Discover The 3 Tips To Implement In Small Business Tax Deductions
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If you’re running a small business, probabilities of you wearing multiple hats, juggling all parts of labor in your business are more. Everything appears to be urgent and wants your intervention. But, the foremost necessary issue in your small business is tax deductions because this could confirm survival or failure of your business.
Primarily few months of every year, you and thousands like you’re therefore stressed that it’s exhausting to file your business tax. Therefore, here are 3 simple yet powerful tips you’ll implement in your business.
1. Keep Systematic
When keeping track of all your accounts, keep consistent in the means you enter records every month. If you have always included a particular expense during a bound class, continue to try to do that. Do not produce a replacement category for it or else it will complicate your record keeping — the aspect of running a home-based business that most folks dislike the most. If you have ever set to hire somebody to handle your record keeping, then it’s to be maintained systematically therefore that he or she can make sure of your accounts without any hassles.
2. Write Everything Down
If you want to get the small business tax deductions you deserve, you will have to keep a record of each expense you make. Each receipt should be filed systematically or recorded during a tax-deduction record keeping software program. Be certain to backup your necessary documents frequently.
3. Recognize what’s deductible.
You’ll be able to solely keep the “right” tax-deduction records if you know what expenses are deductible! Therefore learn what special tax deductions are available to home-based business owners, and what records the IRS requires. The IRS “rules” are not difficult to accommodate, once you know what they are.
“Inadequate or incomplete records” is the #1 reason for lost deductions in IRS audits of home-business owners. However you’ll eliminate that problem by learning what records the IRS expects.
This article was published at Bookkeeping Services of Charlotte, NC
Working Capital Solutions With Factoring
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Ideal Candidates for Accounts Receivable Factoring:
Any business that provides a product or service to other creditworthy businesses and is constrained by their day-to-day cash flow situation.
Does your business need:
• cash to cover payroll?
• Working Capital to Fuel Growth?
• Help with Cash Flow Problems?
• Help because of Bank Turn Downs or refusal to extend current lines?
• New Equipment to Grow?
What is factoring?
In a traditional factoring arrangement, a company actually sells its receivables to another company (a “factor”) at a discount. After the sale, the receivables balances are carried on the factor’s balance sheet since title has passed. Because the factor then owns the receivables, it generally provides all the required credit, collection and accounting services necessary to collect the receivables, including assumption of the ultimate loss exposure from the client debtor. The important difference between factoring and asset-based lending is ownership. In factoring, the receivables are purchased and owned by the factor. In asset-based lending arrangements, accounts receivable are pledged as security to the lender for the loan, but the borrower Retains ownership and complete control of the receivables and the value of the receivables remains on the borrower’s financial statement.
Keeping the cash flowing is a challenge for all businesses. Does your company face cash flow challenges because of slow paying customers? Have you been forced to decline new opportunities because of cash flow issues?
As every business owner knows, sales alone Do Not measure the profitability of a company. For example, sales may be increasing, but a company may have to wait weeks or even months for payment. During that time, your company can not purchase materials for more orders, meet payroll, or other basic operating expenses. The solutions may be Accounts Receivable Funding provided through Diversified Funding Services, Inc. Accounts Receivable Funding is quickly becoming a popular choice for its flexibility and rapid injection of needed capital.
Why Accounts Receivable Funding is a Popular Choice in Today’s Business World
Accounts Receivable Funding or “factoring” has been in existence for several decades. Today, virtually any-sized business that extends credit to other businesses for goods or services can enjoy the many benefits of Accounts Receivable Funding.
Simply stated, Account Receivable Funding is the exchange of creditworthy commercial accounts receivable for an immediate injection of working capital. When an invoice is generated, it may be purchased with an advance of anywhere between 75 to 90% of the net invoice amount. When your customer pays the invoice, you will receive the reserve portion minus a nominal servicing fee.
Why Accounts Receivable Funding Makes Financial Sense
Accounts Receivable Funding offers many Advantages:
• Initial funding is typically available between 5-7 business days upon receipt of completed formal agreements, and then all future advances are funded within 24 hours.
• Accounts Receivable Funding does not create a financial liability on your company’s balance sheet and generally no other collateral (outside of the receivables) is required.
