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So, you're determined to live your best financial life! You can see it now. You'll keep your bookkeeping updated every month, stay on top of your numbers, and finally start paying yourself. This year will be your best financial year yet. But wait, you just have to figure out HOW to make that happen. That's where good money habits come in! There are five core financial habits that every small business owner should adopt. If you keep ...
What do fuzzy socks bring to mind? For me, it's simple: Winter. And as an accountant, Winter is AKA Tax Season. So, while most people start focusing on the year ahead in January, to us accountants, the new year doesn't begin until the snowflakes are gone, and April showers are preparing the way for May flowers. Like all small businesses, cash flow management is essential to our firm. Much of our income is seasonal, so luckily, there...
This is not a joke! Here’s what to do if the IRS could consider your business a hobby. I’ll admit it; I’m not very “fun.” I’m really kind of boring - my favorite thing to do is read. All of the time – any spare moment I get! And, I’ve often wished I could somehow read for a living. That would be my dream job. I’ve gone as far as listing the possible ways to earn money by reading: Book reviews? Creating home s...
While a deduction can reduce the amount of taxable income, credits can directly reduce the amount of tax owed, dollar for dollar, so they offer a greater tax benefit. Here's the difference between tax credits and tax deductions: Both reduce your tax bill, but in very different ways. For instance, a tax credit valued at $1,000 lowers your tax bill by the corresponding $1,000. Tax deductions, on the other hand, reduce how much of your...
A business plan is a document setting out a business’s future objectives and strategies for achieving them – Oxford Dictionaries A strategic business plan is vital to the health of your business. In general, it’s a written description of your business’s future; specifically, the next three to five years. That’s all there is to it – the contents of a business plan simply describe how your business will work and the steps you ...
ATTENTION S CORP SHAREHOLDERS!! Anyone remember when the Tax Cuts and Jobs Act(TCJA) was first enacted? Or, even know what it is, lol? If you don't remember, it was the biggest rewrite of the tax code in decades. One of the fallouts from the TCJA is the increased scrutiny by the IRS of S Corporations and their shareholders. The IRS has been especially interested in several tax liability issues regarding distributions, officer loan rep...
Do you feel the time ticking away? 2023 is quickly approaching, and now is the time to do some year-end tax planning. Did your business have a good year? Did you get hit with some unexpected expenses, and now you're rebounding from the recent losses? Did you just launch your business, and you're struggling to make it off the ground? Whatever your situation, there's time before the end of the year to make moves that could save you a bund...
Do you want to be your own boss? Is everyone you know talking about being self-employed? Well, if you have been hearing the term self-employed used a lot lately, I bet you may be wondering what being self-employed means and if it could be right for you. Self-employment is when you work for yourself instead of an employer. You don’t have an employer who pays you a regular salary or wage, and you don’t receive a W-2 at the end of the ...
Have you ever wondered about the difference between standard and itemized deductions? You're not alone! I recently discussed a trend our office has seen over the last several years. Taxpayers who had always itemized are now taking the standard deduction. A gentleman raised his hand and said, "I hate to admit it, but I'm not sure I really know the difference between standard and itemized deductions." I've always said that if one pers...
The first step for effective tax planning is to organize that ever-growing accumulation of records in your desk drawers, closets, and other storage spaces. Haphazard records can cause you to needlessly lose money to taxes. But on the other hand, the better the records you keep, the easier it is to search for opportunities, which is what tax planning is all about. For many people, tax season can be a frantic last-minute scramble to fi...
So, you're determined to live your best financial ...
What do fuzzy socks bring to mind? For me, it's si...
This is not a joke! Here’s what to do if the IRS...
While a deduction can reduce the amount of taxable...
A business plan is a document setting out a busine...