Small Business Financials

  Why is simplification such a long word? A tax conscience is that small inner voice that tells you that the Special Civil Investigation Office will be writing to you. If taxes are the answer, what was the question? Why is it that HMRC can make 'mistakes' but taxpayers are always negligent? Haggis and tax laws are both the the result of bloody processes; the end result is a mystery and you wouldn't want to watch either being made. Is it true that HMRC's computer believes that the generation of names for random enquiry is too important to be left to chance? If you fill in your tax return before breakfast then nothing worse can happen to you all day. Due to taxation, politicians find it increasingly difficult to reconcile their net incomes with their gross habits. Is the Eiffel Tower a warning as to what will happen to Canary Wharf after taxes? Has the self assessment system resulted in the United Kingdom becoming a land of untold wealth?  * This article was originally p

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

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Audio is not supported in your browser Steve interviews Ms. Mona Clayton, Partner at PriceWaterhouseCoopers, about forensic accounting investigations, and also discusses logistics measurements. * This article was originally published here Check out https://www.johannakimball.com

The families of roughly 60 million children received their first installment of the enhanced Child Tax Credit payments on July 15. We’re here to bust some of the common misconceptions surrounding the payments. 1. You can keep these payments. Many families have expressed concern over keeping the money fearing they’ll have to pay it back when they file their return in 2022 – but that’s simply not the case for most. This money is an advance of the Child Tax Credit eligible families normally would claim on their 2021 tax return. If you haven’t experienced a significant increase in your income from 2020 to 2021 (and we mean hundreds of thousands), there is no reason to sweat having to pay the money back. It is yours to keep and put to good use. 2. The payments are not taxable. That’s right – this money is not taxable on your 2021 tax return. Like the stimulus payments, the money is an advance of a tax credit that applies to your 2021 return. It is not considered taxable income. Whe

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

The economy is opening back up and confidence is rising among CEOs of small to medium-sized businesses. After surviving the COVID-19 pandemic, you could only figure that it's "only up from here", right? * This article was originally published here Check out https://www.johannakimball.com

During a tax investigation an inspector from HMRC asks the taxpayer how he managed to afford such a luxurious holiday villa with such little income.  The taxpayer responded with this story: "While out fishing last summer, I caught a large golden fish. When I took it off the hook, the fish opened its mouth and said that he was a magical fish. This magical fish promised me that if I threw him back into the sea he would reward me with the most luxurious villa I had ever seen. After thinking about it for a moment, I said "OK" and threw the magic fish back into the sea. When I walked back up from the sea I could see the villa, just as the fish had promised." The Inspector laughed and asked how the taxpayer expected to prove such an unbelievable story? The taxpayer said "Well, you can see the villa, can't you?" * This article was originally published here Check out https://www.johannakimball.com

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

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Audio is not supported in your browser The FASB gets a sponsor, accounting for drug runners, and putting the clergy on your board of directors. * This article was originally published here Check out https://www.johannakimball.com

Accounting software Tags Finance Finance director Leadership * This article was originally published here Check out https://www.johannakimball.com

Audio is not supported in your browser Underlying principles of revenue management * This article was originally published here Check out https://www.johannakimball.com

Accounting methods are tools for businesses to use in order to record their finances and keep track of their finances. The two most popular accounting methods that businesses use are accrual accounting and cash accounting.  When comparing the two methods, the cash accounting method is an easier way to record financial records. At the same time, the accrual accounting method allows businesses to see expenses as they are happening. It is a transparent method to see actual revenue. The accrual accounting method will show a business how well it is performing in real-time. There is no need to wait for when a cash transaction occurs. * This article was originally published here Check out https://www.johannakimball.com

Audio is not supported in your browser How to use the Regulation A exemption to raise funds in smaller amounts * This article was originally published here Check out https://www.johannakimball.com

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Practice strategy Tags Business advice Clients Cloud computing * This article was originally published here Check out https://www.johannakimball.com

The IRS issued the first round of monthly payments for the Child Tax Credit last week on July 15. Families who are eligible for the credit based on their most recently filed tax return received the payments via direct deposit or paper check. Monthly payouts will continue throughout the rest of the year with families receiving any remaining portion of the credit they qualify for when they file their 2021 tax return. In case you aren’t quite up to speed, the monthly Child Tax Credit payments are calculated based on your 2019 or 2020 tax return – whichever you filed last. Therefore, if you haven’t filed your 2020 tax return yet, your payment is based on your 2019 tax situation. That means it may not be the right amount if your tax situation changed between 2019 and 2020. Want accurate payments? File your 2020 return now. In order for the IRS to have the right information to accurately calculate your monthly payment, you need to file your 2020 tax return as soon as possible. Otherwis

