Accounting is an integral function of business; it is one of the primary business functions and also a crucial ingredient in making the business successful. Accounting involves keeping of financial records. Over the years, technology has impacted on accounting increasing the efficiency of the accounting process through the use of the proper accounting systems. Accounting systems help automate the accounting process, increasing the efficiency, speed, security, and accuracy of the accountants. There are two major accounting systems which are one, cash accounting systems, these systems are primarily involved in managing transactions that involve actual cash flow, the second is accrual accounting system: details of transactions are recorded regardless of whether money was involved. There are hybrid systems which combine the two, but the end goal of any accounting system is effectiveness in financial management. The question many small business owners ask is whether these accounting systems are essential to their business and the advantages of having them: in this article we try to answer these two questions.
Happy New Year! Now that the holidays are over, it’s time to get serious about reviewing where you stand from a tax perspective. As you may recall, in 2013 Congress and President Obama made a budget deal to avoid the fiscal cliff which resulted in seven tax increases. In addition to these increases, the introduction of the Affordable Care Act (also known as Obamacare) also included six additional tax increases, for a grand total of 13 new tax hikes which may affect your 2013 tax bill.
The following list details these tax changes. It is worthwhile reviewing it to see which changes are most likely to impact you this tax year:
If your business spends $600 or more for services from another business or an individual contractor during the tax year, you may have to report the amount on a Form 1099. The requirement to file 1099s applies to all types of businesses, C-Corporations, S-Corporations, LLCs, all partnerships, and sole proprietorships. Forms 1099 are normally issued to unincorporated businesses, however, if your business made payments of $600 or more to a Corporation (C or S) for medical, health care, or fishing activities, or to any law firm, then a Form 1099 is required to be issued.