The accrual basis of accounting is far more advantageous for financial reporting than the cash basis because it provides a much more accurate view of your results of operations.
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Establishing an accountable plan allows you to reimburse employees, owners and shareholders for those expenses—potentially even home office expenses—in a tax-advantaged way for both parties.
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One of the most challenging aspects of managing sales tax as a small business owner is understanding when you have "nexus" or a connection with a taxing jurisdiction that allows it to impose sales tax obligations on you.
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Many fringe benefits are taxable, but not all. And if you don’t include the value of taxable benefits in your employee’s income and withhold taxes, you could face IRS penalties. That’s why it’s crucial to understand the difference between taxable fringe benefits, non-taxable fringe benefits, and de minimis fringe benefits.
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Construction companies need to track and account for multiple contracts, construction projects, and job costs at any given time. This makes construction accounting much more complex than in other industries.
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While getting a CP2100A notice from the IRS is never pleasant, ignoring it—or thinking you'll get to it later—can lead to hefty penalties and interest charges. The good news is there are steps you can take right now to reduce your exposure and minimize potential damage.
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Learn how to differentiate between employees vs. independent contractors, including DOL and IRS tests.
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Traveling, taking clients out for coffee or lunches, and buying office supplies—these are all costs that employees might charge to their personal credit cards as part of their jobs.
It’s common practice for the business to pay employees back for job-related expenses. Handling expense reimbursements correctly ensures you do it in the most tax-advantaged way while keeping your employees happy.
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S corporations can provide health insurance as tax-free employee fringe benefits to non-owner employees. However, if the company provides medical care coverage for shareholders, the premiums are considered taxable income to the shareholder.
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Whether you buy or lease a car for business, it’s a considerable investment. So you want to ensure you’re getting the full tax benefits in the form of deductions and write-offs that will save you money.
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It’s almost the end of the year, so business owners are looking at their financial statements for ways to increase their compensation without hurting the business or getting into tax trouble.
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