A key thing that every small business owner should do is to keep his/her personal and business expenses and all other finances separate. Who Must Keep Personal and Business Finances Separate? If a business is formed as a corporation, it is considered a separate legal entity so all finances and business expenses must be separated. If a business is formed as a sole proprietorship, there is no legal distinction between the business and its owner. Therefore, all profits,…
So, you have filed your annual tax forms and this year you get a tax refund. Yahoo! You are one of nearly 80 percent of Americans that get a refund on their tax returns. But what does that mean? What are Tax Refunds? Tax refunds are not a “lucky strike” or a surprising bonus. They represent a payback of an excess amount that taxpayers have remitted to the government as documented on their tax returns, essentially an interest-free loan to…
Ahhh…the “side hustle,” a term popularized in the rise of the “gig economy.” This is where individuals work independently using freelance or short-term contracts. The “side hustle” (or multiple) can be done full-time or by supplementing traditional full-time employment. This phenomenon has grown over the past decade, now reaching 36 percent of all Americans, according to one survey. Its popularity has surged due to technology that facilitates online/off-site work, the American spirit of innovation and independence, and the Coronavirus…
Tax preparation. Those two words can cause anxiety and bring fear and trepidation into the hearts of many small business owners. After all, tax preparation isn’t particularly pleasant, and every minute spent on this function is a minute diverted from income-producing and business-building activities. At the same time, accurate record-keeping and tax filing are critical functions that enable and protect the very life of a company. So, fear not. Review some important small business tax info and forms that are…
The United States, and indeed the entire world, was rocked by the COVID-19 outbreak. In response, the U.S. Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act and it was signed into law by President Donald Trump on March 27, 2020. It included one-time cash payments to individuals, increased unemployment benefits, forgivable loans for small businesses, loans for corporations, and funding for state and local governments. Additional relief was provided in the Consolidated Appropriations Act 2021, signed into law…
Business success requires three things: vision, a strategic plan, and effective execution. Easy to say but difficult to deliver. According to author Bill Hybels, “Vision is a picture of the future that produces passion.” Strategy is defined as the plan of action developed to achieve an aim or vision. And visionary inventor Thomas A. Edison completes the triad by stating, “Vision without execution is delusion.” What is Vision and Why is it Important? Vision is simply an image or picture…
It seems every year we get to assist someone who lost a loved one unexpectedly and there is one statement we hear over and over…..”I wish I had known that before he or she died”. To help those who want to organize their financial affairs we put together a list of 30 documents you need before you die. After death, it is too late to ask questions of where items are kept, too late to change how items are titled,…
Everything we do is focused on the core belief that we succeed in life by helping others succeed. This letter is one complimentary piece of our intense planning and research effort throughout the year to help in your success. Feel free to share it with anyone you know who could benefit. What changed with the IRS as a result of COVID? COVID drastically changed the way the IRS does business and they are still trying to adapt and…
Ah, the holiday season is in full swing and that means it is time for important holiday parties and celebrations. But to avoid a troublesome “bah, humbug” event at tax time it is important to plan the celebration carefully, including the consideration of gift tax rules and implications. Why Holiday Parties are Important Even during the COVID-19 pandemic, holiday business parties, gatherings, and celebrations are still important, even if they need to be handled a bit differently than in prior…
If outsourcing sounds foreign and undesirable, think again, because it’s actually a very good thing. Outsourcing has become quite popular in the United States as it is world-wide, and outsourced accounting is a major go-to tool for small to medium-sized businesses. What Is Outsourced Accounting? Outsourced Accounting is the process of using an outside of the company or third-party resource to perform accounting and financial functions that otherwise could be accomplished in-house. According to a survey by Clutch, 37 percent…
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