Tax season is quickly approaching, and Pathways wants to ensure that your business has their taxes under wraps! Here are a few tax tips for your business!
Use Quickbooks Payroll
When it comes to payroll, it can be difficult to manage by hand and keep up with all the employees of your business. In order to combat that, and provide relief come tax time, we recommend using Quickbooks payroll!
File your Taxes on Time
Many have been there, in crunch time, and end up missing the deadline for their taxes. Don't let that be you with your business. Ensure you get your taxes done on time, if not early, by using Pathways! Call and schedule your appointment today!
Take Deductions Seriously
When it comes to taxes and running a business, it helps to know what deductions you can file for and have. It is best to communicate with a Pathways team member to discuss the deductions that you and your business qualify for.
We hope to see you soon for your tax appointment, make sure to get everything you need to get done early so you do not have to pay any late fees come 2019!
Did you know The Tax Cuts and Jobs Act was issued and installed more than a 100 new tax provisions? Don’t miss out on this fantastic news, and come to Pathways where we can start planning your taxes NOW and save you money in the upcoming tax season!
Pathways will makes sure you itemize your deductions appropriately with the new 2019 installment! We will help ensure that either the standard deduction or itemizing is what is in your best interest. When it comes to medical expenses, the threshold for deductions has returned to the past 10%, which make it difficult to qualify once again. These thresholds would include payments made to doctors such as care physicians and dentists, optometrists, and even reaching to equipment such as glasses, oxygen tanks, and medications.
For those who are high-income taxpayers, the recommendation to offset capital gain remains an option. This is where the option to sell underperforming investments comes into play; some have the option to defer income into January by delaying invoices to where payment arrives within the following year’s taxable income. For the charitable hearts, you now will have to itemize deductions if you want to claim deductions on the donations you gave. Take your IRA and 401K seriously by ensuring you are putting away the cap amount in each every year. This will also shrink your taxes!
Don’t waste any more time, as November comes to an end here soon, there’s only one month left within this year to prepare for tax season. Take advantage of that and head over to Pathways Consulting where we can help you prepare for tax season NOW!
Financial Transaction Tax
A financial transaction tax is characterized as a levy on a particular transaction of a certain purpose. It is also important for any business and owner to be conscious of. Since the start of the first financial transaction bill in 2008, financial transaction tax bills have been proposed multiple times since 2009 in the U.S.
The bill that is in use now, suggested a tax of 0.25% of stock, 0.02% of features contracts on the buying or selling of specified commodity, and 0.02% of credit default swaps between two firms would be implemented. The projected revenue of this tax, being $150 billion, would be used deficit reduction and job promotion.
While this tax does not apply to families, the businesses within the United States are subject to adhering to these financial transaction tax policies. What do you think about this tax? Is the revenue from it going to appropriate places, or would you rather it be put elsewhere? Tell us in the comments below!
Pathways focuses on helping and educating the businesses within the Summerville area and strive to see the businesses grow! Call us today for any of your accounting or tax needs!
The Do's and Don’ts of Quickbooks for a Small Business
Running a small business is no small task. Often times, a business owner will find themselves looming over numbers and bookkeeping more so than running their business. Why? Because they haven't switched their business over to Quickbooks! The advantages of using Quickbooks for your small business are endless, but here are some quick do's and don'ts when it comes to understanding what Quickbooks can do for you!
Take advantage of the automatic bookkeeping tasks
QuickBooks is a wonderful tool that takes time to devote toward Small Businesses. With is comes the ability to connect various kinds of money keeping engines. Connect your bank, PayPal, credit card, or Square to access transaction access. Quickbooks will even take of the calculations, so you don’t have to! Balancing has never been so easy!
Perform tasks on mobile while in the field
Does your business require you to be on site and not cooped up in an office? With Quickbooks, mobile is just as functional as the desktop version! With todays technology, there is no reason for a business owner to be unable to access all bookkeeping information while on the go. Your information will be synced with Quickbooks so all changes will be kept safe and correct.
Use Quickbooks to keep a healthy business
Quickbooks allows you to stay organized in order to keep your business running smoothly. Receive reports and access to data that shows you how your business is doing in a straightforward fashion.
Manage bills on your own
It’s frustrating having to keep up with paying bills on multiple platforms. With Quickbooks, all bills are easily scheduled and formatted. There is no need to manage your bills on your own. Everything is documented when using the billing section of Quickbooks, even your records and bookkeeping.
Forget to log expenses
There is nothing left unlogged with Quickbooks. When making purchases for the business, quickly use the mobile app to take a photo of receipt. Quickbooks will quickly log and organize the expense among previous entries. No more worry of having lost a receipt!
Become frustrated at tax time
With Quickbooks, you don’t have to worry about being unorganized when Tax Time comes around. If you have used Quickbooks efficiently, the software will organize all the information you need for tax season for easy access. All records are alongside the FASB regulations.
There are only positives when it comes to Quickbooks helping your small business. Ensure that you are getting the most out of your experience with Quickbooks by asking any of our trusted members of Pathways Consulting. We are trained in understanding Quickbooks to the fullest extent and love helping others! Take your business organization to the next level with Quickbooks and our help!
Familiarize Yourself With Quickbooks
QuickBooks is known for the amazing features you can use to grow your business. It may seem a bit daunting, but do not worry! Here are a few ways to familiarize yourself with QuickBooks!
Tackle the organization of your business’ moving parts through inventory tracking, categorization of expenses used on your company card, and much more!
Give your company the look and feel you desire through QuickBooks’ variety of personalization options! Branding is as important to QuickBooks as it is to your business.
Simple and efficient performance reports at your fingertips! Since QuickBooks handles multiple parts of your business, they can also provide you with detailed reports on how your business is thriving!
