Posted on Jan 24, 2010 in Budgeting & Planning Tips,Operational No Comments »
Question – We would like to reduce our projected taxable income but due to current cash flow volume, we are unable to reduce all of our accounts payable. Would it be wise to take money from our line of credit to pay vendors? Or are we better off not taking out additional debt? Answer – [...]
Posted on Jan 23, 2010 in Financial Statements & Taxes,Operational No Comments »
Question: Which contractors do I have to issue a 1096/1099 form for to the IRS? I know they are the ones whom I’ve paid more than $600 during the year to,but are there other qualifications to be concerned with? Answer: Generally you only need to furnish 1099s to independent contractors who are individuals (SSN) or [...]
Posted on Jan 13, 2010 in Operational No Comments »
Fit. It’s the most important consideration when selecting a certified public accountant. To get off to a good start, interview two or three practices. I also recommend to both new and experienced business owners to look for a comfort level with their skill set and their culture. You want to be confident and comfortable with [...]
Posted on Dec 27, 2009 in Financial Statements & Taxes,Operational No Comments »
While there are generally several benefits for an LLC to be taxed as an S Corporation instead of being an LLC taxed as a Sole Proprietor, the two most appealing are: 1. Reduced Internal Revenue Service audit risk. 2. Potential self-employment tax savings. In this hypothetical instance, say you had not withdrawn any funds from [...]
Posted on Dec 27, 2009 in Operational No Comments »
Changing CPAs? Without proper planning, a transition year can cost more than usual if there are pre-existing circumstances that need attention. For example, prior year-end accounting discrepancies or shareholder basis issues can incur one-time only costs. Other items that can make a transition year more expensive would be: numerous depreciable assets several business or rental [...]
Posted on Dec 15, 2008 in Operational No Comments »
Long-lived assets are just that, acquired to last three or more years. Therefore, it generally makes sound business sense to obtain short-term bank debt financing that mirrors the intended useful life of the asset acquired rather than pay cash or use credit cards. Computer Equipment = 3 years. Office Equipment = 5 years. Furniture = [...]
Posted on Dec 15, 2008 in Operational No Comments »
An upgrade in machinery or computer systems usually arises from the obsolescence of previously used equipment. Pay careful attention to your internal fixed asset lists and make certain you still use the equipment listed. Otherwise, you’re likely paying tax or taking a depreciation deduction on assets you no longer use or even possess.
Posted on Dec 15, 2008 in Operational No Comments »
You get the question every year at tax time – what are your total meal costs? So simply allocate airfare, lodging and vehicle expenses to travel and allocate meals and diversion activities to entertainment. And treat company outings as employee relations.
Posted on Dec 15, 2008 in Operational No Comments »
If a vendor mails both individual invoices and monthly statements, then remit payment based on the monthly statement amount. It is easier to track, will create less confusion and likely involve fewer payment misappropriations. And make certain you attach each individual invoice and related purchase orders, if applicable, to the monthly statement and separate payment [...]
Posted on Dec 15, 2008 in Operational No Comments »
In this day of payroll outsourcing and low interest rates, it doesn’t make sense to have more than one operating bank account. You gain greater control and reduce bank errors. And know your cash balance with a single glance accompanied with no math.
Geoff Goudy: The Certified Public Accountant Colorado Businesses Trust.
Serving Northern Colorado including Fort Collins, Greeley, Loveland, and Wellington.
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