Natural Disasters Equal ‘Miscellaneous Deductions’

If you’re like most people, you’ve looked over the list of deductible expenses listed as Miscellaneous Deductions for your Schedule A Itemized Deductions and seen the casualty and loss item, but have never actually had a loss that fit within those guidelines. That is actually something to be thankful for. The enormous losses that can come from a natural disaster is one of the items that can fit into those guidelines. Losses that you incur as a result of the natural disaster and are not reimbursed by insurance or other means can be used in the calculation of the allowable miscellaneous deduction. Read More »

Tags: Advantage, Casualty, Compassion, Deductible Expenses, Deductions This Year, Disaster Victims, Enormous Losses, Financial Situations, Insurance, Irs, Natural Disaster, Natural Disasters, Payment Deadlines, Previous Years, Rampage, Regarding Your Situation, Schedule A Itemized Deductions, Tax Returns, Time Of Year, Tragic Losses

Accounting for Bad Debts

One of the unfortunate issues that companies need to deal with at year-end is accounting for bad debts. Bad debts are not an issue for a company that operates on a cash basis; if you haven’t collected the money, then it isn’t included in your income. For companies that keep their books on an accrual basis, however, it is an important part of their year-end process, since you book your revenue as it occurs or is billed out, not when you receive payment. Read More »

Tags: Accounting For Bad Debts, Accounts Receivable Aging Report, Accrual Basis, Allowance Account, Attempts, Bad Debt, Bad Debts Expense, Balance Sheet, Cash Basis, Documentation, Expense Account, Income Statement, Invoices, Irs, Money, Net Income, Receivables, True Expectations, Year End

The Devilish and Dangerous Debit Card

What could possible be dangerous about a business owner’s debit card? It’s attached to the checking account, so he’s not as likely to accumulate debt on it like he could a credit card. It is much easier to carry around than a checkbook, and as already stated, won’t accumulate an unpaid balance like a credit card would. Where’s the danger? There are two actually. Let’s look at them. Read More »

Tags: Accountants, Atm Machines, Business Card, Business Expense, Business Owner, Business Owners, Card Punch, Checkbook, Checking Account, Credit Card, Credit Cards, Debit Card, Irs, Lost, Missing Receipts, Personal Cash, Personal Purposes, Riot Act, Transaction Fee, Unpaid Balance

Estimated Quarterly Tax Payments

Estimated tax payments for the first quarter of 2011 will be due in April. Since these payments only take place four times a year, they can easily be overlooked. This is something you don’t want to happen. The IRS loves to send out those penalty and interest charges for even the slightest oversight.
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Tags: April 18th, District Of Columbia, Due Date, Due Dates, Estimated Taxes, Federal Income Tax, First Quarter, Income Tax Payment, Interest Charges, Irs, Month Of The Year, Oversight, Previous Year, Previous Years, Quarterly Returns, Quarterly Tax, Self Employment Tax, Tax Liability, Tax Payments, Tax Refund

But HOW do You Make Sure Timing is Correct?

Last week we talked about timing and making sure that certain costs were entered when they are relevant. This is a very difficult territory for some and confusing for others.

I am going to try to make it simple (and I hope I’m able to do so!)
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Tags: Abc Inc, Accrual Accounting, Books, Business Income, Business Operations, Cash Basis Accounting, Graphic Designer, Invoice, Irs, January February March, Memory, Money, Pay Taxes, Small Businesses