Protect your Identity and your Tax refund:

For your own security ask your Tax preparer if your tax information will be outsourced outside of their office to get your taxes done or it will be prepared onsite?

Some preparers are sending information outside of the country and that is placing taxpayer’s information at risk.

Refunds:

Please note, if you request efile and also ask for direct deposit, you will get your refund within 10-14 Business days. Do not accept instant tax refunds, because you will lose 10-30% of your refund of money you can use to pay off debts or save for emergency.

NEW DEADLINE 1099 and w2s

New 1099 filing Deadline is January 31 this year to both the government and the employees and subcontractor’s

If you own your own business be sure to issue 1099 to all individual subcontractors you paid more than $599.99

 

Grow your business by learning to hire and delegate

As a business owner learn to hire help, delegate and let it go!

When you hire help, take the time to train them on what needs to be done and leave them to the task.

 Check on them initially and if after checking on them 2 to 3 times all is well leave them alone and check in occasionally.

When you do this, you can then focus on the big picture and grow your business and take it to the next level.
 Add people to your team gradually though. Hiring too many people at the Same time can also hurt the growth, because you won't have the time to train them probably.

Once the one you hired is doing alright on their own, then you add the next help, train up and add the next one. Eventually you will have a wonderful team to help build your dream. Be sure to pay them well and treat everyone of them with respect. Register for QuickBooks Online version in person class 

Register for QuickBooks class 
 

 

The difference between profit & cash in the Bank.

I get asked by business owners. Why is my  profit not the same as my bank account balance?

Sometimes not all expenses can be written off in the year when it is incurred depending on the type of accounting system being used (accrual or cash basis). If you are a business owner, I am sure your Accountant has mentioned it.

If not, the simple explanation is under the accrual method you get to write off expenses even if you have not paid cash for them when they are incurred in that year.
Using the cash method, you can only expense when you pay for them.

For the Revenue side, under the accrual you have to include the sales in income even if you have not received the payment and under cash method you include sales in income after you have been paid.

I prefer the accrual method for most of my clients since the IRS limits the use of cash method for certain limit of income level. My goal is to grow my clients to go over that threshold so I start out with the big picture in mind. Consult a qualified Accountant in your area to guide you. Start your accounting system before your first sale. Take a short ABCs of accounting from a community college in an evening course to understand basic accounting as an entrepreneur.

It doesn't have to be a full blown accounting associate or bachelors degree. Understanding basic accounting will make you understand when your accountant is explaining your business to you.
I do take the time to educate my clients though as I coach them throughout the year.

We can help you if you need us.  Check us out at Http://www.JNKcpa.com
 

 

Don’t miss this valuable seminar on
what every business owner needs to know about QuickBooks

 

Navigate QuickBooks online with confidence after taking this in-person seminar!

With QuickBooks you will:

  • Have more time each day and every day
  • Avoid the deadly sins of small business bookkeeping
  • Get the most out of your accounting software
  • Focus on best opportunities to save time and money

    This seminar will teach you and answer all of your questions about:

 

  • Company Basics: Company, Sales, Expenses, Payments, and more
  • Customers/Client: Create and e-mail invoices, receive payments online, and more
  • Vendor Management: Pay vendor bills, schedule payments for later, print and record check transactions, and more
  • Employee and Payroll Setup: Run payroll checks, pay payroll taxes online, and more
  • Banking: Download and categorize transactions, reconcile bank and credit card statements, and more
  • How to make QuickBooks work for you: Gain tips for business success and how to best manage your cash flow

Employee or subcontractor? That is the Question !!!

Many of us struggle as small business owners in the beginning doing everything ourselves.  And as your business starts growing, you may need help to scale the business.

When you hire help, be sure to classify their role and how you pay them. The employee vs subcontractor is a little tricky so check out the rules for yourself here https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-self-employed-or-employee

Register for QuickBooks class  

 You can call the IRS and remember they are there to help you. For general questions you don't have to give your name or any information about you.  You may have to wait a little for about 30 minutes to an hour, just put the phone on hold while you perform other tasks.

When in doubt consult the IRS  at Telephone  1 800 829 4933 or treat them as an employee to avoid any issues with the government.