Small Business Financials

General practice Tags Artificial intelligence * This article was originally published here Check out https://www.johannakimball.com

HMRC & policy * This article was originally published here Check out https://www.johannakimball.com

Audio is not supported in your browser Unique accounting issues * This article was originally published here Check out https://www.johannakimball.com

Audio is not supported in your browser Some techniques for creating and issuing better invoices * This article was originally published here Check out https://www.johannakimball.com

Audio is not supported in your browser Some issues to consider * This article was originally published here Check out https://www.johannakimball.com

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Individuals * This article was originally published here Check out https://www.johannakimball.com

This is a true story about a tax dispute that went on for two years before the underlying issue was clarified. It made me smile. A while back an Inspector of Taxes explained to me that the owner of the small business had been refusing to co-operate. As a result a relatively straightforward tax dispute about a tax scheme was heading towards the first tier tax tribunal. It was when the case was reviewed and a new Inspector contacted the taxpayer that the REAL issue became apparent. The taxpayer had misread a letter from HMRC which referred to his involvement in an abusive tax arrangement.  The taxpayer thought that HE personally was being accused of ABUSE and he resented this. In the event a simple apology from HMRC for the misunderstanding enabled negotiations to commence properly and the dispute was later resolved without the need for a formal hearing. I didn't find out whether it really was the taxpayer who had misunderstood or if the original letter from HMRC was poorly worded. W...

Business tax Tags Fintech R&D tax relief * This article was originally published here Check out https://www.johannakimball.com

Piles of purchase invoices, in all colours and sizes Apparently so varied but with very few surprises The Boss will read them carefully before he authorises Then it’s my job to process them as my blood pressure rises I say each number quietly to get it in my brain And as I type it to the screen I say it once again The others in the office think my mumbling’s a pain They say it shows I’m mad, but can I promise you – I’m sane! Once input to the system I’m so careful where I pile ‘em Too close to the window, they’ll be gone before I file ‘em And that would be the end of me, straight off to the asylum… My loving caring colleagues would be very quick to dial ‘em So here I am, an invoice clerk until the bitter end Most of the time I work real hard but sometimes I pretend I’m living in a different world, with mates and cash to spend Oh please won’t someone rescue me? I’M GOING ROUND THE BEND! Written by Sean Kelly * This article was originally published here Check out https://www.johannakim...

Clients * This article was originally published here Check out https://www.johannakimball.com

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Audio is not supported in your browser Why your current set of measures may not be sufficient, and where to look for more * This article was originally published here Check out https://www.johannakimball.com

To understand inventory assets , you first have to know what an inventory asset is. An inventory asset is a product that a business has to sell. And if a business is a manufacturer, all of the materials used to make that product are considered inventory. Inventory assets are found in the assets section of the business's balance sheets. How a company categorizes its inventory assets is dependent on whether it is a merchandising company or a manufacturer. A manufacturing company builds or creates its products. Generally, the products are sold to retailers or wholesalers. Its inventory is classified as a work in progress or finished goods. On the flip side, a merchandising company is a retailer or wholesaler that produces purchases products from the manufacturer. They then sell the product to someone else with little or no changes. * This article was originally published here Check out https://www.johannakimball.com

Audio is not supported in your browser How to make your case for business improvements * This article was originally published here Check out https://www.johannakimball.com

Practice Excellence * This article was originally published here Check out https://www.johannakimball.com

Entrepreneurs, small business owners, and CEOs of large corporations are all responsible for monitoring an organization's financial health. And, at the end of the day, it's a business leader's responsibility to ensure all accounts are balanced and accurate. Every account from bank accounts, to accounts payable ledgers and accounts receivable reports, must be accurately reconciled using real numbers that represent the true business activities. Businesses use these numbers for creating operating budgets, applying for loans, and meeting payroll. * This article was originally published here Check out https://www.johannakimball.com

Generally, people don’t like paying taxes. When their paycheck comes, they see that a large amount of money is taken out and they wonder where it’s all going. And then during tax time, they might get frustrated because they come to find out they owe the government even more money. However, as annoying as paying taxes can be, it also ensures that roads are built, infrastructure is maintained, and citizens have access to the critical services they need to survive. Without taxes, society could potentially suffer. By learning about why we pay taxes, you may begin to appreciate everything they do for you and your fellow taxpayers. They Fund Federal Programs  When you pay taxes, you’re sending some money to your state and local government, and some to your federal government. In terms of federal taxes , you’re funding federal programs such as Social Security, public health insurance like Medicaid and Medicare, the U.S. military, safety net programs like school meals and Supplementa...

