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Nine Accounting Mistakes Small Business Owners Make

How to Overcome Common Financial Mistakes

Most small business owners are an expert in their field, but not necessarily in the accounting aspects of building a business.  And, with this comes a few common mistakes. Yet, even simple small business accounting mistakes can prove to be financially limiting and costly down the road.  With the help of an accounting professional, it is possible to overcome at least some of these mistakes. Take a look at some of the most common mistakes and how to avoid them.

Choosing Your Accounting Method Under New Tax Laws

What Does This Change Mean for Your Business?

Businesses today must take a closer look at their accounting methods.  Since the passage of new tax laws, with changes to thresholds for choosing accounting methods, all companies need to take an inward look at their current accounting methods to determine if they are the most beneficial permissible method applicable.  It is important to work closely with accounting professionals here — making changes as well as decisions on how accounting methods need to be updated. 

Minimizing Tax on Social Security Benefits

Understanding the Taxability of Your Social Security Benefits

How much (if any) of your Social Security benefits are taxable depends on a number of issues. The following facts will help you understand the taxability of your Social Security benefits.

  • For this discussion, the term “Social Security benefits” refers to the gross amount of benefits you receive (i.e., the amount before any reductions due to payments withheld for Medicare premiums).  For tax purposes, Social Security benefits are treated the same regardless of whether the benefits are paid due to disability, retirement, or reaching the eligibility age.  Supplemental Security Income benefits are not included in these computations because they are not taxable under any circumstance.

You May Not Get a Tax Refund Next Year

Be overly Cautious About Your Payroll Withholding for 2018

With all of the tax reform changes and the corresponding reductions in most taxpayers’ income tax withholding, there are serious concerns that the reduction in withholding, although providing more take-home pay now, could end up resulting in unexpected taxes due at tax time next year. For that reason, taxpayers should be overly cautious about their payroll withholding for 2018.  One need only look at the W-4 instructions to realize that an individual without any substantial tax training can quickly become lost when filling out the worksheets.  It is not business as usual.

Cryptocurrencies and Tax Implications

Guidelines on How the IRS is Dealing with Virtual Currencies

As our world has become more and more “digital,” it was only a matter of time before cryptocurrencies were developed.  One of the first of these virtual currencies was Bitcoin, and the Bitcoin network came online in 2009. Since then, additional cryptocurrencies have been developed.

Cryptocurrencies are generally utilized for transactions by tech-savvy individuals and have a comparable value in real currency or take the place of real currency. These virtual currencies can be purchased with or exchanged into U.S. dollars, euros and other real or virtual currencies. 

Do You Benefit from the Extender Bill?

Bill Includes a Number of Extenders that Retroactively Apply to 2017 Returns

Needless to say, these last-minute changes may create a problem for taxpayers who have already filed their returns and will need to file amended returns to take advantage of these extenders.  The retroactive changes will cause the IRS some headaches as well.  Since the 2017 forms do not accommodate some of the extended provisions, the IRS will have redesign and issue updated forms or provide workaround procedures.