Why Mixing Business and Personal Funds is Never a Good Idea

Why Mixing Business and Personal Funds is Never a Good Idea

As human beings, we like making things easy – which is why most people look at having separate accounts for their business and personal funds as a bad idea. “Two accounts?” we think to ourselves. “Double the bank fees? Twice the work for account reconciliation? No thanks! I’ll just do the smart thing and combine them – after all, it doesn’t hurt anyone…” Wrong. Mixing business and personal funds can hurt you quite a bit in the long run. Here are three reasons why this common misconception is never a good idea. Bookkeeping Will Take Twice as Long You may think that you’re saving time by combining your funds into one account, but once that account needs to be reconciled, you’ll have to enter all personal transactions besides those related to your business. Finding certain transactions will become more difficult as you’ll have to sift through twice as many non-related items, while keeping everything organized will become much harder. Save yourself the time and frustration by opening up a separate account for your business funds. Business and Personal Records Can Easily Become Confused with One Another Whether you’re trying to account for your business income statement or your personal expense sheet, the numbers will almost never add up correctly when entered into accounting software. Unless extensive work is put in to correct the issue, business records will show your personal deposits as extra income, while your personal expenses will be largely overstated due to business charges. Business reports will inadvertently display false numbers, while personal records will show large discrepancies in charges and payments. Prevent a small accounting error...
Keys to Small Business Innovation

Keys to Small Business Innovation

One of the keys to any successful business, regardless of its size, is innovation. Developing new ideas is the fuel which will keep your business up to date. Innovation will keep operations, products, and services fresh. Adding this fuel will make your business more competitive. According to a study from PwC, an overwhelming 93 percent of business executives believe that “organic growth through innovation will drive the greater proportion of their revenue growth.” But, what exactly is innovation? The answer to this question can and will vary depending on your industry or market. Want to encourage innovation in your small business? Here are a variety of ways to do so:   1. You don’t have to reinvent the wheel. Keep innovation simple by improving your existing products or services, trying out a new marketing strategy, or finding a supplier that is offering you a better rate. 2. Make innovation a routine. Schedule an hour or so each week to brainstorm and exercise you and your team’s creativity and establish goals that encourage you to improve your business through techniques like mind mapping. 3. Solicit suggestions. Ask or survey your employees, customers, and even vendors or suppliers if they have any suggestions on how you can improve your business. 4. Get your team on-board. Have them involved in the entire innovation process, such as solving problems during a meeting, providing a suggestion box, rewarding them for their ideas that become implemented, and providing creativity or innovation workshops. 5. Invest in innovation. Purchase technology and equipment that can improve your business operations. Also invest in developing new products and services. 6....
2018 Estimated Income Tax Refund Dates

2018 Estimated Income Tax Refund Dates

Are you expecting a tax refund for 2017? The IRS started processing returns on January 29. If you’re one of the millions of Americans who are asking, “When can I expect my income tax refund?” we have the answer. It depends on a couple of things, but the good news is that there are several tools to help find out. First of all, taxpayers who use a professional, such as a CPA or EA, can ask that professional for an estimated date. Taxpayers who’ve already filed can also go to the Internal Revenue Service’s website, which has a tool designed specifically for that called, “Where’s My Refund?” [For the latest information on deductions and tax brackets in the 2018 GOP tax reform, go to this article: www.cpapracticeadvisor.com/12387105 or our index of articles about the tax reform law: www.cpapracticeadvisor.com/12390237.] There are also apps for Apple, Android and other devices that help track refund status. Note: The IRS will not start processing returns with the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) until mid-February 2018.   IRS Accepts between these dates Direct Deposit Sent Paper Check Mailed 1/29/18 – 2/2/18 Friday 2/9/18 Friday 2/9/18 2/5/18 – 2/12/18 Friday 2/16/18 Friday 2/16/18 2/10/18 – 2/15/18 Friday 2/23/18 Friday 2/23/18 2/15/18 – 2/24/18 Friday 3/2/18 Friday 3/2/18 2/24/18 – 3/3/18 Friday 3/9/18 Friday 3/9/18 3/3/18 – 3/10/18 Friday 3/16/18 Friday 3/16/18 3/10/18 – 3/17/18 Friday 3/23/18 Friday 3/23/18 3/17/18 – 3/24/18 Friday 3/30/18 Friday 3/30/18 03/24/18 – 3/31/18 Friday 4/6/18 Friday 4/06/18 03/31/18 – 4/7/18 Friday 4/14/18 Friday 4/14/18 4/7/18 – 4/14/18 Friday 4/20/18 Friday 4/20/18 4/14/18 – 4/21/18...
How To Fill Out 1099-Misc Forms

