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15 08, 2019

Beginner’s Guide to Freelance Accounting

By |2019-07-25T19:05:20+00:00August 15th, 2019|Uncategorized|0 Comments

Because of the flexibility that freelance work offers, some people are drawn towards freelance work or self-employment for the freedom of choosing their own work hours, clientele, and individual work processes. Transitioning to freelance work has its advantages but also presents new challenges and responsibilities, especially when considering taxes.  In the case of traditional employment, taxes are automatically withdrawn from one’s paycheck. But as a freelancer or self-employed person, you are held accountable for estimating your own tax payments every quarter rather than relying on your employer. Keeping accurate, detailed books are also imperative to building a successful and profitable business. Here are some basic tips one should know before entertaining freelance work or self-employment. Keeping Track of Essential Financial Documents In order to keep up with tax estimation, it is important to keep forms such as Form W-9, Schedule C (Form 1040), Schedule SE (Form 1040), Form 1040-ES, and 1099 forms. Such forms are required for a variety of things, from identifying your taxpayer identification number, reporting profits and losses, figuring self-employment taxes, estimating quarterly income taxes, and more. [...]

1 08, 2019

Things to Know Before Starting Your Business

By |2019-07-25T19:00:05+00:00August 1st, 2019|Uncategorized|0 Comments

So you’re entertaining the idea of opening a business, but where do you start? Launching a business can be intimidating. But with the right tools, dedication, and a strong plan, anyone can pursue a business. The following tips provide a light guide to help you pursue your business plan. Evaluate Your Circumstance Start by considering your current situation and evaluating your current strengths, skills, resources, passion, and life goals. The more these concepts align with your business idea, the more it indicates you have a good foundation for your business.  Brainstorm Your Business Idea Combine your strengths and passion with foresight. Consider where the future is going; are there technologies or trends that are on the rise? Do your research and assess potential competitors to come up with a unique business plan. It also helps to seek guidance or advice from other entrepreneurs or others from your networking group to bounce off ideas or get feedback.  Execute Your Business Plan Begin by writing a concise business plan which includes your business’ name, a description of your company and plan for [...]

15 07, 2019

How Does a Home Remodel Affect my Taxes?

By |2019-06-25T23:31:58+00:00July 15th, 2019|Uncategorized|0 Comments

It’s summer, the perfect time of year to execute the remodeling plans you’ve had all year long. Remodeling a home is exciting, and while you are mainly focused on the mechanics of transforming your home, you might not have considered how a remodel can impact your taxes. Many people are unaware that certain improvements or elements of a home renovation can influence and occasionally minimize taxes. The following are a few ways in which your home renovation can play into your taxes: Energy Tax Credits Going green not only serves the environment but can also bring you more money. Consider adding solar energy panels to your home; installing solar panels can reduce energy costs and save you from paying high electric bills. If the panels are placed in service by the end of 2019, you are eligible for a solar-electric tax credit of 30%. Under certain conditions, solar water-heating systems, fuel cells, wind-energy systems, and geothermal heat pumps can also qualify for the credit. Medical Related Renovations If someone in your home is confined to a wheelchair, the cost of [...]

1 07, 2019

Benefits of Saving as a Recent Graduate

By |2019-06-25T23:20:35+00:00July 1st, 2019|Uncategorized|0 Comments

As a recent graduate, you may be focusing your sights on the future, whether it’s planning for further education, jump starting your career, or traveling. However you decide to enjoy your freedom, it’s important to start considering your future finances. Although finances may not be an immediate concern, planning for the future and saving early can significantly increase your opportunity for financial freedom later. The following points are reasons you should start saving as a young adult: Establish good habits As you continuously start to save, you are establishing a beneficial habit. Setting aside money may seem like a chore, but as it becomes habitual you will start to see the growth and the long-term benefits of saving. Take advantage of the time value of money Investing your money can also be a form of savings. When you invest, you can earn more money from the money you put away as time progresses. Depending on your annual return, you can earn a significant amount. Say you invest $500 per month with an annual return of 7%. Your account will be [...]

15 06, 2019

Profit and Cash Flow – Determining the Difference

By |2019-05-30T18:10:18+00:00June 15th, 2019|Uncategorized|0 Comments

As an entrepreneur, it is easy to get excited about the capital and growth your new business accrues. Although your company’s profit and cash flow are positive financial elements, it is crucial to understand that both are different. Many excited business owners may misunderstand the difference of profit and cash flow and mistake the two as interchangeable concepts. Having a profitable business does not necessary translate as having sufficient cash flow to sustain itself. Regardless of the financial health of your company, it’s important to be aware and understand the difference between profit and cash flow. Profit can also be referred to as net income, or the difference between revenue and expenses. When companies incur profit, it doesn’t always mean immediate income. For example, you could sell a product or provide a service that costs $100 and send an invoice to your client the 1st of this month. Although you are earning revenue, at the time you completed the exchange, you will not receive cash until the invoice has been paid for by end of the month. Likewise, incurring an [...]

