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year end Archives - The Accounting Department Inc

Unexpected Tax Bill? Survival Tips and Advice for This Year

By | Accounting 101, Bookkeeping 101, Business 101, Taxes | No Comments

This episode of Ask Connie is a question that comes up often when I talk to business owners, especially this time of year – tax season: I was shocked about my tax liability and am struggling on how to pay for that and not have that same situation happen next year. Perhaps I need to relook at my tax entity. Perhaps the tax professional made a mistake. Perhaps I should move. What do I do next? I have even had this question come up for myself in prior years, so I felt it was important to explore the question a…

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All the Boring, Timely, and Informative Payroll Items you Need

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

This was the hardest, most uninspired blog post I have written all year. And while this isn’t the most exciting or joyful post, I do know it will impact every business owner with employees, and especially those in Oregon. As 2016 comes knocking on our doors, so do a few payroll related items employers need to be aware of and more importantly, take action on. ADI Team PSA – 2016 Payroll Recommendations This year there are quite a few changes for employers that more action and review is needed. In fact ADI Accounting Team is making a few recommendations: If…

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Establish Realistic Targets to Unlock Your Best New Year

By | Accounting 101, Bookkeeping 101, Business 101, Cash Flow, CEO Mindset | No Comments

As the year comes to a close, this is a perfect time for reflection and planning. Early on in my business ownership, I found the act of planning a little like throwing darts against the wall. I was aiming at numbers somewhere between what I thought my potential clients could afford and what I thought my competition was charging. I even remember setting my revenue goals based on what others were going after, the magical $10k per month and the elusive six figures. At no time during my early days did I actually look at that revenue goal with the…

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Finding Qualified Bookkeepers

Business 101: Working with Tax Professionals

By | Business 101, CEO Mindset, Profit First, Taxes | No Comments

Most of my accounting conversations with business owners involve one of three topics – steps to make bookkeeping easier, outsourcing options, and referral requests for or questions involving tax professionals. Since fourth quarter is when I recommend clients check-in with their tax professionals for year-end planning needs, this is also the perfect time to review the relationship and needs you may have with your financial team. The following three items are what I focus on when I provide referrals. Tax Advice & Savings Business owners either are proactive or reactive when it comes to tax planning. The biggest issue that…

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Tax Deductions: Business Travel

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

The IRS on travel expenses: for tax purposes, travel expenses are the ordinary and necessary expenses of traveling away from home for your business. An ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your business. An expense does not have to be required to be considered necessary. In an earlier post  we discussed what the IRS recognizes as adequate recordkeeping. Keeping your receipts is necessary and you’ll need to document a few items on the receipt and in your accounting tool. IRS requirements…

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Business 101: 5 Common Accounting Mistakes

By | Bookkeeping 101, Business 101, CEO Mindset, Recordkeeping 101, Taxes | No Comments

Around this time of year, when businesses are pulling their year-end info together for tax prep, is when the most common business mistakes start showing up. This post covers the five most common accounting related items we cover with our clients. While there isn’t time to correct any of these mistakes for the prior year (sic: 2014), there is plenty of time to incorporate them into this new tax year. Demand a change to stop the insanity that happens during tax time by implementing the following five actions. Treat Your Business Like a Business There is no more mixing personal…

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Tax Deduction: Home Office

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

As the economy fluctuates and technology improves, more and more businesses are finding that working in smaller offices or from home offers a much lower overhead.  In response to this changing environment, the IRS opted to update their office in home deduction in 2013 to a simplified option.  Criteria for a home office didn’t change, only how to do the calculation and the recordkeeping requirements. Before we get to the new simplified option, there are two basic requirements that your home must meet to qualify.  If you have any questions about these, we recommend that you connect with your tax…

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Tax Deductions: Business Auto Expense

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

Part of the business year-end wrap-up includes gathering info in regards to business use of your auto. Whether you used either a business owned vehicle or your personal car, you need to collect and calculate your mileage. To do this, the IRS wants a log that includes the date, starting mileage, ending mileage, and purpose of travel. Seems simple, but yet every year it is the one thing most of the business owners we have worked with struggle with year, after year, after year. Getting a simple, doable system in place can get you back on track to take advantage…

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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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