Because the vast majority of small businesses operate on the cash basis of accounting (meaning that expenses are deducted when paid), it can be critical from a tax standpoint whether a transaction occurs on December 31 versus January 1. Generally, a transaction that occurs on December 31 (i.e. before the calendar year closes) is reportable… [Read More].
Though Covid-19 will be here for the foreseeable future, to a large degree the gravity of Covid’s effects on small businesses have lessened. Many that were shuttered or experienced revenue declines during the worst of the pandemic have recovered. Covid has had an unequal impact on small businesses—oftentimes due to differences in industry; the level… [Read More].
One of the most tedious and cumbersome tasks that many small business owners undergo in the new year is filing Forms 1099-MISC and Forms 1099-NEC. These forms are commonly required to report rent paid to landlords and compensation paid to independent contractors for the previous year. As a general rule, payments of $600 or more… [Read More].
Most small businesses require the services of more than one person to operate effectively. Even sole proprietors may need support from a virtual assistant, a webmaster, an accountant, or an attorney to help the business thrive. However, in some cases, a business owner may seek outside services on an ongoing basis, from these or other… [Read More].
If your business has employees, you likely know how important it is to pay them on time. As small business owners, we oftentimes rely heavily on our employees. However, an equally important cost that is oftentimes overlooked is remitting the associated withholding and employment taxes to the government on time. A good payroll service can… [Read More].