Business owners tend to use the terms “revenue” and “profit” interchangeably, but there is a big difference between the two. And to understand your company’s finances, cash flow, and potential tax consequences, it’s essential to differentiate between the two.
Does the nature of your business require a lot of driving? If so, you might benefit from purchasing a company vehicle. But should you buy a personal vehicle and write off the business use? Or buy a vehicle in the company’s name and write off 100% of the expenses?
When business is booming, you might wonder whether it’s time to hire a new employee. Growing your team can be…
Depending on the size and complexity of your business, you may have several people involved in your company’s finances. I’ve seen many small business owners hire a bookkeeper or accountant expecting to receive everything from bookkeeping to tax preparation and strategic financial advice. While some professionals do provide a variety of services, these roles are not the same.
When it’s time to hire help in your business, you have a choice: hiring a part- or full-time employee or working with an independent contractor. It’s important to think about whether you need one or the other and classify them correctly.
Small business owners wear many hats. In addition to business development and customer service, managing employees and finances, they’re also tasked with predicting the future: anticipating how much income the business will bring in and how much cash they’ll have on hand to cover expenses.
When setting up your small business, you generally have five options: sole proprietorship, partnership, limited liability company (LLC), S corporation,…
Small business owners and self-employed people don’t have an employer withholding taxes from their paychecks. Instead, they’re responsible for paying their own taxes, and the IRS expects a payment every quarter.
Small business owners know that sales tax can be tricky. Unfortunately, they got even trickier this year thanks to the…
Most small business owners know they can deduct legitimate business expenses to lower their taxable income, but sometimes that drive to reduce their tax bill leads to making a wrong choice.