financial bookkeeping tips for contractors
As a business owner, it is tempting to take care of as much of professional matters on your own as much as possible, in the interests of saving money. Unfortunately, the IRS reports that about 33% of businesses make mistakes when processing payroll that result in fines and other financial punishments. Due to that, and the complexities of payroll, it is a good idea to consider outsourcing payroll services to an experienced accountant, so that you never have to worry about making an unfortunate and expensive mistake.
For federal tax purposes, there are two types of tax dependents. A qualifying child is the most widely recognized type. The other dependent type, a qualifying relative, includes more than just immediate family members. In some situations, an unrelated household member may be eligible to be claimed as a qualifying relative.
The tax advantage of a qualifying relative is considerably less than that of a qualifying child. None of the income tax credits are applicable to a qualifying relative.
Individuals who own stock in companies sell shares for a wide variety of reasons. Tax filers who have sold stock must report the transaction on their individual tax returns to determine if there is any taxable gain or loss.
Corporate stock owned by an individual is referred to as a capital asset. A capital asset is an asset owned for personal use or for investment purposes. The designation as a capital asset is important because some gains on the sale of investment assets receive preferential tax treatment.
Even though a tax-exempt organization does not pay income tax on its revenue, it still must file an annual return with the IRS. Officials of tax-exempt entities can ensure that their organizations maintain their exempt status by filing the appropriate form each year.
Depending on the level of receipts, tax-exempt organizations are required to file only one out of three different IRS forms. The lengthy form required of a large national organization is very different from the short form required of a local animal rescue operation.
If you have been thinking about hiring a business consulting firm, you will need to keep reading. By taking a few moments to read through the following top tips, you should have no problem ending up with the best possible business consultant for your company.
Prepare A Statement Of Work
A statement of work is nothing more than a document that outlines just what it is exactly you are going to expect the consultant to do for you.
As a renovation contractor, I have a lot of things to worry about each day. I have to think about my customers, my business, the insurance I need and even the employees that I have working for me. All of these things keep me busy enough without having to worry about keeping up with my financial bookkeeping each day. How do you keep up with the financial bookkeeping so that you don't make any errors that could cost you a whole lot of money? I have worked with my accountant to develop a process that has helped me and I have shared the tips he has taught me right here on my blog to help you.
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