Make year-end tax planning moves before it’s too late!
With the arrival of fall, it’s an ideal time to begin implementing strategies that could reduce your tax burden for both this year and next. One of the first planning steps is to ascertain whether you’ll take the standard deduction or itemize deductions for 2024. You may not itemize because of the high 2024 standard […]
2024 Q4 tax calendar: Key deadlines for businesses and other employers
Here are some important fourth quarter 2024 tax-filing dates for businesses. OCT 15: If you’re the owner or operator of a calendar-year C corp. which filed an extension, file a 2023 income tax return. OCT 31: Report income tax withholding and FICA taxes for Q3 2024 (unless you’re eligible for a Nov. 12 deadline because you deposited on time, and in full, all the associated taxes due). DEC 16: If a calendar-year C corp., pay the fourth installment of 2024 estimated income taxes. Note: Certain deadlines may be postponed in federally declared disaster areas. We can provide more information about filing requirements and ensure you’re meeting all applicable deadlines.
Businesses must stay on guard against invoice fraud
Fraud is a problem for companies of all shapes and sizes. One criminal approach that seems to be thriving these days is invoice fraud. The most common type of this crime is fraudulent billing. For example, a real or fake vendor might send an invoice for goods or services that the business never received (and may not have ordered in the first place). There’s also overbilling, duplicate billing and employee collusion. Some best practices to consider include: 1) Verify the identity and legitimacy of every new supplier or vendor. 2) Implement a thorough approval process for employees to follow. 3) Leverage technology such as AI-driven optical character recognition. Contact us for assistance.
Is your home office a tax haven? Here are the rules for deductions
If you’re a business owner working from home or an entrepreneur with a side gig, you may qualify for home office deductions. On the other hand, employees who work remotely can’t deduct home office expenses under current federal tax law. To be eligible for a deduction, you must use part of your home regularly and exclusively as your principal place of business, or a place to meet with customers, clients or patients in the normal course of business. Typically, the business use percentage is determined by your home office’s square footage, but other methods exist. We can address questions about the best way to compute home office deductions and the tax implications when you sell your home.
Help ensure your partnership or LLC complies with tax law
When drafting partnership and LLC operating agreements, various tax issues must be addressed. This is also true of multi-member LLCs that are treated as partnerships for tax purposes. Here are some critical issues to include in your agreement so your business remains in compliance with federal tax law. Identify and describe guaranteed payments to partners […]
IT strategy showdown: Enterprise architecture vs. Agile
As businesses grow, their IT needs and infrastructures become increasingly complex and costly. This push and pull of managing growth while grappling with tech has brought two broad approaches to IT strategy to the forefront: enterprise architecture and Agile. Enterprise architecture focuses on mindfully designing or adapting a companywide framework for choosing, implementing, operating and supporting technology. Meanwhile, Agile generally approaches IT strategy on a project-by-project, collaborative basis. The idea is to be as nimble as possible. The two aren’t mutually exclusive. It’s simply important to regularly reassess how to best manage your company’s IT infrastructure.
Which leadership skills are essential to strategic planning?
To help ensure stability and profitability, businesses need to engage in strategic planning. But which leadership skills are essential to this endeavor? Among the five most important are the ability to: 1) View the company realistically and aspirationally; accurate information and a sound vision are key. 2) Analyze the industry and market to foresee impending changes. 3) Understand customers and anticipate their needs; the latter point is perhaps the biggest challenge of strategic planning. 4) Recognize the company’s capabilities and resources. 5) Communicate effectively. We can help your business gather the financial information it needs to plan for the future confidently and decisively.
Working remotely is convenient, but it may have tax consequences
These days, many employees work remotely. While there are lots of advantages, it may also lead to some tax surprises, especially if a job crosses state lines. If you live in one state and work remotely for an employer in another state, you may need to file income tax returns in both states. This could result in increased (or even double) taxation. Do you get any tax breaks for working remotely? Under current law, employees generally can’t deduct unreimbursed job-related expenses through 2025. Remote workers also aren’t currently eligible for the home office deduction either. That deduction is generally limited to self-employed business owners. Contact us with questions about your situation.
Cash or accrual accounting: What’s best for tax purposes?
Many businesses have a choice between using the cash or accrual method of accounting for tax purposes. The cash method often provides significant tax benefits for businesses that qualify, but some may be better off using the accrual method. Cash-basis businesses recognize income when it’s received and deduct expenses when they’re paid, so they have greater control over the timing of income and deductions. In contrast, accrual-basis businesses recognize income when it’s earned and deduct expenses when they’re incurred, regardless of the timing of cash receipts or payments. That means they have less flexibility to time income or expenses. We can help you evaluate the most beneficial approach.
Business owners sometimes need to switch successors
For many business owners, choosing a successor is a difficult task. What’s worse, many owners’ initial picks for successor can turn out to be dubious choices. If you find yourself in this situation, don’t panic. First, discuss the matter with objective parties such as your professional advisors and trusted family members or colleagues. If you then decide to stick with your successor, talk about your concerns with the individual and look for ways to address what’s troubling you. If you determine that you must pick someone new, tell your initial successor as soon as possible and explain why. Then, review and improve your succession planning process to avoid making the same mistake twice.
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