New Tax Developments Affecting Small Businesses

New Tax Developments Affecting Small Businesses

By | Accounting Advice, Small Business Advice

Information is changing so rapidly that news is outdated almost as soon as it comes out.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…

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More Questions than Answers on New IRS Announcement to Delay Tax Payments?

More Questions than Answers on New IRS Announcement to Delay Tax Payments?

By | Accounting Advice, Small Business Advice

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…

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Outsourcing

Make Your Business Better by Outsourcing

By | Small Business Advice

There’s a lot required to make a business operate successfully. Many small business owners face the challenge of trying to wear many “hats” in order to accomplish the varied needs of the business. However, trying to “do it all” is not a good approach. Rather, the idea of leveraging strengths, as taught to individuals, applies well to business. So, consider focusing and leveraging your skills and energies on the things that are critical to the mission of the business, and…

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Doerhoff-Advertising-Asset-Expense

Advertising—Asset or Expense?

By | Small Business Advice

Advertising is a key communications component of marketing. Marketing and advertising activities have been around for thousands of years. For example, ancient Greek traders hired “criers” to promote their products (like today’s sign shakers, perhaps.)  Today, we consider advertising to be the various means of promoting a company’s products, services and image through television, radio, direct mail, email and digital messaging. Marketing, the broader term, includes additional means of generating consumer interest and persuading people to buy, including such efforts…

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An Important Part of Tax Planning--Keeping Good Records Throughout the Year

An Important Part of Tax Planning–Keeping Good Records Throughout the Year

By | Accounting Advice, Small Business Advice

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…

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What Business Meals Expenses are You Still Allowed to Deduct?

What Business Meals Expenses are You Still Allowed to Deduct?

By | Accounting Advice, Small Business Advice

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…

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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.

What Taxes Do I Have to File While I am Self-Employed?

By | Accounting Advice, Small Business Advice, Uncategorized

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…

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Financial Ratios are Key to Understanding Business Performance

Financial Ratios are Key to Understanding Business Performance

By | Accounting Advice, Small Business Advice, Uncategorized

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…

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How Your New Business Start-up Expenses May Impact Your Taxes

How Your New Business Start-up Expenses May Impact Your Taxes

By | Accounting Advice, Small Business Advice

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?…

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How to Maximize Deductions for Your Next Business Trip

How to Maximize Deductions for Your Next Business Trip

By | Small Business Advice

It can be challenging to get away on vacation when you own a business or you’re self-employed. That’s one reason why you may jump at the chance to travel when the trip offers both business and personal pursuits. If you plan to claim tax deductions for travel, it’s important to understand what does and doesn’t qualify as a legitimate write-off under Internal Revenue Service (IRS) law.   Is the Trip Primarily for Business or Pleasure? If you’re planning a combination…

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