Nearly all businesses require some kind of travel by their employees using their personal vehicles. The IRS recognizes several methods for allowing deductions by your business or the individual employee. Knowing what is required is crucial because it is one of the IRS’s most looked at deductions for businesses.
If you are not experienced in making investments in small private companies, you should know what your risks are before you make a decision to invest. This is especially true if you are not involved in the day to day operation of the company.
The term “nexus” means connection between two items in a series. Taxing authorities use the term to describe the connection between your activities in two or more jurisdictions and your obligations to collect and remit sales tax as well as pay state income or franchise tax.
The banking industry has undergone monumental technological changes during the past ten years. One of the most exciting has been bringing electronic funds transfer (EFT) to nearly any business that can benefit from using it. Also called ACH, which stands for Automated Clearing House is a network that electronically processes collections and payments. Though there are a number of types of ACH transactions, ACH debit (also called direct debit) and ACH credit are the most common.
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I often get requests to merge financial data from multiple sources into Excel to create reports or provide a starting point for analysis. Excel is so popular because it not only provides a broad array or analytical and presentation tools but because it is so flexible. Users are free to create their own powerful presentations and sophisticated analysis.
With capital as tight as it is and revenues for many companies down, calculating your company’s breakeven sales is a skill that can help you better plan and manage your fixed and variable costs. Small business owners who are struggling with profitability should calculate their breakeven sales so they have an accurate understanding of how much they need to sell each month in order to make a profit. The exercise is pretty easy but you have to know some terminology:
Every great business has a robust business plan, which started out as a strategic plan. And every strategic plan must include a thorough examination of the competition. Once you’ve established your target market, you should have at least begun to identify your competition. But this can often be a stumbling point.
It is a good practice to spend some time each year to review and update your business records. When you apply for a loan you don’t want any surprises. If you make it a regular practice to review these ten parts of your business records, you will have a much easier time applying for a loan and as important, you will be practicing good business.
When evaluating your company’s overall risk of sustainability, examining your company’s product lines or services you offer may help determine ways to minimize risk. Single product companies face several challenges not faced by companies offering two or more product lines or services.