Assets and Liabilities

Assets and Liabilities Cabinet comptable AngersAssets and Liabilities : making a profit in a business is derived from several different areas. It can get a little complicated because just as in our personal lives, business is run on credit as well. Many businesses sell their products to their customers on credit. Accountants use an asset account called accounts receivable to record the total amount owed to the business by its customers who haven’t paid the balance in full yet. Much of the time, a business hasn’t collected its receivables in full by the end of the fiscal year, especially for such credit sales that could be transacted near the end of the accounting period.

The accountant records the sales revenue and the cost of goods

sold for these sales in the year in which the sales were made and the products delivered to the customer. This is called accrual based accounting, which records revenue when sales are made and records expenses when they’re incurred as well. When sales are made on credit, the accounts receivable asset account is increased. When cash is received from the customer, then the cash account is increased and the accounts receivable account is decreased.

The cost of goods sold is one of the major expenses

of businesses that sell goods, products or services. Even a service involves expenses. It means exactly what it says in that it’s the cost that a business pays for the products it sells to customers. A business makes its profit by selling its products at prices high enough to cover the cost of producing them, the costs of running the business, the interest on any money they’ve borrowed and income taxes, with money left over for profit.

When the business acquires products, the cost of them goes into what’s called an inventory asset account. The cost is deducted from the cash account, or added to the accounts payable liability account, depending on whether the business has paid with cash or credit.

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All About Charities

All About Charities Expert Comptable ToulonAll About Charities : many people donate to charities in order to take advantage of income tax deductions at the end of the year. However, it is important to understand what certain non-profit organizations are eligible for these income tax deductions so that you do not miss out on any income tax deductions that you can take. It is also important to have a knowledge of what documentations you need to have in order to take the income tax deductions from your donations to charities.

Charities can include things such as school fundraisers,

church fundraisers, thrift store donations, donations to homeless shelters, donations to food assistance programs such as Harvesters, and donations to other charities such as hospital programs and women’s shelters all qualify as charities for the purpose of income tax deductions. However, there is documentation you need in order to legally claim donations to these charities as income tax deductions.

Purchases from school fundraisers are usually accompanied

by some type of receipt or packing slip. Use this documentation to claim your income tax deduction for these organizations. Purchases and contributions to church fundraisers do not typically come with any form of receipt, even though that receipt is necessary in order to claim the donation to the charities as a legal income tax deduction. Your best bet is to ask the churches to provide you with some type of written record, even on a piece of regular notebook paper, indicated the amount of the donation. If your donation to these organizations is in the form of property or items rather than money, you can estimate the reasonable value of the item and include that on the receipts from the charities. This ensures that you have a reasonable and provable amount to deduct from the donations to these non-profit organizations for your income tax return.

Other types of charities typically provide receipts for donations.

If you donate items or property such as clothing, furniture, vehicles, toys, or food you can estimate the value of the donation and receive a receipt from the charities based on that amount that also lists what items were donated, then use that receipt for your income tax deduction. If you purchase something new to donate, you can keep your purchase receipt signed by someone from the allowed non-profit organizations, and use that as a record of your contribution for your income tax deduction.

Charities can always use your help.

Deductions from charities does not get you any extra money on your income tax return above and beyond what you spend. However, these organizations can use your valuable help, and with income tax deductions for contributions to non-profit organizations, you get everything you pay or give to the charities back on your income tax return. So in short, you can give your help to the different organizations without it costing you a dime! No risk, you help others, and you aren’t out any money. It’s a win-win situation for you and for the non-profit organizations , as explains Expert Comptable Toulon !

Donate to your favorite charity today!