UPCOMING TAX DEADLINE: JANUARY 31, 2022   |

We hear it quite often from business owners that they wished they had more hours in the day, or that time is the one thing they wish they could buy. The following accounting practices will not only help you add more time back to your business but they will also result in cost reduction strategies, after all Time is Money. Separate Business and Personal Expenses A common mistake new business owners make is using their personal bank account to fund business needs. It is not unc

The Association of Certified Fraud Examiners (ACFE) defines expense fraud as a fraudulent disbursement scheme in which an employee makes a claim for reimbursement of fictitious or inflated business expenses. Common types of expense fraud include: Mischaracterized expenses: an employee submits a personal expense for reimbursement as a business expense. Overstated expenses: an employee submits a claim for a legitimate expense but increases the amount. An example of this can be

Financial statement analysis is the process of analyzing a company's financial statements for decision-making purposes. As a business owner, knowing how to analyze financial statements will allow you to assess your company’s strengths and weaknesses, and determine the overall financial position of the company. There are various techniques available to analyze financial statements. Ratio analysis is the most widely utilized technique. Ratio analysis measures the proportional r

A budget is a dynamic, detailed plan of operations used to outline a company’s anticipated revenue and expenses for an upcoming period of time. A financial forecast is an estimate of a company’s future performance based on current and historical information. A budget is a roadmap that outlines where management wants to take the business. A financial forecast tells you whether your company is reaching its goals and where it is heading. As a business owner, the success of your

Debt is a necessary part of running a business. A business loan, line of credit or a business credit card can help your company hire new employees, purchase inventory, purchase equipment, and finance growth. However, too much debt can stand in the way of your business objectives and become an unsustainable expense. As such, managing debt is vital to sustaining your business operations and credit rating. If you find yourself unexpectedly further in debt than you'd like, here a

Management accounting is the process of identifying, measuring, analyzing, and interpreting accounting information to be used by business leaders in making informed operational decisions and achieve business goals. As a business owner, you are in a position where every decision you make could impact your company’s bottom line. As such, it is important to make educated decisions in order to drive your company’s financial performance. Here are 3 steps you can take to help you m

In late 2020 the IRS announced that it would increase tax audits of small businesses by 50% in 2021. Businesses are still dealing with the consequences of the pandemic and an IRS audit is the last thing business owners want to worry about. To help you avoid red flags we have put together a list of actions that the IRS concentrates on. Consistently filing late Filing late can trigger unwanted attention from the IRS. At CPA by Choice, we recommend that you do not wait until the

As a business owner, understanding your company’s overall financial health is a crucial part of growth and success. The three important financial statements used for reporting a company’s financial performance are the Balance Sheet, the Profit and Loss Statement (P&L) and the Statement of Cash Flows. The Balance Sheet reports a company’s assets, liabilities and shareholders' equity at a specific point in time. It provides a snapshot of what a company owns and owes, as well as

The word “debt” on its own can feel intimidating, it is often associated with fear. According to the American Psychological Association, 64% of Americans cite money as a significant source of stress; they call this debt stress syndrome. It can be argued that no debt is good debt, but for the average person there are purchases that wouldn’t be possible without taking on debt, like a home. Borrowing money does not mean sacrificing financial freedom, debt could actually be one w

We live in a world where a new iPhone is released every year, and a new social media platform becomes more popular by the time we finally understand the current one. It comes as no surprise that the millennial generation has revolutionized the way businesses use technology nowadays; just imagine what the next generation, Gen Z, will introduce to the modern world in terms of technological advancement. You may be asking yourself, what does this have to do with accounting? Succe

Many business owners share that the thought of having to understand accounting principles in order to run their business successfully can feel overwhelming. At CPA by Choice, we want to provide you confidence that you understand business accounting essentials. Open a business banking account. Once your business is legally registered open a business banking account, this needs to be separate from your personal banking account. Separating business revenue and expenses can help

In today’s modern technology world business owners have the opportunity to use invoicing software to improve efficiencies. These billing solutions help business owners to track their sales and services rendered, who has been billed, when payments have been received, and who is overdue for payments. Below we will discuss three proficient software you can choose from. BILL.COM Bill.com prides itself on bringing smart accounts payable and accounts receivable automation and new p

It comes as no surprise that the Internal Revenue Service (IRS) and the Treasury Department have moved the deadline for filing 2020 federal income tax returns from April 15 to May 17. The IRS said that it will provide guidance in the coming days. The change in deadline comes after the IRS is still backlogged in processing 24 million tax filings from individuals and business since the 2019 tax year, the limited in-person appointments for tax preparation due to COVID-19, and th

Well-organized records make it easier to prepare a tax return, trust us, we know! Staying organized and having a filing system in place can help the process of retrieving information, and/or discarding documentation when it is no longer needed. Generally, the IRS recommends that you keep tax records for three years after filing. This time frame is recommended because that’s the amount of time you have to amend your return to claim additional eligible credits or refunds — and

We Are In Tax Season! And we are here to guide you along the way. More money in your pocket, who doesn’t want that? It is important that you understand what you can deduct and claim when you file your taxes. We do not want you to overpay taxes, and we also understand that deductions can be the difference between making or losing money on your business. Here are some deductions that business owners sometimes forget, at CPA by Choice we never forget them: Business use of your h