When you first start your own small business, you have a wide variety of concerns and tasks that are all competing for your attention. Of course, this trend will continue as you work on growing and expanding your small business and bringing in customers. Often, this division of your attention can lead you to focus less on your small business accounting tasks than you probably should. This can be a serious problem for your small business if you do not know what to look out for in your accounting and bookkeeping.
A relatively new federal income tax on investment income became effective in 2013 for some tax filers. The tax is applicable to individuals with higher incomes. Some tax filers must now complete an additional tax form to report and pay the additional tax on net investment income.
Investment income includes items such as interest, dividends, capital gains, and rental income. Net investment income is derived by subtracting investment expenses from investment income.
When starting a small business, you will have a lot of different choices to make. Most small business owners take on many roles themselves, from manager to accountant to marketer. This is especially true if you starting the business entirely by yourself and without the help of a franchise. It is important to get the help you need when it comes to your finances. Entrepreneur.com recommends that you should find a certified public accountant to help you get your finances in order.
Applying for any job is stressful, but when you are in the world of finance and accounting, you are interviewing for positions that will allow you to take care of huge sums of money, which can make the interview process especially taxing. Here are some commonly asked accounting interview questions and what you can do to prepare for them.
1. If you were working for a company that just received an investment of five million dollars, what would your spending and investing plan be to make the most of it?
Dealing with taxes as a freelance worker can be a mess. The complexity of filing your taxes is often similar to running a small business, but you only have one person to do all the work. Here are some tips for simplifying the tax return process as a freelance worker.
Forecasting Your Tax Bill
As a freelancer, you'll have to pay a bit more in taxes to cover your social security costs.