There are two accepted methods of accounting for federal tax purposes - Accrual and Cash. The main difference between these two methods is the timing of transactions. As a small business owner you need to be aware of the differences, the advantages and the disadvantages of each
Starting A New Business – A Checklist
Are you looking to start your own business? Below is a quick checklist of things you will need to do when starting your own small business. This is a starting point as there may be other steps required for the business type you select. 1. Apply for your Employer Identification Number (EIN) with
Hire Your Children and Save Thousands
How would you like to be able to deduct your child's allowance, school clothes and piano lessons? Seem too good to be true? As the owner of a legitimate business, if you hired an assistant to help you organize files or clean your office, you would pay him or her a salary and deduct the
S Corporation Officers and Wages
When an officer of an S Corporation performs services for the corporation and are entitled to receive payment for those services then their compensation should generally be considered wages. Under the Internal Revenue Code, corporate officers are specifically included in the definition of an
Deducting Travel, Entertainment, Gifts, and Meals – overview
For business owners with questions about deducting expenses for travel, meals, entertainment, and gifts, here is a small overview. Generally meals and entertainment are deductible as long as they are ordinary and necessary expenses that are directly business related. An ordinary expense is one
Employee or Independent Contractor?
If you are a business owner wondering whether to treat an individual working within your business as an employee or an independent contractor, here is what you should consider: 1. Does your company have the right to control what the worker does and how they do it? Are they allowed to work for
Wondering If You Can Take A Home Office Deduction?
If you are small business owner and use part of your home exclusively for business then you may be able to take a deduction for your home office. In order to be able to take the deduction then you must you the "home office" portion of your home: Exclusively and regularly as your principal place
Deducting Meals as a Business Expense
When keeping track of meals for your business as an expense, keep in mind that some meals are only 50% deductible while others are deductible at 100%. Meals that are 50% deductible: Meals for business meetings of employees, stockholders, etc. Meals during business travel. Meals at