Financial statements play a key role in maintaining the financial health of your business. Not only do year-end and interim statements help you make more informed business decisions, but they’re also often non-negotiable when working with investors, franchisors, and lenders. So, which accounting method should you use to maintain these all-important financial records—cash or accrual? […]

Businesses categorized as “small businesses” under the tax code are often eligible to use accrual or cash accounting for tax purposes. Certain businesses may be eligible to take a hybrid approach, as well.  Prior to the implementation of the Tax Cuts and Jobs Act (TCJA), the criteria for defining a small business based on gross […]

You know that you must choose a filing status when you file your tax return, but do you know what your choice really means? Picking the right filing status matters because the status you select will influence your tax rates, eligibility for certain tax breaks, standard deduction, and correct tax calculation. And there are plenty […]

For many business owners, opting for a Qualified Small Business Corporation (QSBC) status is a tax-wise choice. Potential to pay 0% federal income tax on QSBC stock sale gains For the most part, typical C corporations and QSBCs are treated the same when it comes to tax and legal purposes, but there is a key […]

It’s not uncommon for entrepreneurs to launch small businesses as sole proprietors. However, it’s crucial to understand the potential tax impacts first. Here are 9 things to consider.  1. The pass-through deduction may apply If your business generates qualified business income, you could be eligible to claim the 20% pass-through deduction. (Of course, limitations may […]

Today’s marketplace can feel uncertain, so it’s no surprise that many businesses are stashing operating cash in their bank accounts. However, without imminent plans to deploy these reserves, do these excessive “rainy day funds” really offer efficient use of capital? If you want to estimate reasonable cash reserves while maximizing your company’s return on long-term […]

Warehousing, salaries, insurance, taxes, transportation…. And don't forget depreciation and shrinkage! Carrying significant inventory on your business’s balance sheet can be costly. Not to mention, when working capital is tied up in inventory, your business’s other strategic investment opportunities become limited. Managing your inventory more effectively reduces these costs, improving profits and increasing operating cash […]

Ready or not—the 2024 tax season is officially open! The IRS is now accepting and processing 2023 income tax returns Just as in years prior, we’re receiving an abundance of questions about this tax season. Let’s take a look at seven of the most relevant ones.  1. What are the 2024 tax season deadlines? For […]

Asset protection is a vital part of estate planning. Chances are you want to pass on as much of your wealth to family and friends as possible. To do this, you may need to shield your assets from frivolous creditors’ claims and lawsuits. One option available to you as you plan your estate is to […]