Jeannette
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Tax Reporting of Cost of Goods Sold
I’ve had a number of small business owners ask me how to calculate cost of goods sold on their tax return. What I generally tell them is that reporting cost of goods sold is not required for most businesses. Read on for information on what cost of goods sold is and when it should be
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Tax Time Is Coming!: Five Common Questions About Small Business Taxes
We are quickly coming to the end of another calendar year. For most small business owners, this means it’s time to begin thinking about taxes and filing your tax return. Below are some common tax questions I get asked by small business owners. What’s The Difference Between An EIN And A TIN? EIN is short
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What the 2014 FUTA Tax Credit Reduction Could Mean For Your Small Business
If you own a small business and have employees, then you are familiar with the Federal Unemployment Tax Act (FUTA) and the tax that employers pay that helps to fund the Federal Unemployment Trust Fund. The trust fund helps to cover a portion of the costs of administering the unemployment insurance programs in every state
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Nonprofits and Online Fundraising: The Need for State Registration
If your business is a nonprofit organization, you should be familiar with the rules in your state for nonprofit fundraising registration. If you’re not, and your principle place of business is one of the 40 locales that require registration, you need to find out about them, and fast. States That Require Fundraising Registration The
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Beware The Gift Giving Season
As the calendar flips from October to November, we find ourselves moving into the gift giving season; the time of year when we want to thank our customers for their loyalty and our employees for their hard work. I hope your business has been successful enough for you to be very generous this year. With
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Use Tax: The Hidden Expense
I’m sure that everyone is familiar with sales tax: the tax that businesses charge when you buy their products. A sales tax is a tax paid to a governing body for the sales of certain goods and services. The tax is generally collected by the seller from the consumer at the time or point of
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Business Use of Vehicles: The Ownership Dilemma
If you operate your own business and you use a vehicle for business purposes, you are entitled to a tax deduction for the cost of operating the vehicle. But you wonder, who should own the vehicle? You or the company? There are tax and other factors to consider when making this decision. What Constitutes
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Employee or Independent Contractor: Know the Difference and How to Avoid Misclassification
You’re in business for yourself and you need people to work for you. But you might not need them full time. Or, you’re thinking that you just don’t want to go to the trouble of having employees and the expense of paying payroll taxes. So you wonder if you can hire a bookkeeper or a
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To Capitalize or Not To Capitalize
According to the IRS, business expenses are the costs of carrying on a trade or business. And business expenses are generally deductible in the period in which they are incurred. However, there are some expenses that a business incurs that are not immediately deductible. They are typically expenses for items that have a useful life
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12 More Important Accounting Terms Explained
My previous post focused on twelve general accounting terms (if you haven’t read it yet, I highly recommend it). The twelve terms explained below deal more specifically with financial reporting. Becoming familiar with these terms will help you to better understand your company’s financial reports and to communicate more effectively with other financial people such