An anonymous commenter asked us to confirm that inventory does not affect profit and loss statements, but does affect cash flow. Inventory is product you buy to resell, so yes, it affects your cash flow. You spent money to purchase it. You collect money when you sell it.If you are preparing Cash Flow Statements, you’ll […]
How to file 1099s
For those of you who have contracted work out to other people, and who have paid those people $600 or more in the past year, now is the time to report that to the IRS and to remind the subcontractors that the payments they received are taxable. It is time to issue Form 1099 MISC. […]
1st of January
If you chose the standard mileage rate to deduct your vehicle expenses for your business use, NOW–right now–is the time to record your odometer reading. You will want to have total miles driven for the year and miles driven for business purposes. Business miles will, of course, come from your record of business usage of […]
How to keep good tax records
[Adapted from the “IRS GuideWire,” 16 July 2008] In a tax emergency, would you be ready? Well–organized records not only help you prepare your tax return, but they also help you answer questions if your return is selected for examination or prepare a response if you are billed for additional tax. Fortunately, you don’t have […]
