If you are looking to start a business for the first time or already have one, then you should use the right approach to ensure you avoid common pitfalls and instead create more profits. To do this, you need to consider a few key areas. These five considerations should be at the top of the list to ensure you are as successful as possible in the early stages of your business. Legal Matters For Startups A legal entity will not only make...
A previous post on this blog for Accounting Month described the relationship between the business financials and the business plan. For business owners, business managers and future business owners who are starting a business, or for anyone who needs to make financial projections, it helps to do research when you actually know where to look for the information. If you don't know where to look for the information, then it is super difficult to complete a business plan or research...
The following is advice that I've received from accounting professionals on how to avoid an IRS tax audit. Keep in mind that I (the author of this article) am not an accountant myself or any type of IRS official. It's still good advice, but for better advice, consult the right professionals. There is a rumor based on statistics that the IRS selects the people/businesses that they audit from those who file their taxes on time. Its a random, lottery-type selection (too...
Vehicle expenses are one of the largest expenses for businesses who own vehicles and one of the biggest deductions you can claim on your taxes as a small business owner. This article will give you all the actionable information you need, summarized from the book, Tax Savvy for Small Business by Frederick and Quinn. Follow these steps to deduct vehicle expenses from your small business taxes. Step 1: Keep a mileage log to record vehicle use. You'll need this data when...
"There is nothing sinister in arranging one's affairs as to keep taxes as low as possible . . . for nobody owes any public duty to pay more than the law demands." - Judge Learned Hand. The tax deductions that come with owning a business are one of the biggest motivations for owning a business. Taxes are calculated based on the business' income after expenses (recall the income statement). It's also a progressive tax, meaning the more you make, the more...
A previous post on this blog suggested that business owners do the bookkeeping themselves instead of hiring a bookkeeper. Or if you decide to hire a bookkeeper, the post suggested to make their service supplemental to your own instead of replacing you as the bookkeeper. While a good piece of business advice is to work on your business and not in your business, bookkeeping is one of the few activities where business owners can save time and money by doing...
Quickbooks vs Freshbooks vs Wave Accounting Software: Which Should You Choose? When setting up "the books" for small business accounting, most business owners select Quickbooks because it's the most-used and best-known small business accounting software. It's also the most universal application for accountants. There are hundreds of accounting software applications on the market. Some are completely web-based and others are installed on your computer. Yet, many business owners may not even know that they have alternatives to Quickbooks, let alone a...
Every business owner needs a super team. There are multiple professionals on this team which may include lawyers, accountants, consultants, marketing experts and others. When aggregating this team, it is important to find the right professional for your business to avoid as many mistakes as possible and maximize the effectiveness of your business. Since this is Accounting Month on the Mirex Marketing blog, it is only appropriate to have a post that explains how to find a good accountant for...
Certified Public Accountants (CPAs) and Enrolled Agents are both qualified to perform accounting tasks for your business. When business owners are shopping or looking around for a good accountant for their business, they may come across both of these professionals. Since the next post will explain how to find a good accountant, it may be helpful to understand what the difference is between a CPA and an Enrolled Agent (EA): Certified Public Accountants (CPA): Certified Public Accountants generally have a 4-year undergraduate...
The blog posts that were published last week were a good start for Accounting Month on this blog and they can be a fantastic resource for business owners, business staff, and start-up businesses who need to learn accounting. Here is a list of them for review: 40 Basic Accounting Principles that you need to know to understand Small Business Accounting Cost of Goods Sold - Additional Principles that Businesses with Inventory Must Know 65 Accounting Terms and Definitions Should I...