Every year, you learn something new when you file your taxes. Hopefully, every time you figure out how to do it more efficiently. Maybe you discover a new way to file that takes less time. Perhaps you maximize your tax refund or determine ways in which you will owe less the next time around. Whether you’ve filed your income taxes for this year or you’re still planning to do it soon, here are some of the top things it can teach you about tax preparation so that it’s easier next year. The Deductions You Can Take There are many tax deductions you can take on your income tax return. You may have taken as many as you can this year, or you might have forgotten some but now it’s too late. Either way, the next time you file, you can make sure to claim them. Some of the tax deductions you may be able to take include the student loan interest deduction, the American Opportunity tax credit, an IRA deduction, medical expense deduction, mortgage interest deduction, and the state and local tax...

You paid taxes throughout your entire working life, whether you were worked a full-time job with a company or you were self-employed. Now that you’re retired, the kinds of taxes you’ll be paying are going to change. If you’re getting ready to retire, here are the taxes you may have to pay. Income Taxes When you retire, the good news is you will no longer have to pay Social Security and Medicare payroll taxes . The bad news is that you will still have to pay income taxes on the state and federal levels, unless you live in one of the nine states without income tax. Then, you’d only have to pay the federal income tax, which ranges from 10% to 37% depending on how much you make. You will need to pay taxes on things like your pension, traditional IRA, 401(k), annuity, and other types of pre-tax retirement accounts you opened. Social Security Taxes You could have to pay taxes on your Social Security benefits if you make additional income aside from your benefits payments. The amount y...

Talking about money with anyone can be awkward, but what about talking with your family? Those conversations hit much closer to home, making it even more difficult to talk with your loved ones about your financial situation. Why does it matter? Couldn’t you just avoid talking about your taxes with your family? Well, you could. On the other hand, having open and candid conversations about your financial situation with your family could give you the support you need. Plus, you may need to coordinate details about your taxes with some of your family if they are dependent or heads of households. Fortunately, talking about your taxes doesn’t have to be totally taboo! With some helpful tips and a little tact, you can talk to your family about finances and taxes. Have Casual Conversations Money conversations don’t have to be a big deal! Even if money has historically been considered a taboo topic, it can be surprisingly casual if you approach it right. Ask a lot of questions and be tra...

Audio is not supported in your browser The incremental approach to organizational upgrades * This article was originally published here Check out https://www.johannakimball.com

Investing can be an excellent way to build your wealth without having to do much work. Perhaps that’s why so many Americans do it. According to the Pew Research Center, 52% of American families are in some way invested in the stock market – mostly through 401(k)s and retirement accounts – and 14% directly invested in individual stocks . Saving money on taxes is part of any great investment strategy. Whether you started investing in 2020 or you’ve held investments from prior years, there are some tips you can employ when filing your taxes this year. Here’s some more information on how to get started. Take Eligible Tax Deductions When doing your taxes, make sure to claim eligible tax deductions for your investments. If you lost money on the sale of your investment in 2020, you can use the capital losses to offset your capital gains. If your capital losses exceed your capital gains in 2020, you’re allowed to claim a capital loss deduction of up to $3,000 per year ($1,500 if married...

IRS * This article was originally published here Check out https://www.johannakimball.com

The average federal tax refund is $2,707. No matter what amount of money you typically receive back from the IRS, TaxAct may be able to increase your refund by over $200 for next year. How? Through My Tax Plan. It’s simple to get started, and you may even be able to access this service for free depending on your filing status. Here’s how to begin. How to Access My Tax Plan The first step for taking advantage of My Tax Plan is to file your taxes with TaxAct. You can file on your own or file with Xpert Help online. Simple filers with dependents, college expenses, and retirement income can file for free. There’s also a deluxe plan for homeowners, deductions, credits, and adjustments, a premier plan for investments and the sale of a home and rental property, or self-employed for freelancers, contractors, and small business owners. The Xpert Help options range from $65 to $159.95 depending on your situation. When you file on your own, you’ll have prior tax year import options, unli...

Nobody wants to send the IRS a huge check at the end of the year. Instead, they want as high of a tax refund as possible so they can put some money into their savings, pay off debt, or go on a well-deserved vacation. If taxpayers want to ensure they have a better chance of receiving a refund rather than owing money, they need to take as many applicable income tax credits and deductions as they can. However, they may not be aware of everything they can claim. If you’re still working on your taxes for 2020, here are 12 of the most overlooked tax credits and deductions that you may be able to take. 1. Self-Employment Tax Are you self-employed? Then you can take a deduction for one-half of your self-employment tax rate , which is 15.3%. You will need to pay the self-employment tax as well as file Schedule SE (Form 1040 or 1040-SR) if your net earnings from self-employment totaled $400 or more. 2. Charitable Donations If you gave any money to a charity in 2020, then you can deduct y...

