Gross Profit vs Operating Profit vs. Net Income: What’s the Difference?

A non-operating expense is an expense incurred by a business that is unrelated to the business’s core operations. The most common types of non-operating expenses are interest charges or other costs of borrowing connect your bank account to xero and losses on the disposal of assets. Accountants sometimes remove non-operating expenses to examine the performance […]

2021 Wage Cap Rises for Social Security Payroll Taxes

That includes how much you pay for Medicare Part B premiums, which are often taken directly from Social Security checks, as well as any tax withholdings you have elected from your benefits. Each year the Medicare premiums, deductibles, and coinsurance rates are adjusted according to the Social Security Act. For 2021, the Medicare Part B […]

Three Accounting Tools That Are Perfect for Etsy Sellers

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What causes a reduction in Accumulated Depreciation?

After the 5-year period, if the company were to sell the asset, the account would need to be zeroed out because the asset is not relevant to the company anymore. Therefore, there would be a credit to the asset account, a debit to the accumulated depreciation account, and a gain or loss depending on the […]