We’ve all heard the old quotes about time like “Time waits for no one,” and “There is no time like the present.” It is true that time matters a lot. And in business, the time taken to plan and prepare in advance is critical to achieving success. It is amazing to think that the autumn season is already upon us and that means that it is indeed time to make important financial preparations as the end of the year approaches….
In recent weeks taxpayers have received many IRS notices stating they have not paid their 2019 taxes even though the tax was timely filed and paid. It seems during the pandemic when IRS workers were off, the IRS accumulated unopened mail in trailers set up outside the IRS facilities. With the electronic filing system the actual tax return and balance due goes into the IRS computers immediately when efiled. As a result the system is generating balance due notices…
Business success requires a lot of things including a mission/purpose, excellent products or services, good people, and good operations. But it also requires profits. The old saying “No margin, no mission,” means that every successful company must have good financial and accounting practices that help it to achieve sustained profitability. As financial and investment expert Warren Buffett said, “Accounting is the language of business.” That “language” requires monthly reporting, quarterly, and annual reports. Good information is both accurate and timely,…
The primary purpose of every business is to make money; to generate a profit. If there is no return on effort and on a business’s investments, the business will surely die. There are clearly two major ways to generate profits: increase revenue and decrease cost. A key solution to control and reduce business cost is outsourcing, a widely embraced practice where a business hires a party outside the company to perform services that could otherwise be performed inside the company….
There is an old saying that “Knowledge is power.” That is certainly the case for every business. No smart business owner should ever guess what his/her cash balance is or take a rough “shot” at last month’s income or operating expenses. No! A key to success in business is careful preparation and wise use of quarterly reports, a summation of the financial statements. As Warren Buffet stated, “You have to understand accounting and you have to understand the nuances of accounting….how…
The original PPP program gave businesses 2.5 months of payroll as a loan which would be forgiven if you spent the money on payroll and other allowable costs over the 8 week period after you got the loan. Yesterday (June 4) congress finalized and passed HR 7010 which changes the PPP program retroactive to the original law date. Here are some key changes and how they will affect your business: The business now has 24 weeks to spend the money…
THE GOVERNMENT ACTUALLY PUT OUT A SIMPLE PROGRAM: This program started with a simple idea and hopefully, the final guidance on the forgiveness will be as simple. The original program allowed businesses to borrow 10 weeks of gross wages plus state unemployment cost, related employee health insurance, and retirement contributions for those 10 weeks of wages. The goal was simple, give employers the money to keep their trained workforce on payroll so when the economy opened up the workforce…
8 Important Accounting Services That Will Help Your Small Business Succeed Every small business owner starts his/her enterprise with a desire to succeed. However, success doesn’t come overnight nor is it easy to achieve. As renowned architect Frank Lloyd Wright said, “I know the price of success: dedication, hard work and an unremitting devotion to the things you want to see happen.” Achieving success doesn’t mean doing everything yourself. Especially important to long-enduring business success is securing expert accountant…
Information is changing so rapidly that news is outdated almost as soon as it comes out. Here are some recent developments that will affect small business: Which payments you can extend to July 15: The IRS issued minimal clarification on their extension of tax payments. The wording on their website states “Taxpayers can also defer federal income tax payments due on April 15, 2020 to July 15, 2020, without penalties and interest.” Since this wording does not relate to any…
The IRS announcement on delaying 2019 taxes yesterday can cause some confusion. Here are a few things you should be aware of and some unanswered questions: 1. The announcement did not extend the time to file. It simply gave taxpayers another 90 days to pay the tax without additional interest or penalty during that 90 days. Your tax return is still due April 15. 2. It is not clear whether the IRS extension of payment for 2019 tax also extends the…
© 2021 Doerhoff & Associates CPA Jefferson City. Powered by 