Going paperless is becoming standard in the business world. If your company has not converted to electronic filing, now is a great time to understand the benefits of digital documents and what steps you can take to implement an electronic filing system.
What Are the Benefits of Using an Electronic System?
Digital copies won’t deteriorate. Over time, paper documents can fade, fall apart, incur water damage, or disappear altogether. On the other hand, electronic documents that are added to a filing system will stay in the same condition forever.
Looking for an accountant that meets your business needs can be confusing. There are many certifications that can be earned, from a basic college degree in accounting to specializations in fraud, bookkeeping, and internal auditing.
So how do you know who to hire? Like choosing a doctor, you want your accountant to have the skills and knowledge to do a trustworthy job. And like a doctor, that accountant should be certified by a well-known accreditation council.
Let’s take a look at what an Accredited Business Accountant is and if hiring one is right for your business.
In a business of any size, financial reporting is critical to the success of the organization. When stakeholders need a clear financial picture of your organization, financial statements are the first place to which they turn. The process of preparing financial statements is an important one to be familiar with, whether you require these statements annually around tax time, or on a more regular basis.
Before we dive into the preparation of financial statements, first let’s explore what exactly they are and what they’re used for.
The Coronavirus known as COVID-19 has changed the world’s day-to-day life. The future is uncertain in terms of health and social interaction. One of the biggest concerns many face is financial stability. One in five American households are out of work because businesses are closing, and the stock market is becoming increasingly volatile. Because of this, income insecurity is turning into a very real problem.
However, there are elements that you can control to feel more stable in a time of instability. These tips for managing finances can help you to survive a recession while setting yourself up for success in the future.
Nearly all tax professionals have become familiar with the changes introduced by the Tax Cuts and Jobs Act of 2017, which went into effect at the beginning of 2018. Among other implications, the act affects deductions made for tax returns. Below is an infographic guide to the new laws surrounding meals and entertainment deductions for businesses.
Health Reimbursement Agreements (HRAs) have been around since the 1970s, but are getting more attention due to the recent changes implemented by the Departments of Health and Human Services, Labor, and Treasury. On June 13, 2019, they issued a new rule beginning in 2020 that allows employees to use an HRA set up by their employer to pay for health insurance premiums, a perk that was not allowed under previous HRA rules.
A Per Diem (Latin for “per day”) is a fixed daily reimbursement that a business gives to its employees who are traveling longer than a day for business purposes. Per Diem payments can be given for both lodging and meals & incidental expenses (M&IE) or only M&IE, depending on the situation and where the employee is traveling. For example, the company may have a dedicated condo for employee travel in a specific city and thus would not need to reimburse its employees for lodging there. M&IE includes any expense associated with traveling away from home that doesn’t fall into the lodging category. M&IE examples are meals, room service, luggage handlers, dry cleaning, and tips.
The most popular reason people form an LLC is to protect their personal assets. LLCs ensure that, legally, you are not held personally responsible for the debts and liabilities as a result of the company’s business. This avoids personal litigation, seizure of personal property, and bankruptcy.
When starting a new business, one of the first decisions to make is whether to form your company as a sole proprietorship, partnership, Limited Liability Company (LLC) or incorporating a business. Incorporating an existing business brings up other questions of when, why and how. There are advantages and disadvantages to each type, but the benefits of incorporating your business should play a key role in your decision-making process. Here are the top 3 reasons to incorporate your business:
As tax season comes to an end and you file away your records, you may be looking at your ever-growing file cabinet and wondering, “can I get rid of some of these documents?” While there are many reasons to keep or discard certain paperwork, there are some documents you should never throw away! (IRS Tax Returns and supporting documents should be kept for 5-7 years, by the way.)
Below are the 9 paper documents you should keep forever in their original form: