Category

Taxes

Favorite Tool Series: Track1099.com

By | Bookkeeping 101, Recordkeeping 101, Taxes | No Comments

A long long time ago, say prior to 2012, processing 1099’s every January took quite a bit of planning, preparation, and coordination.  I never seemed to have enough forms, enough envelopes, or enough postage.  Then the Sleeter Group recommended a tool that they were using internally called Track1099.  I have never particularly liked processing and printing 1099’s within the accounting tool I was using (QuickBooks for desktop, at the time); it never quite printed properly on the forms, and it annoyed me.  Plus, working with as many clients as we were, all who were using different accounting tools, what I…

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Recordkeeping 101: Paper vs. Scans

By | Bookkeeping 101, Business 101, Taxes

Receipts to a bookkeeper are gold; to a business owner a pile of anxiety and nuance; and to the IRS a legal requirement. Naturally, as a bookkeeping firm, we are going to write about how easy it is to keep your receipts and go paperless – we love receipts!  For business owners that have an opposite opinion around receipts there is no magic pill or tool to change that.  Instead we need to look at your personal “nature” when creating a plan on how to adjust your mindset that creates a process to work with your behavior, not against it….

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Recordkeeping 101: IRS Receipt Guidelines

By | Bookkeeping 101, Recordkeeping 101, Taxes

Recently we encountered a couple of articles on how the IRS denied taxpayer deductions because the owner could not provide proper documentation.  While the taxpayer presented canceled checks, spreadsheet or credit card statements, this proved use of funds but without the receipts there was no way to prove ordinary and necessary in the operation of the business.  Let’s establish what is adequate business records based on the IRS definitions. Definition Receipts = physical or email notification from a purchase made by check, cash or credit card.  To a business these should be treated like GOLD, especially if you pay cash. …

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Recordkeeping 101: 5 Tips to Eliminate Year-End Anxiety

By | Bookkeeping 101, CEO Mindset, Recordkeeping 101, Taxes

As the calendar page turns to show us it is December – which, by the way, happens every year – we see and feel the anxiety levels start to kick-in for business owners and their tax professionals.  (Yes, even tax professionals get anxiety)  Wouldn’t it be great to change this annual occurrence of anxiety with just a few simple steps? Your anxiety can be eliminated, if you choose now to implement these five steps.  How different would your business be IF…. Your recordkeeping is current and ready to hand over to your tax professional by the first of February No…

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Proactive Year-End Accounting Tasks

By | Accounting 101, CEO Mindset, Recordkeeping 101, Taxes

Last month we mentioned as the year comes to a close it was a great time to start looking at your needs for 1099s; take time to meet with your tax professional to be ahead of any possible tax projections; and finally get a start on pulling your accounting info together. Before the year-end comes to a close and to make January just a tad bit less stressful, here are a few things to take a look at in December. The Basics – Items all business owners should start pulling together: 1. Update your accounting and reconcile all bank accounts…

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Why it’s Wise to be Proactive with your Business Finances

By | Accounting 101, Bookkeeping 101, CEO Mindset, Taxes

Over the last 20 years I have worked with a variety of small businesses and they tend to fall into two categories when it comes to being proactive with their business finances. Ignorance is Bliss…or at least less painful Keeping track of the details creates the same pain and feeling as having a tooth pulled.  Most of the time the business cash flow is used as quickly as it is earned.  Which creates a panic during tax time because there is no savings or excess cash flow to cover any taxes owed.  A disconnect exists between cash flow and tax…

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Why is a W9 so important?

By | Bookkeeping 101, Recordkeeping 101, Taxes

W9s act as “proof” that the vendor provided information about their tax status and info.  In case the vendor didn’t provide the right information or misunderstood how to report it, then a completed (signed/dated) W9 is your way out of any penalties that might incur for improper filing. We mentioned that there are a couple of cases when a 1099 won’t be filed and that’s why we need the W9 from each vendor.  1099s don’t need to be issued to vendors that are C or S corporations.  LLCs that marked the corporation boxes would also not need a 1099 completed. …

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It’s time to reach out and collect those W9s!

By | Bookkeeping 101, Recordkeeping 101, Taxes

Let’s talk 1099’s. A 1099 is an informational return that businesses file with the IRS that tells them you hired XYZ vendor to provide services in a given calendar year and that you paid them more than $600 by cash or check (which also includes online bill payment service).  With all that said, it seems like you would issue a 1099 to all vendors you pay by check or cash – but that would be too easy. Our suggested process comes straight from big corporate accounts payable standards. ALL new vendors must complete or provide a W9 that will be…

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Fall Signals Planning Time

By | Accounting 101, Bookkeeping 101, Business 101, Recordkeeping 101, Taxes

Though the sugar induced coma from the Halloween candy and the change in the weather makes me want to cuddle and hibernate under my blankets, the calendar pages slowly turn to reveal it is November; low and behold there are only two months left of this year.  I know!  I can hardly believe it. For business, there are two things that November signals: Be proactive and have a tax projection done NOW!  Yes, that means your accounting needs to be current.  Finding a new tax professional or at least reaching out to your current provider to schedule time to meet,…

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Year End Is Near: Your Year End Bookkeeping Checklist

By | Accounting 101, Bookkeeping 101, Business 101, Recordkeeping 101, Taxes

Year-End is Near – so what’s on your bookkeeping checklist? Wait, what – you don’t have one? Never fear. We’re here to help. This blog post gives you a quick checklist of items to consider and move forward this month.  Delegate what you can and if you need assistance or questions about these items seek feedback from your tax professional. Do you need to issue 1099’s? NOW is the time to start your vendor audit if you haven’t already done so.  Review your vendors for those that were paid over $600 by CHECK – manual or online bill pay qualify. …

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