What’s the best accounting method route for business tax purposes?
Businesses basically have two accounting methods to figure their taxable income: cash and accrual. “Small businesses,” as defined by the tax code, are generally eligible to use either cash or accrual accounting for tax purposes. The Tax Cuts and Jobs Act simplified the definition by establishing a single gross receipts threshold of $25 million (adjusted for inflation). This expanded the benefits of small business status to more companies. Contact the CPAs and business tax advisors at SEK to learn more about your small business tax.
Internal hiring can help fill your nonprofit’s open job positions
For the past two years, the U.S. unemployment rate has remained below 4%. This is great news for jobseekers but it can make hiring for your not-for-profit challenging. Consider looking within. By promoting existing staffers, you can save on the costs of recruiting workers. In addition, the process could go faster because you already know the candidates. However, hiring internally has the potential to create resentment among staffers. Contact the CPA's and business advisors at SEK for tips on how to run your nonprofit.
How businesses can reinvigorate strategic planning
Many businesses may get so caught up in day-to-day operations that strategic planning goes by the wayside. This can be dangerous, as a sudden market shift or disruptive competitor could leave your company slow to react. Ideally, engage in strategic planning at least annually or every few years. Consider engaging a professional facilitator to encourage participation, set clear goals and stick to the agenda. Contact the CPA's and business advisors at SEK for help or for your business strategy consultation.
Filing jointly or separately as a married couple: What’s the difference?
When filing your tax return, a filing status must be chosen. This is used to determine your standard deduction, rates and eligibility for certain tax breaks. If you’re married, should you file jointly or separately? It depends on your situation. In most cases, joint filing saves more tax, but some people save by filing separately. The CPA's and business tax advisors at SEK can weigh your options when preparing your return.
Factoring industry risk into the business valuation equation
How does industry risk affect business valuation? Industry-specific risk is an important consideration when estimating an investor’s expected return. Valuators consider several factors when assessing industry risk, such as the industry’s growth prospects, the relative power of suppliers and customers, competitive threats, substitute products, and barriers to entry. Contact the CPA's and business advisors at SEK for more information on how we incorporate industry risk into our valuation methods and what’s right for you.
The life of an estimate in QuickBooks Online
You’ve probably received estimates before. Maybe you needed work done on a vehicle. Your dentist might have warned you how much a new crown would cost.
9 tax considerations if you’re starting a business as a sole proprietor
When launching a business, many entrepreneurs start out as sole proprietors. If you’re launching a venture as a sole proprietorship, you need to understand the tax issues involved. You must pay self-employment taxes and make estimated tax payments on income earned. Contact the CPA's and business tax advisors at SEK if you want more information about the tax implications of running your business.
Is it time to review your beneficiary designations?
Too often, people designate a beneficiary when they acquire a nonprobate asset and then forget about it. But over time, these beneficiary designations may become inappropriate or obsolete because of changes in life circumstances. So, it’s a good idea to periodically review beneficiary designations and update them if necessary. Contact the CPA's and business advisors at SEK for more information.
If you gave to charity in 2023, check to see that you have substantiation
Did you give to charity last year? If you made a donation in 2023 but don’t have a letter from the charity yet, request it from the organization and wait to file your 2023 return until you receive it. Additional rules apply to certain types of donations, such as noncash contributions. Contact the CPA's and business tax advisors at SEK if you have questions about donations you hope to deduct on your 2023 tax return.
Nonprofits: Encouraging charitable donors to include you in their estate plans
Planned, legacy or deferred gifts are often larger than current donations, so not-for-profits can’t afford to neglect pursuing them. These gifts generally are made through wills and living trusts, retirement plan and life insurance beneficiary designations, or via more complex charitable annuities and trusts. Include information about planned gifts on your website and in promotional materials and emphasize the potential tax benefits. Contact the CPA's and business advisors at SEK with your financial questions and for more tips.