If you’ve ever wondered about the different tax professionals available to help your business, you’ve probably asked yourself what is an enrolled agent. In this article we’ll go over how they can help you and how they compare with the popular CPA designation. What's the Difference Between EA's and CPA's The main difference between EA’s and CPA’s comes from the requirements they have to get their credentials. However, a second, quite significant distinguishing factor also relates to their likely backgrounds, which we’ll touch upon. The enrolled agent designation is directly regulated and gi ..read more

In a previous article, we discussed how to manually input the entries for your bookkeeping and payroll setup. In this article, we’ll go over a more automated way to this through your payroll processor. Here, we’ll be using ADP to do this. Other payroll processors, however, might have a similar function. You might have to adjust a few things here and there if using a different system;  though overall, you’ll probably be able to use this article in that situation. We’ll be continuing with the same example as in the manual entry article, so be sure to go back to it if you need to. You’ll f ..read more

Understanding the electric vehicles tax credit might seem overly complicated especially with some of the recent changes. That’s why here we’ll give you an easy explanation of the credit and how it changes based on when purchased. If you purchased your EV on 2022 or before, the credit will be subject to a certain set of rules. After that, the Inflation Reduction Act of 2022 made changes to the credit and we’ll go over both scenarios. In both cases, the electric vehicles tax credit is classified as a non-refundable credit for a maximum of $7,500. A credit reduces your tax liability dollar-for ..read more

If you’ve ever asked yourself on how to write-off travel expenses while staying IRS compliant, read on. We’ll cover some of the basic rules as well as tips to maximize your travel deductions. For an article going over some more concrete examples on travel write-offs, go here. Before getting ahead of ourselves, let’s start by understanding when are you in business travel. When Are You In Business Travel The basic rule is that you’re in business travel when you travel from your home overnight. Another good rule of thumb is if you travel for enough time that it requires you to sleep. You must ..read more

Saving on travel taxes is one of the things you can actively do to help reduce your business’ costs. As with other deductions, you must be aware of the basic rules and plan in advance to make it work. Here we’ll go over good easy ways to think about travel taxes. Then, we’ll turn to essential tips to maximize your deductions all while keeping you compliant. What Are Travel Taxes? The concept of travel taxes could be explained in the following way: A tax on your income that would otherwise not have been taxable because of your business travel. In other words, these travel expenses would be ..read more

If you’re wondering how to get a juicy meals deduction for 2022, read on. We will also consider what the tax year 2023 will be like on this matter. With the Tax Cuts and Jobs Act coming into effect in 2018, there were some key changes for meals. Before 2018, the category “Meals & Entertainment” was seen as a common category by accountants. The reason is that both meals and entertainment expenses were 50% deductible by businesses. That all changed in 2018. Entertainment expenses, meaning entertainment for clients and prospects were deemed non-deductible. That only leaves room in this disc ..read more

If you ever wondered what’s the correct way to do your payroll bookkeeping this article is for you. We’ll go over in detail what to do to do it the right way. This will be helpful to you whether you run payroll for actual employees or just for yourself as a de facto employee. If you’re more of a visual learner here’s a video outline of the whole process. You might have come across payroll transactions in your bookkeeping software. If you do your own books, did you know how to handle those? If you’re not a trained accountant, chances are you didn’t, but using this information you’ll ..read more

Here’s a strategy that will allow you to hire your children in your own business and reap multiple benefits. This strategy might be for you if you want your business to become an asset to your children’s upbringing. Your child could have the benefit of learning real-world work and business skills and developing a strong work-ethic. What’s even more, you and your business can benefit from having an extra pair of hands to help. You get the advantage of deducting what you pay them through your payroll, shifting the income to their lower tax bracket; and all the while you’ll be potentially avoid ..read more

If you’ve ever wondered about the incentives to starting a home-based business this short article is for you. We’ll go over the tax advantages and how you could potentially cut your tax bill. We’ll also briefly go over the non-tax benefits of a home-based business.  How Starting a Home-Based Business Could Save You in Taxes The key to understanding how a home-based business could cut your tax bill is to consider this. When you regularly spend money as an employee, much of what you’re spending on will count as non-deductible. Even if you were to itemize your deductions in your personal ..read more