Three Invoicing Mistakes: How to Avoid Them
Not enough cash is the number one killer of small businesses, no matter what the industry. You can’t grow if you don’t have enough money to pay for supplies, marketing, and payroll. It’s worse with the trades industry. A lot of times clients are slow to pay or aren’t charged until the end of a project. […]
Cash or Accrual Basis: What You Need to Know
Have you heard your accountant or bookkeeper toss the phrases accrual or cash basis? What does it actually mean? How does it apply to you and your business? It’s important to know the difference because it changes how you run your business. Let’s get into the differences. Let’s say you make an invoice for $1,000 to […]
When is the Most Effective Time to Hire a Bookkeeper?
You might be asking yourself, when should I hire a bookkeeper? That’s a great question! The best answer is when you feel ready. But here are some other instances that might force you to hire a professional: These are all good ideas of when it’s best to hire someone to do your bookkeeping, such as […]
What You Should Know About Getting Audited
Although only 2.5% of small businesses get audited, it can be something most of us worry about. For the most part, there are specific reasons the IRS audits a business. Let’s take a look at what those triggers are, what happens if you do get audited, and ways to avoid audits. The largest thing that the […]
What You Should Know About Tax Deductible Expenses
Do you know what types of expenses are deductible from your business taxes? A lot of factors can play into this, including what industry your business is in and whether you are a startup or not. The most common expenses that are deductible are any that are “ordinary and necessary.” Let’s dive into the different […]
How To Pay Yourself as a New Business Owner?
When you started your business, you knew the first few months would be hard. You might even have planned to end your first year with a loss (hopefully not!). But when your business starts to grow and the money stays in the bank, it might be time to start paying yourself. Wohoo! But how is […]
Not sure how to file a 1099? Use this checklist to speed up the process
Contractors are very common in construction and trades businesses. This means it’s important to file 1099-NEC forms for any work you paid for over $600 with check, cash, or ACH. This is not hard to do if you have a Quickbooks Online account. Remember the deadline to file them is January 31st. Let’s go through […]
Think you can hold off on hiring a bookkeeper? Let me change your mind!
It can be hard to justify hiring a bookkeeper, especially when your cash is low. What you might not know is that it can be more expensive to hold off with getting a bookkeeper. This is especially true if you are months off or your books are a mess. Let’s explore exactly why it’s important […]
The Most Important Difference between Bookkeepers and Accountants
Have you ever wondered what the difference is between an accountant and a bookkeeper? While they have a lot of overlap, most of them specialize in one type of service. For the most part, accountants have a Bachelor’s degree in accounting. Bookkeepers may or may not have an accounting degree. Let’s get into more detail […]
Hobby vs Business: What You Need to Know
You wouldn’t call your business a hobby, right? The IRS has specific parameters for whether an operation is considered a business or a hobby. This is especially if your industry is mainly a hobby, such as equestrianism. What helps you to distinguish yourself as a business? For starters, you have to treat your operation like […]