Voluntary retained earnings You always have the option of building up a voluntary revenue reserve. Sometimes this is even cheaper than the statutory one, because you are much more flexible…
Reserves in the association according to § 62 AO For associations (corporations) the formation of reserves is regulated in the tax code ( § 62 AO ). According to this,…
The provisions, on the other hand, belong to borrowed capital . They represent an expense for you that affects your annual profit as it is reduced by it. You do…
All corporations need certain equity reserves so that they can still act in the event of economic bottlenecks. However, this reserve may not be shown as subscribed capital , as…
The roots of Hinduism are found in the Vedic religion of the Indo-European settlers of northern India , but it started to form from the 5th century BC onwards, taking…
A precursor to the therapeutic use of cocaine, Freud used the drug, in very small doses, in the treatment of a morphometer. The initial success of the experiment was compromised…
Operating profit is one of the most important metrics for any company. In this article you will find out everything you need to know about the operating result and the…
The “margin” is the profit margin that results from the difference between the manufacturing or purchase price and the sales price for products or services. This is the amount that…
Company founders have to decide on a type of company. Depending on the size and type of business, you can set up a partnership with people at the center, but…
Fundamentally, a distinction is made between expenses and school deferrals. School deferrals The formation of school accruals (also “liability accruals”) is based on uncertain legal obligations towards third parties. The…
Provisions are made for expenses that are known at the time of posting according to the reason for which they arise, but not their amount or their due date. The…
Popularly called the “oldest profession in the world”, prostitution is morally disapproved in almost all societies, given the degradation it represents for the people who practice it. Definition Prostitution is…
An employers’ association is an association of employers (i.e. entrepreneurs) to represent common interests. Internally, this includes the provision of information and support structures for the member companies and, externally,…
It is important for a company to operate economically and of course to make a profit. In many cases, the profits are then distributed, for example to the shareholders of…
As a private person as well as an entrepreneur, you have to pay taxes due to various laws. Fortunately, various laws allow exceptions that automatically entitle you to a tax…
In many companies, invoices for large orders are not sent in one sum. You create several advance payment invoices. Part-time invoices have advantages for the company but also for the…
The name is already meaningful here, as this term can be assigned to the area of trade. The synonym profit margin or margin is often used for the term trading…
Many founders and entrepreneurs are obliged to draw up annual accounts at the end of the year. The HGB stipulates that these annual financial statements must always be prepared at…
What do you have to consider with inventory accounts without an opening balance? In your balance sheet you will find the closing stocks for the end of the year ….
So that you can record all business transactions in your company, you need an accounting system with an extensive account system . This enables you to structure both your liabilities…
The liquid mass is in constant motion between continents, oceans and the atmosphere, forming the water cycle. How it occurs The evaporation of the liquid masses and the evapotranspiration of…
Offshoring is one of the terms that comes into Model due to the increasing globalization. According to definitionexplorer.com, the term offshoring comes from the English and means something like “relocation…
The difference between the balance sheet and the income statement The annual financial statements include your company’s balance sheet and income statement. Both are important to check the financial health…
Example of the total cost method Sales € 10,000,000 +/- Increase or decrease in stocks of finished and unfinished products +/- 2,000,000 € + other capitalized own work + €…
You are an entrepreneur and want to know how successful you actually are. But you don’t know where to look. Is it enough to look at your bank account? No,…
A liability is understood to be the obligation on the part of an entrepreneur towards customers or suppliers. As a rule, such a liability exists in financial form, but other…
Depending on whether or not they are required to keep double-entry entries, companies must prepare a balance sheet and an income statement or an income statement . This shows whether…
Even if you try hard, every now and then mistakes will happen. This is completely normal. Even when creating invoices. If you have created an incorrect invoice , the customer…
In addition to the credit market and the money market, the capital market represents one of the three sub-areas of the financial market. In most cases, private investors trade their…
As the name suggests, the Value Added Tax Act (in short: UStG) deals with the taxation of sales that are relevant in connection with different processes. This includes not only…