How Do You Know If Your Business Needs An Accountant?

Are there times that tight finances keep you from really growing your business like you envision?  Perhaps you’re putting off investing in tools that can make your production faster. Or there are staff members you think you can do without, like an accountant.  Your reason is that you can enter the amount of money you make and what you spend in the books.  That’s enough for now.

Think again!  A business cannot grow if you don’t know “why” the money is flowing the way it is.  If finances are tight, there’s a problem in the money coming in or going out.  And if you don’t identify the problem your business will always be struggling. read more

What is your relationship with debt?

We all have experienced good financial times. It can either be an inheritance, large refund check, bonus, investment return, or some other financial influx. When these experiences happen do you ask yourself or list out the debt you owe and what you’re going to pay on or pay off? If so, what a great start to declutter your mind and get down to some truth and honesty. But, let’s be truthful most of us have a horrible relationship with money. And, after all we are told debt is bad. And if we must carry debt, only do so when you buy a house, car, have student loans but get rid of it as soon as you’re able. Most experts encourages us not to pay off our debt because doing so could possibly create other concerns. I am sharing my experiences that if you’ve ever pondered on should you or shouldn’t you pay off your debt below are a list of pros and a heap of cons to consider. read more

Taxes are Complicated because of Pass Through Businesses!

You say what is a Pass Through Entity? A registered Limited Liability Corporation (LLC) is considered as a “pass through” entity. It simply means that the LLC doesn’t pay taxes in a corporate tax system. However, the profits and loss are pass through the business and reported on the individual(s) tax return. The individual(s) pays taxes on the income, but the business itself doesn’t pay taxes! And, there is a rising number in these types of business formats. Why you say?

1). It is easy to set-up. read more

As the year ends..TAX TIME begins!

As we wrap up the 2012 year there are a lot of things that we can and should be THANKFUL for and one is our health and strength. But, it’s important to remember that as one year ends another one approaches. And, we must be proactive about how we handle our personal finances such as preparing for the Tax Season. Make sure that your 2012 taxes are prepared by a Registered Tax Preparer, or active Enrolled Agent or CPA. Allow me the opportunity to share some common mistakes to avoid while having your taxes prepared. read more

Are Accounting Departments Ready to Go Paperless?

Every industry goes through natural phases of transformation. As new technology becomes available, new processes are developed. And, Accounting is not exempt.

Just two years ago, I was awarded the Excellence in Sustainability Awareness award by Georgia Micro Enterprise Network. GMEN, is an organization that supports and promotes small business growth by assisting them with propelling to the next level through innovations, and implementation. And, to be totally transparent with you in my office it’s difficult far to often to remain Sustainable because most Business Owners haven’t quite got the fact of being paperless. read more

Tax Tips for Cash-Only Businesses

There are many small-business owners throughout the nation that accept cash only, such as restaurants, beauty and barber salons, medical offices, make-up studios, and Fitness Trainers. Although, it helps the AR balances the lack of an internal control process will create a downside with the IRS.

Based on information from the IRS, cash-only businesses have a 50-percent probability of getting audited while other businesses that accept other forms of payments only have a 5-percent probability. If your business transactions are handled in cash, provided are a few tips that will help you with limiting your chances of being audited and also assist with being organized and prepared if you’re ever audited. read more

Why trying to deduct your kids sporting events is not TAX DEDUCTIBLE?

I’m often asked, by many “can I deduct….”? As, it may seem that many of your daily activities are deductible, that can only be furthest from the truth. However, promotional costs that generate business goodwill such as sponsoring a little league team are deductible as long as there is a clear connection between the business and the little league being sponsored by the business.

Most coaching and sponsorships activities are categorized as entertainment which is subject to the entertainment rules mandated by the Internal Revenue Service. And, separate from the proving, the concern with entertainment is that it is limited to 50% of the costs. Please read the IRS Publication 463, Travel, Entertainment, Gift and Car Expenses. read more

Deductible even if no 1099 is issued?.

Many businesses apparently believe that they cannot deduct an expense,such as a legal settlement, unless they have issued a 1099 to a recipient. This is not the case…For example, when an employment dispute is settled, all or part of the settlement payment might not be taxable to the employee (e.g., when made because of sickness or a physical injury).

However, even a payment that is not taxable to the recipient may be deductible for the company as an “ordinary and necessary” business expense. read more

25 Ways To Be Your Best You!

No matter how low our bank balance drifts or how many nerves our loved ones are trampling, the problem is that happiness can feel so elusive. Happiness isn’t just a great hope; it’s also a quest – a state of being that is within our ultimate control. Research conducted by David Lykken of the University of Minnesota shows that we’re all born with a happiness set point, a dose of inherent joy that accounts for about half of our bliss bank. The first step is understanding that happiness isn’t about having a perfect life; it’s about choosing behaviors that can increase your joy. If I may quote the writer Alice Walker “Any happiness you get, you’ve got to make yourself”. read more

Commuting to school?Keep tax meter running…

Don’t forget to deduct the cost of your transportation to and from school as work-related education. This includes amounts spent for bus or train fares, cab fares and automobile expenses.

Strategy: Take the tax shortcut for deducting auto expenses. For 2010, you can use the standard mileage rate of 50 cents per mile, plus tolls and parking fees, for education-related travel. This saves you the hassle of tracking your actual commuting expenses to school.

Let’s say you travel 50 miles round trip three nights a week for two semesters, with each semester lasting 16 week.s The annual campus parking pass costs you $300. Under the standard mileage rate, you’re entitled to deduct $2,700 (50 cents x 4,800 miles + $300). read more