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Archive for Kazim Qasim

How To Write A Small Business Plan

Kazim Qasim

If you ever want to apply for a small business loan, the lenders will want to see your business plan. Your business plan gives lenders a concise snapshot of your business model. Having a small business plan also gives the owner added benefits. Often, business owners refer back to their business plan to ensure that they are holding true to the foundations of the business. A well-written business plan can help you stay on track to reach business goals for years to come.

What Should be Included in Your Business Plan?

A standard business plan is typically comprised of eight sections. Each section explains a different category of information about your company. Investors will look at the business plan in terms of sections and as a whole. Here is everything that you should include in your business plan:

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What Is The IRS 20-Factor Test?

Kazim Qasim

In these days of the gig economy, more business owners are leveraging the affordability and convenience of hiring freelancers (independent contractors) instead of regular employees. It makes sense. There are some tremendous benefits to hiring independent contractors (ICs), including not having to pay for insurance and payroll taxes. Another huge benefit to hiring ICs is that business owners can’t always predict busy times and down times. When seasonal shifts in business necessitate extra help, the business owner can bring on more staff without making any long-term commitments. As business slows down, the owner can simply let the ICs know their help isn’t needed anymore at this time. It seems like a dream come true from an employer standpoint.

However, there are strict IRS rules regarding classification of ICs. If you mistakenly or intentionally classify a worker as an IC when they should be classified as employee, you and/or your business would be held financially liable to the IRS and to the worker. The IRS isn’t setting you up just so they can catch you out. They have established a 20-Factor Test for employers to determine if a worker is classified as an IC or an employee.

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Learning How To Interpret Your Cash Flow

Kazim Qasim - Intrepreting Cashflow

Just because there’s a positive balance in your checking account doesn’t mean that your business is making money. Checks that you’ve written for expenses may not have cleared yet, or customers could have paid in advance. Relying on a positive balance to determine if your business is solvent could be dangerous.

Cashflow represents the movement of cash in and out of your business. Cashflow management seeks to match the inflows and outflows so that you’re never short-handed, though sometimes business owners must borrow to cover gaps.

Learning more about the ups and downs of how cash flows in and out of your business will help you make better strategic and borrowing decisions. The past can inform the future when forecasting cashflow.  But before you get into analyzing a cashflow statement, you must understand it.

Sections of the Cashflow Statement

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Should You Hire Your Spouse Or Children?

Kazim Qasim

If you own your own business you already know the joys of being your own boss. You may even have thought about bringing your spouse and/or children into the fold. There are definitely some benefits to hiring your spouse or children. Here are some to consider.

Tax Advantages of Hiring Children Under 18

There are several tax benefits when business owners hire children under 18, as long as the child is still a dependent. If the child is 18 or older and not a dependent, they’re treated no differently than if you hired a job candidate off the street, tax-wise.

First, the child can earn up to the standard deduction amount without having to pay taxes on their earnings. If you have a retirement plan in place, up to a certain amount of additional dollars can be contributed tax free. Your CPA can help you determine exactly what that amount is, based on the type of retirement plan your business has. They can also help ensure that you take advantage of all the tax benefits of employing your dependent child.

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Smart Organizational Moves In Preparation For 2019 Tax Returns

Kazim Qasim - Smart Organization

It may be the first gorgeous day of fall, but it won’t be long until April 15 comes knocking. Be prepared for next year’s tax deadline by beginning your preparations today. That means, as a small business owner, now is the perfect time to begin organizing receipts, collecting owed payments and deciding on year-end purchases. Do it now, and you won’t have to dread facing it in the spring.

Clear Outstanding Invoices

Organization is king, especially for anyone who owns a small business. If you haven’t already, begin getting things in order by clearing any outstanding invoices. Make those collection calls to clients who’ve been slow to pay. Studies show that the longer you allow unpaid debt to linger on the books, the less likely you’ll be to ever receive payment. And here’s another tip: Hire a certified bookkeeper to make your collection calls. A certified bookkeeper understands the language of collection calls, and what you are and aren’t permitted by law to say. Keep yourself and your company out of the legal doghouse by letting a pro handle this end of the business. By hiring someone else to do the handle the collections, you’ll also have a buffer so you can maintain amicable client relations.

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Simple Strategies To Reduce Small Business Taxes

Kazim Qasim- Small Business Deductions

Small strategies make big impacts when it comes to figuring out the year’s deductions. Sadly, many small business owners never get the help they need because they’re simply unaware of the many tax deductions available to them. This is where a good, knowledgeable CPA is invaluable. And since you’re hiring your CPA to help you organize and prepare your taxes – he or she becomes a deductible business expense, too. Tons of little-known, obscure strategies will help pull you out of the hole come tax time; it’s just a matter of discovering what they are and how best to take advantage of them. If you want to shave money off what you’ll owe the IRS next year, give these strategies a try. You’ll be surprised at how much of your hard-earned cash you’ll be able to legally keep.

