Many small business owners focus on generating more revenue every year, and that’s a wonderful goal. However, not all revenue is created equally since some items are more profitable than others. If you sell more than one product or service in your business, then you may benefit from looking at your revenue mix.

While it’s fun to watch revenues grow, your business profit is what really matters. If your expenses grow faster than your profits, then you have a lot of activity going on, but you don’t get to keep as much of what you make.

An insightful exercise to try is to take a look at your revenue mix. Then you can ask “what if?” to optimize your profits.

Your Revenue Mix

Let’s say you offer three different services: Services J, K, and L. Your revenue pie looks like this:

J: $700K or 70% of the total

K: $150K or 15% of the total

L: $150K or 15% of the total

Total: $1.0 million

In this example, Service J is...

The Employee Retention Credit is one of the many IRS tax breaks for businesses that was included in the 2020 CARES Act as well as the recent Consolidated Appropriations Act, 2021. The goal of the credit is to provide financial relief to businesses that suffered from the effects of coronavirus but retained their employees.

The credit is available to eligible employers that paid qualified wages from March 13, 2020 through June 30, 2021. To be eligible, requirements include having the business shut down due to national, state, or local orders or having experienced a significant reduction in gross receipts – 50+ percent in 2020 and 20+ percent in 2021 – in a quarter.

Wages and health costs can be counted for the credit, and there is a cap of $10,000 per employee per year. For 2020, the credit is 50 percent of qualifying wages, and for 2021, the credit is 70 percent of qualifying wages. Any wages used in a...

The American Rescue Plan Act of 2021 (ARPA) signed into law on March 11, 2021 by President Biden contains numerous tax provisions which may affect your taxes in 2020 and 2021. We’ll provide a general recap of some of the major changes in this article.

Recovery Rebate

The biggest news for taxpayers is a stimulus payment of $1,400 per person including dependents for taxpayers who meet income limits. The income will be measured based on the 2020 tax return if filed, and the 2019 tax return if 2020 has not yet been filed.

Individuals with adjusted gross incomes (AGI) of less than $75,000 qualify for the full amount, while individuals with AGIs between $75,000 and $80,000 will qualify for a partial rebate. Joint filers with adjusted gross incomes below $150,000 qualify for the full amount, while joint filers with AGIs between $150,000 and $160,000 qualify for a partial rebate.

The Recovery Rebate stimulus...

The American Rescue Plan Act of 2021 (ARPA) signed into law on March 11, 2021 by President Biden contains numerous tax provisions which may affect the tax situation for your business in 2020 and 2021. We’ll provide a general recap of some of the major changes impacting businesses in this article.

Employee Retention Credit

The Employee Retention Credit (ERC) has been extended through the end of 2021, which adds the third and fourth quarters to the mix. It also allows the credit to be claimed against the 1.45% Medicare or Hospital Insurance (HI) taxes.

The ERC can be a significant windfall for businesses that have had a drop in gross receipts or have been shuttered by a government order.

Paycheck Protection Program

While the current March 31, 2021 application deadline for First and Second Draw PPP loans has not been extended as of this posting, the ARPA did add...

We’ve been in a pandemic for what seems like five years now, right? All joking aside, if you’ve been lucky enough to work from home this past year, then it’s possible that you are in the process of going stir-crazy. Or maybe you’re simply ready to shake things up a bit.

Working from home has its benefits. Yet, if you are someone who enjoys going to the office every day, chatting with co-workers in person, attending meetings that aren’t all virtual, and having a little spontaneity each week, then we’re here to help. Here are five tips to boost your WFH (working from home) environment.

• Take Short Breaks

Taking regular breaks throughout the day is so important, and more so now than ever before! Without a doubt, these breaks will help you mentally (that is, keep you from going stir-crazy), but they can also help your work productivity and quality. These breaks don’t need to be—and shouldn’t be—long or...

Sometimes it’s hard for business owners to know how to take their businesses to the next level of growth and profitability. If you’ve been stuck at the same revenue or profit level for a while, it could be because knowing how to scale your business is not a skill in your skillset — yet.

Enter a classic management book on scaling: High Output Management by Andrew Grove, ex-chairman and CEO of Intel. While it was written in 1983, it has made a recent comeback in Silicon Valley but is still not well-known outside of the Bay area. Many people who have read it say it’s the best management book they have ever read, life-changing even. It is certainly a timeless and invaluable read for business owners and managers.

In the book, Grove applies the principles of engineering and manufacturing production to management. It’s all about process: developing processes and procedures so that you can track what’s going on and measure the results, or output, every step of the way. Only...

In accounting, a key term to know is “internal control.” Internal control is the series of processes and procedures that are performed within the organization to ensure the integrity and accuracy of the financial information and reporting of that organization.

Internal control is very important to consider in order to protect the business owners, employees, vendors, investors, and other stakeholders. In a small business, maintaining good internal control is often a challenge since staff size is smaller and resources are limited. Yet, it is essential to understand so that the business owners understand what risks they are taking every day in their businesses.

A good system of internal controls can help the organization reduce the risk of fraud, safeguard against loss, and demonstrate good business practices.

Key Concepts Segregation of duties is the first of three key concepts of...

All small businesses need cash to operate, and there are many ways to generate the required cash. The most common way that many businesses get started is when the owner makes an investment from their savings or other personal cash. But what if it’s not enough? In this article, we’ll take a look at some of the more common ways to finance a business.

Community banks Most community banks are big proponents of small businesses, so this is a great place to start. Establish a relationship first by opening business checking and savings accounts. Then apply for a line of credit, which is a pre-approved loan that you can tap when you need it. If you plan to purchase a building or equipment, you should be able to get a loan by using the asset as collateral. Business expansion loans are possible too; you may be able to borrow against your accounts receivables or other contracts with guaranteed income.

Beyond community banks,...

When it comes to running a successful business, how important is it to be organized? In a word: very. Now, how would you rank your organization skills? Honestly, the answer really doesn’t matter. We can always get help from technology, and this is where Airtable comes in.

Airtable goes beyond spreadsheet solutions when it comes to tracking teams, projects, tasks, dates, and other information in your business. Cloud-based, Airtable allows you to organize information in a database – they call them bases – of tables. While databases can be complicated, Airtable makes it easy because it looks just like a spreadsheet.

Airtable allows users to create a flexible database that fits their particular needs. Some of the use cases include project tracking, product development, event management, team collaboration, lists, planning, pipeline management, calendars, and so much more. Templates are available to jump-start your project.

Because Airtable is like a spreadsheet, it...

Are you familiar with Clubhouse? This social media platform is still pretty new, but currently picking up steam. Perhaps one of the easiest ways to describe Clubhouse is like this: When you were a kid, did you ever hold a glass to a wall with your ear glued to it in order to hear the conversation in the next room? Clubhouse is kind of like that, only scaled and organized.

Clubhouse is an audio-only platform where you can start a room based on a topic and others can join the room and conversation. You can bring people up to the “stage” who have raised their hand. The platform supports multiple languages, and at any one time, you can see rooms in Russian, Spanish, Mandarin, German, Japanese, English, and many more.

Think of Clubhouse this way: It’s like an interactive live podcast. The platform hosts both personal and business conversations, so there is a lot of noise to wade through, but that’s true of every social app. Many people love the lack of video that is so...

The Chart of Accounts is the backbone of your accounting records. It is a list of all of the accounts – bank, loan, asset, revenue, and expense – in your General Ledger, which holds all of your accounting transactions.

Think of your Chart of Accounts as a collection of buckets that hold dollars of items related to your business. Each bucket should be meaningful and have a purpose. For example, if you have three checking accounts, you need three buckets on your Chart of Accounts to hold the transactions for each bank account. It would not make any sense to have more or less than exactly one bucket for each checking account.

While it’s standard to have certain buckets or accounts for assets, liabilities, and equity, the number of buckets that you create for revenue and expenses can vary greatly from company to company. It makes sense to create and design your accounts for what you need for tax, accounting, and decision-making purposes in your business.

Let’s say...

Finally, the Small Business Administration (SBA) is about to open the application portal for the long-awaited Shuttered Venue Operators Grant (SVOG) Program, which is designed to help entertainment venues and cultural institutions weather the pandemic shut-downs.

Background

On December 27, 2020, the President signed into law the Consolidated Appropriations Act (CAA), which was the second of three large COVID-19 relief acts. Section 324 authorizes the SBA to make grants to eligible performing arts and cultural organizations who demonstrate a 25 percent reduction in revenues.

CAA added $15 billion to the grant fund and the American Rescue Plan Act (ARPA) signed into law on March 11, 2021 adds another $1.25 billion. Two billion is set aside for organizations with fewer than 50 employees.

The relief comes after an...

This year, a record number of tax returns will be put on extension, and yours might be one of them. Having your return go on extension makes some taxpayers fearful and even angry. There are a lot of things to worry about in life, but filing a tax extension is not one of them.

Here are several reasons why filing a tax extension is in your favor in 2021.

1. Less Chance of Being Audited

Let’s bust the big myth right away. Some taxpayers incorrectly think that if you file an extension, you increase your chances of being audited. This is the opposite of true. There is no difference in your chances of being audited based on when you file.

Some experts believe that filing your return after the first deadline actually decreases your chance of being audited.

Year after year, as Congress reduces the IRS’s budget, the number of audits has decreased. For tax year 2019, the agency audited 0.45% of individual tax returns or 1 out of every 220....

While we all have to keep our monthly books up to date for tax and other compliance reporting purposes, we should never stop there. Your books hold a wealth of information that you can use to run your business better. Here are five reports you should never be without.

Budget-to-Actual Profit and Loss Statement

Hopefully, you’ve already seen how powerful the Profit and Loss Statement is. Let’s take it a deeper level and add budget comparison to it. With this addition, you can plan your way toward the sales and profit figures you want. You’ll know every month whether you’re on track, ahead of the game (give yourself five stars!), or need to hustle to make it up next month.

