2 min read
What your bank account won’t say about your tax bill
Four questions came up more than anything else this month.
5 min read
Phantom Income Explained
Phantom income is income that gets allocated to you for tax purposes even though you never received the cash. It shows up most often in flow through...
5 min read
Does an S Corp Election Actually Save You Money?
There is no income threshold that makes an S corp election automatically worth it. The election works by moving part of your profit out of...
4 min read
How Does Self-Employment Tax Work?
Self-employment tax is the same Social Security and Medicare tax that comes out of a W-2 paycheck. As an employee you pay 7.65% and your employer...
4 min read
LLC Distributions Explained
Contributing your own money to an LLC is not taxable income to the business and not a deduction for you. Taking profit distributions out later is...
4 min read
Why Can’t Your CPA Do Tax Planning Without Good Bookkeeping?
Tax planning depends on knowing what your business is earning while the year is still open. If your books are behind, incomplete, or unreliable,...
4 min read
How Should a Small Business Owner Read a P&L?
How Should a Small Business Owner Read a P&L?
Read it for cost behavior rather than line items. The structure of a profit and loss statement runs...
2 min read
Chaos to Total Control
It's early March. You've been meaning to send your accountant everything for weeks. But "everything" means the bank statements, the shoebox of...
4 min read
They Wanted a CFO. They Couldn't Produce a Balance Sheet.
Let’s Make it Count
I was in a client's office last month. They were dead-set on hiring a CFO.