Tag: bookkeeping

Understanding Liabilities and Equity on the Balance Sheet

In my last post, I discussed the different type of asset accounts. Today we'll I'll give information on the remaining accounts that appear on the balance sheet: Liabilities and Equity Liabilities - An obligation of an entity arising from past...Read More

Understanding Assets on the Balance Sheet

As a bookkeeper, we provide reports to clients for them to know the health of their businesses. Two of the main reports are the Profit and Loss (also known as the Income Statement) and Balance Sheet. Sometimes clients don't understand...Read More

Don’t Pay Less in Tax Than You Really Owe

None of us like having to pay taxes, but don't try to finagle the numbers to pay less. If you are audited and didn't pay all that was due, you will end up owing quite a bit more than the...Read More

Federal Payroll Deposit Schedules

The IRS has very specific rules for payroll tax deposits. This schedule is determined by the amount of tax reported on form 941 during the four quarter look back period. The dates of the look back period are July 1...Read More

Keeping Track of Use Tax and Avoiding Surprise Audits

Use tax and sales tax both are used to fund state and local services paid for by the states. And dodging either of them, intentionally or unintentionally, constitutes non-compliance and puts you and your business at risk for audits. In...Read More

What to Do When You’ve Received a Notice From the IRS

If you file your taxes and reports diligently and on time, you probably don’t expect to hear from the IRS. But what if you do receive a notice? Follow these tips on understanding and handling the unexpected notice. Is this...Read More

Don’t Fall for These Three Typical Sales Tax Mistakes

Business owners often make mistakes when it comes to sales tax calculations and filings which can result in penalties and interest. Today I'm going to discuss some of the typical errors so you hopefully don't make any of them in...Read More

Thinking of Hiring a Temporary Worker? Be Aware of Your Requirements.

Is the workload in your business seasonal? Are you thinking of hiring temporary help in the near future? If so, keep in mind there are some things to consider. What are all the costs associated with a regular employee that...Read More

Are You Over-Deducting Gifts?

Tax deductions are helpful—but one very common mistake small business owners make is to over deduct gifts on their taxes. Here’s how to deduct gifts correctly. The cost of business gifts to customers may be deducted whether the gift was...Read More

Cash vs Accrual Accounting: What’s the Difference?

There are two forms of accounting that can be reported on an income tax return: cash and accrual. Most small businesses operate using the cash accounting method. This is when income and expenses are realized when money is either received...Read More