Most accounting systems allow you to enter monthly budget numbers for your sales and expense accounts. You can enter them at the beginning of each year and adjust them throughout the year. It’s kind of like having Google Maps on a cross-country journey. You will be able to see...

You may already be doing your part to help save the planet. From recycling to driving electric cars, to avoiding the use of plastic bottles and carrying reusable bags to the grocery store, there are myriad ways for all of us to make a difference—both big and small. However, it may be important to stop and ask ourselves: Are we currently doing enough?

If you have considered pursuing an even more sustainable lifestyle, guess what? There’s an app for that! Actually, there are a few different apps to help you accomplish the goal of tracking your carbon footprint. In doing so, you can physically see your carbon environmental impact.

Below, we have detailed some of these apps and their benefits. Take a look! If you have any questions, please don’t hesitate to reach out.

Capture

Capture is an app that calculates users’ monthly CO2 targets by asking a series of questions. These questions include things like, “How many flights a year do you take?”...

Every business organization owns assets that need to be protected from threats. If these assets are not protected, business owners may face losses and an interruption in business operations. One way to be proactive in reducing organizational risk is to implement strong internal controls.

The concept of internal control is a foundational principle for accountants. Implementing internal control takes strategy and commitment from the top to the bottom of the organization. In this report, we’ll share a handful of tactical ideas to give you a taste of how internal control can be implemented in your business.

Here’s a partial list of ideas to implement in your business that will not only strengthen internal control but also reduce your risk of business loss.

Employee

Run background checks on all job candidates before hiring.

For employees who will be handling money directly, secure bonding.

Acquire workers compensation for each...

If you’re a business owner who wants to continually find ways to increase your profitability, then you’ll want to learn about direct and indirect costs. Breaking out your expenses into direct and indirect categories can help you arrive at the most profitable volume of sales for your business.

Direct Expenses

Expenses that fall into the direct cost category are ones that relate directly to the items you sell. Here are some examples.

• If you have a flower shop, the cost of the flowers is a direct cost. So is the cost of vases, ribbons, cards, and the labor to put the arrangements together.

• If you are a law firm, the labor and any materials or supplies spent on serving a client is a direct cost.

• If you own a pool building company, the costs of the concrete, tiles, filter, pump, and labor to build the pool are direct costs.

• If you run a toy store, the purchase of the toys is a direct...

Many people have complained about the worker shortages this year. If you need additional workers in order to grow your business, here are some ideas for your consideration.

Where to Look for Workers

We may think of workers as only being employees, but there are a lot more options if you’re open-minded. Here’s a list of places to find workers of all kinds:

• Recruiters

• Employment agencies

• Online job portals, such as Indeed, SimplyHired, and ZipRecruiter.

• Social media, including LinkedIn Jobs

• Your own website, email list, or employee referrals

• Temp agencies

• Specialized online job portals that cater to your industry and business type

• Virtual assistant organizations

• Day labor online sites and pickup areas

• Job matching sites such as Upwork, Fiverr, and Freelancer.

• Colleges, when you need interns...

While Net Profit and your cash balance are probably the first two numbers you look at on your monthly Profit and Loss Statement, don’t stop there. There are a lot more gems you can glean if you dig a little deeper and look through the following six lenses at your data.

1. Automation Opportunities

Look at your labor detail reports as well as professional and outsourcing expenses to see what areas might be ripe for automating. Is your admin spending too much time scheduling meetings? If so, automate everyone’s calendars. Are you finding places where duplicate data-entry is driving up costs? Get Zapier or another integration solution.

On the flip side, cancel tech spending where you are no longer using the app and get those expenses off your books.

1. Duplicate or Excessive Expenses

Where are you paying for things twice on your Profit and Loss Statement? Where could you scale down? As...

If you grant credit to customers or take recurring credit card payments, the unexpected can happen: a customer fails to pay on time, the credit card expires, or the check bounces. What can a business owner do to spend as little time as possible on these items but get the cash collected? Plenty. Here are our ideas:

Re-examine your credit policy

Is there any way you can have credit customers pay up front? Perhaps you can collect a deposit to minimize your risk. Perhaps you can request final payment right before you deliver the final product. Perhaps you can convert credit terms to a layaway situation, like they use in retail.

The best way to speed up collections is to change your payment terms if at all possible.

Be proactive

If the client is late with a payment, respond quickly. Send them proactive reminders. Give them a call just before the payment is due if you have this luxury.

If the customer pays by...

The 2021 holiday sales season will give businesses a chance to continue their online migration from 2020 trends, with opportunities for more refinement and improvements. The key is to bring as much as possible online and integrate all of your customer touch points into an omnichannel of positive experiences.

Let’s take a look at some trends in retail that we can apply to many other industries. These trends will strengthen our businesses and position us well for the future.

Strong E-Commerce Presence

As people increased online shopping and delivery last year, the trend is expected to continue beyond the pandemic. For this reason, all businesses should strengthen their online presence, especially their e-commerce presence.

Many retail establishments benefit from a complete ecommerce solution, including a storefront, shopping cart, online payment process, and automated fulfillment. They can expand their online effectiveness with these...

Time is our most precious personal resource; once we’ve spent it, we’ll never get it back. As busy entrepreneurs, we seem to have less time than anyone else, so it just makes sense to look for ways to use our time wisely. Here is one technique that has worked for many.

The Four D’s

When you think about it, there are only four actions you can take against any one of the many tasks you have on your plate:

1. Do it.

2. Delegate it.

3. Delay it.

4. Delete it.

As you approach each task on your to-do list, ask yourself which one of the four D’s is best.

Do It

The first option is simply to do the task yourself. Get it done, checked off, and out of the way. This is often the best option if it’s urgent, important, or you are the only one with the experience and training to do it.

It might sound counter-intuitive at first, but doing a task might not be the best...

For service businesses, labor cost is the largest expense that is incurred in business operations. For many other types of businesses, the cost of labor is a large component of overall costs. Controlling labor costs so that they stay in line with what’s best for the organization is an important management function. Here are several ways to control or reduce labor costs in your business.

Encourage employee retention.

If well-trained employees leave, you must replace them with inexperienced employees that need training, resulting in a temporary loss of productivity. Some turnover can be good, but if it’s too high, it can result in increased labor costs.

Automate tasks.

Save labor by automating any tasks that can be automated that employees are still performing. While some automation might require extensive capital outlays, many systems can be implemented that are not costly and that have an immediate return on...

As we approach the holiday of giving thanks, it’s the perfect time to think about how we can use thank-you notes in our businesses and lives to express our gratitude to others.

When to Say Thank You

There are many opportunities in business to say thank you:

• When a client or associate sends you a referral that results in business

• When an employee goes out of their way to fix a problem or make a customer happy

• When a customer makes a large purchase

• When a vendor over-delivers

• When someone sends a gift

• After a speaking engagement or an event when someone has hosted you

• When someone provides advice that has been helpful, whether face to face or in a book or article

• When someone does a favor or something nice that you’d like to reward

Keeping thank-you notes top of mind will help you think of more opportunities to use them.

What to Say...

Keeping track of how you and your workers spend time is one of the most important things you can do in your business. Labor costs can be a large portion of expenses, and understanding how time is spent can help you manage your business better in a multitude of ways.

Benefits of Time Tracking

There are many reasons and benefits to track time:

• If you price by the hour, time tracking is mandatory, because without it, you won’t be able to invoice your clients accurately.

• Tracking time helps managers understand how long a task should take, where employees may need training, and where processes and procedures may need improving.

• Information on time reports can be fed into a project management system and reviewed to make better fixed fee pricing estimates on future jobs and customer proposals.

• Time tracking feeds into job costing for construction companies.

• For manufacturing businesses,...

How effective is your sales function in your business? One way to answer that question at a deep level is to calculate conversion metrics for every step of your sales cycle. These numbers are not tied to any numbers on your balance sheet or income statement, but can help you realize a better return on your sales and marketing expenses.

Your Sales Cycle

The sales process is different for every business. If the dollar amount of the customer purchase is small, the sales cycle needs to be very short or it won’t be efficient. For larger purchases, the sales cycle might be longer.

The first step in determining conversion metrics is to outline the steps a typical prospect takes before they become a customer. Here are a few examples:

Retail example.

1. Prospect walks into store.

2. Sales clerk interacts.

3. Prospect selects item(s).

4. If clothing, they may visit a dressing room and try it...

The last few years have been unlike any other in our lifetimes. As we close out 2021 and enter 2022, it’s the perfect time to reflect on what we’ve learned, what’s happening now, and what we want to accomplish in the next 12 months. Here are some things to consider.

Celebrate Your Successes

Give yourself time and permission to review what you have completed in 2021. You’ve likely learned and accomplished more than you think. Compare your status on January 1, 2021 with today, and celebrate the changes you’ve made and projects you’ve finished.

Monetize These Trends

Several trends will continue from 2021 into 2022 and beyond. How can you monetize them in your business?

• The move to remote work is likely to continue, especially in certain industries, such as financial services and technology, where the work is delivered digitally. Hiring virtual workers gives employers access to a larger talent pool as...

You’re not alone if you’re having trouble attracting and keeping staff. A convergence of issues has created one of the greatest talent shortages in our lifetimes. With boomers retiring in large numbers, pandemic and opioid deaths, people not wanting to work for low wages, child care availability disappearing, tighter immigration policies, people rethinking their life choices, and so many other factors, it’s no wonder small businesses are having trouble finding workers.

The good news is small business owners still have a lot in their control to be able to attract the perfect candidate to our workplaces. Here are some ideas to help you do just that.

1. Be open to multiple options when it comes to what an employee looks like

If you require a 40-hours-a-week, onsite worker who has to dress in formal clothes to come to work, you need to rethink everything. Many talented people are choosing to work part time, and it might just be easier to find two...

The IRS announced that it will be sending out letters to everyone who received advance Child Tax Credit payments. Please be on the lookout for this letter and DO NOT throw it away. IRS Letter 6419 will go out January 19, 2022. It will show the total amount of advance Child Tax Credit payments that your received in 2021. Please provide us with a copy of this letter when you receive it. We will need it to reconcile the credit on your tax return.

