Understanding your federal income tax liabilities is crucial for staying compliant with tax laws and avoiding potential penalties. Federal income tax liability refers to the amount you owe the government based on your taxable income, and it can be impacted by a variety of factors, including your earnings, deductions, and credits.  At C.E. Thorn, CPA, […] The post How Federal Income Tax Liabilities Affect Your Taxes appeared first on C. E. Thorn, CPA, PLLC ..read more

Understanding what portions of your income are taxable is crucial for effective financial planning and compliance with tax laws. For small business owners, answering the question, "What is taxable income?" is critical to managing your finances effectively. This comprehensive guide will clarify the concept of taxable income, detail what counts and what doesn’t, and offer practical strategies to minimize your tax liability. With guidance from C.E. Thorn, CPA, PLLC, based in Raleigh, NC, you can navigate your small business finances.  What is Taxable Income? Taxable income is the portion of ..read more

Were you aware that you can file a tax extension to request additional time to file your taxes? Many people don’t know that this is an option. Tax extensions are not just for people who are running late in filing their taxes. Filing an extension is easy and provides you up to six months to complete your taxes. There are several reasons why you might file for a tax extension: If you need more time to prepare your tax return If you don’t have all the information you need to prepare your taxes, such as a Schedule K-1 or Form 1099 If you wait too long to do your taxes or bring them to a tax prepa ..read more

As a small business owner, you perform many different tasks– from marketing and hiring to customer service and daily operations, many tasks require your time and attention. In addition to daily management, you’re responsible for ensuring your tax matters are taken care of. When you make an error while filing your taxes, you can miss out on deductions or end up owing more than you should. The good news is that the common tax mistakes business owners often make can easily be avoided! Join our Raleigh CPA team as we discuss common tax mistakes we often see when business owners file their tax ..read more

A company’s financial statements can give you valuable insight into their financial health. Each financial statement is a report that shows your business's financial activities and performance. Join the CPAs at C.E. Thorn, CPA, PLLC in Raleigh as they outline the three main types of financial statements, explain the key differences between consolidated financial statements and combined financial statements, and guide you on when to utilize each type in this post.  The Three Main Types of Financial Statements The three primary types of financial statements are: Balance sheet - Shows the a ..read more

The year 2023 isn’t over yet, but it will be soon! So, thoughts begin to turn to taxes and getting information ready. Preparing your taxes isn’t something that most of us relish doing. It requires a lot of organizing information and making sure that all of our “i’s” are dotted and “t’s” are crossed. You may be wondering whether you need to have a tax professional complete your tax return or whether you can do it using online accounting software. And, regardless of which one you choose, how much will the process cost? At C.E. Thorn, CPA, PLLC, we frequently get asked about the cost of tax prepa ..read more

When you start a business, choosing a business entity is one of the first decisions you'll make, and it's also one of the most important decisions. Understanding the benefits and drawbacks of each one is necessary for making an informed decision.  While we've already discussed the tax benefits and drawbacks of an LLC, our small business accounting firm wanted to provide a deep dive into the difference between a sole proprietorship and an LLC, as well as some info on filing as an S corporation, to help you determine which one would have the greater benefit for your small business.  Wh ..read more

If you're a healthcare practice owner in or around Raleigh, NC, you understand the unique financial challenges that come with managing a healthcare business. From intricate insurance billing to navigating complex compliance regulations, the financial landscape of the healthcare industry is quite specific.  Whether you're looking to optimize your tax strategy, enhance financial forecasting, or ensure compliance, our small business accountants at C.E. Thorn, CPA, PLLC can assist with the financial statements and tax preparation of your healthcare practice. Understanding Healthcare Accountin ..read more

As a small business accounting firm, C.E. Thorn, CPA, PLLC understands the challenges and opportunities that come with running a successful enterprise. Proper tax preparation is not only a legal obligation but also a strategic financial practice that can significantly impact your business's bottom line.  Join our Raleigh CPAs as we explore the best practices for small business tax preparation and provide tips to help you stay compliant. When your small business is tax-compliant, you can be poised for financial success. #1 - Maintain Accurate Records for Small Business Tax Preparation Main ..read more

While the last major change to the tax code occurred in 2018 with the Tax Cut and Jobs Act (TCJA), each year can bring updates and small changes that can easily get missed if you're not keeping up with updates. To help you prepare and plan in 2021, our small business accountants in Raleigh are sharing the changes to the tax code in 2021 that may affect your business.  COVID-Related Tax Updates for 2021 Due to the COVID-19 pandemic, we saw numerous updates and changes to small business taxes in 2021. Some updates include: Families First Coronavirus Response Act (FFCRA) This requires ..read more