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Due Diligence Requirements

As your tax professional, we may be asking you additional questions next year that are required by the Tax Cuts and Jobs Act. Tax preparers must collect new information from clients who qualify for any of the following tax credits: Earned Income Tax Credit (EIC)Child Tax Credit (CTC) American Opportunity Tax Credit (AOTC)Head of Household filing status (HOH) In addition to interviewing you and gathering the required information needed to answer all of the due diligence questions on Form Read more [...]
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Why Having a Budget Is Important

As an entrepreneur, you likely place a high value on freedom. When the word “budget” is mentioned, you might cringe and feel like it hampers your freedom. But it’s really the opposite.  Here’s why. According to a 2019 article in Small Business Trends, “Startup Statistics – The Numbers You Need to Know,” 82 percent of businesses that fail do so because of cash flow problems. Even if your business is no longer a startup, the failure rates for businesses started in 2014 Read more [...]
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Is There Still a Marriage Tax Penalty?

The term “marriage penalty” in taxes refers to the situation that two people with the same income would pay more tax if they married and filed a joint return (MFJ) than if they stay single and file separately as single taxpayers. In order to avoid a marriage penalty, the tax bracket income thresholds for married couples must be exactly double those for single taxpayers. Therefore, with the tax bracket reorganization, taxpayers with a taxable income of $0 to $200,000 for filing single Read more [...]
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Five Key Reports for Your Business

Each month, your accounting system yields actionable information for you to run your business better. Here are some key reports that all business owners should review every month. Balance Sheet A quick review of the balance sheet can tell you the balances of your current assets and current liabilities.  Current assets should always be larger than current liabilities; if it’s not, you may have liquidity issues.  You can also take a look at these accounts: cash, accounts Read more [...]