The past few years have seen major kinks in the supply chain due to a number of reasons: aberrant buyer behavior, source material scarcity, government shutdowns, and worker shortages, to name a few. What can a business owner do to protect their businesses from shortages and therefore, revenue loss? Let’s take a look at a few ideas.

Source New Suppliers

Being dependent on only one supplier for a key item is risky. Increase your options by finding new suppliers to use as backups or alternates whenever you can. While it’s admirable to buy local, it’s not always possible. Expanding your network will provide you with a lot more flexibility, even if you have to pay a bit extra at times.

Understand Your Timeline

How accurate is your prediction of lead time? Are you providing enough time from ordering and delivery before you need the part in house? Timelines have changed a lot in the last year. Spend some time reviewing and...

There’s more to being financially resilient than simply saving enough money for a rainy day. A part of being financially responsible is maintaining good financial records – and making sure people who need access to your records know where to find them if something happens to you. Here are some ideas for your consideration.

Communicating your goals

Too many families spend little to no time talking about money, and this habit lowers the financial literacy of everyone in the household. Do you know what goals each of your family members have around money?

Talking about money – more than what bill is due when – will strengthen everyone’s financial resilience in your family. You may want to set family goals as well as encourage everyone to set individual financial goals. This may or may not include preparing a budget and agreeing on plans, including a savings plan, a debt reduction plan, and others.

Systems and lists

Do you...

Most entrepreneurs would agree that owning a business is an incredible privilege, and they would likely never want to go back to working for someone else. However, we all have our days! And sometimes those rough days can turn into weeks. If we’ve temporarily lost a little bit of our entrepreneurial passion, how can we get that back? Here are some tips.

Customer Reviews

Reading reviews left by customers about your business can help you see things from your customers’ eyes. If the reviews are positive, they can help you see the impact your business has made on them which can boost your motivation. If the reviews are glowing, then this task alone can fuel your rejuvenation. After all, you have a lot more people you can make a difference with!

If you don’t have reviews, ask for them. The first time you do this, it can be an amazing experience.

Personal Self-Care

Make sure to allocate enough time for personal care. No...

Collecting money from customers is a key function in any business, and the more automated this process is, the better. The payment function varies by type of business, but more and more, there are online options available for collecting money over the internet. Here are few tips on what that looks like.

Your Website

The perfect place to collect money from a customer is your website. Or is it? Actually, it’s not, but wait, let me explain first.

A typical website is not as secure as it needs to be to collect credit card information from customers. You almost always need an additional app for that. But what you can do on the website is add a link (usually behind a button) or an entire webpage (a sales or product page) to your site that seamlessly takes the customer to a secure site – a shopping cart with a payment gateway — to enter credit card details.

So, the only way your website gets involved is that it has the link or button that provides...

Transport yourself back in time 50 years. An accountant sits at their desk with several big heavy ledger books in front of them. Their sharpened Number 2 pencil is posed in their hand, carefully recording numbers on scored ledger paper. A 10-key adding machine spews white rolls of paper with printed numbers as the accountant adds up the figures in the ledger, one column at a time.

Fast forward to today, and luckily, accounting software has replaced the old-fashioned ledger books. Computer programs specialized in accounting functions now perform calculations, account postings, and other processes needed to maintain a business’s accounting records.

An entire ecosystem of accounting software programs and the vendors who support them exists to streamline the accounting function and deliver the information you need for tax compliance and to run your business better. At the heart of every accounting department is the core accounting software: the programs that perform...

Most large businesses have developed mission, vision, and values statements to help guide them and inform stakeholders about the company’s strategic direction. Going through this strategic exercise is a wonderful idea for even the smallest business as well.

A company’s mission statement lists its core purpose and desired impact for employees, customers, owners, and other stakeholders. A vision statement defines what the company wants to be. A values statement describes what the company stands for.

It’s a perfect activity for business owners to answer and remember why they built the business in the first place. It also serves to correct and re-align the trajectory of the business.

Mission Statement

Start by asking what impact you want your business to have on the outside world. Here are some mission statement examples that are frequently quoted:

• Harley-Davidson: More than building machines, we stand for the timeless pursuit of...

Measuring and encouraging customer retention is important for businesses in many industries. There are a couple of great measures to see how you are doing in this area. We’ll explain those and provide some tactical tips in this article.

Measuring Customer Retention

The most common metric to measure customer retention is the customer retention ratio. The best report to run to gather the data for this is a Revenue by Customer Summary Report. Each customer should be listed in a row of your spreadsheet, and each year’s revenue for that customer should be listed in the columns.

From this report, you can get the following numbers. Let’s use 2020-2021 as our measurement period.

A = How many customers you had with sales in 2020

B = How many customers you had with sales in both 2020 and 2021

The formula is B / A, which will give you the retention ratio. The formula A – B will give you a count of how many repeat customers you lost.

C = How many...

A refund policy defines the processes and rules for when customers want their money back and want to return the products or services they purchased from you. It’s often required by your credit card or shopping cart company as part of maintaining PCI (Payment Card Industry) compliance. Plus, it’s just a good, fair business practice to post one.

As a business owner, you can set your own refund rules. The important thing is that they are communicated clearly to the customer in advance of their purchase.

A good refund policy answers the questions that customers have when the item they purchased from you does not work out. It reduces conflict and ambiguity, and improves customer service. It also helps your employees work with customers’ expectations, by allowing them to refer to the posted policy that a customer can see with their own eyes.

Here are some of the components you’ll want to address in your refund policy:

Items to be returned: Which items can be...

Getting your business loan can be an exciting step in the growth of your business. Recording your loan properly in your accounting system usually requires special handling by your accountant. Your loan statement will provide the information you need to get it booked properly.

You’ll need the following pieces of information about your loan:

• Total amount borrowed

• Date of loan

• Date of first payment

• Payment amount

• Term of loan

• Number of payments

• Interest rate

The full amount of your loan should be recorded as a liability on your business’s balance sheet. Two liability accounts should be set up: one for short-term and one for long-term. The offset is either an increase to cash or the recording of new assets like a car, truck, or building.

Each payment you make consists of two parts: interest and principal. Interest is an expense and is recorded in an...

Pick up just about any public company’s most recent annual report, and you’ll find a section on ESG. ESG stands for Environment, Social, and Governance, and the trend of not only considering, but also measuring a company’s sustainability performance on ESG issues has become key. A new generation of investors is driving this movement as they become more discerning when selecting companies to invest in.

While ESG is still predominately a large company issue, small companies can benefit from being aware of this trend. But first, here is a very brief summary of the ESG components:

Environment

Measuring a business’s impact on the environment means taking into consideration topics such as climate change and sustainability. How many natural resources does the company use, and are they replenishing them as they use them? If they are polluting, how are they cleaning it up?

Social

The social impact of a business is the broadest...

Pick up just about any public company’s most recent annual report, and you’ll find a section on ESG. ESG stands for Environment, Social, and Governance, and the trend of not only considering, but also measuring a company’s sustainability performance on ESG issues has become key. A new generation of investors is driving this movement as they become more discerning when selecting companies to invest in.

While ESG is still predominately a large company issue, small companies can benefit from being aware of this trend. But first, here is a very brief summary of the ESG components:

Environment

Measuring a business’s impact on the environment means taking into consideration topics such as climate change and sustainability. How many natural resources does the company use, and are they replenishing them as they use them? If they are polluting, how are they cleaning it up?

Social

The social impact of a business is the broadest...

Almost every successful business owner craves accountability. We’re wired to respond to crises and to help others, sometimes before we help ourselves. Entrepreneurs are excellent in running their day-to-day businesses, but some need more accountability to meet internal deadlines and long-term goals. Let’s take a look at how we can increase our accountability.

Setting Goals and Deadlines

The first step to being accountable is to have something you want to achieve, and this means setting goals. We all have projects we want to do that haven’t been done for a variety of reasons. Just choose one, and make a timeline of tasks and milestones that you would like to be held accountable for. Mark your calendar for each milestone and the project’s end date. Display your list of milestone dates prominently on your desk or wall where you work. Carve out time to work on your project by blocking out your calendar.

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Every business has competitors of one sort or another, and in many industries, it’s crucial to know what your competition is offering their customers. The good news is you can often find out what your competition is up to, and this is where mystery shoppers come into play.

A mystery shopper is a person who is hired to visit and shop your competitors for the purposes of sharing information about their experience. Mystery shopping is one way to collect input so you can complete a Competitive Analysis – a report on who your competitors are and what they are doing. This report should be part of your marketing plan and will help you spend your marketing dollars wisely.

Let’s say you own a fabric store, and you want to know what other stores in your area are doing. You can make a list of the four or five fabric stores in the three zip codes around you. You would then provide that list to your mystery shopper, who would visit each of the stores. You might also provide your...

Whether we’re headed for a recession or not, it’s always a good time to squeak out more profits from your business books. We’re not talking about drastically slashing expenses or spending a lot to raise revenue; the tips in this article are long-term ideas to gently lift up your profits.

Timing on Capital Purchases

The timing of asset purchases, such as equipment, a truck, or even a PC, can be tricky. Understanding the best timing for asset purchases and replacements can make a difference in your profits.

When purchasing a new asset, gain a good understanding of the return on investment so that you’re prepared from a cash flow standpoint. With more complex businesses, it’s a good idea to hire an accountant who knows your industry and has capital expenditure experience.

When replacing an asset, it should be timed so that the asset is replaced before you have to spend a lot on repairs, but not so soon that you don’t get good use out of...

When starting a business, most entrepreneurs excel at the specific technical skill set they need in order to deliver their services and products to clients. For example, if you own a bike shop, you are pretty great at all things related to bikes. If you own a law firm, you are probably good at practicing law. This skill is your core skill.

As your business grows, you need different skills beyond your core skill in order to thrive. That skill depends on the type of business model you want to succeed at. Here are some examples of business models and the key skill you need to be outrageously successful.

