Nonprofits must file financial statements with the IRS to follow compliance laws, which is not the only reason they should include these activities. The first and most desired financial statement is the statement of financial position. Nonprofits use this statement to share what their organization owns and what it owes. They help board members better […]
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FIFO vs LIFO: Difference Between Inventory Methods
During times of significant price fluctuations, financial reports may overestimate profitability, giving a misleading picture of actual margins. FIFO and LIFO differ in how they manage inventory costs, affecting financial statements, tax liabilities, and overall business profitability. LIFO can be a strategic choice for businesses looking to reduce taxable income, but it also has limitations […]
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