When you file your taxes, you may discover that you owe money to the government. If it’s a large sum of money, you might find you are unable to pay it right away. If you find yourself in this situation, it is strongly advised that you sign up for an IRS payment plan to avoid getting hit with an IRS levy action and/or a Notice of Federal Tax Lien. We’ve broken down everything you need to know about IRS payment plans so you can decide if it’s the best option for you. What Are IRS Payment Plans? IRS payment plans are plans that the IRS offers so that you can pay your tax bill in installments. You can do a short-term or a long-term payment plan and pay using various methods. Keep in mind that the IRS will charge you penalties and interest as well as fees for setting up your plan. What Do You Need to Apply for a Payment Plan?   You can apply for a payment plan on the IRS’ website. When applying, you will need to provide certain information including your name as it appears on your

Audio is not supported in your browser When to use discounted cash flows analysis, and its advantages and disadvantages * This article was originally published here Check out https://www.johannakimball.com

Finance & strategy Tags Consolidation Finance director Management reporting * This article was originally published here Check out https://www.johannakimball.com

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File a tax return extension for the first time this year? Here are a few things to consider before the Oct. 15 extension deadline. 1. E-file for a faster refund. If you believe you’ll receive a refund after filing, the quickest way to get your money is to e-file your return using a trusted tax software. Completing your return by hand and submitting it using snail mail takes a lot more time for it to get in the hands of the IRS for processing. Opting to have your refund direct deposited is another way to speed up the time it takes to get your money.  When using tax software, simply add your bank account information at the end to have your money deposited directly into your account. To help you select the right tax software, look out for these key features: Prioritized security – Trusted tax software works to protect your personal information by implementing appropriate safeguards, procedures, and practices for both physical and online security. That includes processes like iden

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

Audio is not supported in your browser Questions to ask when you evaluate a capital budgeting proposal * This article was originally published here Check out https://www.johannakimball.com

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

Calculating your company's start-up burn rate is fairly straightforward. Your burn rate tells you the amount of cash that you have used up in one month. This is known as negative cash flow. Your burn rate does not include money that you are going to receive, money that has been put into another account, or any outstanding bills. Is some folks like to separate their net burn rate from their gross burn rate. This separation is unnecessary. It only complicates matters. The reason why it complicates things is that the gross burn rate is the amount of money that you have spent in a month. It does not include any incoming cash. The net burn rate takes into account any incoming cash. You subtract the incoming cash from spending. This amount is used to determine your net burn rate. It helps you realize how much cash you need to break even. This way, you won't run out of cash. To keep things simple, it's best to refer to your net burn rate as just your burn rate. You can

HMRC & policy Tags HMRC R&D tax relief Tax credits * This article was originally published here Check out https://www.johannakimball.com

Audio is not supported in your browser Changes in the rules for the testing of goodwill for impairment * This article was originally published here Check out https://www.johannakimball.com

While remote work is new for many as of 2020, it is something we here at AccountingDepartment.com are well accustomed to. However, not having that in-person interaction requires a need to sometimes handle things differently. So we've come up with a list of ways that will help you keep your remote employees engaged and still feeling like a part of the company, no matter where they are. * This article was originally published here Check out https://www.johannakimball.com

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

 1. BE HAPPY AT ALL TIMES Your tax adviser leads a stressful life dealing with HMRC (the Taxman) and cannot cope with you being miserable as well. 2. DO NOT EXPECT YOUR TAX ADVISER TO BE SYMPATHETIC WITH YOUR PROBLEM Your tax adviser's ethical code requires them to be objective and independent. 3. DO NOT COMPLAIN IF YOUR TAX ADVISER'S ADVICE LOSES YOU MONEY You must appreciate that tax IS VERY DIFFICULT so an occasional experience of negative income is only to be expected. 4. DO NOT ASK YOUR TAX ADVISER TO EXPLAIN WHAT THEY ARE DOING OR WHY Unfortunately the jargon inherent in tax matters is not compatible with explaining it to someone like you in a way you would understand. 5. BE PREPARED TO TRY FIENDISHLY COMPLEX TAX SCHEMES WITH ENTHUSIASM Though the planning may be ineffective and cost you a lot, the resulting thesis on the deficiencies of such schemes may result in the tax adviser acquiring further letters after their name. 6. PAY ALL YOUR TAX ADVISER'S BILLS PROMPTLY

“Auditors don’t stop management’s lies, just make sure they’re reasonable.” --  How many auditors does it take to change a lightbulb?   None - we’re all too busy. Wrong! The correct answer is: How many did it take last year!!  -- Originally collated and shared on the twitter account @overheardaudit * This article was originally published here Check out https://www.johannakimball.com