How To Fill Out 1099-Misc Forms

In the last post, I discussed the exceptions to the 1099 rules.  If you missed the post, you can read it here. Today I’m going to explain how to properly fill out the forms required by the IRS.  There is a lot of information listed in the IRS instructions that don’t apply to most small businesses, so I’ll leave that out of this post.  If you’d like to see the full instructions, they can be found at http://www.irs.gov/pub/irs-pdf/i1099msc.pdf. In the Payer’s Name section, include the business name, address and telephone number.  In the Payer’s federal identification number box, include your tax ID number (EIN is format of XX-XXXXXXX, Social Security is format XXX-XX-XXXX). Enter the recipient’s identification number using hyphens in the proper format. Social Security numbers (SSNs) should be in the XXX-XX-XXXX format. Employment Identification Numbers (EINs) should be in the XX-XXXXXXX format. You should make every effort to insure that you have the correct type of number reported in the correct format.  When entering the recipients name, put the owner’s name first if it is not an entity (a sole proprietorship, etc).  You may list the business name below the owner’s name.  Include the recipient’s address. The account number is required if you have multiple accounts for a recipient for whom you are filing more than one Form 1099-MISC. Additionally, the IRS encourages you to designate an account number for all Forms 1099-MISC that you file. Enter the total subject amount paid in the calendar year under one of the following boxes (based on type of payments): Box 1: Rents Enter amounts of $600 or more for all types of rents,...
ACA: IRS Releases 2017 Reporting Forms

ACA: IRS Releases 2017 Reporting Forms

Are you up to date with your knowledge on your company’s reporting requirements? An article shared by CalChamber informs employers about the 2017 Affordable Care Act (ACA) tax reporting forms and instructions. With no changes to the Affordable Care Act (ACA) on the horizon, employers must remember their reporting requirements. The Internal Revenue Service (IRS) recently released final forms and instructions for 2017 ACA tax reporting, as detailed below. It is federally mandated that employers with 50 or more full-time or full-time equivalent employees must report information about the health care coverage, if any, they offer. The updated forms and instructions to do so are: File 2017 Form 1094-C Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns with the IRS; Furnish 2017 Form 1095-C Employer-Provided Health Insurance Offer and Coverage to each full-time employee and file with the IRS; and Review the IRS’s Instructions for Forms 1094C and 1095-C for guidance. For employers that sponsor self-funded minimum essential coverage plans, the required forms and their instructions are: File 2017 Form 1094-B Transmittal of Health Coverage Information with the IRS; Furnish 2017 Form 1095-B Health Coverage to the enrollee and file with the IRS; and Review the IRS’s Instructions for Forms 1094-B and 1095-B for guidance. Deadlines For 2018, the deadline to furnish the 2017 Form 1095-B or Form 1095-C to the employees or individuals is January 31, 2018. The deadlines to file ACA forms with the IRS depend on whether you are filing a paper form or filing electronically. The deadline to paper file all 2017 Forms 1095-C or 1095-B, as well as the appropriate transmittal Form...
Add-On Services Discontinued For QuickBooks 2013

Add-On Services Discontinued For QuickBooks 2013

Are you using QuickBooks 2013 with add-on services such as e-mailing invoices, processing credit cards or running payroll? If yes, you will need to upgrade your software prior to May 31, 2016 as they will not work after this date. Each year QuickBooks stops support of a desktop version for all types (Pro, Premier, Enterprise Solutions, Accountant Edition, and Mac) and 2013 is the version this year that will no longer be supported. If you don’t use any of the add-on services, you will not be impacted unless you need technical support. Below is information from Intuit explaining this service termination. What service discontinuation means: Products affected by service discontinuation as of May 31, 2016, are listed in the table below. If you don’t make use of live technical support or any of our add-on services, and are happy with your current version of QuickBooks, you can continue to use it. If you are using a product affected by service discontinuation and want to maintain access to live technical support and add-on services, you’ll need to upgrade to the latest version of QuickBooks as soon as possible. Detailed information Calendar Year 2016 Discontinuation Policy (QuickBooks 2013 Products) Fully supported products Products for which services will be discontinued after May 31, 2016   QuickBooks Pro and Premier (Windows) 2016, 2015, 2014  QuickBooks Pro 2013 QuickBooks Premier 2013 (General Business, Contractor, Manufacturing &  Wholesale, Nonprofit, Professional Services, and Retail) QuickBooks for Mac 2016, 2015, 2014  QuickBooks for Mac 2013 QuickBooks Enterprise Solutions 16, 15, 14  QuickBooks Enterprise Solutions 13   QuickBooks Accountant 2016, 2015, 2014  QuickBooks Premier Accountant Edition 2013 QuickBooks...

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