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2 04, 2020

What is the Families First Coronavirus Response Act?

By |2020-04-01T22:57:15+00:00April 2nd, 2020|Uncategorized|0 Comments

This Families First Coronavirus Response Act (FFCRA) requires that some employers provides paid sick leave and expanded family and medical leave related to COVID-19, effective April 1 and through the remainder of 2020.  The Wage and Hour Division of the United States Department of Labor summarizes key employee rights under the FFCRA. It is essential that employers understand how these changes impact their businesses and how to properly account for, and apply, these added benefits. According to a newly released document from the US Department of Labor, paid leave may include up to two weeks (80 hours, or a part-time employee’s two-week equivalent) of paid sick leave based on the higher of their regular rate of pay, or the applicable state or Federal minimum wage. Details can be found in the poster below:                                           Employers who need to consider this include those with 500 or fewer employees. However, businesses with 50 or fewer employees may be exempt. For more information, [...]

30 03, 2020

CARES Act Impact on Small Businesses

By |2020-03-30T20:59:13+00:00March 30th, 2020|Bookkeeping Basics, Business Tips, Finance Tips, Small Business|0 Comments

The CARES Act passed late Friday in response to COVID-19 and its impact on the current business environment and the economy. We will continue to gather information and share resources to help all businesses weather the effects from this pandemic. The CARES Act is a $2.2 trillion bill that provides, among other things, funding to small businesses, helps secure payroll and jobs, and offers needed benefits.  This not only includes benefits to business owners but also to independent contractors. Important things to understand about CARES Act and small businesses: $349 million of the $2.2 trillion is allocated to the Small Business Administration to guarantee loans to small businesses Businesses with 500 employees or fewer are eligible for these funds Self-employed and independent contractors are also eligible There is no personal guarantee required The maximum amount you can take is equal to 2.5 times your average payroll costs For clients, contact us if you need specific information about your payroll costs for the past year. Apply through banks and credit unions. Working with your business banker may be a good place [...]

7 03, 2020

Reasons to Hire a Bookkeeper

By |2020-02-28T19:40:25+00:00March 7th, 2020|Bookkeeping Basics, Small Business|0 Comments

Launching a business requires a lot of initial set up – not to mention money. Many motivated entrepreneurs have the ambition to take on the majority of business tasks. Although handling the bulk of business tasks can help you cut corners and save money in the beginning, it’s not a sustainable way to run a business in the long haul. Here are a few reasons why you should consider hiring a bookkeeper to handle your finances. Focus on the big-picture needs of your business As the founder of your business, you know the core needs of your business better than anyone else. This means you have a bigger-picture understanding of your business, giving you the advantage to position your business in a way that will grow. Outsourcing your bookkeeping means you have more time to spend on big picture tasks, including brainstorming strategies, prospecting areas of potential growth, and developing a foresight for future trends. Create a work-life balance Don’t expend your time on tasks that can be done by your bookkeeper. As your business progresses, you will come to [...]

1 03, 2020

Tax Season Has Arrived, Are You Ready?

By |2020-02-28T19:33:23+00:00March 1st, 2020|Bookkeeping Basics, Small Business, Tax Deadlines|0 Comments

Filing your taxes doesn’t have to be a stressful affair. Here are a few ways you can keep organized throughout the year before presenting your documents to your tax preparer (plus, they’ll thank you for it). Keep all Your Receipts Take a picture of your receipts with your smartphone or scan them – just make sure that you are saving your receipts! The IRS can audit you up to six years back so it’s important that you save a history of purchases just in case. Chances are, you likely won’t remember why you bought that printer from five years ago, so we recommend you write notes on each receipt explaining the business nature of the purchase. Sort and Categorize Financial Documents You’ll also need to provide other documents like income, records of bank statements, canceled checks and paid bills. Once you have all the documents gathered, divide them into separate categories, such as home-office expenses, utilities, office supplies, and charitable contributions. Having these items organized beforehand will make it much easier for your tax preparer to calculate totals. Find a [...]

12 02, 2020

Business Licenses and Permits

By |2020-02-03T21:17:14+00:00February 12th, 2020|Bookkeeping Basics, Small Business|0 Comments

From naming your business to brainstorming your branding, starting a new business is an exciting venture. But before you get swept away in the entrepreneurial novelty, it is important to consider the logistical elements to your business, such as business licenses and permits. Addressing your licenses and permits earlier in the beginning stages of development will help you get started strong. Here are a few different permits to consider what starting up your business. Environmental permit: In order to control for air and water pollution, many cities require this permit. If you produce anything that involves producing gases, requires burning materials, or may dispose waste through sewers and waterways, check to see what regulation may apply to your business. Health department permits: Restaurants or other food related business selling to customers or retailers will need to be in compliance with health department permits. Sign permit: As exciting as it is to get a new sign for your business, check to see if there are any size or material regulations for store signs before you install one. Make sure to get [...]