Accountant access is simple and hassle free, so when tax time comes, there won’t be stress! QuickBooks also helps you with you 1099s!
Pay your employees with W-2s easily with QuickBooks. With easy hour entry and optional direct deposit it check, your employees with continue to be happy! QuickBooks also guarantees payroll taxes with zero errors!
QuickBooks easily organizes your incoming and outgoing payments. It even allows you to email clients who have yet to pay your business!
QuickBooks has many elements that are just right for your business. It has all the tools in order to make your business boom with productivity! At Pathways, we are available to assist you in your QuickBooks journey anytime. Feel free to contact us with any questions or concerns!
It's Quickbooks Season!
According to USA Today, the company that creates Gibson guitars and Baldwin pianos has filed for a Chapter 11 bankruptcy in an effort to stabilize the business in a new deal. Gibson Brands itself was founded in 1894, and though the company had many supporters, their rapidly declining sales in recent years made it difficult to keep afloat.
With this latest anouncement about Gibson Brands, Pathways Consulting LLC has been thinking about the adjustment business owners have to make to their business over time in order to continue on.
When you start to decline in sales in your business, it's very important to come up with a 'gameplan' as to how you will continue your business efforts. As people grow and change, community does as well so often times the service or products you provide become outdated. For instance, many decades ago, they had calltakers for the telephone lines as a prominent job position. As telephones became more self-sufficient in communication, that job position began to become unnecessary. So what could the business owners of those companies have done to adapt and continue their business? Perhaps refine their service to telephone repair or design?
If you are a small business owner, you know how hard it is to keep everything running. The main way to keep it running smoothly is by preparing and planning. Think about how your company could adapt as trends change and your business industry evolves over time.
This is the last part of this blog series. I hope it has been interesting and informative so far. The reason this statement is last is because it builds on the balance statement. In this final part we are taking a look at the cash flow statement.
Primarily, the point of the cash flow statement is to monitor cash coming and going from the business. The best part is you can use your newfound knowledge of the balance sheet to understand cash flow. Since any changes in your assets or liabilities will affect your cash flow statement.
The statement is divided into three parts:
Your cash flow statement is important especially the operating activities. Your operating activites are the daily operations of the business. Watching this carefully can help you manage the cash flow generated by the ongoing nature of the business rather than you seeing a large increase in total cash flow that was a result of a one time sale or stock issuance that will inflate the number.
For example, let’s say you only look at the net cash increase at the end of every month. You see that this month you were in the green. Not a bad thing we can all agree, and you look at nothing else and make no changes. The next month you are losing money. Well the last month you didn’t notice the the operating activities were falling, and only because a large increase in cash from another activity propped the business up for the month. This is the importance of the operating activities. It shows how well the business can sustain itself through normal operations alone.
Welcome to the second part of our three part series of the most important financial statements for a small business owner to know. The income statement, which can also called the P&L (profit and loss statement), is another important financial statement for your small business. We are going to start with a overview of how the statement is arranged, then we are going to dive into how to read the statement in a meaningful way.
In order to build an income statement you will decide on a time period and list out your revenue and expenses accrued during that amount of time. After getting a total for all your revenue this is considered your top line. Then total up the amount of expenses and subtract your expenses from your revenue. This is your net income or bottom line. The income statement is an easy financial statement to build as long as your accounting of your revenue and expenses were accurate.
Reading an income statement is more than just seeing if a business was profitable. The income statement is different from the balance sheet because the balance sheet shows a snapshot of a business at a single point in time. Where the income statement uses information over a period of time. You can find the gross margin by dividing the gross profit by the revenue. The net profit margin can be found by dividing the net income(after taxes) by the revenue. The return on equity can by useful to see how well you are investing your money, by dividing the net profit by the average shareholder equity for the period.
Though the income statement is easy to prepare, the strength lies in what the numbers allow you to see rather than what the top and bottom line are themselves.
As a small business owner, the ability to read financial statements will give you a better idea of how your business is doing. There are many different financial statements but I've narrowed it down to three to focus on. If you dedicate your time to learning these three statements inside and out it will give you a great idea of the financial position of your small business. This will be a three-part blog series starting with an in-depth look at balance sheets how they are structured and how to use them to your advantage when evaluating your business.
Your Balance Sheet will list out all your assets and expenses. The key to this statement though is that it must balance, hence the name. Your assets must be equal to the amount of liabilities plus shareholders’ equity. If you accounted correctly these should be equal. Now there are different types of liabilities and expenses that you should know. There are fixed and current assets. Fixed assets are things you are not planning on selling or that cannot be sold easily within a year. This would include things like your physical building, equipment you use, etc. Current assets are things you are planning on converting into cash in the near future. This would include your accounts receivable, inventory, or prepaid expenses. The two types of liability are short term and long term. These are much more self-explanatory; the short term are things that must be paid within the next 12 months of the date of the balance sheet i.e. taxes or loans. While long term would be things that must be paid outside of a year from the balance sheet. These are typically things like long-term rent, bonds payable, or pensions.
So, what are you looking for exactly in your balance sheet? The shareholder's equity is a rough estimate of the company's net worth. Since the shareholder's equity is the initial amount of money invested in the company. The company can, after taxes, choose to move retained earnings into the shareholder's equity account. Important information can be gained by analyzing ratios. The ratio of debt to equity is where your balance sheet becomes extremely helpful. You want to take your outstanding debt and divide it by your equity. This gives you a ratio, it is important to evaluate your ratio over three years to identify a trend. Each industry differs in what debt-equity ratio is acceptable, be sure to do this research if you are undertaking this task yourself.
The Pathways Team