Let’s say you buy a $45,000 flatbed trailer for your business. You don’t just toss that expense on your taxes and move on. Not always. Instead, you might depreciate it. That means you spread the cost out over several years instead of deducting it all at once. Sounds annoying? It kind of is. But done […]
Don’t Just Buy It. Depreciate It and Pay Less in Taxes Read More »
You’re making money. Clients are paying. The P&L looks decent. So why does it feel like you’re working harder than ever with not much to show for it? That’s where owner’s equity comes in. It’s not just an accountant’s column. It’s the number that tells you whether your business is building value or just paying
You’ve Got Sales. You’ve Got Profit. But What Does Your Owner’s Equity Really Say? Read More »
If your business is doing well and you’ve got a nice pile of cash sitting in the bank, that’s a win… right? Not always, according to the IRS. There’s a sneaky little penalty called the Accumulated Earnings Tax. It’s their way of saying, “Congrats on the profits… but if you don’t do something with that
When Holding Onto Too Much Cash Turns Into an IRS Problem Read More »
You made a profit last quarter. On paper, everything looks fine. So why are you sweating payroll and dodging vendor emails? It’s not a sales problem. It’s a cash flow problem. These are the warning signs to watch before your bank account pulls another disappearing act. 1. You’re Looking at Profit, Not Cash Profit is
You Don’t Need More Sales. You Need Better Cash Flow Read More »
If you’ve ever looked at your financial reports and thought, “These numbers don’t add up,” there’s a good chance someone skipped the part where your books were supposed to balance. That’s where double-entry bookkeeping comes in. It’s not just some technical thing your accountant cares about. It’s the reason your reports don’t accidentally say you
Why Bookkeepers Love Double-Entry (And Why You Should Too) Read More »
You made a budget. Back in January, probably. You had plans, projections, optimism… maybe even color-coded spreadsheets. Now it’s nearly June, and the whole thing is off the rails. Most small business budgets fall apart before Memorial Day. But that doesn’t mean budgeting is useless. It just means the way most people build them doesn’t
This Is Why Your Budget Fell Apart (And How to Stop It from Wrecking Q3) Read More »
Running an S Corp comes with perks. One of the biggest? You don’t have to pay self-employment tax on distributions. But some folks take that and run straight into trouble. They pay themselves a tiny salary, take huge distributions, and think they have outsmarted the IRS. They haven’t. If your salary is not “reasonable,” the
The IRS Doesn’t Care What You Call It. If Your Salary Is Too Low, They’re Coming Read More »
Tax season just wrapped. Maybe you made it through clean. Maybe you limped across the finish line with an extension and a glass of whiskey. Either way, when that invoice hit your inbox and your Tax Accountant took longer than expected, you probably had the same thought: What did I just pay for? Here’s your
If Your Books Are a Mess, Your CPA Is Charging You Double Read More »
You read that right. It’s entirely possible to have a rough year in business, take a fat loss, and still owe the IRS. If that sounds backwards, congratulations. You have common sense. But the IRS plays by its own rules. One of those rules is called the Excess Business Loss Limit, and it’s been messing
How to Lose $300K and Still Owe Taxes Read More »
Most small business owners do not know what a general ledger is. That’s fine… until your reports start throwing out numbers that feel completely made up. You look at your P&L and wonder how you spent $900 on “miscellaneous.” You check your balance sheet and it says you owe $12.37 to a vendor you have
Your General Ledger Is Drunk and Making Up Numbers Read More »