5 02, 2020

Organizing Your Chart of Accounts

By |2020-02-03T21:14:06+00:00February 5th, 2020|Bookkeeping Basics, Small Business|0 Comments

Every successful business owner understands the importance of staying organized, whether it’s having a system of operations or organizational system for your data. When it comes to your company’s finances, staying organized begins with understanding your chart of accounts. There are four main sections that comprise your chart of accounts: assets, liabilities, income, and expenses. While you want to keep your assets and income higher than your liabilities and expenses, your liabilities and expenses are not always a negative thing. Although these accounts can be a temporary cost, they can also be seen as a long-term investment in your business. The following points further describe your chart of accounts. Assets – Assets include items or anything your own that has value to your company. This can include your company’s goods, office supplies, inventory, or other valuables. Other asset accounts will include your accounts receivable and notes receivable. This refers to the amount of money that others owe you for your goods or services. Liabilities – Bank loans, rental space, income tax payments, payroll taxes, and bills are considered to be [...]

11 01, 2020

Important Tax Deadlines 2020

By |2020-01-29T18:07:35+00:00January 11th, 2020|Tax Deadlines|0 Comments

Don’t let a missed deadline be the reason your business loses money this year. Alleviate some tax filing stress and avoid paying penalties with these tax deadlines for 2020. For more a more detailed outlook on tax forms and dates, get in touch with our accounting team at Bakersmith Bookkeeping Group to ensure a smooth tax season!  Jan 15, 2020:  4th Quarter 2019 Estimated Tax Payment Due: Those who are self-employed or have fourth-quarter income that requires you to pay quarterly estimated taxes, make sure to get them postmarked by this date.   Jan 31, 2020:  Form W-2 Filing Deadline: Those who have employees need to fill out two copies of Form W-2 for each employee. One copy must be submitted to the IRS and the other sent to the employee by this date.   March 15, 2020:  S Corporation and Partnership Tax Returns Due: File your S corporation tax return (Form 1120-S) or Partnership return (Form 1065) by this date. If you need more time to file your tax return, file for an extension.   April 15, 2020:  Individual Tax Returns Due of Tax Year 2020: Tax returns are due by midnight on April 15, 2020. [...]

2 01, 2020

Stay Ahead in 2020 with a Strategic Business Plan

By |2020-01-29T18:07:22+00:00January 2nd, 2020|Bookkeeping Basics|0 Comments

Set your business on track and start the new year with a clear strategic plan. Incorporating a strategic plan can help you analyze the past and current position of your business and outline the projection of growth for the next few years. Like any venture, coming in with a well-rounded, comprehensive plan can help you prepare for unexpected road bumps down the road, improve in areas where you fall short, have a better control of your wanted outcomes, and ultimately strive for your bigger-picture goals. Bring your business toward your long-term goals with a few tips on how to create your strategic plan:   SWOT – Before you dive into creating a business plan, begin with a SWOT analysis. SWOT is an acronym for the four factors (strengths, weaknesses, opportunities, and threats) that help you assess your business’ current position before heading into your strategy. This analysis can help give you a better picture of both the internal and external factors that influence your business’ success.  Vision Statement – Brainstorm phrases that summarize the overall, goal or big-picture vision of your company. Eventually, refine these phrases into a concise summary of where you want to see your [...]

12 12, 2019

Ready for Tax Time? Keep your Receipts Organized

By |2020-01-29T18:07:11+00:00December 12th, 2019|Bookkeeping Basics, Small Business, Tax Deadlines|0 Comments

It’s easy to undermine the value of keeping your receipts organized – until your business loses money from your next tax return. Receipts are audit protection; keeping them organized and stored away will serve you when you need proof for tax deductions on business related expenses. Without proper documentation, you could be losing the money you thought you would be getting back as a tax deduction. So before you disregard your receipts, read the following tips for keeping your receipts organized. Keep all receipts. Although technically under IRS Publication 463, you would not need to keep receipts for expenses under $75, for peace of mind holding on to receipts can come in handy if you ever need to provide additional proof to the IRS. Being prepared means you will save time and money. Additionally, small expenses add up. Keeping your receipts can give you transparency on where your money is going. Record business purposes on receipts. Not all purchases or expense are self-explanatory. For example, you may remember why you bought a printer, but a restaurant receipt for a business [...]

3 12, 2019

5 Bookkeeping Habits Business Owners Should Have

By |2020-01-29T18:06:54+00:00December 3rd, 2019|Bookkeeping Basics, Small Business|0 Comments

It’s no surprise that building good habits sets your business up for success. As a business owner, developing good habits can help you establish a routine of systems that optimizes success - especially in the case of handling business finances. Developing a habitual system for handling your business’ finances allows you to save money, increases the probability of catching financial errors, and provides a comprehensive outlook on the overall financial health of your business. Here are a few bookkeeping habits that can help you better manage your finances. Plan ahead for major expenses. Mark your calendar for big expenses in your future. For example, this can include computer upgrades, an anticipated office move, or other major expenses that are not in your usual monthly expenses. Marking your calendar can help put you in a mindset to save for these expenses, even if your business if currently experiencing a flush period. Identify and track all expenses. Tracking your expenses can help you assess where your money is going and identify areas where you can save money. Additionally, it can also be [...]

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