When reviewing their income statements, business owners tend to zero in on profits (or losses). But that narrow focus can cause mismanagement and missed opportunities. To get the full picture, you should analyze the entire statement from top to bottom. Think like an auditor  Approach your company’s income statement with an auditor’s mindset: skeptical, detail-oriented, […]

If you itemize deductions and donate to philanthropic causes, you may qualify to deduct your charitable donations—but there are important requirements you must meet. For instance, you must substantiate charitable gifts with proper documentation to satisfy the IRS. Failing to meet these substantiation requirements can cost you the deduction even if your charitable gift is […]

As year-end reporting wraps up, external auditors are working behind the scenes to prepare for audit season. Here’s how you can make the audit planning process go more smoothly. Audit risk assessment  Auditors can’t review every transaction, estimate, or document during their fieldwork. Instead, they customize their approach to minimize audit risks. The process kicks […]

If you own a small business with no employees other than your spouse, a solo 401(k) plan could be a smart choice for your retirement planning. It’s also a good option for those who are self-employed or business owners looking to upgrade from a SIMPLE IRA or Simplified Employee Pension (SEP) plan. Also known as […]

With 2025 on the horizon, the Social Security wage base is rising. The Social Security Administration announced an increase to $176,100 for 2025, up from $168,600 in 2024. Earnings above this threshold won’t be subject to Social Security tax. Wages and self-employment income above this amount aren’t subject to Social Security tax. If your business […]

As 2024 draws to a close, it’s a great time to consider your financial and tax strategies. One smart approach is to make cash gifts before December 31, which can reduce your potential estate taxes while sharing generosity with loved ones. Current tax laws allow individuals to gift a specific amount each year without incurring […]

Tax planning is just one aspect of estate planning, and often not the most significant for many families. The primary aim of estate planning is to protect and provide for your family’s financial security with tax savings being a part of the overall strategy. Asset protection is another critical component and a spendthrift trust can […]

When you’re setting up partnership and LLC operating agreements–including for multi-member LLCs, which are treated as partnerships for tax purposes, there are a few key issues to include in your agreement to keep your business in line with federal tax law. Spell out guaranteed payments to partners A guaranteed payment is one made by a […]

Timing plays a pivotal role in financial reporting. Under accrual-basis accounting, the end of the accounting period acts as a “cutoff” for recognizing revenue and expenses. However, some companies may be tempted to manipulate timing–especially at the end of the year–to boost financial results or reduce taxes. Understanding end-of-period cutoffs  According to U.S. Generally Accepted […]