Do I need to send 1099’s? Nine Things you need to know as a small business owner

The 1099 Process can seem a bit daunting, but don’t let it overwhelm you. Here are nine basics that you need to know about 1099s

(more…)

Two New Mississippi Tax Credits You Need to Know About

There are two new Mississippi tax credits available to individuals who are interested in donating to charity, with the added benefit of a dollar for dollar tax credit.

A Married Filing Joint taxpayer, with an AGI of at least $100,000, can receive up to an $800 credit for a QCO donation and $1,000 credit for a QFCCO donation for a total of $1,800 in tax credits. The list of eligible charities is below:

(more…)

Mileage Deduction: Tracking your business miles

Madison Accountant

The standard mileage deduction is a perfect example of low hanging fruit that doesn’t get taken advantage of often enough by taxpayers. It can be an extremely effective tax savings method, and takes very little time and effort to track annually. However, in order to capitalize on this opportunity, one should ensure they meet qualification standards, know how to properly log and calculate the mileage, and be able to provide supporting evidence each year.

(more…)

The Burning Question: Will I be Audited?

Madison Tax Accountant

It is no surprise that the IRS has recently taken a hit to their budget and audit staff numbers, bringing the chances of an audit to an unprecedented low. Still, as tax season approaches, so does the anxiety of many taxpayers with the question, “What are the chances of me being audited?” 

(more…)

New Tax Law: Taking Advantage as a Small Business

New Tax Law, Ridgeland CPA

Every year, new tax laws and IRS regulations change, sometimes mildly and other times, quite dramatically. However, the TCJA (Tax Cuts and Jobs Act) out paces any recent changes to tax legislation by a long shot. Since much of the new legislation will be in affect for 2018 taxes, it is important for all small businesses to take advantage of this new information. Here are some important changes and advantages that small businesses should consider ahead of preparing their 2018 tax return in accordance with the new tax law.

(more…)

Is “BOGO” a “NONO”?

Sales Tax for Special Promotions

Have you ever reaped the benefits of offering discounts, promo codes, and coupon deals? If so, you understand the power it has to draw customers new and old in droves. What you should also understand, is that states expect you to know how to handle the sales tax for those different types of purchases.

With few exceptions, sales tax is the gross receipts or gross selling price received from selling products or offering taxable services. Seems simple enough right? Yet, retailers are often stung for mishandling the taxes charged with these purchases.

(more…)

NEW SMALL BUSINESS SUCCESS ITINERARY

Itinerary for New Business Startup

The time it takes for a new business startup to get up and running is best described as a journey. The end of the trip may not be visible or even feasible at the start-ups beginning, and owners will surely experience difficulties along the way. Fortunately, developing a working relationship with a trusted accountant will supply guidance towards successfully reaching business owners’ goals.

(more…)

PROFITS ARE GOOD, CASH FLOW IS GREAT

Importance of Cash Flow in Small Business Accounting

Businesses struggling with cash flow often pose the question, “If my business is profitable, where is all the money?” The way cash moves in and out of a business is vital to understanding business finance and small business accounting. Many small business owners do not realize the difference between making and managing money. An aspiring entrepreneur often starts a business in hopes of creating an innovative new product or service without much small business accounting knowledge or management experience. As a result, important finance terms such as budgeting, forecasting, and cash flow are overlooked until bills pile up and expenses can’t be covered. Here are some things to consider in learning the basics of how cash flow and profits work.

(more…)

5 Deductions we lost this year and 1 that makes up for them

Deductions lost in 2018

In its efforts to simplify the tax code, Congress included provisions in The Tax Cuts and Jobs Act of 2017 that increased the standard deduction to $12,000 for individuals ($24,000 for married couples) and either modified or eliminated many itemized deductions. As a result, taxpayers and their professional tax advisers are currently exploring ways to best take advantage of the itemized tax deductions still available to them. While record keeping however, it is important to be wary of these popular deductions that will no longer count. 

(more…)

3 Items Every Business Owner should have on their 2018 Tax Checklist

2018 TAX CHECKLIST

Tax situations are different for most businesses for the simple fact that all businesses are unique. This makes planning difficult for business owners working without  the proper guidance. The complexity of tax issues that comes from these differences are more than inconvenient. However, there are three things every small business owner can do to avoid penalties in the tax year.

(more…)

Watkins took one of the biggest headaches in my business and made it simple! Excellent, consistent results.

-Travis – Brandon Mississippi