Bookkeeping is the foundation of accounting and is the first step in the accounting cycle. I hear from many small business owners that they lack confidence accounting reports are reliable. Is the AP report correct? Depends on if bookkeeping was done correctly. Are Financial Statements dependable? Depends on if bookkeeping was done correctly. Can you [...]
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The third report in the traditional Financial Statements package is the Statement of Cash Flows. In your business you are selling a product or service and receiving money for those products and services. That is the majority of how cash “flows in’ to your business. The expenses you incur to provide these products and services [...]
Tax time does not have to be a surprise for the small business owner. There is a way to plan for taxes. Self-Employment tax is how the Freelancer pays Social Security (12.4%) and Medicare Tax (2.9%). When you are an employee, you and your employer split this cost. But since you are both the employer [...]
Exactly what is “economic nexus” and what does it have to do with accounting and bookkeeping? The common link is sales and use tax. Businesses pay sales and use tax to the state and municipality where they have nexus, or a physical presence. This is already complicated varying general rates among local governments [...]
This reform is the largest in THREE DECADES!! There are still 7 tax brackets, but each bracket is lowered about 2%, so it appears you will pay less tax. There are too many other factors to consider to say for sure, but it’s a good start! By the way, the tax scale is [...]
The Standard Deduction is almost doubled!! Yay! …. Personal Exemptions are gone…. So is that even? Is it a good thing? ….IT DEPENDS! The standard deduction for 2017 (MFJ) is $12,700. So, the government will not tax this amount of your family’s income. For each person in your household, you get another $4,050 that is not [...]
There’s never a good time for Divorce – but maybe 2019 is better than 2018. It depends on which side of the bed you are on! For 2018, alimony payments will continue to be income for the recipient and a deduction for the one paying. I always thought this was kind of backwards. Typically, the recipient has [...]