After a 38-year absence, Form 1099-NEC made its return in the 2020 tax year. For the last few decades, business owners were responsible for using Form 1099-MISC to report nonemployee compensation. But with Form 1099-NEC, employers can say hello to a revamped form and goodbye to reporting nonemployee compensation on Form 1099-MISC.
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Stop! In the Name of Your Business … Don’t Make These 7 Common Tax Return Errors
There’s a lot that goes into filing your small business tax return. You can’t just take a shot in the dark and hope for the best—you need to prepare, follow best practices, and keep good records year-round. And if you don’t, you could wind up making tax return errors.
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How Tracking Aging of Accounts Receivable Can Help Your Business
If you offer credit to customers at your small business, you have accounts receivable (AR). Sometimes customers pay on time, while other times they do not. Aging of accounts receivable comes into play when a customer has a past due invoice. Keep reading to learn all about aging of AR and how it can help […]
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Balance Sheet Ratios: Current Ratio, Quick Ratio, & More
Your business’s balance sheet can give you a snapshot of your finances and show you whether you’re on track for success. Without it, you might struggle to detect spikes in spending or see if your pricing strategy is effective. If you want to take things one step further with your balance sheet and see how […]
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A Business Owner’s Guide to Balance Sheet Reconciliation
One of the four main financial statements you have to keep track of as a business owner is your balance sheet. Your balance sheet gives you insight into where your business stands financially. But, you won’t get an accurate picture of your company’s finances if you don’t keep up with balance sheet reconciliation. Read on […]
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A Profit and Loss Statement for Small Business Is a Must!
As a business owner, you must track the money going in and out of your company to keep your finances on track. One way you can do this is by monitoring your profit and loss statement for small business. Read on to learn how a profit and loss statement can benefit your business and how […]
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How Much Do You Know About the Four Basic Financial Statements?
If you’re a small business owner, you know how important it is to keep your financial information in order. But to keep your finances organized, you have to know about the four basic financial statements and how you can use them to grow your small business.
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Which Financial Statement Is Prepared First?
Your business’s financial statements give you a snapshot of the financial health of your company. Without them, you wouldn’t be able to monitor your revenue, project your future finances, or keep your business on track for success. Now, you can’t go off creating your different financial statements all willy nilly. Like many things in business, […]
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4 Balance Sheet Problems and Prevention Strategies for Business Owners
As a business owner, you’re going to run into a few accounting mistakes from time to time. Some of the biggest blunders you can make involve your business balance sheet. If you want to avoid balance sheet problems, learn about the most common errors you can make on your balance sheet and how to avoid […]
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Transposition Error, the Little Mistake That Causes Big Problems
Mistakes happen, especially when it comes to recording transactions in your books. One type of accounting mistake that’s easy to make is a transposition error. Read on to learn what is transposition error and how it can affect your accounting books.
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