Posted on Jan 01, 2010 in Financial Statements & Taxes No Comments »
A sign of trouble ahead is when a business is unable to meet sales and payroll tax remittance requirements. Why? Because it’s another party’s money. A retailer is nothing more than a conduit for State and Local tax authorities as a retailer merely collects sales tax at the time of sale and then remits these [...]
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 In this hypothetical instance, say you had not withdrawn any funds from [...]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 Financial Statements & Taxes No Comments »
Simple. Tie net income (loss) on the statement of operations to the statements of cash flow and changes to equity. Tie cash on the balance sheet to the statement of cash flow. Tie total equity on the balance sheet to the statement of changes to equity. If they all match, your four statements are in [...]
Posted on Dec 15, 2008 in Financial Statements & Taxes No Comments »
We all fall into the trap on occasion – how does this affect taxes? Sometimes a thorough analysis of the tax effect is warranted. However, most decisions should not consider a myriad of tax codes and rather, simply hinge on whether or not it is practical.
Posted on Dec 15, 2008 in Financial Statements & Taxes No Comments »
Careful attention to balance sheet classification is imperative for proper ratio analysis. Short-term assets and liabilities are generally to be turned into cash or spent during the next 12 months. Correspondingly, long-term assets are depreciated or amortized and long-term liabilities are paid over a timeframe greater than one year.
Posted on Dec 15, 2008 in Financial Statements & Taxes No Comments »
Ship it to an out-of-state customer, not required to collect sales tax. Ship it to an in-state, in-county or in-city customer, collect applicable sales tax. Customer picks it up, collect maximum applicable sales tax. Remember, based on shipping address, not billing address. And always review instructional materials for exceptions, inclusions and allowances.
Posted on Dec 15, 2008 in Financial Statements & Taxes 1 Comment »
While monthly benchmarks are critical to most businesses, analysis of monthly financial information is generally skewed due to special circumstances – days open for business or frequency of payroll runs. Quarterly analysis proves much smarter as the positive or negative monthly spikes are flattened by a longer reporting period. Thus, true trends can be spotted, [...]
Posted on Dec 15, 2008 in Financial Statements & Taxes No Comments »
While accounting and tax regulations permit cash basis presentation, all companies would be best served to account for transactions under the accrual basis of accounting. This latter method reflects the complete operating picture of the business. Accrual basis reflects customer receivables, vendor bills and personnel payables rather than just incoming receipts and outgoing disbursements as [...]
Posted on Dec 15, 2008 in Personnel No Comments »
Sales commissions. Make it too rich you risk staff dissension. Make it too complex you create more issues than incentive. The ideal commission promotes enthusiasm and teamwork. Understand your company’s culture before implementing any commission plan and then keep it consistent.
Geoff Goudy: The Certified Public Accountant Colorado Businesses Trust.
Serving Northern Colorado including Fort Collins, Greeley, Loveland, and Wellington.
Copyright © Geoffrey W. Goudy, All Rights Reserved
Toll Free Phone: 877-277-6828 | 401 W. Mountain Ave., Suite 101 | Fort Collins, CO 80521
Website designed by ashwebmedia