4 new concerns for small business owners

Posted Posted in Accounting, crisis management, Small Business

(The short Facebook Live presentation of this topic is published at https://fb.watch/2Y8-AzhgVE/ ).  Here’s where we are in the small business world today based on brand new developments in the past month. It does not inspire confidence for a smooth start to 2021: 1) SBA’s special priority small business PPP application acceptance processing period begins […]

My most popular blog posts are trending toward advisory topics

Posted Posted in Accounting, Small Business, Social Media, Writing

Over more than three decades I’ve published over 2,500 pieces of writing on topics related to small businesses. Most of them are compiled here on this web site. Now we call them blog posts. When I started we called them ‘columns’ or ‘articles’ in paper format. Some were republished in electronic format, others were not. […]

Are small Paypal or Venmo payments reported to IRS?

Posted Posted in Accounting, Small Business, Taxes

Paypal and Venmo are clear in explaining their legal requirement to report to the IRS amounts over $20,000 or 200 transactions. But what about amounts under $20,000 and less than 200 transactions? The common questions are: “What if I don’t remember? How will the IRS even know?”. The key issue is that business taxpayers who […]

Sample accounting services engagement agreement 2021

Posted 6 CommentsPosted in Accounting, Small Business

In our practice, each client service agreement is unique and customized to the specific situation. It helps, however, to have a listing of the best practices based on past experience as the basis for our work agreement. This format posted below was used at the beginning of 2021 but is already outdated as best professional […]

Big tax change for small businesses

Posted Posted in Small Business, Taxes

The IRS reminds employers that starting in tax year 2020, payers must complete the new Form 1099-NEC, Nonemployee Compensation, to report any payment of $600 or more to a payee. This is likely the biggest change that affects a large number of small businesses this year. Generally, payers must file Form 1099-NEC by January 31. […]

Simple bookkeeping systems for sole proprietors

Posted 1 CommentPosted in Accounting, bookkeeping, QuckBooks, Small Business

In general, I try to have a coaching conversation with new clients and prospective clients about the reasonable time and cost allocation for bookkeeping in relation to other business factors. We hope to see this allocation consistent with others who are successful within a business niche and, if a significant difference exists, look more closely […]

TAX ALERT: Non-employee compensation

Posted Posted in IRS, Small Business, Taxes

SIGNIFICANT TAX NEWS CHANGE ABOUT NON-EMPLOYEE COMPENATION: The IRS revived the use of Form 1099-NEC for use in reporting non-employee compensation for 2020. This form was last used in 1982 but now will be used to report 2020 non-employee compensation. Corresponding changes were made to the old 1099-MISC form. The due dates are also changed. […]

2020 IRS Report on its Operations

Posted Posted in IRS, Nonprofit, Small Business, Taxes

IRS just released the 195 page “General Report of the 2020 Internal Revenue Service Advisory Council“. I read the applicable sections on small business and nonprofits that affects me and my clients. The key relevant concepts are: 1) IRS currently lacks the funding to operate effectively to collect the taxes necessary to run federal government. […]