Separating personal and business expenses

There are some things in life that go together well and others that definitely do not. Business and personal finances are in the category of items that should not be mixed. Although it may seem like a headache to keep them separate—who wants to manage all those bank accounts?—your life will be greatly simplified once you separate your personal and your business finances, especially your expenses. Paperwork and taxes will…  Read more

¡No he recibido todos mis documentos!

Se acerca el 15 de abril y todavía no ha recibido todos los documentos que le pide el CPA para terminar su preparación de impuestos. A continuación algunos de los documents más importantes y cómo conseguirlos si no le han llegado por correo. Formulario de ingresos W-2: Su empleador debió haberle entregado su W2 antes del 31 de enero del año en curso. Si no fue así o se perdió…  Read more

En la mira de los auditores del IRS

¿Por qué algunas personas son auditadas y otros no? Muchos alegan que es asunto de suerte o mejor dicho mala suerte. Agentes del IRS han declarado que gran cantidad de auditados son seleccionados al azar por un programa de computadora. Lo que sí es cierto es que cada año por los recortes de presupuesto el IRS examina a menos personas. Por ejemplo en el 2017 sólo 0.60% de los que…  Read more

Bookkeeping Basics for Small Business Owners

On average, small business owners spend 10 hours each week recording, organizing, and processing financial transactions – everything from accounts receivable and payable, to employee payments, expense receipts and supplier invoices. While the process may be time-consuming (and tedious!), effective bookkeeping is the foundation of sound financial management – which in turn, is the lifeblood of your business. Feeling overwhelmed by mountains of paperwork and complex calculations? Here are three…  Read more

Insights from your Profit and Loss account

Most small business people would agree that their Profit and Loss account (now more correctly called a Statement of Financial Performance) is among the easier – if not the easiest – financial document to understand. It’s typically presented in two parts. The top half of the statement reveals the various sources of income the business has received for the period covered, such as a quarter, half year or full financial…  Read more

Three Ways an Accountant Can Save You Money

Many small business owners think they’re saving money by handling their financials themselves. While it’s a real asset to learn bookkeeping basics, cash flow management and your tax obligations, hiring an accountant to oversee your finances has many benefits. Leaving your books to a pro will free up time so you can focus on serving your clients and implementing plans for growth. Here are a few ways an accounting professional…  Read more

Reforma tributaria para negocios

La Ley de Empleos y Reducción de Impuestos (TCJA) del 2017 fue promulgada con el próposito de fomentar el crecimiento económico y estimular las inversiones de negocios. Todos los dueños de negocios verán cambios en sus preparaciones de impuestos. Es importante conocer los puntos más destacados de la ley. Corporaciones C: Las entidades que llenan sus impuestos en la Forma 1120 son corporaciones C. La tasa de impuestos para las…  Read more

Tax reform for business owners

The Tax Cuts and Jos Act of 2017 (TCJA) was enacted with the intention of spurring economic growth and stimulating business investments.  All business owners will see changes in their tax returns.  It is important to sort out the key points of the tax reform. C Corporations: Entities that file their taxes on Form 1120 are C Corporations. The tax rate for C Corporations was reduced from 35 percent to…  Read more

Why Bookkeeping is Crucial to Your Success

Keeping track of sales, earnings, expenses, and purchases is fundamental to the overall health and sustainability of your business. Effective bookkeeping produces the data you need to evaluate your current practices, anticipate challenges, and set attainable future goals. But despite their proven importance, many business owners dread and avoid accounting tasks. In fact, 40% of surveyed entrepreneurs claim that bookkeeping is one the worst parts of running a business! Wondering…  Read more

Crédito por hijos: buenas noticias, malas noticias

Las familias han estado acostumbradas a reembolsos anuales gracias a diferentes créditos for sus hijos dependientes calificados. Los créditos fueron creados para ayudar económicamente a familias de bajos o moderados recursos. Primero las buenas noticias. El Crédito Tributario por Hijos, conocido en Inglés como Child Tax Credit (CTC),  se duplicó a $2,000. La parte reembolsable llamada Crédito Tributario por Hijos Adicional (Additonal Child Tax Credit ACTC), aumentó a $1,400. Se…  Read more

Child Tax Credit : good news, bad news

Families have come accustomed to rely on different credits based on qualifying children to increase their annual tax refunds. The credits were created for that same reason, to help economically growing families. The good news first: the Child Tax Credit (CTC) doubled to $2,000. The refundable amount, also known as the Additional Child Tax Credit (ACTC), increased to $1,400. If a taxpayer does not have a tax liability before the…  Read more

Tax Season Tips for Small Business Owners

Preparing for tax season is really a year-round endeavor. Tip number one for SMB owners is to update financials on a monthly basis, using a streamlined software or cloud-based system. This way, come tax time, everything you need is all in one place. And well organized SMBs are better positioned to minimize their tax bill while avoiding penalties associated with missing or inaccurate information. Here are four more ways to…  Read more

10 key changes you should know before you file your 2018 taxes

The Tax Cuts and Jobs Act (TCJA) of 2017 brought a lot of changes to the tax law. The tax reform went into effect in 2018. The first tax returns affected by the reform  will be filed by April 17, 2019.  There are some major changes you should be aware before you file your personal income taxes. 1- New Form 1040: Forms 1040A and 1040EZ have been eliminated. In an…  Read more

10 cambios importantes que debe saber antes de llenar sus impuestos del 2018

La Ley de Empleos y Reducción de Impuestos (TCJA), aprobada en Diciembre de 2017, hizo muchos cambios a la ley tributaria. La reforma tributaria entró en efecto en el 2018. Las primeras declaraciones de impuestos afectadas deben de ser llenadas antes de Abril 17, 2019. Existen cambios importantes que debe conocer antes de llenar sus impuestos personales. 1-Nueva Forma 1040:  Las Formas 1040A y 1040EZ fueron eliminadas. Para simplificar el…  Read more

Tax tips for new business owners

Want to avoid paying more than you should come tax time? Or a frantic last minute search for missing financial records? New business owners have a lot on their plate, and can easily lose track of an approaching tax deadline or financial data needed to submit their return. Organization is key when preparing for tax time. As is taking advantage of the many tools and resources out there to support…  Read more

What to do if you get audited

No business owner looks forward to a letter from the taxman requesting a closer look at the books. If you’ve received an audit letter – an official request by the tax authority to review your accounts and confirm your taxes have been paid to date – don’t panic. Prepare. These four steps will help you get through the process with minimal stress and the best possible outcome. Respond promptly If…  Read more

Strengthening your balance sheet

Your balance sheet (now more correctly called a Statement of Financial Position) reveals a great deal about your business, including the total value of your assets – the things you own; how much you owe to others – your liabilities; and the level of your solvency. These three aspects will be studied carefully by lenders and investors − and by buyers if you intend to sell your business. But they…  Read more

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