What Is Deferred Revenue? Definition, Journal Entry & Example

Deferred revenue (also called unearned revenue or income) is a liability owed to a customer for the value of goods or services the customer has paid for but not yet received. When a customer prepays for goods or services, the business must record the receipt of cash as deferred revenue on the balance sheet and […]

Merchant Cash Advance vs Business Loan: How To Choose

As a general rule of thumb, business loans are the best option if your company needs funding. This is because merchant cash advances (MCAs) are an expensive form of credit that we typically recommend only as a last resort. However, both MCAs and business loans can be beneficial if used properly. Funds from each of […]

What Is Fixed Asset Turnover Ratio (+ Example)

The fixed asset turnover ratio, also known as the FAT ratio, is a financial metric that measures how efficiently a company uses its fixed assets to generate sales. In other words, it tells you how much revenue a company gets for every dollar invested in fixed assets. However, a high FAT ratio doesn’t necessarily translate […]

What is Form 2220 (+Example)

Form 2220, used by corporations, calculates the underpayment penalty (if any) at a predetermined interest rate from the time at which a quarterly payment was due until it was paid or the due date of the return, if earlier. Corporations are expected to pay the IRS any income tax due throughout the year if the […]

How To Become a QuickBooks ProAdvisor in 5 Steps

The first step in becoming a QuickBooks Online ProAdvisor is to sign up for a free QuickBooks Online Accountant subscription. This will give you access to all training materials to help you prepare for and pass the QuickBooks ProAdvisor certification exam. We’ll walk you through the step-by-step process of how to become a QuickBooks ProAdvisor […]

What Is Form 7205? (+ Example)

IRS Form 7205 is used to claim a deduction for energy-efficient commercial buildings placed in service during the current tax year. This deduction, also known as the section 179D deduction, is available to property owners and designers who add energy-efficient property to commercial buildings. To take the deduction, property owners must verify that property modifications […]

What Is Accounts Receivable Financing & How Does It Work?

Accounts receivable (A/R) financing, sometimes referred to as invoice financing, can provide your business with funds if you have unpaid invoices you’ve issued to customers. This can be helpful for companies that have a large amount of earned revenue that is yet to be received. It’s usually possible to get up to $10 million in […]

How To Get a Home Equity Loan to Finance Your Business

As a business owner, it’s possible to use a home equity loan (HELOAN) for business purposes. Although you’ll need to own a home with sufficient equity, it may be more suitable compared to a traditional business loan because its qualification requirements can be easier to satisfy. You can get a home equity business loan by […]

What Is Net Fixed Assets: Formula, Example & Analysis

Net fixed assets—also known as net property, plant, and equipment (net PP&E)—represent the total cost of a company’s long-term tangible assets after accounting for depreciation. These assets are used in the production process, aren’t easily converted into cash, and typically include items such as buildings, machinery, equipment, vehicles, and land. They are important for assessing […]

QuickBooks Online vs Self-Employed: Features & Differences

QuickBooks Online and QuickBooks Self-Employed are both accounting software solutions offered by Intuit, but they serve different types of users and have different feature sets. While QuickBooks Online is a full-featured double-entry bookkeeping system capable of tracking assets, liabilities, income, and expenses of Small and midsize businesses (SMBs) small and midsize businesses , QuickBooks Self […]