Accounting Help BLOG

taxes and telecommuters

Thu, 26 Apr 2012 15:36:02 GMT

I came across this article that I thought some of you may find interesting. If you pay employees that live/work in another location, you may find yourself having to pay state/local tax there. With the states and localities scrambling for more tax monies, they're getting more aggressive in finding revenues. This article addresses an employee, not an independent contractor, in New Jersey. And the court ruled that the employer had to pay NJ tax because it had one employee doing business in this state (NJ). Just putting this out there for everyone to keep in the back of your mind. It's getting necessary to keep up with your state and the states you do business in, and follow what's going on in that tax department. This is all kind of uncharted territory, like internet commerce and sales taxes. It's just evolving, and who knows where it will all end up.

Is it an asset or an expense?

Tue, 17 Apr 2012 03:20:29 GMT

Sometimes when starting a small business or running your own small business you may purchase something small, like a printer, or a desk, and wonder. Is it an asset, or an expense? Like the printer. Let's say your buy a $99 printer. Technically, it's an asset, office equipment. But for some larger small businesses with sales of $200,000 a year, let's say, that may be very small to them, immaterial even. But to a small part-time enterprise, that $99 cost is very material. I would say you should think about what you consider "material" and "immaterial" as far as costs go. For your small business, maybe you decide $500 is your benchmark between an expense (office expense as in the case of the printer) and an asset (office equipment). For the asset, you will be gaining the expense of depreciation and the value of an asset on your Balance Sheet, showing that your small business has actual real valuable items to its credit. Bankers like real value in a business when you go try to get a loan. That's something to think about too. Not that a $99 asset is going to get you a loan, but the accumulation of assets will add up to something significant. Just something to think about. Your small business is of significant value to you, of course! Put some thought and attention into your accounting system, too. Have questions? Need some answers? Shoot me an email. Hope your week is going well!
Kathy

Almost tax day...

Thu, 12 Apr 2012 15:36:23 GMT

April 17th is coming fast, I hope you got your business taxes done already, and aren't rushing like a crazy person to find those last minute receipts! A friend of mine just finished their S-Corp tax return last week. And forgot to send the IRS an extension request. I was thinking it might be a good idea to make an entry in your calendars for next year, about 30 days before the due date of your business return, to make sure you remember to file that extension! One thing I've noticed is the IRS has a line on at least the corporate returns for sales from merchant accounts. So if you're receiving any part of your sales from credit cards, you might want to start tracking that now, instead of waiting til year end. That's a good use for your Cash Receipts Journal. Make another column for Credit Card Receipts. Those journals are just so cool, you can use them to track just about anything you want to. Another thing due this month is payroll tax returns. I've been working on those for the 1st quarter. Almost done. If you need a refresher on Cash Receipts Journals, check out the link below. Hope your businesses are growing. One more thought... What with the Supreme Court going over the Obamacare legislation, it's kind of up in the air about all those regulations, only a small portion of which we are aware of, I'm sure. I know my medical premium has already increased, and the deductible as well, holy smokes. I just found out from a consultant I was working with that part of Obamacare is that when you're involved in an accident, your medical provider HAS to sue the negligent or at fault party in the accident for half the cost of your care, which could be tens of thousands of dollars. I hope I never cause a bad accident or I'll lose everything. Anyway, I know we're all anxious for the Court's decision on this one. Take care and please wander around my site, there's all kinds of helpful stuff here. Have a question or comment? Email me! Thanks for reading!

just thinking...

Fri, 30 Mar 2012 03:29:41 GMT

I was just thinking...the first quarter of 2012 is almost over. How is your business doing? Are you growing? Do you know how your business has fared? Have you crunched the numbers? Do you know if you've made any profit? If you're still using a "shoebox" system, check out my pages on using a cash receipts journal and a cash disbursements journal. From there it's a quick calculation to find out if you've made a profit or loss. Sometimes in a smaller small business you don't have enough activity to warrant preparing an income statement each month, unless you want to, of course, which is great! But preparing an income statement on a quarterly basis helps you keep a grip on your business activity on a more timely basis than waiting for your CPA to calculate profit at year end for your tax return. (wow that's a long sentence!) Anyway, whether you calculate profit/loss monthly or quarterly, you'll find the process really helps you focus on what needs to be done to improve your business, or maybe just what to keep doing right! Hope you're having a great week! Need more accounting assistance? Check out all my pages. Use the navigation buttons on the left. And thanks for visiting!

