Frequently Asked Questions
Got bookkeeping questions? Find the answers you need quickly and easily right here. We’ve compiled the most frequently asked questions to help you understand everything from past-due invoices to year-end tax preparation.
Yes, it can be time-consuming, but it is worth the effort. Reconciling the financial records with bank and credit card statements helps ensure that all the transactions are legitimate and accounted for. This provides more accurate business financial statements and saves from year-end headaches.
Net profits only show part of the financial story. For example, when business owners pull money from the company or have loans, that activity appears on the balance sheet. This outgoing cash is not considered when calculating net profits, but it does reduce the bank balance.
Presentation slides covering simplification strategies that allow business owners to get the most out of their bookkeeping efforts.
Yes, if a business pays medical providers for services, they may need to send 1099s to providers that did not need them last year. This ruling is new in 2024, so businesses that act quickly to correct any missing 1099s may receive leniency on penalties.
The deadline has been extended to January 13, 2025, to submit BOI Filings.
Research shows that proactivity surrounding accounts receivables produces results. There are several proven strategies that minimize those lagging payments from customers.
Businesses may incur penalties and fines for noncompliance, affecting both the independent contractor and business owner.
Businesses send a 1099-NEC to their independent contractors and the IRS to provide proof of income. The IRS requires these forms to be sent to vendors who meet specific parameters, and if not correctly submitted, business owners could incur fines or penalties.
A form W-9 has crucial information for tax reporting and is completed by independent contractors or vendors that provide a service for businesses.
For many small businesses, yes. Under the new regulations, it is generally required for a small business to file a BOI report with the Federal Crimes Enforcement Network (FinCEN) if they registered with a secretary of state or similar office to do business in the United States.
In short, it is to avoid tax bill surprises and leverage tax strategies to keep more of that hard-earned money in your pocket.
