Category Archives: Accounting

The Concept of Accounting

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Accounting is an information system which identifies, records, analyzes interprets and communicates the economic data of a financial entity. Accounting consists of three basic activities – it identifies, records, and communicates the economic events of an organization to interested users. Let’s take a closer look at these three activities.

Identifying Economic Events:
Many events are happening each day in a business. Some of them are affecting financial position of the business whereas, some don’t. Events affecting financial position of a business i.e. Assets=Liability+ Owner’s Equity, are called Economic events and supposed to be recorded in accounting system. To identify economic events; a company selects the economic events relevant to its business. Examples of economic events are the sale of snack chips PepsiCo, Providing of telephone services by AT & T, and payment of wages by Ford Motors Company. Examples of non-economic events of the same companies might be appointing a new manager by PepsiCo and departure of a trusted employee from AT & T.

Recording Economic Events:
Once a company like PepsiCo identifies economic events, it records those events in order to provide a history of its financial activities. Recording consists of keeping a systematic, chronological diary of events, measured in dollars and cents. Recording comes through a process called double entry accounting system. The system consists of recording, summarizing, checking mathematical accuracy and preparing statement of financial position.

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Tax Topics – Capital Gains and Losses

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Capital Gains Tax (CGT) is a general tax applied on capital gains on sale of land, shares, and similar assets. However, any purchase of CGT assets prior the 20th September 1985 is exempt from CGT no matter how many gains/losses are made from the sale of the assets.

In Australia, a capital gain will apply for transactions made on or after 20 September 1985, and if that amount that you receive (or are entitled to receive) is greater than the total costs incurred. The net capital gain made by a taxpayer during an income year is included as assessable income in the taxpayer’s return for that income year. However, whether a transaction is considered a capital gain also depends on the type of asset and the value of the transaction. There are also various exemptions. The specifics are explained below.

Classification of Assets.

CGT assets are classified into different classes, each explained briefly below:

- Artwork, jewellery, antique object of artistic and historical significance over 100 years old TD 1999/40), coin or medallion;

- Rare portfolio, manuscript or book;

- Postage stamp or first day cover;

- Collectables are used or kept mainly for your personal use or enjoyment;;

Any capital gain is ignored if the acquisition of the collectable was $500 or less.

A set of collectables is taken to be a single collectable, and the $500 threshold applied to the set, not individual items. However, capital loss incurred from collectables can only offset gains in other collectables in current year or later income years.

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How Payroll Software Can Benefit Your Human Resources Department

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ow Can payroll software streamline your human resources department? How Can a small business using software platform to help Improve Your Entire Efficiencies across your operations? More importantly, using payroll software How Can help in Reducing headcount, and empower your small business to better manage the High Cost of upward mobility? In order to answer thesis questions, think of the Costs associated with manual payroll processes. Think of the time needed to fill out employee forms. Think of the Costs of late and incorrect tax filings. Think of the time needed to stay abreast of the Most Recent tax Laws, government rules and the myriad of Regulations Regarding how Should Be Paid Employees. Now think of How Much It Is Easier to manage all aspects of thesis with the right small business software. The right payroll software Can make all the difference. However, if you’re still on the fence, then Perhaps it’s time to review thesis aforementioned cost drivers.

The impact of late tax filings & incorrect

One of the more Alarming statistics Is That of the impact of late and incorrect tax filings for Employers. In Fact, According To the IRS in the United States, over 50% of all Businesses face a fine and Additional yearly fees for incorrect tax filings. Most of These errors from manual Processes That Occur are time consuming, redundant and incredibly confusing. Most payroll management software allow users to manage Programs Their employee’s pay and compensation annually via easy-to-use interface THEY Where Can complete year employee’s W-2 Electronically form, and complete it in a fraction of the time of manual processes.

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