small business financing help

Mon, 26 Mar 2012 15:46:31 GMT

small business financing - free help - how to secure a loan, types of loans

getting back to basics

Wed, 14 Mar 2012 15:37:44 GMT

If you're just starting your own small business, or just trying to figure out all this accounting stuff for a business you already have, maybe a good place to start would be my page on accounting basics. The very basics of keeping books for a small business is keeping a record of your income and your expenses, which in accounting lingo would be keeping a Cash Receipts Journal and a Cash Disbursements Journal, and then learn how to use those journals in your business. Check out the link below for more. Feel free to linger about my site for more free small business accounting help.

Are your customers lagging in making payments?

Wed, 07 Mar 2012 16:31:59 GMT

As the economy continues to stagnate, many businesses are getting behind in their payments. I know a business owner who was saying that customers are now paying at about 45 to 60 days from their previous 30 days. These are good customers, it's just that times are tough, and when your customers don't pay on time, it means you can't pay on time, and further down the line. Now, more than ever, it's time to develop a system to stay on top of your accounts receivable. Invoice customers when the product is sold or service delivered, don't wait til month-end to send out your statements. And start sending out reminders and past due notices. As they saying goes, the squeaky wheel gets the grease. Check out the link below for tips on getting paid timely. Feel free to browse my site, there's lots of info here on small business bookkeeping. And if you're looking for something that's not on the site, feel free to send me an email. Use the 'contact me' page or the 'ask the expert' page. Thanks for reading!

10 things Bookkeeping can do for you!

Fri, 02 Mar 2012 16:38:44 GMT

Once your small business gets going, sometimes it's easy to do the books ourselves, and sometimes it's just a pain in the, well, you know what I mean. LOL. What could hiring a Bookkeeper do for you? Or, if you're doing your own Bookkeeping, what should you be able to do for your business yourself? Here's some thoughts: 1.Keeping detailed Books let's you concentrate on running and growing your business, instead of worrying about what you're missing. 2.Tell you who owes you what, and when it's due, at any point in time. 3.Tell you who you owe, how much, and when it's due. 4.Figure out the cost of a new product or service, so you make a profit. 5.Monitor your cash flow, and let you know when a dry spell is coming, and tell you when cash is increasing or decreasing. 6.Offer suggestions to make your operations more efficient and cost effective. 7.Protect your business from fraud or theft. 8.Prepare detailed financial statements and reports to help you monitor your business. 9.Make tax time easier, by having organized files and prepared financial statements for your CPA or tax professional. That will make your tax return less expensive, too. 10.Give you peace of mind. So... Whether you keep your own books or hire someone to do it for you, you reap the benefits of being organized, knowledgeable, and prepared to run your business to its full potential. Please feel free to roam the site and if you have any questions, use my contact me page and I'll try to help as best I can. Thanks for reading! Kathy

Congress and taxes

Mon, 27 Feb 2012 04:08:03 GMT

Well, I've heard that Congress has decided to extent the social security reduction (from 6.2% to 4.2%) thru the end of this year. I haven't seen anything on the IRS website yet, but I'm thinking they should be making the announcement soon. The tax reduction was extended thru Feb 29 of 2012, but now is extended thru the end of the year. I don't want to get political, but I never understood why they would touch social security tax anyway...but that's another story. So, if you have employees, make sure you make this adjustment, or that your payroll provider is aware of this change. For more info on payroll taxes, check out the link below.

Motivating employees...and yourself!

