At some point, every small business owner will need to make an important decision: should they use cash or accrual budgeting for their company?
There are advantages and disadvantages to both of these options, and you should consider talking with an accountant to learn about how these methods will impact your business.
Bookkeeping is a necessary step that needs to be utilized in your company, and many small business owners fail to implement an effective bookkeeping system. If you aren’t managing your accounting in the right way, then it is more difficult to make ongoing financial decisions for your company.
In our past blogs, we’ve talked about some of the tax deductions you can get as a landlord. But guess what? None of those tax deductions matter if you don’t have the records to claim them.
Cash flow management can make-or-break a company, and if you aren't properly managing the flow of your money, then you are setting your business up for failure. If you want to achieve long-term success with your company, then you need to make sure that you have cash available at all times.
Being a good landlord takes practice, and no matter how much you read, there really isn’t a substitute for experience. But if you are thinking about investing in rental property or you are a new rental property owner, there are a few basic rules that will help you hit the ground running.
If you are investing in rental property, then you’ll become well-acquainted with the Schedule E tax form. The Schedule E is where you’ll report all of your expenses and income for the year, and take advantage of any deductions you may want to claim.
You wouldn’t spend more than necessary on utilities for your rental property, would you? Then why would you spend more on taxes than you have to? Every year, landlords lose money because they overpay on their taxes, missing important and easy deductions that could put cash into their pockets.
April 15th is a dreaded day for many people because it is the day that their annual tax payments are due. How are you doing so far this year? Have you been able to gather and organize all of the information you need to complete your business and individual tax returns for the year? If not, you may need the help of tax preparation services.
As a real estate investor, accounting is part of your daily life. You have to monitor the cash flow in, and make sure you’re managing your outflow in a profitable manner. For many investors, a paper accounting system is the one they know and use. However, paper may be holding you back; for many, it’s past time to make the switch to an accounting software program.
If you’re a small business owner, you need a business plan. Not only will a business plan help you think more clearly about your business’ future, it also forces you to organize your goals and strategies, and keeps your business on track.