is made. Similarly, expenses under the cash method are recorded only when the payment is actually made whereas accrual accounting records them when they’ve been incurred. An accrual records a financial event