Taxes
A Basic Guide to the SEP IRA
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…
Read MoreHow to Measure Profitability vs Profit in a Business
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…
Read MoreA Basic Guide to the Roth IRA: Tax Pros and Cons
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…
Read MoreWhat Is a Capital Expenditure and What Are the Tax Implications?
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…
Read More8 Quick Tips for Better Business Cash Flow
How can you find the right balance for optimized cash flow? Start with these eight tips. Key takeaways: 8 tips for better cash flow: Maintain visibility Be prompt with payments and invoices Be on the lookout for changes Try renegotiating Reevaluate your invoicing practices Cut unnecessary costs Use accounting software Consider a line of credit…
Read More8 Useful Tax Tips for 2021
Key takeaways: 2020 taxes are done, and it’s time to start preparing for filing 2021 taxes Top 8 tax tips: Get to know the new tax brackets Pay estimated taxes on time Keep records organized Master the home office deduction Prepare to file electronically Classify your business properly Deduct charitable contributions Get help from a…
Read MoreWhat to Know about Tax Brackets and How They May Change
What are the income tax brackets and how do they work? Here is an overview. Key takeaways: There are seven tax brackets currently ranging from 10% to 37% You don’t pay the same percentage on all your income; each portion of income is taxed at a different rate The Biden Administration has said it wants…
Read MoreA Basic Guide to Depreciation for Small Businesses
As a small business owner, you can deduct depreciation that your assets experience over time. Here’s what to know about depreciation and how to calculate it. Key takeaways: Depreciation is the loss of value an asset experiences over time Small businesses can deduct depreciation from assets like cars, property, and equipment There are three methods…
Read MoreTop 7 Reasons You Need to Hire an Accountant
Many Americans take advantage of online tax platforms and do the heavy lifting themselves. But when your situation is a bit more complicated, you need a certified public accountant (CPA) Key takeaways Top 7 reasons to hire an accountant: You’re starting a business You need small business tax planning help You’re self-employed You need to…
Read MoreAre Unemployment Benefits Taxable?
If you were one of the millions of Americans who received unemployment, here’s what you need to know about taxes. Key takeaways: Unemployment benefits are taxable after the first $10,200 Some states don’t require an additional state income tax Use Form 1099-G, which you should receive from the IRS The COVID-19 pandemic led to record…
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