Thu, 23 Feb 2012 16:59:12 GMT

Lately I've been hearing a lot about employers trying to keep their employees from talking to each other...or maybe just from talking period! What a boring day if you can't even talk amongst yourselves. I understand we don't want people standing at the water cooler for 30 minutes talking about last nights game, but when folks work together in one space, it's very natural to want to chat a little as you work to make the day go faster. It also makes you feel more a part of a team, closer to each other, which makes you want to help each other when needed. As an employer, isn't that what you want? Employees feel more creative and motivated when they have fun at work, not to mention they WANT to come to work, they don't have to drag their butts in every day. Think about that. Here's an article I came across, that gives some ideas of how this guy made his workplace a FUN place to be, all the while motivating his team to work! Check it out.

analyzing your sales

Tue, 14 Feb 2012 01:03:57 GMT

I was just thinking the other day, as I was writing some more on an accounting manual for small business owners, that a new year is a good time to think about tracking your sales. If you already track sales in your chart of accounts, is it working for you? Maybe you track sales by product. Could you benefit by tracking by customer, too? Or maybe location? Check out my page on tracking sales for some more things to think about. And if you have any questions, or comments, be sure to drop me an email. I love to hear from you! Kathy

W-2's and 1099's

Fri, 27 Jan 2012 01:30:26 GMT

I have finished my W-2 and 1099 forms, finally. Yeah! Well, I'm still waiting on one vendor for their taxpayer ID number. I just thought I'd touch base with all you small business owners. I hope you're year end work is going well. A couple of vendors told me they were LLC's, and so didn't get a 1099. Oh, contrare! According to the IRS, and a CPA friend of mine concurs, your vendors need to be actually incorporated to be exempt from getting a 1099. LLC's are not exempt. It's a good idea to send out W-9 forms to all your current vendors, and new vendors as you obtain them, to make this process easier come year-end. Make things easier for yourself, I say. Hope you all are doing well. Any problems, or questions, use my contact me form or my ask an expert page, shoot me an email. I love to help! Kathy

Payroll, W-2 and Health Insurance Payments

Fri, 27 Jan 2012 01:22:25 GMT

I am trying to create my W-2's via quickbooks. There is only 1 of me and I purchase my health insurance thru the company I own. My question is this -

loan sport business

Fri, 27 Jan 2012 01:14:22 GMT

how can i do an analysis for my project ' what step to take me to completed? ******************************** Thanks for reading my site! What type of

Happy New Year!

Sun, 01 Jan 2012 04:46:51 GMT

Well, a new year will soon be here. Hope your business will flourish and grow in 2012. When the new year begins, make sure you close out all your journals and accounts, and start fresh. If you have employees, you'll soon be preparing W-2 forms or 1099 forms, and collecting all your information for 2011 for your CPA for your tax returns. Here in the U.S. Congress has extended the payroll tax reduction thru February, so keep that in mind when doing your payroll. If you're not aware, that payroll tax reduction happened last year, and they reduced the employee's contribution for social security taxes by 2%. Keep an eye out for your 2012 Circular E from the IRS. And keep an ear to the news in February to stay current with your payroll. The IRS mileage rate is staying at 55.5 cents per mile in 2012. If you have any questions about getting your accounting information together for year-end, use my handy contact-me page and I'll try my best to help. Thanks for reading my blog, and coming by my site for all your accounting help. And keep coming, there will be some new features coming in 2012. Thanks and Happy New Year! Kathy
www.smallbusinessaccountinginfo.com

Merry Christmas!

Sat, 24 Dec 2011 17:00:49 GMT

Merry Christmas to everyone! Or Happy Chanukah! Hope everyone has a happy holiday, and a wonderful New Year! Personally, I have a rather large family, and my holiday gets stretched for several days as we all try to find time to get together with each other. Much fun! Back to business for a minute... This is the time of year to think about closing out your year, accounting-wise, and calculating a profit or a loss, and worrying about taxes, W-2's and 1099's, and all that. For all you readers that are just beginning a small business, or just thinking about starting your own small business, I will be adding an e-course to this site that will show you how to set up your own manual accounting system, very simple to do and use, and how to prepare your own Profit and Loss Statement. Look for that coming in January. Happy Holidays everyone!

Accounting Help Sales

Mon, 28 Nov 2011 17:35:59 GMT

accounting help sales is a discussion of small business sales and how to account for them, track them

tax time is coming!

Sun, 13 Nov 2011 04:17:18 GMT

I was going thru my calendar yesterday, and came across my note to estimate the number of 1099 forms and W-2 forms I'll need to do this year. Wow, time slips by quickly! I thought I'd just drop a quick note and see if any of you were thinking about year-end yet. Look ahead to tax returns, Form 1099's (thank goodness the changes from Obamacare legislation did not happen and the rules for 1099 forms have not changed), and Form W-2s. Order your forms if you do them yourself, or make a note to start gathering what your CPA will need to do them for you. Check out the link below for some other ways to make tax time a little easier.

