Posts Tagged ‘IRS’

Keep Business and Personal Spending Separate

You’ve probably heard it is a good idea to keep business and personal spending separate. There are some very good reasons for that. Read the rest of this entry »

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5 Reasons to Keep Accounting Current

Accounting is one of those areas that can get put on the back burner. That can be a very serious mistake. This posting is highly relevant to start-ups, but applies more to some small businesses that have existed for a long time than you might imagine. Although there are certainly more than five reasons to keep accounting current, here are five that I believe are critical.

Legal Obligations

You will undoubtedly need correct financial information to have Read the rest of this entry »

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Inconsistent Income Tax Decisions

As you are certainly aware, the U.S. Federal Income Tax code is sometimes quite vague. A number of years ago I read about a little test where the same tax information was taken to a certified public accountant (CPA), and several other tax preparers. When each had completed a sample return for the same information, each return was different. Something is wrong here. Seriously wrong!

Another Case in Point

In a previous posting (Independent Contractors – Know the Rules) the rules used by the Internal Revenue Service (IRS) to determine whether someone was an independent contractor or an employee were discussed. There it was pointed out that the IRS uses several criteria to determine whether someone is a contractor or an employee. Among the things considered are Read the rest of this entry »

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Income Taxes, Bureaucracy, Policies and Procedures

Having just finished my personal tax return, I am reminded why Income Tax Preparation and Planning are services I have never had an interest in providing. There are two reasons why:

  1. My belief is that this service is specialized and should be handled by someone who makes it their specialty
  2. I also believe the U. S. Tax Code is absurdly bloated and complicated, causes countless wasted hours to comply with, and in the end is non-productive

Increasing Complexity

Like the U.S. Tax Code, over the years companies have a tendency to add layers of bureaucracy and increasingly complex procedures. If you own a company or have worked somewhere for an extended period, stop for a moment and look back to what the company was like when you first started. Chances are things were a lot simpler and perhaps more efficient. Read the rest of this entry »

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Independent Contractors – Know the Rules

Businesses are always looking for ways to save money and should be. Unfortunately they often choose a method that may come back to haunt them.

So You Want to Give Employees a Break?

Years ago I was joined a company that paid some of its employees a draw and commissions on top of that. For this they were treated as employees and the applicable taxes deducted and remitted along with the company’s portion of taxes. However, this company also Read the rest of this entry »

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