People-Based Business Model = Leadership

If your business is one of the 25 percent of small businesses that have employees and you have a team that serves customers, then you most likely have a people-based business model. The revenue you earn is dependent on how your people perform and serve clients.

Some examples would be a mid-sized law...

Remote working has exploded in the last few years, especially in professional services. Now that companies are seeing the benefits of remote working, they are also seeing the benefits of an expanded pool of potential employees. Some firms are hiring employees that live several states away from where the office is located, which comes with quite a few ramifications for the business.

Let’s say your business is based in Texas. You already file quarterly payroll reports and pay federal payroll taxes for your Texas-based employees. You also already file all the required state payroll reports and have Texas workers compensation. In May, you hired an employee that lives in Cleveland, OH. And in June, you hired an employee that lives in San Francisco, CA. You’ll need to get set up to pay employees in each of these states:

• You may need to get set up as a Foreign Corporation in these states (the exact paperwork depends on your type of entity as well as the state’s...

ClickUp™ is a versatile new web application that serves multiple functions for a small business. It’s primarily a CRM – customer relationship management – with project management and workflow features built in, and is adaptable across several industries.

ClickUp’s goal for its users is to save time and reduce redundancy by tying everything together in one app. Its integrations, which are called ClickApps, are truly its strength. The 1,000+ integrations set ClickUp apart from other offerings, and for this reason, ClickUp excels at automating processes that use multiple apps, including hard-to-automate processes like customer onboarding.

Some of the items people use ClickUp for include reminders, goals, whiteboards, templates, calendars, document flow, task management, dashboards, marketing processes, and team collaboration and communication.

One of the features that is frequently mentioned is the ability to create custom views exactly the way you want them. Views...

Your favorite number on the balance sheet might just be Cash. It’s easy to understand and something every business has. But there is a more meaningful number, at least in the long-term sense, and that’s equity. Let’s dive deeper into that part of the balance sheet.

The Equity Section

As a reminder, the balance sheet has three major sections: assets, liabilities, and equity. When it comes to equity, the accounts that are displayed are dependent on the type of entity of your business. Your business could be a sole proprietorship, a partnership, a corporation, or something else. In this article, let’s focus on equity in a corporation.

Every corporation should have at least three equity accounts.

1. Stock.

This account should reflect the amount of stock issued by the corporation. The amount and price of each share is usually spelled out in the Articles of Incorporation, the initial legal document of the...

How do you arrive at a price for the products and services you sell? While it depends on what industry your business is in, there are only a handful of foundational pricing methods that are useful to know. Here are several of them.

Time and Materials Pricing

Many service-based businesses price based on the time spent performing the service. An attorney usually has an hourly rate. A massage-therapist will charge based on a 50- or 80-minute service. Plumbers charge a minimum fee for the first hour and another rate for subsequent hours. A moving company charges by the hour (they may also charge by truck or have a fuel charge these days).

In some cases, time-based pricing may be loosely tied to the salary level of the person performing the service, but there must be a substantial markup to cover payroll taxes, health insurance, overhead, training, and any materials or tools that are included.

Cost-Plus Pricing

Cost-plus...

The equity section of a business’s balance sheet is the most difficult part to understand. The accounts that make up that section vary depending on the type of entity in which the business is structured. In this article, let’s take a look at a partnership balance sheet and what the equity section looks like for those companies.

Balance Sheet for Partnership Business

As a reminder, the balance sheet has three major sections: assets, liabilities, and equity. The equity section focuses on the investments that the owners have in the business. For partners, it consists of their capital accounts. The section for a partnership balance sheet could look like this:

Partners’ Capital Accounts

Partner A Capital $25,000

Partner B Capital $25,000

Partner C Capital $50,000

Each partner has their own Capital account within the equity section of the balance sheet for a partnership business. A...

Mastering the Art of Tax Security: A Comprehensive Guide to Avoiding Liens and Levies and Financial Turmoil

Welcome to an in-depth guide on safeguarding your financial well-being by mastering the art of tax security. As an expert in tax matters, I recognize the complexities that tax liens and levies can introduce into your financial life. In this comprehensive guide, we’ll not only define tax liens and levies but also explore practical strategies to proactively navigate these challenges.

Understanding Tax Liens and Levies

Defining the Terrain: Understanding the implications of tax liens and levies requires a closer look. A tax lien isn’t just a bureaucratic formality; it’s a legal claim against your property due to unpaid taxes. This can significantly impact your credit score and potentially lead to more severe consequences, such as property seizures. Levies, on the other hand, represent the actual seizure of assets, including...

Mastering Your Finances: A Guide to Quarterly Tax Planning

Quarterly tax planning is a dynamic and strategic approach that businesses and individuals can adopt to manage their tax obligations more effectively. Unlike the traditional annual approach, quarterly tax planning involves estimating and paying taxes in four equal installments throughout the year. This proactive method not only ensures compliance with tax regulations but also serves as a crucial tool in enhancing financial stability and cash flow management.

Understanding Quarterly Tax Planning

Why Quarterly Planning Matters:

The quarterly system operates on a rhythm that allows for a more granular assessment of financial standing. By breaking down tax payments into smaller, manageable chunks, businesses can better align their financial resources with their tax obligations. This approach provides a clearer picture of cash flow throughout the year,...

Decoding the Tax Maze: A Journey Through the Lifecycle of a Tax Debt

Navigating the intricacies of tax debt can be a challenging journey for many individuals and businesses. Understanding the entire lifecycle of a tax debt—from its assessment to resolution—is crucial for maintaining financial health and compliance with tax regulations. In this comprehensive guide, we’ll delve into each stage of the tax debt lifecycle, providing insights and practical tips to help you navigate the complex terrain of tax obligations.

1. Assessment Phase: Unraveling Your Financial Tapestry

The journey begins with the assessment phase, where tax authorities meticulously evaluate your financial activities to determine the amount of tax owed. This phase involves the calculation of taxable income, deductions, and credits. It’s not just about numbers; it’s about unraveling your financial tapestry. Maintain accurate records to ensure a transparent and...

Enhancing Tax Compliance: Understanding Audit Triggers in the Tax World

In the intricate landscape of tax compliance, understanding audit triggers and staying ahead of them is crucial for the success and reputation of any tax company. An audit trigger, often the harbinger of scrutiny from regulatory bodies or internal stakeholders, requires a strategic and informed response. In this blog post, we’ll explore common audit triggers and provide insights on how tax companies can effectively respond to them.

Navigating the complexities of tax compliance requires a proactive approach, especially in the face of potential audit triggers. Tax companies must not only stay abreast of regulatory changes but also cultivate a culture of transparency, accountability, and continuous improvement. Let’s delve into key strategies for tax companies to enhance their compliance efforts and effectively respond to audit triggers.

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Navigating Tax Challenges with Expert Guidance as an Enrolled Agent

In the intricate world of taxation, businesses and individuals often grapple with the complexities of tax laws and regulations. When confronted with tax-related challenges, the role of an Enrolled Agent (EA) becomes paramount. These professionals undergo extensive training and examination processes to provide expert guidance in tax matters. They are authorized by the Internal Revenue Service (IRS)

The Enrolled Agent’s Expertise in Tax Law

Enrolled Agents are not your average tax professionals—they are highly trained and thoroughly examined individuals with a deep understanding of the U.S. tax code. The National Association of Enrolled Agents (NAEA) outlines that EAs have a comprehensive knowledge of tax laws, allowing them to interpret intricate regulations and provide...

Maximizing Your Business Tax Deductions and Credits:

A Comprehensive Guide

Running a successful business involves not just managing day-to-day operations but also optimizing your financial strategies to maximize tax benefits. Knowing the ins and outs of business tax deductions and credits can make a significant impact on your bottom line. In this comprehensive guide, we’ll explore key areas where your business can potentially save money through deductions and credits.

Business Tax Deductions:

Operating Expenses

One of the foundational elements of effective tax planning is identifying and deducting operating expenses. This category encompasses essential costs such as rent, utilities, insurance, and supplies necessary for the daily functioning of your business. Keeping meticulous records of these expenses is crucial for accurate tax reporting.

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Understanding the Landscape of Payroll Tax Issues and Challenges

We will delve into the prevalent payroll tax issues employers face and provide valuable insights to navigate these challenges effectively. By the conclusion of this article, you’ll be equipped with the knowledge and strategies necessary to streamline your payroll tax processes, ensuring compliance with tax regulations and fortifying the financial health of your business.

Effective payroll tax management is an intricate dance within the broader sphere of business operations. Employers find themselves navigating through a complex landscape, where the nuances of regulatory compliance, coupled with the precision required in financial reporting, become critical elements. These challenges demand not just attention but a comprehensive understanding to ensure the success and sustainability of any business.

1. Regulatory Compliance: Navigating the Complex Web

The...

Crush Back Taxes: A Self-Employed Guide to Financial Liberation

Embarking on the entrepreneurial journey as a self-employed individual is an exhilarating ride, but amidst the highs, the looming specter of back taxes can cast a shadow on your financial freedom. In this illuminating guide, we will not only demystify the complexities of back taxes but also provide you with a strategic roadmap to overcome this financial challenge and set yourself on the path to lasting success.

Section 1: Understanding Back Taxes for the Self-Employed

Definition of Back Taxes

The term “back taxes” may sound ominous, but in reality, it refers to fiscal arrears from previous filing periods. For self-employed individuals, a dynamic income stream and irregular cash flows can inadvertently lead to lapses in meeting tax obligations. Understanding this distinction is pivotal as it forms the foundation for a tailored resolution...

Navigating Uncommon Tax Challenges in Estate and Gift Taxes

Embarking on the journey of estate and gift taxes involves more than just understanding the basics. As you plan for the transfer of your wealth, unexpected challenges can surface, leading to uncommon tax debts. In this post, we’ll delve into specific scenarios that may catch you off guard and explore how your tax professional can assist in resolving these complexities.

Understanding the Ins and Outs of Estate and Gift Taxes

Estate and gift taxes are multifaceted, and while many individuals are familiar with the overarching concepts, it’s crucial to explore the common challenges that often arise in the process.

