Can You File Bankruptcy Without Filing Taxes?   Filing for bankruptcy without having filed taxes is possible, but it depends on whether you were legally required to file tax returns in the first place. You can still proceed with bankruptcy if you aren’t required to file taxes. Still, the bankruptcy trustee will likely require you to […]

What is an Installment Note?   An installment note is a type of loan in which the borrower agrees to pay the amount along with interest through regular payments. These payments are equal in amount and can cover personal loans, business loans, and mortgages.    The installment note reminds us of a couch we bought on a […]

What Is Internal Shrink?  Internal shrinking refers to employee loss of inventory, cash, or other business assets. It hurts business operations through theft, fraud, or missing items. It’s a significant issue for businesses, especially in retail.  Internal Shrink directly impacts a company’s profitability, particularly in retail businesses with low margins and high sales volumes. When […]

What Is Collusion Accounting?  Collusion accounting is a common but unfortunate practice in business. It happens when employees within the organization manipulate financial records for personal gains. Collusion accounting can involve frauds, false transactions, and inflating profits.   It reminds us of Despicable Me. Gru works with his adorable Minions to execute sneaky plans.  

What Is an Equity Sale?   An equity sale happens when business owners sell part of their business to investors or buyers. Buyers don’t buy the whole business; instead, they buy a portion of it, like shares of a company.    In an equity sale, the company itself remains unchanged, with only the ownership structure transferring from […]

What Is Benchmark Accounting?  Benchmark accounting compares a business’s financial performance with competitors, historical data, or industry standards. The key elements of benchmark accounting are revenue, expenses, and profit margins. Its main purpose is to identify areas of improvement and check if the business is on the right track.    In some cases, a business may […]

What Is a Contra Expense?  A contra expense reduces the total expense balance on the financial statement. Rather than adding the costs, contra expenses offset them. For instance, if you received a discount from the supplier, it is recorded as a contra expense, thus lowering the overall expense balance.   Contra expense accounts are not commonly […]

Triple Net Lease Accounting Triple net lease accounting records and manages a lease where the tenant agrees to pay property taxes, insurance, and maintenance costs besides the rent. Triple net lease accounting requires careful management to ensure accurate financial reporting and proper expense allocation. Under a triple net lease (NNN), tenants are responsible for covering […]

Can You Start a Plumbing Business Without a License?   The short answer is no! You can’t operate a plumbing business without a license in the US and Canada. The reason is that plumbing is a regulated trade, and you need proper training and obtain certain licenses to run a business. To run a legitimate plumbing […]

What Are Accounting Structures?   Accounting structures illustrate organized frameworks businesses use to record and report financial transactions. These structures tell us how income, expenses, assets, and liabilities can be tracked. The key components of accounting structures are:    If you have ever built some IKEA furniture, you’ll understand the accounting structures better.  These structures represent the […]