If your profits are falling compared to revenue and assets, your financial statements may provide insight into what’s happening and how to improve your performance. Watch for red flags As you sell more and invest in additional assets, profits should, in theory, increase by a proportionate amount. However, that’s not always the case. Ratios to [...]
The Tax Cuts and Jobs Act (TCJA) provides a valuable new tax break to noncorporate owners of pass-through entities: a deduction for a portion of qualified business income (QBI). The deduction generally applies to income from sole proprietorships, partnerships, S corporations and, typically, limited liability companies (LLCs). It can equal as much as 20% of [...]
Meal, vehicle and travel expenses are common deductions for businesses. But if you don’t properly document these expenses, you could find your deductions denied by the IRS. A critical requirement Subject to various rules and limits, business meal (generally 50%), vehicle and travel expenses may be deductible, whether you pay for the expenses directly or [...]
Owners of closely held businesses sometimes need to advance their companies money to bridge a temporary downturn or provide extra cash flow for an expansion, a major expense or other purposes. Should you categorize those advances as bona fide debt, additional paid-in capital or something in between? Under U.S. Generally Accepted Accounting Principles (GAAP), the [...]
One of the things that make family businesses such appealing places to work is trust. Trust is also one of the things that make family businesses vulnerable to fraud. It only takes one lone wolf to damage or destroy an enterprise you and your family have spent years building. Accept the possibility One of the [...]
The bookkeeper is one of any company’s most trusted employees. Unfortunately, that trust isn’t always deserved. Bookkeepers — particularly those in small and midsize businesses — are ideally positioned to embezzle from their employers. Less means more When bookkeepers go bad, there are plenty of ways for them to steal without alerting owners to irregularities. [...]
You have decided that you are tired of the 9 to 5 daily grind and you have a great idea that you feel is perfect for a small business. Ahuja and Clark, PLLC (A&C) can help you become your own boss of your small business. With our every changing tax laws, Ahuja and Clark, PLLC [...]
You may have a Form 1099 filing requirement for the 2015 tax year. Every entity or person engaged in a trade or business is required to file an information return for payments made to another person in the course of the payer's trade or business totaling $600 or more in the calendar year for services […]
