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How to Build Your Business Credit

How to Build Your Business Credit

Whether your firm has been operating for years, or you decided over last night’s coffee to start a new venture, you’re sure to face the need for business credit. Entrepreneurs often ask friends and family to invest in their start-up businesses, and many draw on personal funds to launch new firms. But to address ongoing business needs – such as…

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That’s Taxable?!?!

Have you ever wondered about the taxability of funds or services you receive? There are many areas in the tax code that cause confusion regarding what’s taxable. These are some of the most common. Alimony. Alimony is taxable to the person who receives it and deductible to the person who pays it. Special rules apply. Make sure you have proper…

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Building Customer Loyalty – A Few Basics

Studies have shown that businesses often spend five to six times more to attract a new customer than to keep an existing one. Over the long term, those dollars add up. In fact, a company’s ability to care for its customers often determines its survivability in the marketplace. Make customers happy and they’ll stick with you; disappoint them and they’ll…

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Tax Tips for Newlyweds

It’s the start of wedding season! If you are approaching your wedding date (congratulations!), the tax implications of marriage are probably not the first thing on your mind. But paying a little attention to it now can save time and even money later. Here are a few tips to help those who are about to embark on a new life…

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Grandparents can help reduce the cost of college

A growing number of grandparents are helping raise their grandchildren. Grandparents are giving their time and money, helping with the cost of toys, clothing, education and extracurricular activities. This can add up to thousands of dollars. Many millennials indicate they could not afford their lifestyle if it were not for the help their parents provide. While helping to support grandchildren…

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How social security benefits are taxed

Are you wondering if your social security retirement, survivor, and disability benefits will be subject to federal income tax on your 2016 return? Generally, when these benefits are taxed is determined by your “provisional income.” Provisional income (PI) is the product of a formula used for no other purpose than figuring out the taxable percentage of social security benefits. To…

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Avoid Hiring Mistakes in Your Start-Up

Staffing errors can spell disaster for your start-up. Here are three to watch out for. Staffing the firm with friends and family. While this strategy may work in some circumstances, hiring pals and relatives often spells trouble. For one thing, friends and family members often expect – even subconsciously – to be treated differently from other employees. A double standard,…

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Ready to start year-end planning? Focus on the big picture

Some tax-cutting strategies make good financial sense. Others are simply bad ideas, often because tax considerations are allowed to override basic economics. Here’s one example of the tax tail wagging the economic dog. Let’s say that you operate an unincorporated consulting business. You want an additional tax write-off, so you decide to buy $10,000 of office furniture that you don’t…

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Downtime is not wasted time, Does a suggestion to boost productivity with time off sound counter intuitive?

  Research has shown that giving workers – and perhaps yourself, as a business owner – time off to recuperate from work demands can be energizing. Here are three ways your business can benefit. Read more. Does a suggestion to boost productivity with time off sound counter intuitive? Research has shown that giving workers – and perhaps yourself, as a…

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Keep an eye on your company’s cash !!

Do you regularly monitor your company’s cash accounts? Being aware of where your cash is going can help prevent theft or improper expenditures, which are among the chief sources of loss for small companies. Do you regularly monitor your company’s cash accounts? Being aware of where your cash is going can help prevent theft or improper expenditures, which are among…

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Tax planning is good for corporations too

If you own a calendar-year corporation, you can benefit from planning moves you make before December 31.  For example, corporations can accelerate or defer income or deductions to stay within a certain tax bracket.  You’ll also want to look at your corporate alternative minimum tax exposure to determine whether you qualify for an exception to the tax.  Finally, reviewing estimated…

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A Quick Recordkeeping Guide

Is your cabinet overflowing?  Do you hesitate to purge tax information because you’re not sure what to keep and what to discard?  Here’s a quick guide to help you cut through the clutter. Expenses.  Substantiation for deductions includes charitable donation acknowledgments, receipts for employee business expenses, and automobile mileage logs.  Retain these at least seven years after you file the…

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Business Tip: Don’t sell property; exchange it

A tax-deferred exchange is a tax planning technique which should be considered by any taxpayer that is relocating or disposing of property.  Often referred to as a “tax-free exchange,” the tax-deferred exchange allows you to exchange certain business or investment property for other “like-kind” business or investment property and pay no income taxes currently.  Your tax liability is deferred until…

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Don’t overlook above-the-line deductions