1. Putting a Value on Unique Assets: The Challenge of Subjective Valuation

Determining the value of unique assets, such as art, collectibles, or even certain types of property, is often a subjective undertaking. The fair market value of...

Navigate the Tax Terrain of the Gig Economy

The gig economy has revolutionized the way people work, offering unprecedented flexibility and opportunities. Whether you’re a freelance writer, a rideshare driver, or a virtual assistant, the gig economy provides a platform for individuals to showcase their skills and talents. However, this freedom comes with its unique set of challenges, particularly in the realm of taxes. In this comprehensive guide, we will delve into the intricacies of resolving tax issues in the gig economy and provide practical solutions for gig workers to navigate this complex terrain.

Understanding Your Tax Obligations in the Gig Economy

Employee vs. Independent Contractor:

In the traditional workforce, individuals fall into two main categories: employees and independent contractors. This distinction is pivotal as it directly influences how taxes are managed. Employees benefit from having taxes...

Unraveling the Tax Maze: Your Path to Penalty Relief

Tax season is notorious for causing stress and anxiety, especially for those facing penalties due to late payments or filing errors. Fortunately, the Internal Revenue Service (IRS) offers a lifeline known as the First-Time Penalty Abatement (FTA). In this comprehensive guide, we will delve into the details of the First-Time Penalty Abatement, explore who qualifies, and provide a step-by-step approach to navigating this process. Therefore, by the end, you’ll have a clear understanding of how to leverage this one-time forgiveness policy and mitigate the financial impact of tax penalties.

Understanding the First-Time Penalty Abatement

The First-Time Penalty Abatement (FTA) is a valuable provision offered by the Internal Revenue Service (IRS) to provide relief for taxpayers who find themselves facing penalties for the first time. This provision is designed with the recognition that...

Understanding the Interplay Between Bankruptcy and Tax Debt: A Guide for Tax Professionals

Navigating the intricate relationship between bankruptcy and tax debt is a crucial aspect of providing comprehensive financial guidance to clients. Tax professionals, in particular, play a pivotal role in helping individuals and businesses make informed decisions during challenging financial times. In this post, we’ll delve into the nuances of how bankruptcy can impact tax debt, offering tax professionals a comprehensive guide.

Chapter 7 Bankruptcy:

1. Overview:

Liquidation: Chapter 7 is often referred to as “liquidation” bankruptcy, where a trustee sells the debtor’s non-exempt assets to repay creditors.

2. Eligibility:

Means Test: Debtors must pass a means test to qualify, comparing their income to the median income in their state.

3. Dischargeable Debts:

Discharge of Debt:...

Unleashing Financial Freedom through Strategic Savings

Tackling your taxes can be a daunting task, but there’s a game-changer that can make this process smoother and more advantageous. In this article, we’ll delve into the importance of proactive tax planning for regular individuals and explore how this strategic approach can lead to financial benefits.

What is Proactive Tax Planning?

Definition and Significance

Proactive tax planning is a strategic and forward-thinking approach to managing your finances with the specific goal of minimizing your tax liability. Unlike reactive tax planning, which involves responding to tax-related events after they occur, this strategy anticipates future tax obligations and aims to optimize your financial strategies accordingly.

Anticipating Tax Liabilities

The heart of proactive tax planning lies in anticipating your future tax liabilities. This...

Navigating the Tax Landscape: A Guide to Choosing the Right Business Entity

Selecting the right business entity is a pivotal decision that can significantly impact your business’s success, especially concerning taxation and liability. Entity selection goes beyond merely choosing a legal structure; it involves understanding the tax implications that come with each option. In this article, we’ll delve into the tax considerations associated with various business entities, providing you with insights to make an informed decision for your venture.

Common Business Entities

1. Sole Proprietorship

A sole proprietorship is the simplest form of business structure, with the business and the owner considered a single entity. While this structure offers simplicity, it comes with full personal liability. This means that the owner is personally responsible for all the business’s debts and legal...

If you keep any kind of digital information in your business, you have a chance of becoming a victim of a cybercrime. The odds have increased exponentially during the pandemic, with more cyberthreats and scams floating around than ever before. Here are some ways to reduce your chances of getting attacked.

Social Engineering Social engineering is when thieves try to get your employees to provide confidential information via a phone call or email. You can reduce your risk here by developing procedures and training any employees that take customer phone calls for the business. Require them to ask for identifying information such as a pin or code, or simply prevent them from giving out any information over the phone.

Passwords Passwords are terribly inconvenient but incredibly necessary. Almost everyone is guilty of using passwords that are simply too easy to guess. Here are some password tips avoid using dictionary...

Independence is a key concept in accounting, especially in the assurance or auditing area of accounting. Assurance services are services where a licensed CPA reviews an organization’s financial statements and accounting records and provides an opinion about them. This opinion takes the form of a report that can be shared with third parties such as banks and shareholders.

Auditing services are one of many forms of assurance services. Only a licensed CPA can provide assurance services; this is regulated by the states. A CPA who provides certain assurance services must be independent from the business that it is writing an opinion for. Essentially, independence means that the auditor must be able to do their work objectively and with integrity. And it goes farther.

The auditor must not be perceived as having any kind of bias or connection with the business it is auditing. There must be no perception of any impropriety. To this end, the auditor must not have a...

Many clients are asking us about whether their taxes will go up now that there will be a change in Presidents in January. The short answer is no.

A US President does NOT have the power to raise or lower taxes. Period. That power is reserved for the legislative branch of the government. Only Congress can pass or change law to raise or lower your taxes. Once a law has passed in both the Senate and the House, the President can sign the act into law.

A change in Administration does NOT repeal all prior laws. The Tax Cuts and Jobs Act of 2017 is still in effect, and many provisions are written to last through 2025.

What a new President can do is ask Congress to pass a law to raise revenue for the government. The President can give direction but cannot make law himself when it comes to taxes.

A new Congress often does like to pass a new tax bill so that they have made their “mark.” But the timing of it will vary due to...

The word “audit” can be thrown around a lot in casual conversation. When an accounting professional uses it, it means something very specific. We’ll discuss this and other uses of the term “audit” in this article.

Financial Audit

A financial audit is an official service designed to inspect the accounting records, technology, and processes of an organization. An audit can only be conducted by a licensed CPA that is independent of the organization.

Independence is a special term as well, meaning the CPA who audits the organization must have no relationship with the organization or its owners and employees. For example, if the organization’s owner is the sister of the auditor, that won’t work!

To conduct an audit, the CPA performs an audit program, which is a set of tasks that review the company transactions, balances, and accounting processes. The audit program is custom-designed to the company based on the risks perceived by the audit team,...

Embracing Efficiency: Technology and Taxes for Seamless Management

Technology and Taxes: Tax season often brings a sense of urgency and stress for individuals and businesses. Fortunately, advancements in technology have revolutionized the way we manage taxes, offering tools that streamline processes and enhance overall efficiency. In this comprehensive guide, we’ll delve into various technologies designed to facilitate every step of tax management, from preparation to compliance.

1. Tax Preparation Software: Simplifying the Filing Process

Technology and Taxes: Tax preparation is a complex task that demands attention to detail and a comprehensive understanding of ever-evolving tax codes. Tax preparation software, such as TurboTax, H&R Block, and TaxAct, goes beyond basic number-crunching. These tools are designed to simplify the entire process, providing users with intuitive interfaces that guide them through each...

Maximizing Your Retirement Nest Egg: Strategies to Minimize Tax Burdens for Retirement Planning

Retirement planning is a multi-faceted journey that demands a nuanced approach to various financial considerations. Among the critical factors, minimizing tax burdens is a pivotal element. Making strategic decisions in this regard can significantly impact the amount of money you retain during your retirement years. In this comprehensive guide, we’ll delve into key strategies to help you navigate the intricate landscape of taxes in retirement.

1. Tax-Efficient Investments

Choosing the right investment vehicles is crucial for optimizing tax efficiency in your retirement portfolio. Consider options such as index funds or tax-managed funds, which tend to generate fewer taxable events compared to actively managed funds. By minimizing unnecessary capital gains and distributions, you can potentially reduce your taxable income in retirement.

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If you own a small business, you probably chose QuickBooks® as your company’s accounting software. After all, it’s the market leader in small business accounting software. While it’s intuitive in some places, there is a learning curve that everyone must go through in order to use the software properly. There are also places where you need to know some accounting in order for transactions to be booked correctly.

The good news is there are plenty of accounting professionals that know QuickBooks that can help you through the learning curve and answer questions that come up in the normal course of business. As a small business owner in these chaotic times, you must choose which learning curves to tackle and which ones to delegate or hire for. You can’t learn everything you need to know as an entrepreneur all by yourself; there’s just not enough time. It makes sense to focus on the core of your business with the limited time you have.

The worst thing you can do is to try...

Unlocking the Power of Philanthropy: Tax Strategies for Businesses Making a Difference

In the dynamic world of business, companies are increasingly recognizing the importance of giving back to the community. Beyond the social impact, philanthropic businesses can also yield significant tax benefits for businesses. If you’re looking to weave charitable giving into your business strategy while optimizing your tax position, here are some key strategies to consider.

1. Donations to Qualified Charities: The Heart of Philanthropic Businesses

One of the most direct ways businesses can contribute to charitable causes is by making donations to qualified charitable organizations. These organizations, recognized by the Internal Revenue Service (IRS) as tax-exempt, allow businesses to deduct these contributions from their taxable income. Before making donations, it’s crucial to ensure that the chosen charity holds the necessary tax-exempt...

Navigating the Tax Maze: Demystifying State Taxes vs. Federal Taxes in the U.S.

Tax season is a perennial event that brings both anticipation and, often, confusion for individuals in the United States. One of the key sources of this complexity lies in the distinction between state and federal taxes. To navigate the intricacies of the tax landscape effectively, it’s crucial to understand the fundamental differences between these two types of taxes.

