A rental property is improved only if the amounts paid are for a betterment or restoration or adaptation to a new or different use. See the Tangible Property Regulations – Frequently Asked Questions for more information about improvements. You can deduct the ordinary and necessary expenses for managing, conserving and maintaining your rental property. How […]
Most landlords can agree that property management is a necessary part of running your rental property. For property owners who aren’t able to commit to running the property by themselves, the cost of hiring help can add up quickly. Maintain good records relating to your rental activities, including the rental income and the rental expenses. […]
A company’s management can use its net profit margin to find inefficiencies and see whether its current business model is working. Suppose we’re tasked with calculating the gross margin of three companies operating in the same industry. These could be for daily operations, to make goods, or even to ship products to customers. What is […]
It is also an important element in explaining how such strategic decisions can affect overall profitability. Moreover, the comparison of gross margins across product lines improves effective portfolio management. To see how gross profit margins can’t always hold up in the long term, take a look at the airlines. Certain airlines hedge the price of […]
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For over 50 years, Fordham & Co LLP has been providing accounting and other services to both businesses and individuals in Washington County and the Greater Portland area. Our firm understands the nuances of the ever-changing world of accounting and is here to assist in a wide variety of issues faced every day. Business clients have […]
In simpler terms, owner’s equity is like a financial snapshot of what the owner(s) truly own in the business. This is calculated by subtracting all the debts and obligations (liabilities) from the total value of assets. Company or shareholders’ equity is equal to a firm’s total assets minus its total liabilities. Looking at the same […]
The sole owner’s equity is a direct measure of the business’s net worth, reflecting the owner’s investment and the business’s profits and losses — a straightforward view of the business’s financial health. If we add up all assets in a business and subtract any amount borrowed from creditors, we are left with the owner’s equity. […]
