Got the 1099 K and wondering what to do with it? 1099 K is a tax form sent by online payment processing companies like PayPal, eBay and the like to report how much sales you made through them in the last calendar year. They fill your basic details with the last years gross sales and send this form to the IRS with a copy to you as well.
Well, I report my income and file my Schedule C. Why this?
IRS is working very hard to bridge the tax gap so that the reported income by individuals is closer to their actual income (which apparently isn’t the case in reality). The 1099K form last year was an attempt to achieve that goal, so that the IRS gets to know first hand how much you earned in online sales.
But why did I get this form and not others?
It looks like your gross sales crossed $20,000 and you have made at least 200 transactions with a payment processor. That is the criteria that the IRS uses to decide who to send it to. If you haven’t received the form, it is perfectly okay.…
The good news is that the world didn’t end on 12/21 as the Mayans had predicted. The bad news is: you still need to work on your accounting and taxes for 2012. Here are some tips in the form of a checklist so you can avoid overpaying or underpaying the taxman. It’s important you do this before you close your books for 2012. Happy 2013!
Reconcile your bank accounts
If you have been manually entering the bank transactions, it is imperative that you reconcile the bank balances with the actual bank statements. Look for the usual culprits like cancelled or uncleared checks. Give this a skip if you have setup a feed for online banking and have forgotten how to enter the bank transactions.
Complete your invoicing
Send the invoices for all the services you have rendered; products that you have sold and for any task that remains unbilled.
Record all your supplier bills
Ensure that you haven’t missed entering any supplier bills.
This is a guest post by Craig Keolanui of SmBizWinningTips
Are you facing an unexpected audit from either the state or Feds? If so, you might be seized with panic, worry or doubt. A tax audit is never easy, but keeping things highly organized and following instructions is the key to getting through the process with speed and confidence.
Reframe it as a presentation to an investor or client for your services and much of that consternation and doubt will pass and so will the time it takes for the audit.
You will receive a list of information required. Follow it carefully.
Be prepared to reveal two-three years of data, but follow the specific details in the notice you receive as it can be the difference between passing and failing.
Offering to provide more information than requested may actually make things worse and add time or further scrutiny to the audit.…
This is a guest post by Craig Keolanui of SmBizWinningTips
You might have heard of planning a vacation around a trade show or convention that you can attend, but consider those trips you want to take but don’t necessarily want to spend money on, such as weddings or other family events.
It would be nice to write off some of these expenses and, if done carefully, it is entirely possible.
Most often these trips involve expensive airfare and covering your business in your absence, so getting a tax break is the best way to recoup some of these costs. The key is to mix business with pleasure and the rest is as easy as keeping organized receipts.
What else can be accomplished on your trip?
Make your personal trip a business trip. Network with old friends and read up about conventions or events involving small businesses in the destination city’s publications or websites.…
Last week’s flavor was saving time with bulk printing. This week we are planning to get you more organized with regard to your potential business.
The average life of an estimate undergoes several trials and testing phases before it reaches the ‘invoiced’ stage. Along with Draft, Sent and Invoiced, we’ve now introduced three new estimate statuses in Zoho Books and Zoho Invoice – Accepted, Declined and Expired.
When a client approves the proposal, you can mark the estimate as ‘accepted’. All the accepted estimates will give you an idea on how to prioritize and plan your time so you can manage multiple projects comfortably.
Declined estimates could be a due to a lot of reasons even including the low budget. But if you have a trail of declined estimates for specific customers, analysis of that will give you insight on how to change your modus operandi the next time.…
Every girl wants the happiest day in her life to be ‘just perfect’. Cathy Akinkunmi decided to don the hat of a wedding planner and decorator while planning her daughter’s 10th birthday ‘Princess’ Theme party.
The result was Beautiful Linen Rentals. She says,
When ‘you’ are responsible for the little details that makes the perfect wedding, you’ve got to be on top of your game every single moment.
As a wedding planner she’s constantly wearing multiple hats. While meeting new clients, discussing decor style, selecting colors and setting up the venue are part of her job description, she also needs to manage her business. When she’s busy ensuring the day remains perfect for someone else, she needs assurance that her finances are being managed well. Returning home to messy paperwork is not what she looks forward to at the end of the day.…
This is a guest post by Shabana Shiliwala, who owns The Financial Sort, a financial planning company based in Austin, Texas.
How many small businesses have gone under because they believed the myth “You need to spend money to make money” at face value? Following this phrase literally has led too many business owners on the wrong path, forgetting the first rule of business success–be profitable.
Remember this simple equation: Income – Expenses = Profit. If your profit isn’t where it needs to be, take a closer look at your expenses. You only have so much control over your income, but you’re fully in control of how much money you spend.
Many business owners automatically believe they need a loan to operate a business based on their estimated operating costs. Try reversing your thinking: can you lower your operating costs so you can borrow less or eliminate the need to borrow any money at all?…