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Mileage – Is it Business or Commute Miles?

Mileage for 2012 is 55.5 cents for each business mile. Do you know the difference between business and commute miles? If you are confused, you’re not alone! First, do you have a home office? If “yes” then any time you leave the house for business reasons, the miles are deductible. If the answer is “no”

Does Your Home Office Meet IRS Standards?

Does your home office meet the IRS home office deduction standards? Meet these three tests and gain valuable deductions for your home based business: Exclusive use – a separate and identifiable space in your home that is only used for business purpose and no personal activities ever take place in that space. Regular use –

How to Organize Your Bookkeeping Records

Paperwork…if we don’t have an efficient system for organizing paperwork, it will overcome us! Although bookkeeping may not be your favorite task, it is a necessary aspect of business. Take control of the never-ending paperwork by using a system that keeps you organized and tax ready. When starting a bookkeeping system, use categories for totaling

Setting Up the Chart of Accounts

Setting up your chart of accounts needs thought and some understanding of what you “need” to know versus what you “want” to know. The IRS has not accepted one form of accounting system over another. The only requirement is that you keep records and have proof available for those records should you be audited. So

Laws and Forms Needed When Hiring a New Employee

Last week we discussed if you should hire an employee or an independent contractor. This week we will discuss the laws and forms you will need when hiring a new employee. Federal and Wisconsin agencies have rules you must abide by. The main laws for hiring an employee to keep in mind are: Minimum wage

How to Get Your Small Business Tax Ready | Final Review

In our last segment we discussed making sure your balance sheet is correct. The seventh and last step in getting your small business tax ready is conducting a final review. Below is a list of areas of review to confirm your numbers are accurate: Review the equity section of the balance sheet. Check to see

How to Get Your Small Business Tax Ready | Balance Sheet

In our last segment we discussed correctly reporting your business assets. The sixth step in getting your small business tax ready is making sure your balance sheet is correct. The balance sheet is a valuable tool in the course of running your business. The balance sheet shows dollar values for what you own,

How to Get Your Small Business Tax Ready | Business Assets

In our last segment we discussed maximizing your home office tax deduction. The fifth step in getting your small business tax ready is making sure you are correctly reporting your business assets. Business assets are found on your balance sheet and not the profit and loss statement. These business assets are items which

How to Get Your Small Business Tax Ready | Home Office Deduction

Last time we discussed accurately reporting all of your business expenses. The fourth step in getting your small business tax ready is making sure you are maximizing your home office tax deduction. If you have an area in your home that you use only and regularly for business purposes, and you have no

How to Get Your Small Business Tax Ready | Reporting All Business Expenses

Last time we discussed how to calculate the cost of goods sold to determine your gross profit. The third step in getting your small business tax ready is ensuring you have accurately reported all of your business expenses. Business Expenses All expenses incurred to run your business should be tracked and reported on