1. Authority and Administration:

Federal Taxes:

The Internal Revenue Service (IRS) serves as the primary federal tax collection agency in the United States. Established by the federal government, the IRS is responsible for enforcing tax laws, collecting revenue, and overseeing various tax-related matters. It operates under the Department of the Treasury and plays a pivotal role in funding federal programs and services.

The IRS not only collects federal income taxes but also...

Navigating the Maze: Understanding Tax Discrepancies and Disputes

Tax discrepancies and disputes can be daunting, but with careful navigation and proactive steps, you can effectively manage these challenges. Whether you’ve received a notice from tax authorities or are facing an audit, here’s a step-by-step guide to help you address and resolve tax discrepancies.

1. Review the Notice or Assessment:

When you receive a notice or assessment from tax authorities, take the time to thoroughly review the document. Identify the specific discrepancies, calculations, and any time-sensitive information. Understand the nature of the issue, whether it’s related to income, deductions, credits, or other factors.

2. Gather Documentation:

The importance of supporting documentation cannot be overstated. Collect all relevant documents that substantiate the information on your tax return. This may include receipts for...

The Consolidated Appropriations Act, 2021 (CAA 2021) became law on December 27, 2020, and among many other things, provided for a second round of potentially forgivable Paycheck Protection Program loans to small businesses that were financially impacted by the effects of the pandemic.

The Act not only provides funds and guidelines for a round two of PPP money; it also expands PPP round one in a number of ways. Here are a few of the highlights.

Changes to PPP Round 1 Loans

Existing borrowers with PPP loans can reapply for a loan or request a loan increase as long as they have not received forgiveness. This includes borrowers that returned all or part of their PPP loan or whose loan maximum has increased due to regulations implemented after receipt of their loan.

Businesses that have not been granted forgiveness can spend PPP money and apply for forgiveness on an expanded list of expenses, including:

• Software, cloud computing, HR, and...

Maximizing Returns: A Guide to Tax Planning for Big Business Purchases and Investments

In the dynamic world of business, strategic purchases and investments play a pivotal role in shaping success. However, the savvy entrepreneur knows that the financial benefits of these transactions extend beyond the immediate gains—they also hinge on effective tax planning. In this guide, we’ll explore key considerations for navigating the complex landscape of tax implications associated with substantial business moves.

1. Structuring the Transaction: Choosing Wisely

Selecting the appropriate legal and organizational structure for a business transaction is a critical first step in effective tax planning. The choice between an asset purchase and acquiring the entire business can have significant implications for both the buyer and the seller. Asset purchases may provide the buyer with a step-up in the tax basis of the acquired assets, allowing...

One of the biggest tax issues of 2020 has been clarified with the signing of the Consolidated Appropriations Act, 2021, (CAA 2021), and that was whether expenses that are normally deductible and that were paid with the proceeds of a Paycheck Protection Program (PPP) loan that is forgiven are truly deductible.

The CARES Act, which became law on March 27, 2020, was drafted so quickly that the question of deductibility was left out, but several members of Congress made it clear that deductibility was the intent all along. The IRS went the other way, publishing a notice (2020-32), a revenue ruling (2020-27), and a revenue procedure (2020-51), that took the opposite stance: PPP-related expenses that were forgiven were not deductible, therefore potentially causing business’s taxes to become much higher.

Congress has now reversed the IRS’s position with CAA 2021 in Section 276 (PPP) and 278 (EIDL). Gross income does not include forgiveness of PPP loans and emergency EIDL...

Navigating International Business and Taxes: A Comprehensive Guide

In the dynamic landscape of global and international business, expanding operations internationally presents both opportunities and challenges. One of the most intricate challenges is navigating the complex realm of international taxation. Below, we explore key considerations that businesses should keep in mind to successfully operate on the global stage.

1. Taxation Jurisdiction: Understanding the Basics

Understanding the concept of taxation jurisdiction is fundamental for international businesses. Taxation jurisdiction determines the countries in which a business is liable for taxes. This involves identifying the notion of “tax residency” to fulfill tax obligations in the respective jurisdictions. Businesses need to carefully assess their global activities to determine where they are considered tax residents and ensure compliance with the tax laws of those...

Maximizing Success: A Comprehensive Guide to End-of-Quarter and End-of-Year Planning

As the end of the quarter approaches, businesses are presented with a valuable opportunity to reflect, strategize, and plan for future success. Effective end-of-quarter and end-of-year planning is a crucial aspect of organizational management, providing a structured framework for assessing performance, setting new goals, and ensuring financial health. In this comprehensive guide, we’ll explore eight key activities for a robust planning process.

1. Financial Review:

Assessing revenue and expenses:

Conduct a meticulous analysis of income and expenditures, identifying areas for optimization and efficiency. Understanding the financial landscape lays the foundation for informed decision-making.

Analyzing profit margins and financial ratios:

Evaluate profit margins and key financial ratios to gain insights into the organization’s financial health. This...

Do you have a lot of customer service inquiries in your business? If so, it can be a challenge to manage them all. Being responsive with customer service can make all the difference in your company’s success, so it makes sense to take a look at some tools that can streamline the process.

The most common solution to automating customer service inquiries is to implement a ticket management system, which is also called help desk software. Some of the things that are important to consider include:

• How fast you can respond to a customer

• How well you solve the customer’s problem

• How to track a customer’s issue if it has to be open for a while before it can be solved

• How to do all of this in a cost-effective and efficient, yet friendly, manner

These days, an inquiry can come from a multitude of places:

• Phone calls and voice mails

• Emails

• Text...

A great way to start 2021 is to take a fresh look at your business finances. Many things changed in 2020, and if you are in the habit of spending on the same items year after year, it’s the perfect time to decide what is essential and what can go.

There are only a few ways to increase profits when you think about it in black and white terms. You can either raise revenues or cut costs. Let’s take a look at where we can potentially cut costs.

Publications

These expenses tend to be monthly or yearly, and we tend to just let them automatically renew time after time. But do we really need them? Take a look in your Dues and Subscriptions account to evaluate what you really need to stay informed, and cancel the rest.

Memberships

If you are a member of an organization or two, what benefits are you getting from your investment? Does it raise revenue for you? Do you use everything the membership offers? If not, it might need to...

Navigating the IRS: A Comprehensive Guide to Setting Up a Stress-Free Payment Plan

Doing your taxes can be a daunting task, especially if you have a complex financial situation. Many individuals are faced with the decision of whether to hire a tax professional or tackle their taxes themselves. Both options have their advantages and disadvantages, and it’s important to consider the pros and cons before making a decision. In this blog post, we will explore the benefits and drawbacks of using a tax professional versus the do-it-yourself (DIY) approach.

The Expertise of a Tax Professional

One of the main advantages of hiring a tax professional is their expertise in tax laws and regulations. Tax professionals undergo extensive training and education to stay up-to-date with ever-changing tax codes. They have a deep understanding of deductions, exemptions, and credits that the average taxpayer may not be aware of. By utilizing their...

A cashless business is one that processes all cash transactions electronically. There is no paper or coin money taken or handled. While no one society has become 100 percent cashless yet, most organizations are moving in that direction.

A business can become cash-free by providing multiple electronic alternatives to payment. Credit cards are the most common electronic payment implementation. This option most likely includes MasterCard, Visa, Discover, and American Express. Some businesses also have a PayPal account and offer that method for payments. Venmo, owned by PayPal, is an efficient mobile alternative, but it is mostly used for consumer-to-consumer transactions. And there is also cryptocurrency.

Cashless businesses are more efficient, help to reduce crime, and have a better audit trail of transactions. Going cash-free also saves money and time spent counting the money, storing the money, safeguarding the money, protecting employees at risk of becoming theft...

Navigating the complexities of IRS notices can be daunting for many business owners. These documents, while crucial, often come laden with jargon and details that can be challenging to interpret. With that,”How to Read and Understand IRS Notices” is designed to demystify these communications, helping you to understand their content, context, and the appropriate responses they necessitate.

Understanding the Purpose of IRS Notices

Different Types of IRS Notices:

The IRS issues a variety of notices, each serving a specific purpose. These can range from simple notifications about changes to your account, requests for additional information, to alerts about pending actions on your taxes. Recognizing the type of notice you’ve received is the first step in understanding its implications.

Common IRS Notices:

Some of the common notices include:

CP2000 (Notice of Proposed Adjustment for Underpayment/Overpayment)

CP501 (Reminder...

When you realize you owe back taxes hits that you owe back taxes to the Internal Revenue Service (IRS), it can be an anxiety-inducing moment. However, facing the issue head-on and taking immediate action is crucial to resolving your tax debt. Ignoring back taxes can lead to additional penalties, interest, and potentially more severe consequences. In this comprehensive guide, we’ll walk you through the essential steps to take the moment you become aware of your back taxes, ensuring a proactive approach to addressing this financial challenge.

Understanding the Gravity of When You Realize You Owe Back Taxes

Before delving into the steps, it’s vital to understand the significance of owing back taxes. Back taxes are unpaid taxes from previous years or underpayments on your recent tax returns. When you owe back taxes, the IRS may take various actions to collect the debt, including:

Imposing penalties and interest on the outstanding amount.

Issuing...

Understanding the consequences of back taxes is crucial for business owners. While the financial burden is evident, the ripple effects of owing back taxes can extend much further. Therefore affecting various facets of your business operations and long-term strategy. In “The Real Impact of Back Taxes on Your Business,” we explore these multifaceted impacts in depth.

Financial Implications and Impact of Back Taxes

Accumulation of Penalties and Interest:

One of the immediate and most tangible effects of back taxes is the accumulation of penalties and interest. These additional charges can grow exponentially, significantly inflating your original tax debt. The longer these taxes remain unpaid, the more burdensome the financial obligation becomes, straining your business’s budget and financial planning.

Restricted Cash Flow:

Owing back taxes can lead to a significant strain on your business’s cash flow. The money that could be used for...

Remote Rules: Future of Taxes and Tax Strategies in the Age of Anywhere Work

In an ever-changing world, the future of taxes is a topic of constant speculation and adaptation. As governments, businesses, and individuals grapple with technological advancements, global economic shifts, and environmental concerns, the landscape of taxation is evolving. This blog explores some key predictions and considerations for the future of taxes and offers insights into effective planning strategies.