1 06, 2019

A Guide to Quarterly Taxes

By |2019-05-30T18:11:26+00:00June 1st, 2019|Uncategorized|0 Comments

Quarterly taxes generally apply to those who are self-employed or earn income as an independent contractor. As a business owner, you are responsible for paying your own taxes because you don’t have an employer withholding taxes for you. To address this, the IRS collects estimated taxes every quarter. By the end of the year, you will either owe money if you are short on taxes or get money back, depending on how well your business does. For those handling their own taxes, here is a brief overview to understand estimated quarterly taxes. How do I determine if I need to pay quarterly taxes? For those freelancing and expecting to owe more than $1000 in taxes (which amounts to approximately $3000 or more in profit), you may need to pay quarterly taxes. What do I need to track? Track your earnings in the form of paystubs or invoices. Tracking expenses can help lower how much you owe to the IRS. Here are a few common expenses that can be grouped as an “ordinary and necessary” expense for your business: mileage, home [...]

15 05, 2019

Use Community Leadership to Improve Your Business

By |2019-04-24T18:27:49+00:00May 15th, 2019|Uncategorized|0 Comments

Between the various responsibilities involved in running a business, getting involved in your community may not be high on your priority list. Although volunteering requires you to expend energy and allocate extra time, getting involved as a community leader brings many benefits and can facilitate new opportunities for your business. Here are a few ways in which becoming a community leader can promote your business: Help Others and Help Your Brand: What goes around comes around. When you choose to do good in your community, you are building a good reputation around your brand. Consumers are more likely to stick with companies they feel are in alignment with their own values. By servicing others, people will remember your brand as a socially responsible and respectable company. Additionally, finding ways to support efforts that align with your company’s mission helps build credibility. Create Networking Opportunities: Getting involved with your community provides opportunities to meet other like-minded community leaders and individuals. It’s also a great way to spread the word about your company and draw awareness around your brand. Understand Your Audience: [...]

1 05, 2019

Save Your Business Money by Going Green

By |2019-04-24T18:23:09+00:00May 1st, 2019|Uncategorized|0 Comments

Discussion over climate change has increasingly turned people’s attention towards the environment. As society continues the green movement trend, consumers are willing to spend even more money on products that are in line with their values. People participate in sustainable practices like recycling, driving electric cars, shopping with reusable bags, and replacing old household utilities with low powered products – and companies are not far behind. Innovative companies are following the public tide and incorporating sustainable practices into their businesses for multiple reasons. Not only are these companies appealing to consumers, but they are also visibly saving their business money. Here is how building a sustainable business will not only save the planet but save your business money: Energy-Efficient Utilities: Save money and electricity by replacing the light bulbs in your office with ones that are energy-efficient. The next time you are looking to purchase new office equipment, keep an eye out for office products with the Energy Star Certification. Many computers, phones, and other equipment with this symbol can save your business energy and money in the long run. [...]

15 04, 2019

Small Business Financing and AI Technology

By |2019-03-25T18:25:47+00:00April 15th, 2019|Uncategorized|0 Comments

As technology continues to evolve at a rapid pace, many working professionals are turning towards the newest technological trends to capitalize on time, money, and improve the quality of their work. One current technological trend that is a popular topic of discussion includes artificial intelligence. There has been a lot of excitement among a variety of fields around the topic of AI as a useful tool. From agriculture to construction, to education and engineering, many professional fields are introducing and utilizing AI technology to their advantage. AI technology has the potential to produce positive implications among many fields of work, including small business financing.  Artificial intelligence is technology that can use independent reasoning to complete a task. Hence, AI can complete tasks more accurately and timely as compared to someone manually doing a task. In relation to business financing, AI is capable of predicting unexpected dips in cash flow based on a business’s past cash flow trends. It can also help you analyze real-time data sets and offer a better financial picture of your business’s financial health. This can help small business owners make smarter financial [...]

1 04, 2019

Income Tax Tips for New Business Owners

By |2019-03-25T18:21:11+00:00April 1st, 2019|Uncategorized|0 Comments

Starting a new business venture brings excitement, but can also be equally overwhelming. Between taking out loans, creating an effective branding strategy, and acquiring new hires, accounting for tax liabilities may be a lower priority on your immediate list of to-dos. Still, it is important to consider the implications of your tax responsibilities in order to stay in line with IRS requirements and stay informed about maximizing deductions and preventing liability issues in the future. The following are a few things small business should know about federal income taxes.  Different legal entities have different impacts on your taxes. Your tax liability can vary greatly depending on the type of legal entity you choose. Whether you have a sole proprietorship, LLC, S corporation or partnership, each business type has different benefits and limitations. Learn more about the different types of business structures in our blog. Depending on your business structure, you may be subject to higher corporate rates, or in the case of small business owners, you may have the advantage of paying taxes at the shareholder level. It is important to look into the types of [...]