Being self-employed can be fulfilling and inspiring because you are working hard to build your dreams. As author Oliver Markus Malloy said humorously, “Being self-employed means you work 12 hours a day for yourself so you don’t have to work 8 hours a day for someone else.” However, the fruits of your labors don’t come tax-free. Self-employed taxes need to be considered and treated carefully so they don’t interfere with the pursuit of your dreams. What Does it Mean…
Let’s talk about financial ratios, (and no, this isn’t a dreaded math lesson where you crawl into a corner and hide). The key here is data—data that will help you run your business more effectively, guiding your planning and measuring what is working. The use of data takes effort, but it is worth it as Arthur C. Nielsen, market researcher and founder of the AC Nielsen company said, “The price of light is less than the cost of darkness.” And…
Launching a new business can be both exciting and challenging. Your vision of the business is what energizes you, and that’s important. As Tony Hsieh, CEO of Zappos said, “Chase the vision, not the money; the money will end up following you.” That said, you can’t casually address the financial aspects of the business. Specifically, pay close attention to your start-up expenses and how they are treated relative to taxes. What Are Start-up Expenses and Why Are They Important?…
Like most small business owners, the time will eventually come when you need to consider outsourced accounting services. While it can be challenging at first to give up some of your control, it can also bring a great sense of relief. When you choose to outsource accounting services, it frees up your time to focus on expanding both your business and your profit margin. We highlight eight other benefits you can expect from outsourcing. You Get Access to the…
You may have been able to keep up with everything when you first launched your small business, including bookkeeping and accounting paperwork. As your business grew, you just didn’t have the time to get to it quite as consistently. Now you have reached the point of considering outsourcing your accounting paperwork to a company like Doerhoff & Associates CPA. Regardless of what you ultimately decide regarding accounting functions for your business, it’s a good idea to have a basic understanding…
If you pay $600 or more to an independent contractor in a year or $10 in royalties to an individual, the Internal Revenue Service (IRS) requires that you send a MISC-1099 form. The form must be postmarked by January 31 to cover any miscellaneous income or royalties from the previous calendar year. Businesses typically issue MISC-1099 statements to individuals and sometimes partnerships. Other Situations that Require IRS Form 1099 Reporting In addition to royalties and money paid to independent contractors,…
A Chart of Accounts can help any business manage its finances, however, it’s only useful when organized properly. While it’s common for small business owners to tackle this organization project at the beginning of the year, the company can benefit from organized financial data regardless of what month it is. A review of what to include in a Chart of Accounts is helpful before we discuss organization tips. The Four Most Important Items to Include in a Chart of Accounts…
An unexpected tax refund can make it possible to invest in your company in ways you might not have been able to otherwise. However, creating and prioritizing a list of options can be challenging. We would like to help by offering 10 possible suggestions for how to spend your tax refund well. Ranking your list in order of importance is entirely up to you. Options for Spending Your Tax Refund While you will probably think of several of your own…
When you first start a business, you may not think much of making a small purchase of office supplies and paying for them with your personal credit card. This could be a manageable system if you only make a few business purchases each year. However, that isn’t the reality for most business owners. Although it will take a bit of initial effort to separate personal and business finances, you can expect significant benefits for doing so. We discuss several of…
A sure sign that you have evolved as a business owner is when you feel ready to take more of a broad overview approach rather than feeling as though you must handle every detail yourself. This includes accounting practices. While it can be difficult to let go and delegate or automate these tasks, it’s necessary to free up your time to pursue business growth. Below we highlight five ways you can benefit when you automate accounting. Find a Better System…
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