Accounting Firm in Texas

Depreciation   is the measure of wearing out of a   fixed asset . All fixed   assets   are expected to be less efficient as time goes on and as they are continuously used in a business, for example. The causes of depreciation may be internal or external. Factors external to causes of depreciation include passage of time, obsolescence, permanent fall in market value, and weather and accidental elements. The internal causes happen from the operation of any cause natural to or inherent in the asset itself. These factors are not connected to the asset. External causes arise from the operation of forces outside the business External Causes Obsolescence Obsolescence implies the chance of an asset becoming out of fashion. The old asset will become obsolete (useless) due to new inventions, improved techniques, and technological advancement. This is a loss arising on account of a new invention, technological changes, improvement in production methods, legal restraints, etc. F...

  Budgeting  refers to the process of projecting the revenues and costs of the company for the future specific period of time that business wants to achieve, whereas,  forecasting  refers to the estimate of what actually will be achieved by the company. Budgeting is a structured format of goals and objectives that a company wants to achieve in the selected time frame most commonly a year; however, it can be different too. Forecasting is a periodic observation of the proportion of budgeted goals that have been achieved and how much is remaining for the residual time frame. The primary purpose of these processes is to support the enterprise strategy through planned initiatives, budgeted resource allocation extent to which changes in the environment are impacting the capacity of the business to meet objectives. What is Budgeting? Budget  is a detailed statement of an enterprise’s financial activity, which includes revenue, expenses, investment, and cash flow for a ...

Causes of Depreciation Depreciation is the value reduction in the carrying amount of the fixed asset (or property plant & equipment) from period to period which is charged in the statement of profit & loss of organization for the same period to provide the reasonable cost of the asset which has been used during that period. Common causes of depreciation include wear and tear due to usage, compliance to accounting standards, technological advancements etc. The reduction in the carrying amount of fixed assets over the period of its useful life is due to many reasons. Some of them are as follows: Causes for Depreciation #1 – Due to Wear & Tear during Usage of Asset It is one of the primary reasons for the  depreciation  of assets. Most of the assets are worn off or get deteriorated due to the continuous usage of the asset. Such as Plant & Machinery used for the production of goods, buildings, vehicles, etc. As in the case of machinery used for production, the cont...

(Image source from:  https://dr5dymrsxhdzh.cloudfront.net/blog/images/a9fb96814/2018/11/money-box.jpg) They always say there’s no such thing as free lunch. As it turns out, there is such a thing as a free gift, at least according to the IRS, as long as that gift is under $15k. Anything above that amount might be subject to a certain type of tax called the gift tax. What Gifts Are Taxable? College Money House Down payments Cars Vacations Money More Than $15k As it turns out, most gift-givers will not need to do or pay anything beyond filling out a federal gift tax return. That’s because the annual gift tax exclusion is not the only consideration—there is also the lifetime gift tax exemption. As long as a gift-giving taxpayer remains below this lifetime gift tax limit, their tax liability in regards to gifts given will probably be nothing. What is a Gift Tax? A gift tax is a federal tax on money or assets transferred to another person, even a family member, in return for nothing or s...

   (Image source from:  https://tinyurl.com/sr92ps) If you’re looking to save money, a great way to do that is to get smarter about your  accounting . So many businesses end up losing money due to accounting errors or not being aware of the right deductions and write-offs to make. The trick to better financial health isn’t just to make more money, but to be thoughtful and careful with the money you’ve already made. Establishing good accounting tricks and billing habits early on could end up paying off for your business for years to come. At Hacker Accounting, we have years of experience working with businesses to help them run a tighter, smoother sailing ship. Here are seven accounting tricks for your small business that you need to know. Control Your Tax Liabilities Towards the end of the year, take a hard look at your profits and loss. If your income turns out to be much higher than expected, make a few extra purchases before the year ends. This will help keep your...

  Definition and Examples of a Human Resource A human resource is a single person or employee within an organization and part of the overall personnel or workforce of that company. Learn more about human resources so you can better understand their role in an effective organization. What Is a Human Resource? A human resource is one person within a company's overall workforce, with each person lending their skills and talents to the organization to help it succeed. Any person willing to trade their labor, knowledge, or time for compensation in an effort to improve the organization is a human resource. It doesn't matter if they're part-time, full-time, freelance, or contract employees. NOTE:  While a company usually has many different kinds of assets (capital, equipment, supplies, or facilities, for example), its people are its most significant asset. Employees must be hired, satisfied, motivated, developed, and retained. A human resources department is the department ...