Wednesday, January 11th, 2012 | by: Jacob @ BottomLineCPA.com
Profit: Can’t Thrive Without It
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We budget for labor, we budget for materials, and for some reason we expect profit will just magically appear. Budgeting for profit is essential. Profit is not a dirty word. It is absolutely necessary in order to pay down debt, pay taxes, provide a return on investment, and to reasonably project for future wage and benefit increases.
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Whether you have a new business or a mature one, a large business or a small one, we want you to have a strong bottom line each and every year. Do NOT fall for the Pot o’ Gold at the end of the rainbow trap. Too often business owners are lured to believe that growth is what’s important and that we must continually re-invest and be in debt. Throw off these shackles and know that profit is to be embraced today, not just as some big future payoff when you sell your business.
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Last but not least, not only do I encourage you to achieve bottom line profit performance each and every year, I also want you to diversify. Yes, take money out of your business and invest in other things. We’ve all heard the tale that “all my wealth is tied up in the business”; this won’t change overnight. It requires a lifetime of diligent effort to build a well-diversified portfolio of income producing investments.
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Contact your CPA: He or she is much more than a tax preparer; they should be your trusted business advisor.
Bill Jacob, CPA, MBA
Bottom Line CPA, LLC
* 53 North High Street, Dublin, Ohio 43017
( (614) 408-8354
( (FAX) 408-8250
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Any federal tax advice contained herein or in any attachment hereto is not intended to be used, and cannot be used, to (1) avoid penalties imposed under the Internal Revenue Code or (2) support the promotion or marketing of any transaction or matter. This legend has been affixed to comply with U.S. Treasury Regulations governing tax practice.
Tags: debt, diversification, diversify, gold, profit
Posted in Accounting, Businesses, Taxes | No Comments »
Wednesday, January 11th, 2012 | by: Jacob @ BottomLineCPA.com
Everyone Needs a Get-Out-of-Jail-Free Card
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The old saying goes that the two things you can count on are death and taxes. I have one more for you, 1099 forms. Far too many businesses ignore this important filing requirement.
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Businesses, new and old, big and small, must check their 1099 reporting requirements for 2011. It is almost a certainty they have 1099s to submit by the end of January. I will go so far as to say that 100% of businesses have 1099 activity to report.
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In general, if you pay ANY non-corporate vendor for ANY service with a total calendar year payment exceeding $600, you will be responsible for mailing 1099s. In order to prepare, you must request and maintain current W-9 forms from ALL of your vendors. MAKE SURE THE “EXEMPT” BOX IS CHECKED on the W-9 form. A completed Form W-9 is your “Get Out of Jail Free Card.” With more and more businesses behind on their taxes, some estimate 17%, they will not be exempt from backup withholding on payments you make to them. If they are not exempt, YOU are responsible for withholding taxes on their payments and remitting them to the appropriate taxing authority. Failure to file not only carries a penalty, but also includes these back taxes and any penalty and interest for failure to withhold and remit.
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Miserable, I know. So contact your CPA: They are available to assist you with your Form 1099 preparation. If they don’t hear from you, they assume you are preparing your 1099 & 1096 forms yourself.
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BOTTOM LINE: Ignore 1099 forms at your own peril. Overly dramatic? Maybe. But this is a simple routine that is costly if ignored. Consider this a New Year’s resolution worth keeping.
Bill Jacob, CPA
BottomLineCPA.com
614.408.8354
Jacob@BottomLineCPA.com
Tags: 1099 Forms, Taxes, W-9 Forms
Posted in Accounting, Businesses, Taxes | No Comments »
Thursday, October 13th, 2011 | by: Jacob @ BottomLineCPA.com
Starting in 2011, all US online payment providers including PayPal will be required by the Internal Revenue Service (IRS) to report sales information to the IRS about certain customers who receive payments for the sale of goods or services online. We want to help you understand these changes.
Applies to sellers receiving over $20,000 in gross payment volume AND over 200 payments
Applies only for sales on or after January 1, 2011
Read more here:
www.paypal.com/irs
Rules for new reporting requirements will often change from their original implementation. Do not rely on the information above as the final word on your reporting requirements. Contact our office for assistance.
Bill Jacob, CPA, MBA
Jacob@BottomLineCPA.com
614.408.8354
Tags: 1099, IRS, PayPal, tax
Posted in Businesses | No Comments »
