Is it tax time? Frankly, it’s always time to pay attention to tax record-keeping, tax liabilities, and tax payments. To keep in the good graces of the IRS and to avoid penalties and unnecessary strain, it is important to know tax deadlines and comply with them exactly. Why is it Important to File on Time? From a practical standpoint, it’s important to file on-time to avoid last-minute scrambles with processing relevant documents, invoices and reports so that confusion and…
Payroll. It’s one of the most critical aspects of a business. For any business, payroll requires a lot of time and attention. For a small business, payroll processing can be a complicated responsibility, fraught with possible problems. Payroll is certainly critical to employee morale and to employees’ trust in the future of a company. And it is a key factor in motivating and retaining high-quality talent. To get payroll done right, many businesses choose a payroll outsource solution. …
Thinking of delaying your business tax planning? Here are two words of advice: don’t delay! Good tax planning should take place all year long to ensure accurate and effective tax preparation, a more pleasant and stress-free experience and a more positive financial outcome. Why is it Important to Keep Good Records? Financial record keeping is vital to the health and progress of every business. It allows a business owner to: Monitor the health and progress of a business. It…
There’s probably no topic under the sun that hasn’t provoked more joking comments than “taxes,” including this one by former radio and TV entertainer Arthur Godfrey: “I am proud to be paying taxes in the United States. The only thing is I could be just as proud for half of the money.” With the passage of the 2017 Tax Cuts and Jobs Act (TCJA), many changes were made to the tax code including changes to business meals expenses. So, if…
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,…
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