To fulfill their daily cash needs, small businesses should set up a petty cash system. Generally, this is done by allocating a certain fixed amount of cash to a petty cash fund which is then used for cash expenses or purchases based on receipts from employees. Whenever possible, a business organization should try to make […]
If you pay for work-related expenses out of your own pocket, you may be able to deduct those costs. In most cases, you can claim allowable expenses if you itemize on IRS Schedule A, Itemized Deductions. You can deduct the amount that is more than two percent of your adjusted gross income. Here are five
In May 2016, I had not heard of Xero Accounting, let alone knew what it was or what it could do for a small business. I had not really considered looking at, let alone trying, any web-based accounting programs. Come July, I was offered a job to assist a remote client in getting his Xero
A couple of years ago, I downloaded an app on my tablet called Evernote. I wrote a few notes in it and then basically forgot I had it until a couple of months ago. I read an article about a couple of things small business owners could do with Evernote to make their life easier.
If you are a self-employed, you normally carry on a trade or business. Sole proprietors and independent contractors are two types of self-employment. If this applies to you, there are a few basic things you should know about how your income affects your federal tax return. If you’re self-employed, here are six important tax tips
A Statement of Cash Flows tracks what’s coming into your business and what’s going out of your business during a specified accounting period and explains the change in cash by three activities: operating, investing and financing activities. You can think of it as a compressed version of your small business’s checkbook with a few other items that
A couple of errors have been reported by the users of this site’s free accounting spreadsheets. Both automatic accounting workbooks have errors in them. See instructions below for fixing the errors in the4Income/40Expenses Automatic Accounting Workbook and the9Income/28Expenses Automatic Accounting Workbook. 4 INCOME/40EXPENSES Workbook There is a error in this automatic accounting workbook for one
Figuring your small business tax deductions is another component of your small business success. Section 162 of the IRS tax code states that a business expense must be “ordinary and necessary” in order to be a small business tax deduction. The problem is that Uncle Sam does not quite spell out what “ordinary and necessary”
Small business bookkeeping is one of the foundation blocks of a successful business during a period of time. It is also one of the most neglected parts of many small businesses. Many small business owners do not bother with any bookkeeping until it comes tax time when the IRS has expected them to adhere to
If you’ve been procrastinating when it comes to preparing and filing your tax return this year you might be considering filing an extension. While obtaining a 6-month extension to file is relatively easy–and there are legitimate reasons for doing so–there are also some downsides. If you need more time to file your tax return this