Accounting Blog - Online Accounting

Gross Income and How to Calculate it

Mar 7, 2022 Accounting Blog by Adam Hill

Gross income is the total revenue that a person makes before paying taxes and claiming deductions or credits. When the person claims deductions, gross becomes net income. If you take a look at a pay stub, then net income is what you see after paying taxes, so it’s always lower than gross income. The only
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Equity Method of Accounting: How does It Work

Feb 27, 2022 Accounting Blog by Adam Hill

Companies use various accounting methods to track their losses and gains properly. If a business invests in another company, they most likely use the equity method of accounting to make sure the investment brings profit rather than losses. Understanding how the method works may help you decide if it’s a proper accounting strategy for your
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What is Progressive Tax

Feb 23, 2022 Accounting Blog by Adam Hill

A progressive tax system increases rates for taxpayers as their taxable revenue increases. The system requires determining specific brackets with rates that gradually increase. An example of a progressive system is when rates move from 0% to 45%, so from the lowest to the highest bracket depending on the taxable income. According to this system,
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Guide on How to Calculate Annual Income

Feb 19, 2022 Accounting Blog by Adam Hill

Having a job and earning profit from some investments means generating annual income. In this article, you will learn what annual income is and how to calculate it. The article also describes other types of revenue, which are often confused with annual income. Keep reading to learn more about the topic. Understanding Annual Income Annual
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Comparing Capital Lease vs Operating Lease

Feb 15, 2022 Accounting Blog by Adam Hill

Leasing machinery or vehicles by businesses is a common practice used as an alternative to buying. There are two different leases — capital and operating. These two leasing types have different effects on taxes and accounting. Keep reading the article to find out more about the topic. Equipment Lease Businesses prefer lease equipment and vehicles
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