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When many business owners see the term “financial reporting,” they immediately think of their year-end financial statements. And, indeed, properly prepared financial statements generated at least once a year are critical. But engaging in other types of financial reporting more frequently may help your company stay better attuned to the nuances of running a business in […]

If you want a retirement plan for your small company or self-employed business — but you don’t want to be buried in paperwork — consider a simplified employee pension plan or SEP. Among the appealing advantages: 1. SEPs are set up by simply filling out a brief form. 2. Form 5500’s aren’t required to be […]

The IRS recently released guidance providing the 2024 inflation-adjusted amounts for Health Savings Accounts (HSAs). HSA fundamentals An HSA is a trust created or organized exclusively for the purpose of paying the “qualified medical expenses” of an “account beneficiary.” An HSA can only be established for the benefit of an “eligible individual” who is covered […]

When your company sponsors a qualified retirement plan, you must comply with complex rules established by the IRS and the Department of Labor. Ignore the rules and your firm could face costly penalties from federal regulators — and plan participants might sue you for mishandling trust assets. This is no time to be a do-it-yourselfer. […]

In many companies, employees drive during the course of their jobs — to make deliveries, visit customers or pick up supplies. In some cases, they use their own cars, which can offer several business advantages, including that you don’t: Beware of Unexpected Situations The Insurance Information Institute notes that business owners often don’t realize the liability […]

Requested an Extension? Avoid Last-Minute Filing Did you request an extension to file your tax return after the standard April 18, 2023, deadline? If so, you now have until Oct. 16 to prepare and file it with the IRS. Don’t wait until the last minute! As soon as possible, gather your records for the 2022 tax year […]

How popular is the use of payment apps to carry out person-to-person transactions? According to the Consumer Financial Protection Bureau, the number of such transactions using payment apps operated by third-party settlement organizations (TPSOs) quadrupled between 2018 and 2022. And, the value of those transactions is estimated to have hit about $893 billion. Using a payment […]

Are you considering inviting an employee or an outsider to participate in your existing partnership? Before making any commitments, it’s important for you and the prospective partner to understand the potential federal tax implications. Important: A limited liability company (LLC) with multiple members (owners) is classified as a partnership for federal income tax purposes — unless you […]

Technological advances often become a double-edged sword. For instance, when Eli Whitney invented the cotton gin at the turn of the 18th century, few foresaw how that breakthrough technology would impact slavery. Tragically, after technology reduced the labor of removing cotton seeds, American cotton production became so profitable that demand for slaves soared. From 1790 […]

The Complex Rules Surrounding Mortgages and Taxes The home mortgage interest deduction is as American as apple pie, but since 2017 when the tax law for this deduction was passed, there have been some changes. For starters, and most notably, the maximum mortgage principal that made homeowners eligible for the interest deduction has been lowered. […]