Macrotypographie

Tara Kimball is a former accounting professional with more than 10 years of experience in corporate finance and small business accounting. She has also worked in desktop support and network management. We’ll send an email notification to the Primary Admin listed in QuickBooks Online that shows the status of your tax payments.

I had wasted another three hours with tech support on the phone. Now it is the time to file payroll quarterly reports and QBO pulled correct tax form for WA WC filing; at the same time the pay amount is substantially higher than actual tax liability. It happened partially due to improper tax rate settings at the beginning of the year and, also, due improper tax calculations for part-time salary employee. In addition, QBO  pulled from nowhere some over payment of taxes from 1st quarter 2021. He helped to submit payroll correction form for last quarter, that supposed to be completed within the next days (according to email I received).

• First two tech experts had been completely useless and I wasted few hours of my time.
• Dancing Numbers helps small businesses, entrepreneurs, and CPAs to do smart transferring of data to and from QuickBooks Desktop.
• Ensure that you use the Previous button in order to view your liability adjustments and then remove it from your account.
• When cash is paid on April 5, the liability balance is reduced.
• Other times, processing Payroll Liabilities manually is simply required.

Employee compensation, taxes, and voluntary deductions all generate payroll liabilities. In addition, employers incur payroll liabilities for FICA (Federal Insurance Contribution Act) tax and other expenses. However, if you’ve e-filed it through our payroll service, you’ll can i capitalise my lease or not have to contact our payroll experts. This way, we can pull up your account and perform the correction for you. I am wondering when Intuit changes its approach to the development of QBO to make it user friendly allowing accountants to do their jobs accordingly.

Also, our Help articles might have something that can help you with your QuickBooks concerns, too. Just make sure that the topic is set as « QuickBooks Online Payroll » to browse for related posts. Ask questions, get answers, and join our large community of QuickBooks users. Don’t hesitate to get back to me if you have other questions about payroll updates.

The Quality Assurance Process: The Roles And Responsibilities

QuickBooks allows you to assign transaction labels, so you should consider identifying employee and employer funds (EE can be short for employee, and ER can represent employer contributions). This will help you organize data much faster when you need to research payroll liabilities. Learn how to locate and delete liability payments made in QuickBooks Desktop Payroll using the Write Checks rather than Pay Liabilities option. The process begins with finding the payroll discrepancies with the following steps. You have to run the “Payroll Checkup” this will help you to detect the problem that may affect your liabilities.

Repayment MUST be through payroll deductions per the holding company of our 401(k). I’ve set up the payroll item and added the item to his Additions, Deductions, etc. for each paycheck. It is deducting it Net Pay, as it should and it is listed in my Payroll Liabilities report. However, it does not appear in my Payroll Liabilities to be paid.

• Unfortunately, it is the only way to post the correct amount into the bank account.
• This also includes the amount of payroll tax withheld from employees.
• So, contact our experts, and they will walk you through the process of adjusting payroll liabilities in QuickBooks.
• In simple words, you need to run the Payroll Summary and edit the date or amount in the payroll liabilities.

Then, you can now make a payroll adjustment, just go to the Employees menu select Payroll Taxes and Liabilities. I have a similar issue I show a positive balance I do need to adjust it. Where I need help how do I  determine which tax liability account to select I haven’t been able figure it out where I got the balance. You’ll want to enter those prior tax payments since you’ve already paid the. Reports you may need to gather from your payroll software are a payroll register, payroll tax report, payroll deduction report, etc. You might also need to print payroll cash reports or itemized invoices from your benefit vendors if the issue requires more in-depth research.

Step Three: Verify If Liabilities Have Been Updated

And he was not able to resolve the issue with the tax over payment for 2021, that suddenly popped up this year at no reason. I am experiencing the similar issues with adjusting payroll tax liability. Quickbooks tech support completely messed up  Federal Unemployment tax settings when they tried to change rate from 6% to 0.6% and screwed State unemployment tax settings as well. For almost a month they still have not fixed it and stopped responding for the case. I had to produce and file quarterly tax reports manually and now have to do some sort of adjusting J.E.

