The payback period formula is a straightforward way to determine how long it’ll take for an investment to break even. It’s calculated by dividing the initial investment by the expected cash flows per year. The payback period formula is a simple yet powerful tool for determining how long it’ll take for an investment to earn […]

You could just track your expenses using a simple spreadsheet in a program like Excel or Google Sheets. Separating your business and personal finances is the single most important thing you can do to manage your business finances. As soon as you get into business for yourself – even if you’re operating as a sole[…..]

Instead of “depreciating,” they say “capitalizing,” which means spreading out the cost of capital assets like equipment over time. While this doesn’t seem like an important distinction, an IRS audit might find these purchases non-deductible if you can’t prove their use as a business expense. For example, a professional photographer might deduct camera gear, editing[…..]