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(August 20, 2010. Franchise Tax Board News Release) Sacramento – The state is contacting more than 40,000 California businesses that have not filed their 2008 state income tax returns with the Franchise Tax Board (FTB). The notices inform the businesses that they have 30 days to file a return or show why there is no [...]

By now you have probably heard about the bill that will require businesses and sole proprietors to file 1099-Misc forms every time they spend $600 or more, even if it means sending a 1099-Misc form to Office Depot. The good news here is that IRS is requesting that businesses and sole proprietors affected by this [...]

As a Certified QuickBooks ProAdvisor, I deal with clients everyday who are having problems with numbers not reflecting the correct state of business finances. Majority of the time the problem lies with wrong installation and setup of QuickBooks. Most small business owners try to setup QuickBooks themselves and in the process end up creating future [...]

Q: What is deductible as “actual car expense” when using a personal car for business purposes? A: Automobile expenses pertaining to a trade or business are deductible under the tax code as ordinary and necessary business expenses. Actual car expenses include: – Gasoline – Oil – Tires – Repairs – Insurance – Depreciation – Licenses [...]

Recently I finished a tax audit assignment where I had to compile data that was to be used during an audit. My job was to create a paper trail and substantiate the taxpayers claims with receipts, invoices and canceled checks. IRS asked that we document all deposits and show what was taxable and non-taxable. My [...]

IRS has been spending a lot of time advertising the new Small Business Health Insurance Credit. The way to qualify for this credit is to provide your employees with health insurance. As simple as it may sound, it comes with quite a few restrictions. Here is the criteria in its simplest form: – Employ the [...]

If you are currently in the process of developing a small business of your own, you may be feeling a little overwhelmed with the entire process. This is often the case, especially to those who need the funds to finance their business. The simple fact is that there are so many details involved that it is often very stressful on the individual. Anyone who is having a difficult time, should consider getting help from a small business development center.

Personal income in March 2010 increased 0.3% from February 2010. Real personal consumption expenditures (PCE) rose 0.5% and real disposable personal income (DPI) rose 0.2%. The personal savings rate as a percentage of DPI was 2.7% in March. Construction spending was $847.3 billion in March 2010, 0.2% above February 2010 but 12.3% below March 2009. [...]

Starting in 2010, small business employers that provide health insurance coverage to their employees may qualify for a special tax credit. Michelle from IRS explains this Health Care Credit for Small Businesses in this short YouTube video:

Bookkeeping is the process of systematic recording of financial transactions that take place during day to day business activities. Bookkeeping is by far the most important financial tool for small and medium sized business for many reasons. If a business fails to maintain proper records, it could result in enormous losses, not to mention the [...]