How to Claim Overpaid Liability as Payroll Tax Liability Credit

Furthermore, using Dancing Numbers saves a lot of your time and money which you can otherwise invest in the growth and expansion of your business. It is free from any human errors, works automatically, and has a brilliant user-friendly interface and a lot more. Next, set up the mapping of the file column related to the QuickBooks field. Dancing Numbers template file does this automatically; you just need to download the Dancing Number Template file. Mark the post that answers your question by clicking on « Accept as solution ».

How Do I Show a General Journal Entry for Company Deductions From Employee Payroll?

Liability adjustments for payroll in QuickBooks Online are required for multiple reasons. Prior to going for payroll liability adjustment in QuickBooks Online, one must know why you need to adjust the liabilities. Rest assured that you’ll see the correct check/bank register balances once our payroll correction team adjusts the payments. If necessary, you can also contact our payroll team again to follow up on the issue.

Check the status of your payroll tax payments or filings sent through QuickBooks Payroll

The accrual method posts payroll liabilities and expenses in the same period. In the restaurant example, a $3,000 wage expense and a $3,000 wage liability balance are posted on March 31. When cash is paid on April 5, the liability balance is reduced.

If it’s a Quarter 1 tax deposit you withheld from an employee’s paycheck and it’s now Quarter 3, there’s probably an issue you need to resolve. At this point, you would pull your Quarter 1 tax payment reports, preferably itemized, so you can figure out why and/or if this payment was inadvertently left out. By dedicating time to review and verify the adjustments, you can be confident that your payroll liabilities are accurately reflected in QuickBooks Online.

Double overtime pay is like an extra reward for employees how much is overtime pay who put in additional hours or work on holidays (personal holidays or public holidays). The rules fordouble-time pay can differ depending on the job, the company, and where you live. You’ll often get a « time and a half » rate when you work standard overtime, which means your pay rate is 1.5times your regular hourly wage. This typically happens when you work more than the standard number of hours in a day or week, often beyond 40 hours in a week inmany places. For example, if you normally pay an employee $25 an hour, this is their normal hourly rate.

Is overtime calculated by day or week?

• Earnings may be determined on a piece-rate, salary, commission, or some other basis, but in all such cases the overtime pay due must be computed on the basis of the average hourly rate derived from such earnings.
• You will be asked to enter information about frequency of pay, hours worked, rates of pay, and additional compensation.
• To calculate the overtime hours, an employer simply totals the number of hours an employee has worked in any given workweek.
• However, the U.S. government had instituted eight-hour days for its employees as early as 1869.
• If an employee shows up for a shift and is told that there will be no work that day, you do not need to count that first hour of work.
• The rate is one and a half times the hourly rate that the employee earns times the number of hours of overtime worked.

Such deductions must not reduce hourly earnings below the statutory minimum or cut into any part of the overtime compensation due the employee. Employees may be exempt from the FLSA and, thus, not entitled to overtime if they earn a salary that exceeds the FLSA minimum salary requirements and perform job duties that satisfy one of the established overtime-exempt roles. The most common exemptions include executive, administrative, professional, outside sales or computer-related jobs. Two to four weeks of records, depending on how the employee is paid, should be sufficient. (If the employee is paid on a daily or weekly basis, one week�s records may be enough.) If you do not have all the records at hand, the system may time you out.

How To Calculate Overtime for Hourly Employees With Single Pay Rates

The FLSA is the primary U.S. federal law regulating the wages and hours of both public and private employers. It requires covered employers to pay eligible employees at least one and one-half times their regular rate of pay—and at not less than the relevant minimum wage—for all hours worked in excess of 40 in a workweek. Sometimes, a pieceworker is hired on a piece-rate basis with a minimum hourly guarantee. When the total piece rate earnings for a given week fall short of the amount that would be earned for the total hours at the guaranteed rate, the employee is paid the difference.

How do I calculate overtime hours per day?

• Because these payments are not paid for services rendered to the employer, these allowances may not be counted toward either straight time or overtime wages.
• You would pay the first 40 hours at their regular hourly rate, and the rest at the overtime premium pay rate.
• As a general rule, activities that employees engage in before or after their regular workday that are not part of their principal duties are not compensable under the FLSA.
• For a sample training presentation for supervisors and other individuals who manage nonexempt employees, see FLSA Training for Supervisors Part V.
• Payment may not be delayed for a period longer than is necessary for the employer to compute and arrange for payment of the amount due, and in no event may payment be delayed beyond the next payday after such computation can be made.