Even if you don’t itemize deductions on your tax return, you may be entitled to certain “above-the-line” deductions.  These deductions are subtracted from your income to arrive at your adjusted gross income, an important number because it determines your qualification for certain tax credits and various tax breaks.  Above-the-line deductions include such things as IRA contributions, health savings account contributions,…

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Summer job tax tip

If your child has a summer job, consider opening an IRA for him or her.  According to the tax rules, anyone under age 70 1/2 who has earned income can contribute to a traditional IRA.  There’s no age restriction for Roth accounts, though the amount of the contribution phases out at higher income levels.  The advantage of a Roth over…

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Midyear tax planning tip

Take time this summer to examine your investment portfolio for potential tax savings, such as selling stocks that are worth less than you paid to offset your capital gains.  You might also donate appreciated stock that you have held for more than one year to charity and avoid capital gains altogether – plus getting a deduction for the stock’s fair…

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Accurate inventory numbers are crucial for your business

For many companies, inventory is a significant dollar amount on the company’s financial statements.  So it’s crucial that recorded inventory balances reflect actual values.  When such accounts aren’t properly stated, the cost of goods sold and current ratios – numbers that often matter to decision makers – may be skewed.  If banks discover that your company’s inventory accounts are overstated,…

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IRS launches new “misclassification initiative”

How you classify your workers – as “independent contractors” or “employees” – matters a great deal to the IRS.  The IRS is aware that employers prefer to treat workers as independent contractors to avoid paying fringe benefits and payroll taxes.  The IRS estimates that 80% of workers who are classified as independent contractors are actually employees.  About 100 new auditors…

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Filing deadline extended in 2016

Next year, taxpayers will get a few extra days to file their 2015 income tax returns.  The District of Columbia will be observing Emancipation Day on April 15, 2016, the usual filing deadline.  Because April 16 and 17 fall on a weekend, the 2016 filing deadline is moved to the next business day which is April 18.  Taxpayers in Maine…

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Summertime tax tip

If you itemize your deductions, you can deduct the mortgage interest and property taxes paid for your vacation home.  A boat or RV can qualify as a vacation home if it has sleeping quarters, cooking facilities, and a bathroom.  If a retreat also serves as rental property, you can control your tax deductions by changing the number of days you…

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Check out the current issue of South Jersey Biz magazine featuring Business Accounting Systems, P.C.

South Jersey Biz January 2015 Our Vice President, L. Scott Elwell, MST, EA is currently featured in the January, 2015 edition of South Jersey Biz Magazine.  The article features predictions from local industry leaders on what 2015 has in store for the South Jersey business world.  Here is a copy of the article as well as a link to the website…

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Not all “income” is taxable

There are several sources of revenue that are not subject to income tax. Here are the most common sources of money that are not taxed on your federal income tax return: Borrowed money such as from banks or personal loans. Money received as a gift or inheritance from family or friends. Money paid on your behalf directly to a school…

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Business Accounting Systems, P.C. named 2014 Small Business Award for Payroll Services

We are pleased to announce that Business Accounting Systems, P.C. has been named Best in Payroll Services, from the 2014 Small Business Awards, named by South Jersey Biz Magazine.  Click here for the list of 30 businesses who are recipients of the Small Business Awards this year: https://www.southjerseybiz.net/articles/?articleID=950 Congratulations to our fellow winners – and thanks to everyone for their…

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Year-End Tax Strategies for Businesses

YEAR-END TAX STRATEGIES FOR BUSINESSES Gift shares of stock to family members who are in a low tax bracket before declaring a dividend, as part of a larger plan to shift ownership of the business to younger family members. The owners of pass-through entities, such as S corporations and partnerships, have the income taxed on their personal tax returns.  The…

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IRS Impostors Phishing for Personal and Financial Information: Report them immediately

It is important to be aware of pop-ups or emails ‘phishing’ for personal information. They are transmitted electronically and done so very easily. You may even receive a text, SMS message or a personal message through social media platforms. These false requests are daily occurrences and are sent in hopes to lure innocent victims into disclosing personal and/or financial information.…

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Professional Payroll Services Simplifies Employee Compensation

Active business owners know that using a professional payroll service is a smart business decision. Busy owners and administrative employees adhere to the valuable benefits a good payroll service can bring to a company’s overall financials. Outsourced payroll services decreases payroll burdens and frees up administrators’ and owner’s time to focus on other important business aspects.

Seek Accountable and Compliant Payroll Services

Knowing what kinds of services to expect out of a payroll company will help in the search for one. 

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