You check your profit and loss report. Looks solid. Then your bank account tells a different story. And when it’s time to apply for financing, sell the business, or file taxes, someone’s raising their eyebrow at your numbers. That eyebrow? It’s pointed straight at prepaid expenses. This is one of the most common accounting mistakes […]
Banks, Buyers and the IRS All See the Same Red Flag. Do You? Read More »
Thinking about hiring help? Maybe you’re drowning in tasks. Maybe you’re missing growth opportunities. Or maybe you’re just sick of doing everything yourself. Totally fair. But before you post that job listing or message your cousin’s friend who “needs something part-time,” slow down. Can your business actually afford to hire? Here’s how to use your
How to Tell (Fast) If You Can Afford to Hire Without Guessing Read More »
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 »
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 »
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 »
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 »
Every small business owner wants to “write stuff off.” But not everything you buy for your business actually qualifies. And if you’re just guessing, you might be heading straight into audit territory. You’ve probably heard advice like: Some of that might work. Most of it is asking for trouble. So let’s clear up what actually
Think It’s a Business Expense? The IRS Might Not Agree Read More »
Own a commercial rental property? Made some improvements this year? Maybe you updated the HVAC, added security cameras, swapped out worn carpet from the Bush administration, or just gave the place a much-needed facelift. Here’s some good news: Section 179 might let you write it off right now… not over the next 39 years. Yes,
Make the IRS Pay for Your Building Upgrades Read More »
