The following sequence of events is common to many new and expanding businesses. The Short-Term Squeeze You start your business with a limited amount of capital and an abundance of good ideas and ambition. The sales activity has been adequate to produce a net profit. Your inventory is about twice as large as you intended. Your accounts payable are past…
For many small businesses, office rent and inventory storage costs are perceived as fixed. But are such expenses truly inflexible? Oftentimes, no. Because rent and storage costs often constitute a significant portion of a business’s total expense budget, creative owners who find ways to minimize those costs may reap substantial rewards. Consider the following questions when trying to shave some…
Do you use a smart phone, tablet, or desktop computer to connect with friends and make purchases, as well as share health concerns with your doctor? If so, your privacy may be at risk. Companies called “data brokers” routinely compile information about your habits and preferences, including your favorite brands, recreational pursuits, and credit habits. Data brokers use this information…
When it comes to taking qualified deductions on your federal tax return, three things must happen: Recognize that an expense might be deductible on your tax return. Keep a record of the expense in an organized fashion. Obtain the proper (and timely) documentation to support your deduction. This might be obvious to most people, but here are some typical…
If you are like millions of taxpayers who work in the service industry, you may receive tips. The tax code is clear; if you receive tips you must report them as income. Some employers have systems to make this easy, while others do not. Here are some suggestions: Think 1-2-3 Proper tip reporting has three components. 1. Keeping a daily…