Estimated Tax Explanation

When a taxpayer's income isn't subject to withholding taxes, they must make estimated tax payments to the Internal Revenue Service (IRS) each quarter. If taxpayers earn income through wages, rent, interest, or dividends, and they don't have an emplo... Read more

How to Calculate Withholding Tax

Businesses have to calculate how much money must be withheld from employee paychecks to send to the IRS to cover tax payments. It's an important task as employers have to be careful and properly calculate everything to ensure that employees are taxed... Read more

What is an Invoice, and Why is it Used?

An invoice is a document produced by a seller to hand to a buyer. Buyer must follow the information from the invoice to pay for services or goods from the description. Standard invoices include the price of services or products, names of the seller... Read more

After-Tax Income: Explanation with Examples

Both individuals and businesses are required to pay taxes on their earnings. The amount of taxes each is required to pay is calculated based on the income they receive. In most cases, a tax rate schedule is used to calculate the amount of tax due fro... Read more

Closing Entries Explained

Closing entries are something a bookkeeper typically does once the month is over and every time the accounting period comes to an end. It is a mandatory procedure in accounting without which a bookkeeper cannot start recording entries for the next pe... Read more

Sales Revenue: Meaning and Calculation

Revenue is the main source of income for any entrepreneur. The proceeds from the sale of products complete the production cycle of the entire enterprise. It proves the viability of an entity and completes the cash flow of any business venture.Sales r... Read more

Explanation of Main Types of Expenses

Expenses are a monetary estimate of the cost of material, labor, financial, natural, informational, and other types of resources spent (planned/budgeted) on making and selling products for a certain period of time.Accounting of expenses by type and p... Read more