The Act does not require overtime pay for work on Saturdays, Sundays, holidays, or regular days of rest, as such. An employee’s workweek is a fixed and regularly recurring period of 168 hours — seven consecutive 24-hour periods. When an employee is employed solely on the https://www.bookstime.com/ basis of a single hourly rate, that rate is the regular rate. If, in addition to earnings at the hourly rate of pay, other payments are made, such as a production bonus, the amount of the payment must be added to the straight-time earnings. The new regular rate is determined by dividing the total straight time earnings by the number of hours worked.

• Similarly situated employees should be treated similarly, with exceptions for only the most important of reasons.
• It wasn’t until Henry Ford adopted five-day, 40-hour workweeks in his Ford Motor plants that the idea of “less work equals more productivity” took hold.
• If an employer wants to use a basic rate other than one of the authorized rates set forth in 29 C.F.R. §548.3, prior approval is required from the DOL.
• While it may be safe to assume salaried workers can’t collect overtime, Robert L. Föehl, business law and ethics professor at Ohio University, said that couldn’t be further from the truth.

The FLSA does not relieve an employer of any obligation it may have assumed by contract. The regular rate includes all remuneration for employment except certain payments excluded by the Act itself. Using the time-and-a-half rule of thumb, you’d calculate overtime pay by multiplying an employee’s hourly rate by 1.5 and then multiplying the result by the number of overtime hours they worked.

Know the overtime pay laws and regulations

That way, you can avoid overtime pay calculation mistakes, like underpaying employees or failing to follow your state’s laws. Under the FLSA, any non-discretionary bonuses or commission earned by a nonexempt fixed assets employee must be factored into their regular rate of pay. The calculation method varies depending on if the bonus or commission payment is allocated by the workweek or some other frequency, e.g., monthly, quarterly, annually. Overtime gets confusing when it comes to salaried versus hourly employees. When most people talk about overtime, it’s typically in the context of a 40-hour workweek paid on an hourly basis. This additional compensation is based on the FLSA’s definition of a fixed, regularly recurring workweek of 168 hours, or seven consecutive 24-hour days, which may begin any day of the week.

The trend today for many employers is to outsource any function of the business that is not directly related to the generation of income. With outsourced accounting services, you’ll have meticulous eyes that can process financial data while ruling out fraud simultaneously. Our team is your team, and you can get started today with sound financial guidance and support from Milestone, one of the best outsourced accounting firms on the market. To meet their needs, RSM provides outsourcing solutions that cost-effectively improve finance and accounting functions. We offer a suite of services that leverage leading technology platforms tailored to your own unique needs.

Using technology and setting up good ways to talk will help you work well together for a long time. By using these tools and practices, you can have productive real-time collaboration with your outsourcing partner and keep things running smoothly. We understand that hiring accountants can be as expensive as an outsourcing agent. Before choosing to outsource accounting, study the flexibility level of the providers.

effective ways to unlock call center cost savings

This guide offers insights and guidance for a successful transition, ensuring a seamless switch that enhances your organization’s financial health and performance. If you have a team or a responsible person managing the accounting tasks right now, discuss with them what needs to be outsourced. Generally, accounting firms care about their reputation and will not get into activities that can bring it down.

Outsourced accounting is when you hire a third-party business accounting services provider to handle your accounting tasks for a fixed price. Many businesses spend more time, money and energy on their back-office operations than they’d like. Our FAO services provide access to an enhanced suite of technology-based services tailored to meet your organization’s finance and accounting needs.

Expertise

In fact, you can outsource your entire back-office accounting function to RSM, flexibly and affordably. These guys set everything up remotely and execute all functions smoothly, without any hiccups. We sincerely believe in the importance of working with unwavering commitment and gaining the trust and sanctity of our organization and yours.

• The size of public accounting companies varies, from solitary practitioners to a few large worldwide firms with hundreds of thousands of CPAs across the world.
• That cost comprises not just salary, but additional direct costs including employer payroll taxes, workers’ compensation, medical insurance, retirement plans and other benefits.
• Your outsourced bookkeeper may also create comprehensive financial reports so you can better understand your financial data and use it to make well-informed decisions.
• Outsourced accounts payable services are scalable to meet the requirements of your business.
• They also keep track of tax deductions and costs, provide progress and revenue reports, and keep track of all transactions.