Personal tax * This article was originally published here Check out https://www.johannakimball.com

Last year, you probably started hearing about cryptocurrency all over the news. Digital currencies like Bitcoin, Litecoin, Dogecoin, and Ethereum have been gaining steam and legitimacy, as companies are now accepting and even investing in them. It was a big deal when Tesla bought $1.5 billion in Bitcoin in and Elon Musk announced that his company would start accepting it. And from 2010 to 2021, the value of one Bitcoin jumped from $.08 per coin to over $56,000 per coin. If you bought any cryptocurrency in 2020 or prior years, you’re wondering how to report it on your taxes. After all, this is new tax filing territory for everyone, so it may be a bit confusing. By learning about reporting cryptocurrency, however, you can ensure your taxes are 100% accurate and you’re not risking being audited or owing more money. Reporting Cryptocurrency on Taxes   Any time you make or lose money on your investments, you need to report it on your taxes. In the past, people who held cryptocurr...

Trends * This article was originally published here Check out https://www.johannakimball.com

The concept of virtual accounting isn't anything new. It's been around for a while, yet a lot of accounting firms have struggled to move to this business model. With the COVID-19 pandemic, many companies have had to make this transition, and they had to do it on the fly. If you're making a switch to virtual accounting, here's a few things to keep in mind. * This article was originally published here Check out https://www.johannakimball.com

Growth * This article was originally published here Check out https://www.johannakimball.com

Book value: Value placed on an asset for accounting purposes that bears no relation to its true worth. Budgeting: An exercise where the unknowledgeable force the unwilling to predict the impossible based entirely on the inaccurate. Credit: Something that accountants rarely get. FIFO: 'First In, First Out', a method of valuing stock. Also a method never used when accountancy firms are considering redundancies. Goodwill: Concept invested to explain the difference between the value of a company and the price another company paid for it. LIFO: 'Last In, Last Out', a method of valuing stock. Also a method frequently used when accountancy firms are considering redundancies. Liability: Money or goods owed by a company. Also a first-year audit trainee. Prudence: A fundamental accounting principle, designed to lend dignity to inaccuracy. Reconciliation: The art of proving that one inaccurate figure exactly agrees with another inaccurate figure. Taken from 'The Bluff...

Most people (in the UK anyway) who hear the words 'death and taxes' think of Benjamin Franklin (1706-90) who is usually credited with saying:  "In this world nothing can be said to be certain, except death and taxes."  This was apparently written in a letter to Jean-Baptiste Leroy, 1789, which was re-printed in The Works of Benjamin Franklin, 1817.  Before that however Daniel Defoe used a similar phrase in The Political History of the Devil, 1726: "Things as certain as death and taxes, can be more firmly believed."  And much more recently, though still almost 100 years ago, Margaret Mitchell says the following in her book Gone With the Wind, 1936:  "Death, taxes and childbirth! There's never any convenient time for any of them." * This article was originally published here Check out https://www.johannakimball.com

A farmer buys a new sheepdog, called Excel, from his accountant.   First day out the farmer sends Excel, off to gather in his 8 sheep.   On returning the farmer is astonished to find he now has 10 animals in his pen and asks the dog to explain.  Excel barks: "Woof! You asked me to round them up". * This article was originally published here Check out https://www.johannakimball.com

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Finance & strategy Tags Finance Forecasting, Planning & Analysis Planning * This article was originally published here Check out https://www.johannakimball.com

Internal Control Weaknesses by Kermit Fraud  Authorisation Limits by Mustapha Siggnatjeur  How Not To Panic At Year End by Wendy Orditors-Cumming  Cash Control for Dummies by Hans Intils  Rough Guide to Accounting by Major Control-Weakness  Double Entry Delights by General Ledgers  Financial Planning for Beginners by Bud Jett  Monthly Reporting by Anna Litticle  Excel Analysis by Rosa Dayter  The Notes to the Accounts by Hugh Kairs  Capital Tax Planning by Muvinov Sure  Insolvency by Justin Casey-Folds  The Missing VAT Trader by Cara Zell  Big Bonus by Laura Cash  Unexplained Difference by Frank D Scussions  With due credit to Graham Thomas-Widger and Karen Watson who posted these (and a few others I didn't get) on AccountingWeb * This article was originally published here Check out https://www.johannakimball.com