general professional accounting
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Tips to profit
Tips to profit
For business-wise
For business-wise
sole proprietorship vs corporation
sole proprietorship vs corporation
A sole proprietorship is a single individual owned business. This person collects all the profit from the business and is liable for its debt. A corporation is a legally defined the business itself is considered an entity under the law. The corporation itself is liable for the business’s debts. This relieves the corporations owners of much of their own personal liability. Comparing tax rates, the corporation tax rate is way below than personal. This comes the most beneficial strategy for the business owner to corporate instead of keeping Sole Proprietorship, and transfer ownership of business to new corporation. By choosing Section 85 rollover election, you can proceed this transition smoothly without any tax obligation.
Economic Profit vs. Accounting profit
Economic Profit vs. Accounting profit
Economic profit is total revenue minus total cost, including both explicit and implicit cost. Accounting profit is total revenue minus total explicit cost. Without understanding these two methods of the accounting process, you would not stay profitable in business whether start-up new business or existing business.
what are costs
what are costs
Total revenue is the amount a firm receives for the sale of its output. Total cost is the market value of the inputs a firm uses in production. Profit is the total revenue minus total cost.
Profit = Total revenue - Total cost
The various measures of cost
The various measures of cost
As a self-employed, start-up business, small business or existing business owner, by the understanding the concepts and relationships of the total cost, fixed cost, the variable cost, the average cost, the average total cost, and the marginal cost, you will project the business whether it is profitable in short or long run, then you can make a decision to stay in or exit the market with no further loss.