BDO works with organizations to provide immediate support with accounting and payroll functions to avoid delays in key components of the expansion process. Get more than 50% cost savings by hiring our experienced tax accountants with a fixed monthly fee or on per tax return basis. When you hire new employees, you don’t just hire anyone — you consider their skillsets to determine if they’d be a good fit for your company.

KDCI’s Outsourced Accounting Services

Accounts payable outsourcing entails contracting with a specialized company to handle the processing, management, and administration of accounts payable tasks on behalf of your organization. This includes invoice processing, payment administration, vendor management, and report generation. Our accounts payable services are designed to scale with the expansion of your business. Regardless of whether you experience seasonal fluctuations, mergers, acquisitions, or expanding operations, we can adapt our services to meet your changing needs.

In this way, RSM FAO enables more timely, actionable information to guide decision-making. QXAS US was established in 2013 with the single-minded purpose of helping accounting firms succeed and it has done so with deep-seated commitment to this objective. direct marketing sales strategy Everything your accounting firm needs to scale, increase profitability and spend time doing strategic work that results in sustainable business growth. Outsourcing accounting work to QXAS helps your firm benefit from 50% savings on operations costs.

Let ARDEM Manage your Accounting Needs

RSM’s FAO technology is scalable, accessible through the cloud and provides real-time, automated reporting. We work with leading technology partners such as Oracle NetSuite, Sage Intacct, Intuit QuickBooks, Blackline, Tallie and Bill.com. Platforms are regularly upgraded without affecting functionality and as improved technology becomes available, we enhance platform offerings as appropriate, so it’s always up to date. Our offshore accountants are well-trained and have many years of experience using the latest and popularly used accounting, bookkeeping, and tax software. Alternatively, we could also recommend using the right software for the outsourced jobs. Whether you are a startup accountant or a single partner firm, QXAS helps free your time to focus on growing your firm.

Scienaptic AI provides several financial-based services, including a credit underwriting platform that gives banks and credit institutions more transparency while cutting losses. Its underwriting platform uses non-tradeline data, adaptive AI models and records qr codes have replaced restaurant menus industry experts say it isn’t a fad that are refreshed every three months to create predictive intelligence for credit decisions. Ocrolus offers document processing software that combines machine learning with human verification. The software allows business, organizations and individuals to increase speed and accuracy when analyzing financial documents.

1. AI’s abilities around data management collection, analysis, and contextualization—just to name a few—help eliminate many of the decision-making roadblocks cited by business leaders.
2. In the United States, Deloitte refers to one or more of the US member firms of DTTL, their related entities that operate using the « Deloitte » name in the United States and their respective affiliates.
3. Banks and other financial institutions should balance speed and innovation with risk, adapting their structures to harness the technology’s full potential.
4. AI can take on a portion of the workload by automating compliance monitoring, audit trail management, and regulatory report creation.
5. Canoe ensures that alternate investments data, like documents on venture capital, art and antiques, hedge funds and commodities, can be collected and extracted efficiently.

The use of AI in finance requires strong financial consumer protection

It is used in fraud detection, credit decisions, risk management, customer service, compliance, and portfolio management, improving accuracy and efficiency. AI is also being adopted in asset management and securities, including portfolio management, trading, and risk analysis. Ayasdi creates cloud-based machine intelligence solutions for fintech businesses and organizations to understand and manage risk, anticipate the needs of customers and even aid in anti-money laundering processes.

AI can even help make pricing personalized, using real-time insights about individual customer preferences, market changes, and competitor activity to optimize price and discounts. GenAI can fill out the needed forms with data provided by the finance team for the staff to review and confirm. AI can help automate and enhance multiple aspects of the financial reporting the difference between a w2 employee and a 1099 employee and analysis process. In the initial stages, it can extract relevant financial information from various data sources. It can then clean and process financial data by identifying errors, inconsistencies, or missing values and notifying finance staff of the areas needing attention.

