Posts by Krystal Smith

What is forecasting, how can small business owners do it right, and why should they? Key takeaways: Small business forecasting is making future predictions based on actionable business data 4 tips for forecasting: Understand qualitative vs. quantitative forecasting Start with expense forecasts Create multiple forecasts Master cash-flow forecasting Stay flexible Small business owners just starting…

While the two share some components, they have very different implications Key takeaways: Succession planning helps business owners or leaders plan for the transition when they leave the business Estate planning is focused on how your personal wealth will be distributed and managed after you’re gone Most people need an estate plan, but not everyone…

The IRS announced that taxpayers with excess advanced premium tax credits didn’t have to report the excess for 2020 Key takeaways: Premium tax credits are available to some eligible taxpayers who get health insurance coverage through the Marketplace Usually, taxpayers must report any excess advance tax credits on their tax returns, and it may increase…

Running a business can quickly get in the way of paying yourself appropriately. Here’s how different business structures handle payments to owners, plus tips for including yourself while managing the budget. Key takeaways: A salary is a regular payment an employee receives, and an owner’s draw is a withdrawal of business funds that can be…

While uncommon, certain red flags increase the risks of receiving an IRS audit It’s unlikely the IRS will audit you anytime soon. For the 2019 fiscal year, the organization only audited 0.45% of American taxpayers, a number equal to about one in every 220 people. One reason for this dip was a reduced budget for…

Gig workers have unique responsibilities for organizing their tax records and paying quarterly balances on time. Life as a gig worker can be pretty good. After all, you’re usually your own boss, and you can set a schedule that fits in with your lifestyle. However, there are some challenges, including filling out invoices, collecting payments…

A SEP IRA can be a smart retirement plan option if you want higher contribution limits, flexibility, and tax advantages. Here’s how they work. Key takeaways: SEP IRAs are flexible retirement savings options, especially helpful to business owners with few or no employees SEP IRAs have high contribution limits: $58,000 for 2021 Only employers can…

Profit and profitability are two separate concepts. Here’s how they differ and how to start measuring. Key takeaways: Profitability is a metric that tells you if your business is viable, and it’s a measurement used by investors Profit is the dollar amount of net earnings in a given period Measure profitability by assessing gross and…

The Roth IRA is a tax-advantageous option for retirement savings. Learn how it works and who should use it. Key takeaways: Pros: Tax-free withdrawals. Withdraw contributions for any reason at any time without paying tax. Money grows tax-free. Make contributions at any age. No income limits on conversions. Lots of investment options. No required minimum…

Capital expenses are large purchases required to keep a business growing. Here’s what you need to know about these costs, including the tax implications.  Key takeaways: Capital expenditures are long-term investments like technology upgrades or significant equipment purchases These purchases are recorded on the balance sheet since they’re investments, not everyday operational costs Capital expenditures…