You’ll often hear that the accrual basis is worth the extra work because it’s more accurate, but that’s primarily true for businesses that carry inventories. The IRS requires companies with inventories and revenues above $26 million to use it. Continuing with the theme of setting yourself up for success from day one, make sure that you take[…]
If you have debits and credits that don’t balance, you have to review the entries and adjust accordingly. Bookkeeping can be a daunting task, even for the most seasoned business owners. But easy-to-use tools can help you manage your small business’s internal accounting cycle to set you up for success so you can continue to[…]
Finally, if any discrepancies are identified, reconciliation should be done immediately. For example, consider the case of an air ticket invoice for business travel sold to a company that makes widgets. Under the accrual method of accounting, an invoice or purchase order is recorded when it is presented by the creditor (as opposed to when[…]
The business income limit for the section 179 deduction is figured after subtracting any allowable charitable contributions. XYZ’s taxable income figured without the section 179 deduction or the deduction for charitable contributions is $1,180,000. XYZ figures its section 179 deduction and its deduction for charitable contributions as follows. You can include participations and residuals in[…]
You make the election by completing Form 4562, Part III, line 20. Recapture of allowance for qualified disaster assistance property. Recapture of allowance for qualified Recovery Assistance property. Qualified reuse and recycling property does not include any of the following. You must keep records that show the specific identification of each piece of qualifying section[…]
This method calculates interest expense by applying the effective interest rate to the loan’s carrying amount at the start of each period. The rate discounts future cash payments or receipts to the net carrying amount of the financial instrument. For example, a loan with an effective interest rate of 5% and an initial carrying amount[…]
Please note that not all of the investments and standard deduction vs itemized deductions services mentioned are available in every state. Securities offered through Avantax Investment ServicesSM, Member FINRA, SIPC. Investment Management Solutions (IMS) Platform fee-based asset management accounts offered through Avantax Advisory ServicesSM. All other financial planning services are offered through The Wealth Center[…]