The company aims to serve non-prime consumers and small businesses and help solve real-life problems, like emergency costs and bank loans for small businesses, without putting either the lender or recipient in an unmanageable situation. We have observed that the majority of financial institutions making the most of gen AI are using a more centrally led operating model for the technology, even if other parts of the enterprise are more decentralized. We all know from experience what good customer service versus bad customer service feels like. And, when you have bad interactions as a customer, it really creates a sour taste. Because of this many financial institutions strive to achieve a high quality customer experience and AI is now helping deliver personalized, responsive, and convenient services at scale. AI can help solve those problems by giving finance teams better insight into possible investment and cost saving opportunities, automating transactional work, generating needed data automatically, and enhancing data visualization.

Operating-model archetypes for gen AI in banking

AI is also changing the way financial organizations engage with customers, predicting their behavior and understanding their purchase preferences. This enables more personalized interactions, faster and more accurate customer support, credit scoring refinements and innovative products and services. The dynamic landscape of gen AI in banking demands a strategic approach to operating models. Banks and other financial institutions should balance speed and innovation with risk, adapting their structures to harness the technology’s full potential.

Challenges Facing AI Adoption

Artificial intelligence (AI) in finance is the use of technology, including advanced algorithms and machine learning (ML), to analyze data, automate tasks and improve decision-making in the financial services industry. Using predictive analytics, finance teams can forecast future cash flows using historical company data, as well as data from the broader industry. While traditional financial forecasts must be manually adjusted when circumstances change, AI-driven forecasts can recalibrate based on new data, helping keep forecasts and plans relevant and accurate.

With Oracle’s extensive portfolio of AI capabilities embedded into Oracle Cloud ERP, finance teams can move from reactive to strategic with more automation wave review opportunities, better insights, and continuous cash forecasting capabilities. A particularly valuable technology in regulatory compliance is natural language processing (NLP). NLP is a branch of AI that lets computers comprehend and generate human language.

While AI will likely never fully replace finance team members, it may become a significant part of their day-to-day work. AI is proving to be more than a buzzy technology fad and one of those rare advancements—like the internet and cloud computing—that promise to revolutionize the business landscape. The OECD promotes a risk-aligned step-by-step implementation of GenAI models in the financial industry. This calls for quality data, sound governance, adequate privacy and strong ethics, as well as the need to monitor both AI concentration and application diversity.

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We have found that across industries, a high degree of centralization works best for gen AI operating models. Without central oversight, pilot use cases can get stuck in silos and scaling becomes much more difficult. Looking at the financial-services industry specifically, we have observed that financial institutions using a centrally led gen AI operating model are reaping the biggest rewards. As the technology matures, the pendulum will likely swing toward a more federated approach, but so far, centralization has brought the best results. The financial industry is well known for being data-driven and embracing emerging technology to provide efficiency, cost savings, detect fraudulent activity and keep operations running smoothly. So, it should come as no surprise that the industry is embracing AI as a tool for innovation and efficiency.

The amortization period begins with the month in which such costs were paid or incurred. Generally, you may use only the amounts shown next to “Qualified nonrecourse financing” and “Recourse” to figure your amount at risk. Do not include any amounts that are not at risk if such amounts are included in either of these categories. An estate is a qualifying estate if the k1 definition decedent would have satisfied the active participation requirement for the activity for the tax year the decedent died. A qualifying estate is treated as actively participating for tax years ending less than 2 years after the date of the decedent’s death. If you are a limited partner, you must meet item 1, 5, or 6 above to qualify as having materially participated.

Portfolio income is income that is not generated by the normal activities of the partnership. Box 1 will reflect your share of Ordinary Income from the activities of the partnership. The type of Ordinary income received may change depending on whether you were materially participating in the Partnership’s activities or not. For more information about guaranteed payments and other kinds of payments partnerships make to their partners, see this guide from the IRS.

Part III, Partner’s Share Deductions and Credits

The corporation will report on an attached statement your share of qualified food inventory contributions. The food inventory contribution isn’t included in the amount reported in box 12 using code C. The corporation will also report your share of the corporation’s net income from the business activities that made the food inventory contribution(s). Use this amount, along with the total cost of section 179 property placed in service during the year from other sources, to complete Part I of Form 4562, Depreciation and Amortization. The corporation will report on an attached statement your share of the cost of any qualified enterprise zone property or qualified real property it placed in service during its tax year. Report the amount from line 12 of Form 4562 allocable to a passive activity using the Instructions for Form 8582.

