In order to qualify, the taxpayer must use itemized deductions on their tax return. The deductible amount may be as high as 60% of the taxpayer’s adjusted gross income, depending on the specific circumstances. In the above example, we see two cases of the same business, one with depreciation and another without it. Sales & Investments […]
The cost allocation in the form of depreciation will ultimately ensure that the final value of the asset appearing in the financial statement will reflect its true and fair current value. Understanding and utilizing the Depreciation Tax Shield effectively can lead to significant tax savings and is an important part of financial how to invoice […]
They provide a solidified baseline for companies to control their revenue and capital structure, exemplifying their versatility. Therefore, economic opportunity costs increase a company’s ability to make decisions and facilitate a company’s sense of rationality in analyzing all possible outcomes of choosing one method over another. Whether you’re a fledgling entrepreneur or part of a […]
A sunk cost is money already spent at some point in the past, while opportunity cost is the potential returns not earned in the future on an investment because the money was invested elsewhere. When considering the latter, any sunk costs previously incurred are typically ignored. To make informed decisions, you need to understand and […]
You can manage job costs effectively by breaking down projects into smaller, manageable phases. It can also assist in identifying where you can potentially reduce costs or improve efficiency in future projects. You should monitor job costing carefully to determine the resources allocated per project and to determine if you’re overspending on any items. What […]
Mistakes can affect your taxation position and lead to inaccurate financial reporting, resulting in investigations or even fines from HMRC. Our accountants work on a fixed fee basis, giving you the peace of mind that there will be no hidden costs. Plus, our initial accountancy consultations are free, so you’ve nothing construction bookkeeping to lose […]
