However, although they are issued by the IRS, W8 forms are only submitted to payers or withholding agents. Essentially, the W-8 form is a self-certification form that you can provide your customer to declare that you as an entity (an individual or an incorporated business) are not US taxpayers and are not subject to US

Book depreciation is the amount recorded in the company’s general ledger accounts and reported on the company’s financial statements. This depreciation is based on the matching principle of accounting. Book-to-tax reconciliation is the act of reconciling the net income on the books to the income reported on the tax return by adding and subtracting the

For more details on depreciation, or to learn other ways to lower your income taxes, read our article on how small businesses can avoid overpaying on taxes. Find the method that makes sense for your business’s assets (possibly with the assistance of an accountant) and make sure you are taking full advantage of this tax

This plan also includes a dedicated accountant, monthly profit and loss statements and balance sheets, phone, email, and chat support, as well as a Xero or QuickBooks subscription. Whether you are a family getting ready to file your taxes, a business owner trying to grow your company, or an individual starting to plan for retirement,

However, you will find that paper-based records are more time-consuming to complete and will not give you the same flexibility as a computer system when compiling management accounts. Remember, whether you are self-employed or Incorporated at Companies House, it is a legal requirement to keep accounting records and store them for a minimum of six

This has the effect of increasing the company’s revenue and accounts receivable on its financial statements. To record accrued interest expense, an adjusting entry debits notes payable for the amount of accrued interest, while a credit to accrued interest revenue is made on the income statement. A debit to interest expense and a credit to

Also, it indicates the amount by which the seller needs to adjust its invoice to the buyer, reducing the amount due for the sale by the appropriate amount. After the third month, the note has now been completely paid off, and Anne’s Apparel has recorded a total of $246 in interest revenue over the three-month