• The amount of funding available to you is only limited by the credit worthiness of your customers.
• Accounts Receivable Funding focus on the credit worthiness of your clients instead of your financial history.
• Accounts Receivable Funding Allows quick access to working capital, instead of waiting 30, 60 or 90 days to receive payment from your customers, money is immediately available on demand.
Accounts Receivable Funding Programs have been “generally” designed with the following criteria in mind
• Your company must be providing a product or service to other credit worthy businesses (no consumer sales)
• Your company must be selling on terms
• Your company must be billing in arrears (no pre-billing)
• Your company must have minimum monthly sales of at least, 000 or annual sales of 0.000
• Your company is not required to be in business for any length of time
• Your company should have the capability to generate financial reports (A / R and A / P aging reports, etc.)
• Your company may have current and / or historical losses or a deficit net worth position
Ideal Candidates
• Start-ups
• Companies suffering financial setbacks
• Service Companies
• Companies with seasonal orders
• Mature companies seeking cash flow support
• Companies seeking credit assistance
• Businesses experiencing rapid growth
• Non-bankable businesses
An example of the application process:
1 Complete the application
2 Provide your most recent and detailed accounts receivable aging report
3 Provide your most recent and detailed accounts payable aging report
4 Provide an actual sample invoice
5 Provide a copy of your Articles of Incorporation / dba filing
6th Provide a copy of your customer list
7th Some factoring companies require financial statements, others do not.
Preferred Industries
Services •
• Temporary Staffing
• Security companies
• Manufacturing
• Transportation
• Textile / Apparel
• Computer Consulting
• Distribution Companies
• Printers
• Sub-Contractors
• All other Industries
• Any company that provides a business to business product or service to another credit worthy business!
Thanks for reading!
This article was published at Bookkeeping Services of Charlotte, NC
Small Business Accounting Firm? Sharing Your Burden With Experts
Read more articles at Bookkeeping Services of Charlotte, NC
So, your business has started scaling new heights and enjoying small achievements. It is indeed a matter of happiness for you and you have started preparing future business strategies with twofold enthusiasm. However, as your business starts growing, so does the amount of figures and calculations. In order to maintain a neat and clean record of your business profits, losses and expenditures, you need to take care of business accounts. Of course, accounting software is in fashion, but what about the time and skills required for operating them? This is the time for introduction of small business accounting firm to share your burden.
If you had been neglecting the need of hiring the services of one of these firms, here are few favorable points to convince your thought process:
Handling Tricky Income Tax Figures
paying Income tax season is indeed the unpleasant period for most of the businesses, especially those experiencing fresh status of being successful. It is undoubtedly the rocket science to maintain all the figures and operations required to make this process hassle free. The specialized accounting firms, providing services to all types of business houses, must be selected to serve you a solution. Who can handle income tax figures better than a professional accountant? And you can expect to find these experts working with accounting firms.
Compiling All Profits And Losses
Has your business completed its first financial year? Needless to say, it must have undergone profits as well as losses during its one year journey. And you are left with voluminous data to be maintained as records, which will help you to plan business strategies for next year. A small business accounting firm acts as a rescuer in this situation, as it can fuel the process of compiling all profit and loss statements with proper dates and figures. In fact, if you would have hired to accounting firm in advance, it would have helped you to keep a check at all the business simultaneous movements. However, it is not too late to learn from Your Mistakes and hire these expert services.
Taking Care Of Expenditures
A business house needs to expend on various resources like inventories, labor, raw material and many other small and big entities. If you have been expending, without keeping a definite record, get prepared to experience tough time arranging all your expenditure figures. Or, you can search for an expert accounting firm to let you relax. All the balance sheets, credits and debts are maintained by these firms proficiently to keep you informed about your business investments.
Freedom Of Time
You must be Devoting your time to plan for your business tactics and accounting is one big hassle, which demand the consumption of a major portion of your valuable time. By assigning this work to a small business accounting firm, you can reserve full time for your business plans and implementations.
Small business accounting firm is an essential asset for you business, as it holds equivalent significance like any other department of your company. There should be no scope Of ignoring the need of one such firm, which can make a difference in the way your business should flourish.
This article was published at Bookkeeping Services of Charlotte, NC