Deduct the Cost of Help

Hire an expert. We’ve already discussed the wisdom behind hiring a professional accountant to help keep your books in record shape, but there are other pros out there who could make your life easier while building up your deductibles, too. Everyone from the copy writer who pens your social media posts to the team who cleans your office are fair game. So long as they’re helping you run your business and you pay them for that purpose, the money you pay them is tax deductible.

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Refinancing Your House: Pros and Cons In The U.S.

Refinancing Your Home

If you’ve owned your home for a couple of years, you might have started thinking about refinancing. Maybe interest rates have dropped, and you want to save money, or you want to tap into your home’s equity to remodel your kitchen.

Learn about the pros and cons of refinancing your house and how it could impact your financial situation so you can make the best decision for your family.

Pros of Refinancing Your House

Here are some of the reasons why you might consider refinancing.

  • Lock in a lower interest rate and lower monthly payment
  • Refinance into a better loan product
  • Free up equity for a remodel or other purposes

Interest rates fluctuate over time. If rates have dropped significantly since you first bought your home, it could be worthwhile to refinance. Since you’ll pay fees to refinance, most financial advisors recommend that you plan on staying in your home for at least five years after the refinance.

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Items That Are Tax Deductible When Selling A House

Tax Deductions When Selling A Home

Which Items are Tax Deductible when Selling a House?

When you list your house on the market, you’re probably thinking about how much money you’ll make or where you want to move next, not about your taxes. A home sale does have tax implications which can either help or hurt you in April.

Find out everything you need to know about selling a house and personal income taxes before you plan on spending the profits from selling your home.

Which Common Home Selling Costs are Deductible?

Not all of the costs related to a home sale are deductible. Here are the costs which can be used to offset any profit and reduce your tax burden.

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14 Life Events That Warrant A Visit To A Tax Advisor

Kazim Qasim - 14 Life Events That Warrant A Visit To A Tax Advisor

Change is a constant part of life. With each change, adjustments have to be made. Certain changes in our lives puts us in a different tax category or changes how we need to file our taxes. Legally, we may come under different rules and requirements. There are tax advantages or credits that come with some of life’s changes. Below are a few events that can take place in your life where you may need some professional guidance with the filing of your taxes.

Getting Married

As a single person, you filed your taxes as a single individual. Now that you are getting married, will it be cheaper to file a joint tax return or separate tax returns? One spouse may own a business or may quit their job. Are there children involved? A CPA can take all of your circumstances into account. Then they can help you set up your tax returns and finances for your best advantage.

Newborn Baby

The tax laws allow exemptions when you have a new baby. You will be able to take advantage of certain tax breaks. A CPA can help you understand which exemptions you qualify for and keep you up to date on current laws.

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Step-by-Step Guide To Forming A Non-Profit

Qasim Kazim

A non-profit organization can have several definitions depending on the perspective of the people discussing the matter and the context of the discussion. To the layman, the term generally means a charitable institution or perhaps a church, or an organization which provides assistance to the community which isn’t provided by the government.

To a tax accountant, the term refers to a legal loophole which provides deductions and changes the amount of taxes owed in relation to profits earned. Arguably the best explanation is that a person or people realize how important the community is to themselves and their business interests, and with the best of intent want to return the support the community has provided the organization with a show of appreciation for their continued business.

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How To Succeed With Expense Tracking Management

kazim qasim

To succeed in business, small business owners must keep a close eye on expenses. Poor expense management can destroy your profit on a project or business venture. A component of expense management is expense tracking.

If you’re not keeping track of your expenses, it’s easy to go over budget. Even if you’re still making a profit and don’t think you need to pay close attention to them, if you don’t have good records you won’t be able to take all your allowable deductions on your taxes.

How important is it to Track Business Expenses?

Without detailed, monthly information on your business’ performance, it’s easy to be running at a loss for several months and not even be aware. Cash flows which don’t align, such as customers pay deposits or large sums before you incur expenses on those projects, can mask your businesses true financial health.

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Dissolving A Partnership Is A Delicate Affair

Kazim Qasim On Dissolving A Partnership

Going into business with a partner can be a great way to spread risk, to draw on each other’s skill sets, and to combine resources to grow your business. But, at some point, the partnership may not be serving either you or the business well. It might be time to dissolve it.

Dissolving a partnership is a delicate affair. It should be done in a respectful but efficient manner, and in a way that won’t hurt the surviving business.

Sign That It’s Time to Dissolve A Partnership

If you’re unsure if it’s time to end your partnership, you may be picking up on some of these signs.

The first would be a mismatch between partners. A lack of fit can take the form of different business goals or vision for the business’ future. It could also be more serious, such as a clash over ethics or work ethic. If you’re noticing signs that the fit may not be there, and attempts to address them with your partner have failed, it could be time to split.

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