Technology and Automation: The Rise of Smart Tax Systems

The integration of technology into tax administration is transforming traditional processes, giving rise to smart tax systems. Specifically, artificial intelligence (AI) plays a pivotal role in automating routine tasks, data analytics enables more accurate insights, and automation tools streamline the entire tax compliance process. These innovations not only reduce the risk of errors but also...

Keeping your accounting records up to date all year long is essential for any business so you can see exactly where your business stands and be able to make thoughtful decisions based on clean numbers.

At year-end, there are a few extra accounting tasks to finish so that your books are ready for the tax professional when tax time comes around. Plus, anything that wasn’t performed monthly or more often should now be completed at year-end.

Here’s our list of items we feel every small business owner should consider doing or delegating at year-end. Every company may not need to do every task – just the ones that apply to their business and their situation.

Bank Statement Reconciliation

All bank account balances on a company’s balance sheet should be reconciled to their corresponding bank statements. Hopefully, your main checking account is being reconciled monthly, but perhaps your savings or investment accounts are not reconciled as often....

Year-end is the perfect time to reflect on accomplishments achieved since January. It’s also an important time to put things into perspective as we turn the page and start a new year.

What We Learned

With so much change in 2020, the opportunities to learn have been abundant. Take a moment and contemplate the following:

• What new skills did you learn this year that you have put to work in your business?

• What topics did you become wiser about?

• What situations have you learned to master?

Goals Met

If you set goals for 2020, which ones did you achieve? Because it was a volatile year, you may have achieved a lot of things that were not planned. Or you may have simply maintained status quo, which is an amazing accomplishment in its own right in 2020. Give yourself credit for all of that as well.

As we transition to 2021, set new goals to be achieved in your business and...

How happy are you with your financial situation right now? In other words, do you feel personal financial pleasure or pain when it comes to your financial standing?

That is what the Personal Financial Satisfaction Index strives to measure for the typical American.

The PFSi is a quarterly economic indicator created by the American Institute of CPAs. This specific economic indicator weighs a variety of economic factors to calculate the financial standing of a typical American. These financial standings are only computed at a high level.

The main agenda of the PFSi is to calculate the difference between two component subindexes: the Personal Financial Pleasure Index and the Personal Financial Pain Index. These two subindexes are each created of four, equally weighted proprietary and public factors, which ultimately measure the growth of assets and opportunities in the case of the Pleasure Index, as well as the erosion of assets and opportunities in the case of the...

It goes without saying that 2020 has been quite the year—and it’s not even over yet! Of course, any one of us could easily come up with a long list of things to be ungrateful for, a negative list of every bad occurrence that has taken place since March due to the Coronavirus pandemic. In a sense, being sad or negative or depressed is simple. Being grateful is what’s really difficult, but we want to help you achieve the feat.

Below, we’ve put together different techniques to help you see that there are many things to be grateful for, both in our business and personal lives. This is a great time of year – just before the U.S. holiday of Thanksgiving – to stop and practice gratitude.

What Are You Grateful For?

The act of being grateful can lead to experiencing positive emotions. As a matter of fact, if you are experiencing negative emotions and don’t want to, the fastest way to “reset” your physiology is to start thinking of things you are grateful...

Regardless of the type of relationship—personal, professional, or even acquaintance—communication is key. Specifically, if you want to have a healthy relationship with any individual, then it’s important to communicate clearly and fully.

Communication is particularly necessary when it comes to customers and building a successful business. It’s even more important this year since many businesses have gone through so many changes. We’ve put together this article to not only detail the importance of customer communication, but also to provide some tips to help you achieve better customer communication.

Are You Communicating Properly?

Effective communication helps to ensure your product or service meets the customer’s needs and satisfaction. By meeting these needs and satisfaction, you are (hopefully) guaranteeing repeat business. Start by figuring out what your customers are thinking and what questions they might have about your...

Now, more than ever before, the act of listening is important. Not only is it important to listen to someone, but to effectively listen to them. Sure, we all know that in order to understand individuals, to connect with them and understand their wants and needs, we need to be alert, focused, and mindful. After all, the power of listening—effective listening—will help you get more information from clients, increase their trust and commitment in you, and reduce conflict and misunderstanding.

Below, we’ve included more information on the power of listening, and tips on how to be a better listener.

What It Means To Listen

We don’t need to give you a textbook definition of listening; you already know what it means. However, it is necessary to point out that the act of listening and actually comprehending what a person is saying can lead to strong, healthy, and thriving relationships—all very important qualities in any type of relationships,...

One of the best tools to forecast cash requirements is the 13-week cash flow forecast. It can help a business owner predict what their cash balance will be 13 weeks in the future. It helps to answer whether there will be enough cash to cover payroll and bills for a particular week. If you’re having significant ups and downs in your cash balance, it’s the perfect tool to help gain clarity around your cash needs.

Thirteen weeks may sound like an odd length to select, but it’s the length of a calendar quarter. This is the length of a financial projection that is typically used when a business is in financial distress; however, it’s also useful when a company is going through some ups and downs or simply wants to get a better handle on its cash requirements.

The forecast computations start with entering cash receipts and cash disbursements into a spreadsheet. Start with actual spending and receipts for the first week, then use estimates for the remaining weeks. Include...

At the beginning of 2020, you might have thought that developing a business continuity plan was not a top priority. Or maybe you thought it was only for large businesses. Fast forward to today, and a business continuity plan has become an essential staple in business planning.

There are more business risks than ever before to consider that can affect business continuity. Businesses are being shuttered, reopened and shuttered again from the pandemic, fires, hurricanes and damage from riots, just to mention a few of the more common issues in this unusual year.

The biggest benefit of a business continuity plan is the process of developing it. It helps you think through the steps you should take if a business interruption occurs. If you have a disaster recovery plan – or even a few steps jotted down of what you’d do – then you have already started a portion of the process.

Here are some of the major pieces of a business continuity plan to consider developing for your...

Every company should have a strict process to follow when an employee leaves the company, no matter what type of termination it is – voluntary or involuntary. Here’s a checklist you can use to compare to your own process so that you can either confirm you’re on the right track or add some ideas to improve your current methods.

1. Collect the resignation letter.

While so many things are remote these days, you MUST get the employee’s resignation letter in writing and signed by them. If they don’t supply one, create a form they can sign that includes the reason for termination.

If you initiated the termination, have the employee sign the notice of dismissal.

This is not only important for general human relations records, it’s also important this year for any Paycheck Protection Program forgiveness documentation if the employee turned down a hire-back request. There may also be a requirement to submit the paperwork to your state’s unemployment...

Video creation has gotten so easy that just about anyone can do it. You no longer need professionals. You don’t even need video editing software with the long learning curve and high price tag. All you need is an app and your imagination.

There are many reasons to create a video:

• Web pages that include video rank higher than those that don’t have video.

• People love to watch video; it’s more interesting than text.

• Video is often the best way to educate people.

• Your message comes more alive when you use more senses: sight and sound

The first step is to figure out what you want to say. Here are a number of video topic ideas for your business:

• A customer service tip

• Your company mission, vision, and values

• Your company’s origin story

• Why you’re in business

• A product, event, or service promotion

• A...

The purpose of marketing is, in part, about creating relationships with customers and prospects. While traditional advertising is a standard way of letting prospects know more about you, it’s not always the most creative way to connect.

To spice up your marketing, let’s explore six unusual ways to connect with customers.

1. Celebrate an obscure or fun holiday.

For example, August 27 is National Just Because Day. It’s a day to do random things, which can be pretty easily tied to whatever your service or product is.

You can do something as small as send an email or as big as hosting a live event on the holiday you choose.

2. Feature a customer or staff member.

A great way for customers to get to know your team and for your team to get to know your customers is to feature them in a short writeup that you post or send out.

Make this fun by sharing things like favorite ice cream, activity they would love to do,...

Paying bills is never fun, but paying bills you shouldn’t pay in the first place is even worse. There are many risks that can part a small business owner with their hard-earned cash, and here are five to watch out for when it comes to your bill-paying process.

1. Fraudulent invoices

Some companies will send marketing documents disguised as invoices to businesses. You may have to read the fine print to notice it’s not really an invoice. In some cases, it’s simply outright fraud, trying to get you to pay something that is not owed.

Many times, these invoices look official, similar to legal filing requirements, but don’t be fooled. Examination of the fine print can save you a lot of money.

Set up procedures to catch these types of invoices. Managers should be careful not to approve these invoices for payment. Bookkeepers should be trained to question their supervisors about these invoices.

...

As we approach the end of the year, it’s a perfect time to reflect on our financial journey and set resolutions for the upcoming year. One crucial aspect of this process is tax planning – an opportunity to optimize our financial strategies and ensure we’re making the most of available opportunities. In this blog post, we’ll explore a comprehensive guide on reflections and resolutions for setting tax goals in the new year.

1. Review Previous Year’s Tax Return

Before charting a course for the future, it’s essential to look back. Take the time to thoroughly review your previous year’s tax return. Pay close attention to:

Income Sources: Identify all sources of income, including wages, self-employment income, investments, and any other forms of earnings.

Deductions: Scrutinize the deductions you claimed. This could include itemized deductions like mortgage interest, medical expenses, and charitable contributions.

Tax Credits: Note any tax...

Navigating the Tax Landscape: A Guide to Maximizing Savings

Tax season can be a stressful time for many individuals, but with careful planning and a good understanding of the tax code, you can implement strategies to legally and ethically reduce your taxable income. Here are ten key strategies to consider:

1. Take Advantage of Tax Credits

Tax credits are powerful tools that directly reduce your tax liability. Identifying and claiming applicable credits can significantly impact your bottom line. Common credits include:

Child Tax Credit: Available for eligible parents, this credit provides a dollar-for-dollar reduction in taxes owed for each qualifying child.

Earned Income Tax Credit (EITC): Designed to assist low to moderate-income individuals and families, the EITC can result in a substantial credit, depending on your income and family size.