Sample chart of accounts for you to use free for your small business.

Thu, 10 Nov 2011 17:34:46 GMT

Sample Chart of Accounts you can use for FREE for your small business. Great help for your small business accounting!

cash receipts journal is an accounting journal used to summarize receipts.

Thu, 10 Nov 2011 17:30:51 GMT

Cash Receipts Journal - basic accounting journal used to summarize your small business sales receipts.

cash disbursements journal accounting help

Thu, 10 Nov 2011 17:28:02 GMT

Cash Disbursements Journal - how to set up a simple journal to summarize your cash payments.

Growing a small business into a profitable venture

Wed, 19 Oct 2011 16:25:41 GMT

Growing a small business, ideas to help you expand your business and make it more profitable and secure.

basic accounting analysis made easy. How's your biz doing?

Wed, 19 Oct 2011 16:18:39 GMT

basic accounting analysis - taking the pulse of your small business.

sales discounts returns and gift cards

Mon, 17 Oct 2011 15:40:52 GMT

Sales discounts returns and gift cards, simple bookkeeping help for your small business.

Small business taxes, be prepared ahead of time and save!

Mon, 17 Oct 2011 15:35:17 GMT

Small business taxes, here's tips on how to plan ahead and save!

Learn File Management techniques for your small business.

Fri, 14 Oct 2011 15:46:26 GMT

Here's some tips on keeping up to date files for all your small business accounting info. File management is an important part of accounting.

Office Management for Your Small Business

Fri, 14 Oct 2011 15:42:47 GMT

Not sure what basic accounting info to keep and for how long? Look here for some tips on office management for your small business.

got cash?

Sun, 09 Oct 2011 02:58:49 GMT

That's a question every small business owner needs to ask themselves. Folk just opening a small business have to go thru the 'where will I get the funds' question, but once you get that small business started, that question still echoes in your mind. Get too wrapped up in spending and your cashflow will dwindle, you'll have trouble paying your bills, and you'll be sitting up nights worrying. Don't do that to yourself. Take the time periodically to go thru your books and see what the cash situation looks like. Look ahead too. Got some big projects coming up? Plan ahead to have the cash when you need it. Check out my page on cashflow analysis to get you started.

New Upgrade on QuickBooks

Fri, 07 Oct 2011 03:26:44 GMT

Wow is the weather great lately! After a couple of weeks of cool rainy weather, the sun is finally out! Speaking of things popping out, for all you computer techie's, there's the latest version of QuickBooks that just came out on Sept 26, I think. It's got new, expanded features, and for a limited time, it's on sale. That's always good! And for all you manual accounting fans, if your business is growing and you're thinking about a computer software program for your accounting, QuickBooks is #1 in small business accounting software. It's not made for accountants, really, it's made for small business owners. So, check it out at the link below. You'll find more info on the new features. The new edition is, as always, Full-featured, easy to set up; with many add-ons. Additions include calendar view and batch invoices, new shared custom reports, and Excel options. I've used QuickBooks for quite a few years, and found it very handy, and easy to use. New Features in QuickBooks Saves 50% Time Spent on Your Finances. Save up to 20% + Free Shipping. Have any questions on accounting? Use my Contact Me page, or the Ask The Expert page. I'll do the best I can to answer. Thanks for reading my blog! Check out my other pages on the nav bar to the left.

Asset sell

Thu, 29 Sep 2011 03:37:55 GMT

I own a S Corp which consists of 3 restaurants. I sold one and paid the bank off for the other 2 with part of the money I received from the sale. How do

How do I post the start-up loan for the business I purchased?

Sat, 24 Sep 2011 03:15:55 GMT

This is odd...we got a Futures Development loan to purchase a business. We never actually received any funds, funds went directly to the old owner. So

I do need to know the Assets=Liabilities+Equity.

