If you own a business, your retirement planning involves much more than just putting away enough money to cover your expenses when you leave work. When retirement is only a few years away, you need to start identifying and developing new leaders who can replace you and other retiring managers. You should always ensure you have done appropriate succession planning so there will be capable, experienced people to take over new roles if a manager dies, becomes disabled, or leave. Read More
Organizing your business protects your entire company. There are many reasons why you should organize your business, and these include tax purposes and protection against possible legal disputes. Another benefit of organizing your business is that it makes it easier for your business to obtain things such as insurance, bank accounts, and loans, as well as set up the payroll.
Employers frequently provide expense allowance accounts for their employees to incur business expenses on behalf of the company. An allowance arrangement does not require the employee to submit receipts in order for reimbursement. These are considered ‘unaccountable’ expense reimbursement plans and if they are used after 1/1/18, amounts paid to the employee will still be included in his taxable income, but he will not be able to claim a deduction for them as an employee business expense on his personal income tax return. That’s because the 2017 Tax Reform Act eliminated an individual’s ability to a claim a deduction for unreimbursed employee business expenses, and as a result, employers may be passing an expenditure on to an employee that they can no longer deduct.
There are various ways that business owners can save money on taxes. Knowing how can translate into an improved net income after taxes.
Business planning and budgeting are intertwined. When both are done right, financial goals are met, and the business has a reliable future ahead. Here are a few tips to consider before starting your business.
Understanding the Impact on Revenue Recognition and Inventory Based on International Shipping Terms
Does your company currently have international sales? Do you plan to begin selling merchandise in an international marketplace now or in the future? If the answer is yes, then having knowledge of when revenue is properly recognized is critical to accurate financial reporting. Even if your company does not sell products internationally, you may be purchasing items from an international vendor. Understanding when the products become part of your inventory and when you are liable for them is equally important.
4 Things To Know Before Starting a Business
You have a great business idea and you have the money for capital. The combination is good but not quite enough to start a business. You have just as much to lose as you have to gain. Here are 4 things you should know before starting a business.
Know the market
MKS&H is good at strategic investment motivated by market research. Our staff can tell you who will be interested in what you are going to sell as well as those whom you have to reach out through marketing for them to get interested as well.
Have a budget
In business, there are fixed costs and variable costs. Simply put, there are things you have to pay regularly and others you pay that occur based on the amount produced/hours worked. A fixed cost may involve office or store rent or regular staff. Variable costs include raw materials and seasonal help. As a business owner, you must decide a reasonable budget for all of these possible expenditures. If you try and find that coming up with a sound budget is harrowing, MKS&H will ease you into it. Our professional staff has a vast experience with cost calculations for startups and can even follow through with the business budget that we have made for you later.
Schedule the R.O.I
You have a great business idea and you’re confident that it’s going to work. Just how confident are you? You can answer this by addressing another question. When is the return on investment (R.O.I) going to happen? Before you even start, you might as well have a scheduled date for it. First, have the appropriate tools like spreadsheets and software for sales tracking. MKS&H can train you and your staff to be efficient with these instruments. We provide training for QuickBooks on a schedule that is most convenient for you. They can also help you out with financial statements. Only with the numbers within your reach can you tell that your business is actually earning.
Woo potential investors
If you don’t have enough money for your potential business, you might just need a partner or two. But where parting money is concerned (even if it’s for a possibly great cause), people are generally wary. Thus, you should learn how to pitch your idea by offering a credible business plan to someone who might be impressed enough to be an investor. That plan must show realistic data like projected earnings. MKS&H with its knowledge of accounting, auditing, financial planning, and can help you present a business plan with sound business math. Yes, you can sell someone a dream. But, that dream must make real financial sense.
Importance of Performing an Inventory of Fixed Assets
Performing an inventory of your fixed assets is not something you probably think of doing each year. However, it is a good idea to make sure you have a firm understanding of what your company owns and how it is being reflected on your balance sheet. The best way to do that is to perform an annual inventory of your fixed assets.
Why Getting Your Finances on Track is Good for Your Business
Blackberry, Dell, and Banana Republic were once big iconic brands. They will also be known as the big business failures and cautionary tales unless, by some kind of economic miracle, one of them will bounce back and sweep the market off its feet again. There are a number of reasons for their collapse. But they are all related to a bad decision or a number of them that revolve around a complicated and finally disastrous financial structure. If you are a small business owner, it is about time you know your financial structure or you just might suffer the same fate.
Accounting for cloud computing fees paid by customers became simpler under an Accounting Standards Update.
The accounting guidance previously provided by the generally accepted accounting principles (GAAP) didn’t provide the clarity customers desire for accounting for their fees to cloud service providers Read More