Schedule K-1 is an important part of the partnership tax return process. It helps you and the IRS figure how big your piece of the pie is in the partnership and determines each partner’s taxable income—and by extension, tax liability. Schedule K-1s must be prepared and made available by March 15 each year.

What is a K-1 Tax Form?

At the end of the year, the S Corp files the Form 1120-S and distributes schedule K-1 forms to its stockholders. The stockholders then report their share of the business’s rental income and expenses on their individual tax returns. The Schedule K-1 tax form is an important document to report investment income taxes and must be provided to each partner or shareholder by the partnership, S corporation, or trust.

Debt to asset indicates what proportion of a company’s assets is financed with debt rather than equity. The formula is derived by dividing all short-term and long term debts (total debts) by the aggregate of all current assets and noncurrent assets (total assets). A good debt to asset ratio helps in the assessment of the percentage of assets that are being funded by debt is-à-vis the percentage of assets that the investors are funding. A company’s debt-to-asset ratio is one of the groups of debt or leverage ratios that is included in financial ratio analysis.

• The debt-to-capital ratio is one of the more meaningful debt ratios because it focuses on the relationship of debt liabilities as a component of a company’s total capital base.
• It’s also important to understand the size, industry, and goals of each company to interpret their total debt-to-total assets.
• On the surface, the risk from leverage is identical, but in reality, the second company is riskier.
• The articles and research support materials available on this site are educational and are not intended to be investment or tax advice.
• The debt ratio defines the relationship between a company’s debts and assets, and holds significant relevance in financial analysis.

Ignores Differences in Interest Rates

Therefore, comparing a company’s debt to its total assets is akin to comparing the company’s debt balance to its funding sources, i.e. liabilities and equity. The https://www.madridcomercio.org/2021/03/page/15/, or “Debt Ratio”, is a solvency ratio used to determine the proportion of a company’s assets funded by debt rather than equity. For example, in the numerator of the equation, all of the firms in the industry must use either total debt or long-term debt.

Advantages of Debt Ratio

For example, a prospective mortgage borrower is more likely to be able to continue making payments during a period of extended unemployment if they have more assets than debt. This is also true for an individual applying for a small business loan or a line http://details-of-cars.com/daewoo-labo/ of credit. The personal D/E ratio is often used when an individual or a small business is applying for a loan. Lenders use the D/E figure to assess a loan applicant’s ability to continue making loan payments in the event of a temporary loss of income.

What Does Debt Ratio Mean in Finance?

As the interest on a debt must be paid regardless of business profitability, too much debt may compromise the entire operation if cash flow dries up. Companies unable to service their own debt may be forced to sell off assets or declare bankruptcy. You can calculate the debt ratio of a company from its financial statements. Whether or not it’s a good ratio depends on contextual factors; there is no universal number.

This tells you that 40.7% of your firm is financed by debt financing and 59.3% of your firm’s assets are financed by your investors or by equity financing. This is an important measurement because it shows how leveraged the company by looking at how much of company’s resources are owned by the shareholders in the form of equity and creditors in the form of debt. Both investors and creditors use this figure to make decisions about the company.

Long-Term Debt-to-Total-Assets Ratio: Definition and Formula

Companies can generate investor interest to obtain capital, produce profits to acquire its own assets, or take on debt. We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. Knowing your debt-to-asset ratio can help you get a handle on your debt load while also keeping your company attractive to potential investors and creditors. This assessment can be particularly vital for creditors, investors, and other stakeholders when evaluating the financial health of an organization.

The business owner or financial manager can gain a lot of insight into the firm’s financial leverage through trend analysis. While it’s important to know how to calculate the debt-to-asset ratio for your business, it has no purpose if you don’t understand what the results of that calculation actually mean. The debt-to-asset ratio is used by investors and financial institutions to determine the financial risk of a particular business. Conversely, technology startups might have lower capital needs and, subsequently, lower debt ratios. Comparing a company’s debt ratio with industry benchmarks is crucial to assess its relative financial health. The total debt-to-total-asset ratio is calculated by dividing a company’s total debts by its total assets.

Because equity is equal to assets minus liabilities, the company’s equity would be $800,000. Its D/E ratio would therefore be $1.2 million divided http://www.bmwgtn.ru/different/carnum.php by $800,000, or 1.5. What counts as a “good” debt-to-equity (D/E) ratio will depend on the nature of the business and its industry.