Sat, 17 Sep 2011 04:06:29 GMT

I can't figure out which is debit and which is credit on almost all of these accounts ______________________________________________ Barbara, Thanks

cash management accounting help for your small business

Sun, 11 Sep 2011 03:10:16 GMT

Cash management skills to help you grow and maintain your small business

How To Do Payroll made Simple for your Small Business

Sun, 11 Sep 2011 03:03:02 GMT

How to do payroll for your small business, terms explained, steps outlined!

The high cost of health insurance

Sun, 11 Sep 2011 02:54:25 GMT

Ask any small business owner, and they'll tell you health insurance is one of the biggest expenses they have. If you work alone or have only a few employees, it's hard to get competitive quotes, and the cost is really prohibitive. I found this website where you can compare rates, and coverages, for you or your employees. Check this out: Looking for Health Insurance? I don't know how the recent health care legislation will all work out, but potentially you may have to provide coverage to employees, and this might offer a lower cost alternative. Remember, health insurance premiums are an expense item, and totally deductible on your business tax return. Also, If you have your employees contribute towards their health care premiums, such as $50 a month for example, those dollars the employees contribute are a decrease to your expense item for Insurance-Employee Health.

How to Calculate Payroll for your Small Business

Wed, 07 Sep 2011 03:49:09 GMT

How to Calculate Payroll. Gross wages, payroll taxes, net pay calculations for small business .

Thinking ahead to year-end...

Wed, 07 Sep 2011 03:11:10 GMT

Labor Day has come and gone, and it's almost Fall. I find myself thinking about year-end, and W-2 forms and Form 1099's and tax returns...oh my! It's a good thing to plan ahead, and maybe now is the time to start going thru your Disbursements Journal, or your QuickBooks vendor list, and see if you have the proper information on file to prepare your Form 1099's. A Form 1099, for all you new small business owners, is a tax return used to tell the IRS how much you paid to a subcontractor or service provider, attorneys, rent payments, and interest payments. So look thru your records and make sure you have a proper legal name, good address, and taxpayer id for any of the above folks that you paid over $600 to during the year. Attorneys you have to report for any amount of moneys paid. A little preparation now makes the process easier come tax time, when things always more hectic. Need some more information on Disbursement Journals? Check this out.

How to create a Balance Sheet

Tue, 23 Aug 2011 03:01:08 GMT

Able writes: The person operating my accounting software last year disappeared with my Balance sheets, Profit and Loss statements,and no telling what

Small business accounting info for the business owner

Sat, 06 Aug 2011 22:19:47 GMT

Small business accounting info in real-life, common sense, how-to-do-it format from someone who's been there.

Something that I think you can use

Sun, 24 Jul 2011 15:29:02 GMT

Here's something I ran across that I think may be helpful. It's an Excel spreadsheet that you can download, and use it to project out your cashflow needs. It's always a good idea when you're starting a small business or growing/expanding, to look ahead and see what your cash needs will be. Many a business has gone under for lack of capital (cash). Also check out my pages on Cashflow under the Cash Management button on the navigation bar to the left of the screen. Need any help? Use my contact me page. Thanks for reading my blog!

profit ratio analysis

Tue, 19 Jul 2011 16:14:58 GMT

profit ratio analysis made easy, learn about financial ratios for your small business.

Keeping up to date

Mon, 18 Jul 2011 15:39:54 GMT

Hopefully you're all keeping cool. I don't know about where you are but here in the Midwest it's really hot! I just came across something cool at the U.S. Government's Small Business Administration site that I thought might be of help to a lot of you new small business owners. It's a tool that will locate all permits and licenses you will need to run your type of business in your state. I know some states are getting pretty aggressive in collecting taxes and assessing penalties in these tough economic times, so make double sure you're dotting your i's and crossing your t's, so to speak. Check this out and make sure you've got all your bases covered.

Thinking about a vacation this year?

