What Is an Arm’s Length Transaction? Its Importance, With Examples

You’ll have more hurdles to jump over when you buy a house in a non-arm’s length transaction, in addition to the regular requirements you have to fulfill when you take out a mortgage. For example, a mortgage lender may require the seller to verify that they are not delinquent on the existing mortgage. An arm’s […]

Understanding Bond Prices and Yields

This is because receiving a fixed interest rate, of say 5% is not very attractive if prevailing interest rates are 6%, and become even less desirable if rates can earn 7%. In order for that bond paying 5% to become equivalent to a new bond paying 7%, it must trade at a discounted price. Likewise, […]

5 Ways to Calculate Sales Tax

Use this calculator the find the amount paid on sales tax on an item and the total amount of the purchase. Sales tax is calculated by multiplyingthe purchase price by the sales tax rate to get the amount of sales tax due. The sales tax added to the original purchase price produces thetotal cost of […]

Tax withholding: How to get it right Internal Revenue Service

It includes information on how much money you earned, how much money was withheld for federal and state taxes, and other contributions made to Social Security and your employer-sponsored 401(k) account. Adding more withheld money online 4(c) will also help reduce your tax bill. You definitely don’t want to file exempt if you’re not actually […]

What is Debit Memo? Meaning & Definition

This memo has nothing to do with a balance change due to cash withdrawal with checks or debit cards. A vendor or business issues a debit memorandum to a customer to correct an error in an original invoice or to adjust the amount owed for a transaction. In contrast, a credit memorandum or credit memo […]

How Much Does Bookkeeping Services Cost? 4 Significant Factors

Forbes Advisor selected these services based on their service options, pricing, customer service, reputation and more. On the other hand, if you choose to hire an outsourced bookkeeping service, then the cost will reduce effectively in comparison to permanent bookkeepers. In general, outsourced bookkeeping services cost will be around one-third of the cost of in-house […]