If you have inventory (when you sell products), you’ll have cost of goods sold. It is quite literally the cost of all products sold during a certain time frame. Goods purchased to resell, but have not sold yet are not included in this account. (Click on the photo to read more)
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There are two methods for tracking your business income and expenses, the cash method and the accrual method. (Click on the photo to read more)
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If you are using QuickBooks or other software to track your income and expenses or if you are getting reports from your accounting professional, you may see all the account types and wonder what they actually mean. You can look forward to future posts to learn more details about each of these account types. (Click the photo to read more)
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One thing I'm always asked, especially by new business owners, is "What can I write off?"
Let's address this from the IRS point of view, because, let's face it, this is why most of us are most concerned about write offs. The IRS defines a deductible business expense as one that is "ordinary and necessary". Well, okay, IRS, that helps... Luckily they define this a bit further for us.
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Choosing an accountant can be a scary prospect. Not every accountant will be a good fit for you. It is important to make sure that you find the right one. And if you don't make a match the first time, you can always change things up. You do not have to be stuck with someone you are unhappy with. Here are a few tips to help you make a match. (Click on the photo to read more)
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