As a new business owner, you have plenty to keep you up at night. But nothing is more stressful than bookkeeping woes. One of the most common errors in a small business relates to how the owner takes payment. Owners need to be careful about how they pay themselves because it affects their books and their taxes. The foundation of payroll is business type. The next step is understanding the…
When you’re ready to expand your business and grow your team, you generally have two options for increasing your workforce: hiring employees or engaging independent contractors. Both options have pros and cons, and determining which is right for your business comes down to your individual needs and preferences. Keep in mind, the U.S. Department of Labor (DOL) draws strict distinctions between these two groups, and you could be heavily fined…
The American Rescue Plan Act (ARPA) of 2021 passed Congress, and President Biden signed the bill into law on March 12. The ARPA approves $1.9 trillion in spending for individuals, businesses, governments and certain industries impacted by the COVID-19 pandemic. The third act in a year, the ARPA approves additional economic impact payments for individuals; the extension of federal unemployment benefits; additional funds for Paycheck Protection Program (PPP) loans and…
The employee retention tax credit (ERTC) is intended to provide liquidity to employers during the pandemic and was greatly expanded in the Consolidated Appropriations Act of 2021 thanks to Sections 206 and 207 of the Taxpayer Certainty and Disaster Relief Act portion. It opens the doors to more businesses facing significant financial hardship to qualify for and receive this credit. Many changes from the original credit were enacted including an…
The accounts receivable (AR) department in any business can mean the difference between financial life and death. It may not seem that serious on the outset, but highly optimized AR departments can help any business improve their financial situation and make financial decisions with greater confidence; or, in contrast, an unsuccessful AR department can put you at risk of running in the red. The struggle with AR often lies in…
