Why Depreciation is Essential in Accounting Depreciation is a way to account for changes in the value of an asset. (An asset is something that has continuing value, like a computer, a car, or a piece of machinery.) It represents the decrease in the value of an asset over time. It’s expressed in both the balance sheet and income statement of a business. Depreciation also affects your business taxes and is included on tax statements....

Whether you plan to replace a home, auto, or student loan, you’ll generally need to go through the loan approval process again. Understanding what qualifications you need to refinance a home will allow you to look over your finances in the same way a lender would before you submit an application. This way, you can identify potential gaps in the refinancing requirements and take steps to improve the odds of loan approval....

But these deductions and credits may come with limitations; how much you can reduce your tax bill will depend on your income and tax bracket. You must itemize your tax deductions if you want to claim any tax breaks for buying and owning a home. Here’s what you need to know. How Do You Get a Tax Break for Buying a House? To get the deductions for mortgage interest and property taxes you paid, you must itemize your deductions....

PeopleImages However, if a lender checks your credit score, that action may temporarily lower your score. Here’s why. Types of Credit Checks Explained: Soft vs. Hard Inquiries There are two types of credit checks: hard inquiries and soft inquiries. The chart below summarizes the differences. Keep reading for a more in-depth explanation of each one. These types of credit checks don’t show up on your credit report and don’t require your permission....

Your homeowners policy protects your belongings when they’re in your home and may also provide limited protection when you place items in storage or take them on vacation. But insurance companies place limits on the amount of money they will pay for certain types of personal property. Before buying a home insurance policy, it’s important to understand which types of theft it will and will not cover. Does Homeowners Insurance Cover Theft?...

Learn whether health insurance covers chiropractors, how much it might cost, and what to consider when insurance doesn’t cover your visits. How Much Does a Chiropractor Visit Cost? Chiropractic adjustment costs vary depending on your location, health provider, treatment plan, and reason for care. The average cost of a chiropractic session ranges from $34 to $106, according to CareCredit, a health care credit card company. Your out-of-pocket cost will depend on your insurance coverage....

It can be frustrating if one spouse won’t participate in the budgeting process, in fact, it can often end a marriage. Whether or not you are financially compatible, you can make your marriage work as long as you are both willing to communicate openly about your finances and work to make compromises on each issue. Sitting down now can help you avoid major financial mistakes in your marriage. It can be very frustrating to have one person spend money frivolously while the other one saves money constantly....

Levels of Education Here’s a list of the education levels that employers look for in the candidates they hire. Less Than High School This is the completion of any level of primary or secondary education that did not result in the awarding of a high school diploma or an equivalency diploma. High School Diploma or Equivalent This is the completion of high school, or the equivalent, resulting in the awarding of a high school diploma or the equivalent, such as the General Education Development (commonly referred to as a GED) award....

Elliott Wave trading is a broad and intricate topic, taking practitioners years to master. Despite its complexity, some basic elements of Elliott wave trading can be incorporated immediately and may help improve analytical skills and trade timing. Impulsive and Corrective Waves In Elliott Wave Theory, the two types of waves in price movement are called “trend” or “impulse” waves and “consolidation” or “corrective” waves. Looking at a chart, a trader may attempt to define which wave cycle is underway, what recent waves have occurred, and—if the waves have been identified correctly—what wave is likely to occur next....

A long-standing proponent of all things DeFi inside and outside of the classroom, she has remained steadfast in her belief that emerging technologies (like cryptocurrencies and blockchain), are the harbingers sent to disrupt and transform outdated and marginalizing economic systems. Erika has spent the past six years at Maryville University where she has included fintech in personal finance courses and curriculum since 2017, including cryptocurrencies and blockchain. She helped create a fintech curriculum track within the Management and Information Systems degree plan at Maryville University, where she developed and teaches the Digital Assets course....

By definition, overdraft protection is a service that instructs your bank to pay for a transaction when you don’t enough money in your checking account. In exchange, your bank charges you what is known as an overdraft fee. Consumer banks used to automatically add this feature to all checking accounts, but nowadays you must opt in, or formally accept, the service. Understanding how overdraft protection works can help you determine if it’s right for your spending habits and budget....

These organizations are not only different in their genesis, but also in their target market and products. For example, Fannie Mae buys mortgages from large retail banks while Freddie Mac buys them from smaller thrift ones. But both help banks make more loans and keep interest rates low. Fannie Mae In 1938, Congress established Fannie Mae through the Federal Home Loan Bank Act. It was a government agency that bought Federal Housing Administration mortgages and included them in its books....

The Fed raised rates by 50 basis points in their December meeting, putting the target range at 4.25% to 4.50%. The past four rate hikes have been 75 basis points in an effort to tamp down ballooning inflation, but reports this month showed the job market starting to sputter and inflation slowing more than expected. The unemployment rate was unchanged in November, but there are fewer jobs available than there have been in recent months....

Why Is the Fixed Asset Ratio Important? Essentially, the fixed asset turnover ratio measures the company’s effectiveness in generating sales from its investments in plant, property, and equipment. It is especially important for a manufacturing firm that uses a lot of plant and equipment in its operations to calculate this ratio. How Is the Fixed Asset Turnover Ratio Calculated? Net Sales/Net Plant and Equipment (Net Fixed Assets) = X Times.The denominator in the equation should be net of accumulated depreciation....

The majority of credit cards you’ll encounter will likely have variable interest rates, but the two types of interest rates differ in a few ways. Understanding the type of interest rate you have can help you know when to expect any interest rate changes. What’s the Difference Between Fixed and Variable Interest Rates? For example, your issuer can change a fixed interest rate on existing balances without notice when:...

Supports Multiple Operating Systems and Multiple Currencies GnuCash runs on Windows, macOS, and GNU/Linux computer operating systems. The software has been translated into many languages and supports over 100 currencies . Simple Setup GnuCash walks you through setting up accounts. Transactions for checking, credit card, income, and investments are entered into an on-screen checkbook register, similar to most financial software applications. You can enter split transactions, display multiple accounts, and customize your view....

Many taxpayers struggle to pay their tax bill, which is why the IRS offers several options to help them, from forgiveness programs to payment plans. Here, learn about all your options for settling IRS tax debts so you can decide the right solution for your needs. The Statute of Limitations on Tax Debt Your annual tax payments are due on the Tax Day filing deadline, which is usually on or near April 15....

1. Get Your Team Together Before you get into the process of evaluating a potential business for sale and negotiating, you will need some help from business advisors, including: A certified public accountant (CPA) to help you review the books and financials. Your accountant will be your “right-hand” person during this process; seek someone who can work with the lawyer and you as a team. An attorney to help prepare and review documents for the sale....

While the bill isn’t a done deal yet—it could still be modified, delayed, or defeated in the Senate, where the Democrats hold the slimmest possible advantage—here’s a look at how it could impact your finances if enacted in its current form: Child tax credit expansion: This year’s expanded child tax credit would be extended for another year. The expansion increased its maximum value to $3,600 per child from $2,000 and started delivering it in advance monthly payments of up to $300 per child....

Let’s take a closer look at how green home discounts work, which companies have the best green discounts, and more. How Do Green Home Discounts Work? Some insurers promote sustainable building practices by offering discounts for homeowners who make certain improvements. While eco-friendly home insurance discounts aren’t exactly common yet, if your home has environmentally efficient features or green home upgrades, it’s worth asking your insurer if you qualify for a discount....