Not all taxes are created equal—in terms of responsibilities, at least. When we see the words “income tax,” we may immediately associate them with our personal taxes we file each year. Or we even think of income taxes for businesses. But what really are payroll taxes? And are they really that different from the income taxes businesses […]
Tax and Accounting
Businesses Should Review Depreciation Deductions Rules
Businesses should know the tax rules for deducting depreciation on certain property. This deduction can benefit eligible business taxpayers. The Tax Cuts and Jobs Act made changes to the rules around depreciation that will affect many businesses. First off, businesses should remember they can generally depreciate tangible property, except land. Tangible property includes: Buildings Machinery […]
Should All Businesses Produce a Cash Flow Statement?
When you’re running a business, cash flow is extremely important. All businesses have the same goal: to have more money coming in than there is going out. A positive cash flow enables your business to not only continue operating, but to expand and become successful. Managing your cash flow therefore becomes extremely important. If you […]
Americans Abroad on Self-Employment Taxes on Foreign Income
How does self-employment tax work for those Americans, who live abroad, travel the world and work for themselves? Well, you still have to pay US taxes on foreign income if you are a freelancer, independent contractor, digital nomad or entrepreneur abroad. Yes, US tax laws apply no matter where in the world you live and […]
How Long Should I Keep My Tax Records?
Now that you are filing away your business or personal tax records for the year, you may be wondering just how long you need to keep those records. After all, your filing cabinets and storage boxes can only hold so much stuff, right? The IRS offers some specific guidance on this subject. Here’s a look […]
Tax Reform Ideas to Reflect How Small Businesses Operate in the Modern World
The Tax Cuts and Jobs Act brought several improvements for small businesses, most notably, favorable accounting methods such as use of the cash method and not having to deal with the Unicap rules. The AICPA Tax Section recently posted a position paper noting 13 more changes that would further help modernize the Code to reflect how small businesses operate. […]
Payroll Tax vs. Income Tax: How They Work for Canadian Payroll
Payroll tax and income tax. These two short, simple words are the source of so many payroll questions (and confusion). It’s really no wonder because as laypeople, we hear or read “income tax”—we think personal income tax or possibly business income tax. Payroll taxes, on the other hand, are often an unknown and rather eye-opening […]
Common Bookkeeping Mistakes and How to Avoid Them
Bookkeeping can be the bane of many a business owner. But it doesn’t have to be the onerous chore it’s often made out to be. Avoiding bookkeeping mistakes can keep your business successful and headed in the right direction. Here are some common bookkeeping mistakes and how to avoid them. Procrastinating Waiting too long to […]
Bookkeeping vs. Accounting
Accurate and complete financial records are essential to the success of any business. Bookkeeping and accounting are two processes business owners rely on to track and understand their finances. Actually, the line between bookkeeping and accounting processes is becoming blurrier all the time. Technological advances in hardware and software have automated many of the traditional […]
What is the Schedule K-1 Tax Form for Businesses?
Are you a partner in a business? Do you receive distributions from an S corporation? If you answered “yes” to either of these questions, then the business entity you participate in should have provided you with a Schedule K-1 tax form. But just what is a Schedule K-1 and how does it work? Reporting Pass-through […]