Education Credits: The American Opportunity Credit and the Lifetime Learning Credit offer...

Unlocking Tax Credits and Benefits: A Guide for Business Owners

As a business owner, mastering the intricacies of the tax landscape is pivotal for financial success. Two essential components that can significantly impact your tax liability are tax credits and tax deductions. In this guide, we will delve into the nuances of each, providing insights on how savvy business owners can strategically leverage them to optimize their financial position.

Understanding Tax CreditsTypes of Business Tax Credits

1. Investment Tax Credits: Designed to stimulate business investment, these credits reward companies for engaging in activities like research and development or acquiring new equipment. By participating in such initiatives, businesses not only enhance their operations but also benefit from a direct reduction in their tax liability.

2. Work Opportunity Tax Credit (WOTC): Focused on social impact, this credit...

Demystifying IRS Audits: A Comprehensive Guide to Preparation and Processes

An IRS audit is an in-depth examination of an individual’s or organization’s financial information and accounts. The primary goal is to ensure the accuracy of financial records and compliance with tax laws. This meticulous process is conducted by the Internal Revenue Service (IRS) in the United States. Navigating an audit can be challenging, but being well-informed and prepared is key to a successful outcome.

Criteria for Selection for IRS Audit:

The IRS employs various criteria for selecting taxpayers for audits. These criteria encompass a wide range of factors, including random selection, statistical anomalies, and specific issues identified through data analysis. For example, if your tax return contains discrepancies, unusual deductions, or triggers certain red flags, it may increase the likelihood of being selected for an audit.

...

Tax time doesn’t have to be stressful if you take the time to organize your financial records in an efficient manner. A well-organized system not only makes the tax preparation process smoother but also ensures that you don’t miss out on valuable deductions. Here’s a step-by-step guide to help you organize your financial records for tax time:

1. Create a System: Establishing a Solid Foundation of Financial Records

The first step in organizing your financial records is to create a robust system that will serve as the backbone of your tax preparation efforts. Whether you opt for a physical or digital approach, the key is to have a clear and well-labeled structure. Consider creating separate sections for different categories:

Income: Designate a space for all your income-related documents. This includes W-2 forms from your employer and any 1099 forms you receive for freelance work, dividends, or interest.

Expenses: Create a section for receipts...

Tax time doesn’t have to be stressful if you take the time to organize your financial records in an efficient manner. A well-organized system not only makes the tax preparation process smoother but also ensures that you don’t miss out on valuable deductions. Here’s a step-by-step guide to help you organize your financial records for tax time:

1. Create a System: Establishing a Solid Foundation of Financial Records

The first step in organizing your financial records is to create a robust system that will serve as the backbone of your tax preparation efforts. Whether you opt for a physical or digital approach, the key is to have a clear and well-labeled structure. Consider creating separate sections for different categories:

Income: Designate a space for all your income-related documents. This includes W-2 forms from your employer and any 1099 forms you receive for freelance work, dividends, or interest.

Expenses: Create a...

New Year, New Tax Laws: Updates for the Upcoming Year

As we usher in the new year, it’s essential to stay informed about the latest tax laws. Therefore it is important to know how they can impact our finances. The ever-changing tax landscape can have a significant effect on individuals, families, and businesses alike. Hence we will explore the key updates and changes to be aware of for the upcoming year.

Individual Tax Updates

The adjustment to tax brackets is an important update for individual taxpayers. Tax brackets determine the rate at which your income is taxed, and they are adjusted annually for inflation. So, it’s crucial to review the new tax brackets to understand how they may affect your tax liability. By knowing the tax brackets, you can plan your finances and make informed decisions regarding your income.

In addition to the adjustment of tax brackets, there have been changes to various deductions and credits for...

As the year comes to a close, it’s the perfect time to review your finances and consider strategic moves to optimize your situation. Taking advantage of last-minute opportunities can potentially reduce your liability and set you up for a more favorable financial position. Here are ten tax moves to consider before the year ends:

1. Contribute to Retirement Accounts

Why it Matters:

Contributing to retirement accounts offers both short-term and long-term benefits. Not only can you lower your taxable income for the current year, but you’re also building a financial cushion for your retirement years.

How to Maximize Contributions:

Individual Retirement Accounts (IRAs):

For the tax year 2023, the annual contribution limit is $6,000 for individuals under 50 and $7,000 for those 50 and older. Contributions to traditional IRAs are generally tax-deductible, providing an immediate tax benefit.

...

As the calendar turns, business owners find themselves gearing up for tax season. Navigating the complexities of tax obligations requires careful planning and organization. To help you stay on top of your game, we’ve put together a detailed checklist that covers essential tasks to ensure a smooth and stress-free tax season.

1. Gather Financial Documents:

Income Statements (Profit and Loss)

Your income statement, also known as the Profit and Loss (P&L) statement, provides a detailed overview of your business’s financial performance. It summarizes revenues, costs, and expenses over a specific period, usually a month, quarter, or year. Ensure accuracy and completeness in documenting all sources of income and outgoing expenses.

Balance Sheets

A balance sheet offers a snapshot of your business’s financial position at a specific point in time. It comprises assets (what your business owns), liabilities (what it owes), and equity (the residual interest of...

One of the top challenges for small businesses is managing cash flow effectively. There are times when the most experienced business owner can run short just before payroll day or get into trouble because they didn’t plan for a large expenditure.

Not having enough startup cash causes a significant number of small businesses to fail each year. According to C2FO, three-quarters of small businesses need more cash for increased liquidity, expansion, inventory and equipment purchases, employees, research, and contingency planning.

In a 2016 report from JPMorgan Chase, most small businesses were found to have enough cash to cover only 27 days of expenses. And getting funding is no picnic, as more than a quarter of all businesses that apply for loans are turned down (NSBA).

The good news is there are more than a hundred ways to increase your cash flow, and some of them are very simple to implement. Here’s a list to help you manage your cash flow more effectively in your...

Are you thinking about hiring a new employee? Whether you’re hiring your first employee or your hundredth, here’s a checklist of items to keep you on track with all of the related tasks and requirements.

1. Get an IRS employer ID if you don’t already have a FEIN

A FEIN, or Federal Employer Identification Number, or Federal Tax Identification Number, is a unique, nine-digit number assigned by the Internal Revenue Service—the IRS—to business entities operating in the United States for the purposes of identification.

Every organization must have a FEIN, even if it does not or will not have employees. To apply for a FEIN, you should obtain Form SS-4, as well as the form detailing its instructions. You can apply for this online, by mail, or by fax. If your organization was formed outside of the United States or United States territories, you can apply by telephone.

2. Make a budget for employee wages

Before hiring an...

Are you behind on filing your federal income tax return or paying your federal IRS taxes in the last year or more? If so, you’re not alone. More than 22 million taxpayers in the U.S. have either failed to file a tax return or are behind in paying their IRS taxes due, and that was before the pandemic hit.

If things have been tight financially, it can be easy to ignore the task of filing and paying your federal taxes to the IRS. You might think that you can get caught up “next year” when things get better. Only, unfortunately, they don’t get better. You skip tax filing again. And maybe again.

Initially, you might think you’ve gotten away with not paying the IRS. But in a year or two, they will catch up with you. While you procrastinate, the penalties and interest will build up to a dollar amount that is way more than what you would have owed if you had filed and paid on time.

Letters from the IRS will come eventually. If you let it go too...

If revenue hasn’t come back as fast as you expected it to, it may be time to review your budget and determine if some planned expenses can be cut. Here are five places to look to do just that.

1. Travel

Since most events have been moved online or cancelled altogether, you can likely redirect any money you’ve budgeted for travel this year to other more urgent expenses. And if you have prepaid these items, you may be able to get a refund. Hotels have flexible refunds up to the date of the stay unless you took a prepaid deal. And airlines have begrudgingly provided refunds, although in some cases, it did take time to get them.

Now that so many employees are familiar with Zoom and other videoconferencing tools, you may want to rethink any future travel requirements that could easily be accomplished virtually with a much lower budget.

2. Training

While it’s never a good idea to cut training, there may be ways to deliver it...

Many families and small business owners have seen decreases in income over the last several months. Money struggles can cause us to experience stress and worry, and none of us need that right now. Instead we need to boost our immune systems and decrease stress.

Here are some tips on how we can take back control of our finances and reduce our stress around money.

1. Assess your situation.

Take an inventory of your bank accounts, credit cards, and other financial accounts. This helps you to see the entire picture. You can be financially healthy in different ways. For example, you might be low on income coming in but if you have healthy savings or plenty of assets, you might be just fine.

2. Track your spending.

When you can see where the money is going, you can make good decisions about what changes you need to make. Use tracking software like Quicken® or simply a spreadsheet so you can see how much you really need for things like the rent or mortgage,...

The only way to get smarter about how to invest your marketing dollars is to document and measure what’s happening now in your business. What you’ve measured, you can then improve.

Marketing Spend

The first step to measuring what you spend on marketing is to aggregate all of the costs. They may be in one account or several. Some of the places to look for marketing expenses include:

• Advertising – for online or print ads, trade shows, sponsorships, and other advertising costs

• Dues and subscriptions – for membership fees to networking and professional associations

• Education – for marketing training

• Marketing – for obvious reasons

• Office supplies – for graphics subscriptions and fees

• Payroll, salaries, and wages – for allocation of employee time spent on marketing projects

• Printing and postage – for flyers and direct mail

• Professional fees – for...

Navigating the complexities of taxes can be overwhelming, especially when dealing with the IRS. Without proper guidance, tax issues can lead to financial strain and long-term consequences. HofflerSmith Financial, a tax resolution company based in Cherry Hill, NJ, provides tax representation services to individuals and businesses across the Delaware Valley and the U.S. Understanding the impact of professional tax representation on your financial future can make all the difference in securing your financial stability.

In the dynamic world of business, strategic purchases and investments play a pivotal role in shaping success. However, the savvy entrepreneur knows that the financial benefits of these transactions extend beyond the immediate gains