3 PRACTICAL STRATEGIES TO MANAGE SMALL BUSINESS OWNER FINANCES

02/02/2024

1- Understand Your Goals: Understand your business’s financial goals and objectives thoroughly. This insight will guide your bookkeeping approach and help tailor your services to their specific needs.

2- Maintain Detailed Records: Implement meticulous record-keeping practices to accurately track all financial transactions, including income, expenses, invoices, and receipts. Utilize bookkeeping software like QuickBooks or Wave to streamline data entry and organization.

3- Prepare for Tax Compliance: Organize financial records and documentation in preparation for tax filings. Please stay abreast of relevant tax laws and regulations to make sure you comply and avoid tax liabilities.

Patricia de Oliveira

Professional Bookkeeper

508-221-1874

Please leave or read ratings and reviews on my ProAdvisor listing! & Google My Business.

Who needs a 1099?

01/24/2024

From Instr. for Forms 1099-MISC and 1099-NEC (Rev. 01-2024)

File Form 1099-NEC, Nonemployee Compensation, for each person during your business to whom you have paid the following during the year.

• At least $600 in:

1. Services performed by someone who is not your employee (including parts and materials) (box 1).

2. Payments to an attorney (box 1).

Exceptions

Some payments do not have to be reported on Form 1099-NEC, although they may be taxable to the recipient.

Payments for which a Form 1099-NEC is not required include all the following.

•Generally, payments to a corporation (including a limited liability company (LLC) that is treated as a C or S corporation).

•Payments for merchandise, telegrams, telephone, freight, storage, and equivalent items.

•Payments of rent to real estate agents or property managers. However, the real estate agent or property manager must use Form 1099-MISC to report the rent paid to the property owner. See Regulations section 1.6041-3(d); Regulations section 1.6041-1(e)(5), Example 5; and the instructions for box 1.

•Form 1099-K. Payments are made with a credit card or payment card and certain other types of payments.

Conclusion:

Needs 1099

– LLC that is not treated as a C or S corporation (that is why your bookkeeper needs their W9 to check if they are exempt).

– Rent paid to the property owner.

– Payments to an attorney.

– You made the payment to someone who is not your employee.

– You made the payment for services during your trade or business (including government agencies and nonprofit organizations).

– You made the payment to an individual, partnership, estate, or a corporation.

– You made payments to the payee of at least $600 during the year, not just contractors directly related to your business/sales.

Patricia de Oliveira

Bookkeeper Professional

508-221-1874

Maple Bookkeeping Services

Please leave or read ratings and reviews on my ProAdvisor listing!

S-Corporation Annual Report

11/17/2023

All S-Corporations in Massachusetts must file their Annual Report before 03/15/2024 to ensure your business entities remain in good standing with the state office and avoid potential fees and state penalties. Failure to file an annual report may result in:

1. State-imposed fines and penalties.

2. Possible suspension or involuntary dissolution of your businesses.

3. Liens against the PERSONAL Assets of shareholders.

A brief call or email to your Bookkeeper or CPA from you today can make sure your business is healthy and in Good Standing. We’re always here to handle all your paperwork so you can focus on what you do best – growing your business.

Patricia de Oliveira

Bookkeeper Professional

508-221-1874

Maple Bookkeeping Services

Please leave or read ratings and reviews on my ProAdvisor listing!

Are Receipts Required in Case of an Audit?

10/16/2023YES, receipts are required in case of an audit. The tax authorities or auditors may ask for receipts and other supporting documentation during an audit to ensure accurate tax returns or financial statements.
Receipts serve as proof of transactions and expenses claimed on tax returns. They contain details such as the transaction date, parties involved, amount, and expense type. Proper receipts or documentation make it easier to prove the reported expenses’ validity, which could lead to issues during an audit.
To support your financial transactions in case of an audit, you should keep accurate and organized records, including receipts, invoices, bank statements, and other relevant documents. Different States and jurisdictions may have specific requirements regarding record-keeping, so it’s advisable to consult local tax regulations or a Bookkeeper to ensure compliance with the rules applicable to your situation.

Patricia de Oliveira

Bookkeeper Professional

508-221-1874

Maple Bookkeeping Services

Please leave or read ratings and reviews on my ProAdvisor listing!

