Small business owners will be some of the taxpayers most affected by the tax law changes enacted for 2018. How will these new rules affect your business? Here are 5 key ways.
Business Tax Rates. Whether your business is a pass-through entity (generally a sole proprietorship, partnership or many LLCs) or a corporation, you will likely see lower tax rates. Individual tax rates have been adjusted to new tax brackets that should result in many people experiencing a lower overall tax burden.
Whether you plan to hire a tax preparation specialist or you are going to attempt to do your own taxes, you will want to make sure that you are as prepared as possible. The last thing you want to do is to wait until you are sitting down ready to fill out your income tax forms to realize that you are nowhere near ready to get the job done. Check out some of the following things you might want to consider doing so you don't run into many problems:
When it comes to running a successful business, having the ability to pay your employees is critical. Since many small business owners don't come from an accounting background, preparing employee payroll can be a challenge.
Here are three tips that you can use to help streamline your small company's payroll preparation in the future.
1. Consider switching your employees to a salary.
If you want to eliminate a lot of the mistakes that can be made when preparing payroll for your employees, you should consider switching your workers from an hourly rate to a salary.
Individuals who receive a distribution from a retirement account typically receive a Form 1099-R after the end of the year. A copy of the form is also provided to the IRS. Form 1099-R contains a distribution code without an attached explanation, so it is essential that tax filers examine the code further to ensure that the distribution is reported correctly.
Form 1099-R is used to report distributions from several types of retirement accounts, including IRAs, traditional pensions, and 401(k) plans.
As a business owner, you're bound to make mistakes. However, mistakes made with your bookkeeping can have a significantly negative effect on the cash flow of your business and may result in legal or tax problems. Here are two common mistakes business owners make and how you can avoid them.
Being Lax About Petty Cash Receipts
Sometimes you have expenses that are too minute to write a check for or that can't wait for you to grab the checkbook.