Posts Tagged "taxes"

Bookkeeping Mistake 10: Confusing Profits with Cash Flow

Posted by on Mar 27, 2014 in Accounting, Bookkeeping | 0 comments

This is part of a series of the Top 10 Bookkeeping Mistakes Small Businesses make.  To read the others, click here. Confusing profits with cash flow has been left to the last, the tenth of the top ten bookkeeping mistakes – but it’s a really important one.  You tend to remember the first and the last things you hear, so if you can remember that you don’t have to do your bookkeeping yourself (Bookkeeping Mistake 1) and that there’s a big difference between profits and cash flow, you’ll be doing a lot for your small business. Profits have to do more with the long-term view of your business.  Over time, are you making money (profit) or spending money...

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Bookkeeping Mistake 9: Misclassifying Employees

Posted by on Feb 27, 2014 in Accounting, Bookkeeping, Tax | 0 comments

This is part of a series of the Top 10 Bookkeeping Mistakes Small Businesses make.  To read the others, click here. Whether you have employees or not, misclassifying them is a classic bookkeeping mistake. That may sound strange, but you need to think about your employees not the way you, or even they, do – but the way the IRS does. There are at least two ways you can misclassify employees: 1. Your employees are actually independent contractors. This is a huge issue that the IRS and the Department of Labor are really cracking down on.  Most business owners don’t realize that this is an issue with a number of federal, state and even local governments. This mistake...

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Bookkeeping Mistake 4: Using the wrong accounting method

Posted by on Sep 9, 2013 in Accounting, Bookkeeping | 0 comments

If you’re using the wrong accounting method for your business, it could cause some big problems with your accounts, profits, and taxes. Now, bear with us, because we’re going to get a little technical here when it comes to accounting terminology.  Don’t despair – we’ll keep it simple – but as a business owner, it’s your responsibility to understand these and make a decision that is best for your particular business. There are two main business accounting methods: cash and accrual. The Cash Accounting Method Cash accounting is the simpler method – and the one that  most small businesses choose upon start up – because it’s based on the actual...

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