Ineffective reporting and inventory management can lead to impaired business profits and bloated working capital—and best practices for inventory management may have recently changed in industries that rely on overseas suppliers.  Now may be a good time to review your current practices and make needed adjustments. Choosing the right reporting method Keeping accurate records is…

If your business employs workers who receive tips for serving food and beverages and you pay Social Security and Medicare (FICA) taxes on tip income for these employees, you may qualify for a federal tax credit. The FICA credit This tax credit applies with respect to tips received by your employees in connection to providing…

Even though last-minute updates to contracts can be challenging for businesses, they provide a chance to increase profits—but they must be handled in accordance with appropriate accounting rules. However, with a strategic workflow in place, they don’t have to derail progress towards completing contract agreements.  Common contract issues One of the most common issues with…

Many workers receive at least part of their compensation from sales-related commissions—and some companies even allow for unlimited commissions in order to attract and retain the best talent. However, it’s an unfortunate fact that some employees abuse this system by falsifying sales or rates in order to receive higher compensation. Although the specific methods of…

Although the Build Back Better Act wasn’t passed by Congress in 2021, your tax situation may still be affected by tax changes in the coming year, since some tax figures are adjusted for inflation annually. Your 2021 individual tax return is generally due by April 18 (assuming you didn’t file for an extension), so you’re…

An increasing number of people have engaged in the “gig” or sharing economy over the past few years. In fact, 16% of Americans have earned money through online gig platforms at some time according to the Pew Research Center’s August 2021 survey. This gig work includes providing car rides, performing household tasks, walking dogs, shopping…

If you’re looking to sell commercial or investment real estate that’s significantly appreciated, you may be able to defer the tax on the gain using a Section 1031 “like-kind” exchange.  In a like-kind exchange, real property held for investment or for productive use in your trade or business (relinquished property) is exchanged for like-kind investment,…

Carefully structuring capital gains and losses may allow you to save taxes as the end of the year approaches. If you have any losses on investments this year, you may have certain opportunities to offset gains with losses. For instance, if you lost money on some stock this year but you have other stock that’s…

Successful businesses that rely on frequent travel may benefit from buying a corporate aircraft, but aircraft ownership comes with a number of tax and non-tax implications. Here are a few of the basic tax rules that may apply. Aircraft used only for business When a company buys a plane for business use only, it can…

There are a number of reasons why you may be provided with an award or settlement—including compensatory and punitive damage payments for discrimination, harassment, or personal injury. If so, some of the amount is subject to federal taxes and may also be taxed at the state level. Hopefully, you won’t ever experience a personal injury…

Auditors will usually ask you to provide similar documents each year, and anticipating an auditor’s document requests can make external audits less stressful and intrusive.  For certain items, including bank reconciliations and fixed asset ledgers, auditors will accept copies or client-prepared schedules. Other items, such as invoices, leases, and bank statements, will need to be…

2021 is almost over, but there may still be time to reduce your tax liability. These three quick strategies may allow you to reduce your taxes before the end of the year. Accelerate deductions or defer income Some tax deductions, such as the mortgage interest deduction, are claimed for the year of payment. This means…