Mon, 11 Jul 2011 12:49:01 GMT

Entrepreneurs give their small business everything they have and then some. After all, starting your own business is a big responsibility. But sometimes wouldn't it help to step away for a few days? Get some rest...rejuvenate? Sure, you say. But what about my business? If you have a one person business, obviously things will shut down for the week or two that you're gone. Do a little pre-planning. Let your customers and suppliers know that you'll be shutting down for that time. Have the post office hold your mail. Send out all shipments, deposit any funds you've received, and pay whatever bills will be due during that time. Then lock the doors and go have fun. Don't leave any projects hanging, make sure you wrap it all up, that way you can really relax and enjoy your vacation. If you have a partner or a trusted employee, your small business will keep running while you're away. Just make sure you give them all the details on any projects in the works, and delegate what needs doing. Give them your schedule and contact info, but let them know you expect them to handle day to day issues. They're only to contact you if something MAJOR comes up. You hired them for their knowledge and talent, let them shine. Now...go enjoy some freedom. Rest. Relax. Then come back ready to roll. If you are taking a vacation this summer, have an awesome time! If you'd like to comment on this or any other blog post, feel free to use my Contact Me page or the Ask the Expert page from the navigation buttons to the left. Thanks for reading my blog!

Basic Accounting Concepts, in simple, common-sense language.

Mon, 11 Jul 2011 12:29:25 GMT

Simple basic accounting information so you can keep the books for your own small business.

Couple things...

Tue, 05 Jul 2011 16:23:25 GMT

I've been noticing on news sites and blogs they've been announcing the IRS has changed the mileage rate for 2011, but I waited til the IRS site actually announced it, to be on the safe side. If you pay employees for mileage, or if you deduct it on your tax return, the official rate has changed as of July 2, 2011 to 55.5 cents per mile. For Jan thru Jun of 2011, it was .51 cents per mile. So if you use mileage, make sure your calculations use the correct rates. Also, for my USA readers, how was your Independence Day? I am very patriotic myself, and I hope your town had a great celebration. You know, our independence is what makes great small business owners! For my non-USA readers, I hope you love your country too! I'm working on some more pages for my site, so keep coming back, and check my blog. I'm working on Accounting Ratio analysis, like Profit Margin, and Return on Investment, things like that. It's not that hard, really! I'm also working on Sample Journal Entries, to cover some of the more common transactions and how to do the journal entries. That should be a great help to all of you doing your own bookkeeping. If you think of anything else you'd like to see covered on this site, just use my Contact Page or the Ask the Expert page to the left and let me know! Thanks for reading my blog! Check out the link below for the official IRS notice.

Have you thought about indentity theft as it relates to your small business?

Thu, 30 Jun 2011 18:36:12 GMT

Think about it. How many checks do you keep in an unlocked file drawer? How many people know where they are? Keep your business safe. Invest in a locking file cabinet, or at least a locking file box for checks and other important papers. There are also lock bars for cabinets that don't have locks on them. Also, I read an article that talked about how thieves can "wash" your checks, and then re-write any amount they want onto the check. BUT, if you use a gel pen, the ink actually attaches to the paper and can't be washed off. So consider using gel pens when you write your checks. Just some thoughts on safety for your small business. Have any suggestions of things you've done to secure your small business? Use my Ask the Expert link below (it doesn't say Ask the Expert, but it will take you there), and add your comment. I'll share it with other readers, and even give your business a little promotion. If you'd like, give me a little info on your business and I'd be glad to post that too! In case I don't post anything in the mean time, have a great 4th of July weekend!

Amazon.com Widgets

Are you hiring part-time help for the summer?

Wed, 29 Jun 2011 14:00:29 GMT

A lot of small businesses hire some part-time help for the summer, either retirees or high school and college kids. It may be tempting to pay them as casual labor, and not thru your payroll, but be careful. The IRS has certain guidelines to follow to determine whether your summer help are employees or independent contractors. Check out the link below for the specifics. Basically, if you control what they do, when they do it, and how they do it, they're an employee. If they use your equipment they're an employee. Independent contractors work their own hours, use their own tools, and charge you for their time and expenses. There are penalties for not withholding taxes from workers later deemed to be employees. So to be on the safe side, follow the link below and make sure you're classifying your workers correctly.

Employee Payroll Forms

Mon, 20 Jun 2011 18:24:21 GMT

Payroll forms that you need to set up payroll for your small business. Federal, state, local, benefits, etc.

Tracking Sales - Simple Bookkeeping

Mon, 20 Jun 2011 18:16:34 GMT

Tracking Sales - simple bookkeeping help for your small business

Accounts Payable help for your Small Business.

Mon, 20 Jun 2011 18:07:24 GMT

How to handle Accounts Payable for your small business.