Warmest regards,

Patricia de Oliveira

Professional Bookkeeper

508-221-1874

www.maplebkp.com

Maple Bookkeeping Services

Please leave or read ratings and reviews on my ProAdvisor listing!

AIorK4wplwtPM-oTw8dAJjtPtyiUSKUfdxdzW5sdTwCIwbncze6dPqXH1VC_YY-zXyEmy7mceP37KMwAIorK4wfwbTEDGE8dxv70PZYzUsbjNB-cjnzR5kBsqOG-sN5VuM-i8rKGzLcWYzGc3o6SLvN_nyrEjsAIorK4yYVTqeEhUmQv1BhljbwMGQ0SUsWv11pa5lYqMtANHrDfb193vEZ3S3maZPGRg-tZnkS_cnwIU

Will AI substitute a professional bookkeeper?

AI cannot substitute a professional bookkeeper because bookkeeping involves not only data entry but also complex interpretation, judgment, and decision-making. Professional bookkeepers bring their experience, knowledge, and personalized service to handle unique business needs, communicate effectively with clients, and navigate complex financial transactions. They possess the ability to exercise judgment, assess credibility, and provide tailored financial advice based on individual circumstances. Furthermore, bookkeepers play a crucial role in ensuring legal compliance with ever-changing tax laws and regulations. While AI can assist with data analysis and automation, it lacks the human touch, intuition, and expertise that a professional bookkeeper brings to the table.

Warmest regards,

Patricia de Oliveira

Bookkeeper Professional

508-221-1874

www.maplebkp.com

Maple Bookkeeping Services

Please leave or read ratings and reviews on my ProAdvisor listing!

AIorK4wplwtPM-oTw8dAJjtPtyiUSKUfdxdzW5sdTwCIwbncze6dPqXH1VC_YY-zXyEmy7mceP37KMwAIorK4wfwbTEDGE8dxv70PZYzUsbjNB-cjnzR5kBsqOG-sN5VuM-i8rKGzLcWYzGc3o6SLvN_nyrEjsAIorK4yYVTqeEhUmQv1BhljbwMGQ0SUsWv11pa5lYqMtANHrDfb193vEZ3S3maZPGRg-tZnkS_cnwIU

Why Do My Business Needs a Bookkeeper

05/02/2023Having a professional bookkeeper is crucial for your business. It can help with financial tracking, provide valuable insights, and ensure tax compliance. This saves time and reduces errors, contributing to long-term growth and success.

Patricia de Oliveira

Bookkeeper Professional

508-221-1874

Maple Bookkeeping Services

Please leave or read ratings and reviews on my ProAdvisor listing!

Profit and Loss (P&L) 101

A Profit and Loss (P&L) Report, also known as an Income Statement, is a financial statement that tells you how well a business did financially.

The report shows how much money a business makes (revenue) and how much it spends (expenses) during a certain period. If the business made more money than it spent, then it has a profit. But if the business spent more money than it made, then it has a loss.

The P&L Report is important because it helps business owners and other people interested in the business, like investors and lenders, see how well the business is doing financially. They can use this information to decide whether they want to invest in the business or loan it money.

The only way to get a reliable Report is to have reliable and well-done Bookkeeping. It can be done daily, monthly, or quarterly depending on your business’s size and/or complexity.

Don’t wait until Taxes Season to take care of your Business Books.

Patricia de Oliveira

Bookkeeper Professional

508-221-1874

Please leave or read ratings and reviews on my ProAdvisor listing!

Bookkeeping – Accounts payable

Accounts payable is an essential function of any business that involves managing the payment of debts owed to vendors, suppliers, and other creditors. Proper accounts payable management is critical to maintaining good relationships with these entities, which can directly impact the business’s success. Efficient accounts payable processes also help to minimize the risk of errors or fraudulent activity, which can have severe consequences for the company. Effective AP management ensures any business’s long-term success and sustainability.

Patricia de Oliveira

Bookkeeper Professional

508-221-1874

www.maplebookkeepingservices.com

Maple Bookkeeping Services

Please leave or read ratings and reviews on my ProAdvisor listing!