Accounting

The Consolidated Appropriations Act that was signed into law December 27, 2020 includes a temporary provision allowing a 10 percent write-off for business meals from January 1, 2021 through December 31, 2022.  The food and beverages must be provided by a restaurant, although they do not need to be consumed on a restaurant’s premises. The deduction also includes any delivery fees, tips and sales tax.  This is an increase from the 50 percent deduction that applied for 2020 and earlier years. It Read more [...]

In accounting, a key term to know is “internal control.” Internal control is the series of processes and procedures that are performed within the organization to ensure the integrity and accuracy of the financial information and reporting of that organization.  Internal control is very important to consider in order to protect the business owners, employees, vendors, investors, and other stakeholders. In a small business, maintaining good internal control is often a challenge since staff Read more [...]

In response to the Tax Cuts and Jobs Acts of 2017, there were a number of changes to the disclosure requirements for partnerships and LLCs filing as partnerships – specifically, on the K-1s of Form 1065 returns, some of which became effective for the 2019 tax year. For the current (2020) tax year, however, the most significant change relates to the reporting associated with partner capital accounts.  Beginning with the 2020 year, partnerships are required to report capital accounts for partners Read more [...]

We’ve been in a pandemic for what seems like five years now, right? All joking aside, if you’ve been lucky enough to work from home this past year, then it’s possible that you are in the process of going stir-crazy. Or maybe you’re simply ready to shake things up a bit. Working from home has its benefits. Yet, if you are someone who enjoys going to the office every day, chatting with co-workers in person, attending meetings that aren’t all virtual, and having a little spontaneity each Read more [...]

Have you heard the phrases “marginal tax rate” (or tax bracket) and “effective tax rate” and wondered what the distinction is between them? In order to explain the difference, it is first important to note that in the United States, we do not pay a flat tax – we are on a graduated system and therefore pay taxes in tiers. Let’s say that you are a Single filer, and you have taxable income of $60,000 for the 2020 tax year. According to the IRS tax tables, that puts you in the 22 percent Read more [...]