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Showing posts from January, 2021

The Quick Guide to Retained Earnings

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When a company generates profit, management can pay out money to shareholders as cash dividends or retain earnings to reinvest in business. Reinvestment could go toward any number of things that might help business. It could be used to fund acquisitions, build new factories, increase inventory levels, establish larger cash reserves, reduce long-term debt, hire more employees, research and develop new products, or purchase new equipment to increase productivity. Company could also choose to buy back its own shares, which might have the long-term benefit of increasing the company's market value. Because there will be fewer shares outstanding, company's per-share metrics like earnings per share and book value per share could increase and make the company's stock more attractive to shareholders. Retained Earnings Definition Retain Earnings, on the other hand, are sub-element of shareholders ' Equity. As explained above, in the Equity section, you can see invest

How To Find The Best Crypto Tax Software?

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If you had any cryptocurrency transactions during 2020, a   crypto tax software   is an essential tool for you to calculate your cryptocurrency gains and losses. Cryptocurrency exchanges are different compared to traditional brokerages like   Td Ameritrade   or JPMorgan.   At the end of the year, these brokerage houses issue a consolidated Form 1099 (see picture below) listing all your annual proceeds, cost basis & gains/losses arising from stock transactions. However, crypto exchanges like Coinbase & Gemini do not issue such forms at year end. They may issue a   Form 1099-K   listing all your gross transactions but this will not be useful in   preparing your tax return . Therefore, the burden of properly calculating gains and losses to be reported on the tax return falls with you. However, with variety of national governments now paying closer scrutiny to the liabilities of those digital transactions, more cryptocurrency software platforms have arisen to fill the necessity f