Kazim Qasim | TaxConnections

21 Aug 2019

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

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.

Written by Kazim Qasim | Posted in Forming A Non-Profit

15 Aug 2019

How To Succeed With Expense Tracking Management

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.

Written by Kazim Qasim | Posted in Expense Tracking

07 Aug 2019

Dissolving A Partnership Is A Delicate Affair

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.

Written by Kazim Qasim | Posted in Dissolving A Partnership

24 Jul 2019

Mixing Personal And Business Finances

Don’t Mix The Personal And The Business; Keeping Finances Separate

When you launched your business you might not have paid much attention to keeping your personal and business finances separate. If a vendor needed to be paid you grabbed the closest checkbook and wrote out a check, even if it was a personal account. It’s not a big deal since it’s all yours, right?

Wrong. Keeping personal and business finances separate is actually quite important. Here are the reasons why it matters, tips on keeping finances separate, and what to do if you’ve co-mingled funds in the past.

Written by Kazim Qasim | Posted in Business Finances • Personal Finances

18 Jul 2019

Maximizing The Tax Benefits On Travel And Entertainment Expense

Travel and entertainment are legitimate deductions, but few business owners take full advantage of them. One reason may be that they fear that the deduction will be challenged by the IRS and they’ll have to undergo the scrutiny of an audit. Another reason may be because the owner is unsure of how to take the deductions or what’s allowed and what’s not allowed. To be clear, travel and entertainment are allowable deductions. the IRS understands that much of business is conducted over drinks, meals or on the golf course. Travel is also an obvious necessary to conduct business. If you’ve been hesitant about taking travel and entertainment deductions, here is a guide to maximizing the benefits of these deductions.

What’s Really Allowed?

The first thing is to feel more confident about what’s really allowed with travel and entertainment expenses. That will enable you to recognize the expense when it occurs and to fully take advantage of every possible deduction.

Travel Expense Allowances

Travel expenses related to your business activities are allowed in the following two categories:

Written by Kazim Qasim | Posted in Tax Expenses • TaxConnections • Travel And Entertainment

09 Jul 2019

Immediate Steps to Take If Your Identity Is Stolen

A recent study confirmed that over 16 million people were the victims of identity theft in the span of one year in America alone, which resulted in $16.8 billion in stolen money. Identity theft is dangerous to your wallet and to your credit. Identity thieves use your information to take out loans, obtain credit cards, make purchases, get apartment leases and much more. Since these items are acquired with your credentials, these people don’t bother paying bills on time or at all. In the vast majority of cases, when your identity is stolen you’ll be held responsible for all the outstanding debt.

Warning Signs Of Identity Theft

The Federal Trade Commission has outlined some helpful warning signs to know if your identity may have been stolen. These include:

Unfamiliar bank activity on your bank statements
Collection calls from debtors you don’t recognize
Merchants suddenly declining your check purchases
Unusual credit report activity
Letters that you’ve been denied credit when you did not apply
Bills for services you didn’t sign up for
Unusual lack of mail
Medical claim rejections
IRS notice that your refund was already disbursed
Published news that a company has had their data hacked
Your wallet has recently been lost or misplaced

Written by Kazim Qasim | Posted in Identity Theft

23 May 2019

Small Business Credit Options To Manage Cash Flow

Qasim Kasim- Small Business Credit Options

Small business owners quickly learn the importance of monitoring their cash flow. The flow of money in and out of your business can impact everything from the stock you have to sell to keeping the lights on. In a perfect world, your cash flows would align.

All of our customers would pay their bills before your invoices came due. Or you’d pay the food vendor after a busy weekend of full tables in your restaurant. But this isn’t always the case.

Even successful business owners can encounter cash flow problems. You may not have control over when bills must be paid versus when your customers pay. Or unexpected repairs or broken machinery could throw a wrench in your budget. Small business owners quickly learn that having access to capital for emergencies can help them survive and stay in business.

Written by Kazim Qasim | Posted in Small Business Credit Options

21 May 2019

7 Biggest Mistakes In Handling Accounts Receivables

Qasim Kazim - 7 Mistakes Made In Accounts Payables

Managing your company’s accounts receivables is one of the most critical aspects of fiscal health. Yet, many business owners fail to effectively handle their accounts receivables, either directly or indirectly. Poor accounts receivables policies can lead to a bevy of problems involving client relations, cash flow, tax return complications and even legal issues. Seven of the biggest mistakes in handling accounts receivables are outlined here, with advice about how to avoid each one.

1. Letting Accounts Receivables Age Too Long

The longer your accounts receivables age, the more of a threat they become to your cash flow. Also, the longer you let these sit without contacting the debtor the less likely it is that you’ll ever get paid.

Written by Kazim Qasim | Posted in TaxConnections

15 May 2019

How To Handle An Audit Notification

The percentage of tax returns being audited each year has steadily declined, due in part to dwindling government resources. Still, if you’ve been notified of a pending audit, those percentages don’t mean much. The only thing that matters is the situation that you’re now in. There are two kinds of audits; in person and by mail. It’s disconcerting to receive an audit notification, no matter what kind. If you find yourself in this situation, here’s how to handle it.

Notify Your Accountant

The first phone call you should make is to your tax accountant. Your accountant will be an invaluable resource as the audit progresses, so you need to give them the pertinent date(s) of the audit to ensure the accountant’s availability. In addition, numerous financial documents will need to be provided to the auditor, and your accountant will have many of these records. They’ll need some time to get everything together and organized. The sooner you notify your accountant, the better prepared they—and you—can be.

Written by Kazim Qasim | Posted in IRS Audits

23 Apr 2019

Changes In The Tax Forms And Software This Year

Kazim Qasim - Changes In Tax Forms And Software

With the acceptance of the Tax Cuts and Job Act reform, we are now seeing the results of one of the most expansive tax law changes in nearly thirty years. With this came large changes to the forms and reporting structures themselves. No longer are Forms 1040-A or 1040-EZ available for use – everyone must file utilizing Form 1040. While the Form 1040 itself is greatly reduced, there is additional paperwork that may need to be completed in order to properly calculate your tax breaks and deduction. In June of 2018, the IRS released the first drafts of the form for review by its partners in the industry, and after revisions, Form 1040 was approved and released for public use. Much like prior years, the Form 1040 will utilize a summary of schedules format. Taxpayers with relatively straightforward tax situations will be able to file a Form 1040 with no numbered schedules. However, for those needing to file the form with additional supplemental information, the schedules are far more extensive, including income and adjustments, tax calculations, credits and designations.

Written by Kazim Qasim | Posted in TaxConnections

26 Mar 2019

Commonly Overlooked Tax Deductions

Taxpayers know that there are tax deductions out there to be utilized to reduce the taxes paid on your income. Most are aware of the common deductions, but there are many deductions that simply get overlooked by most taxpayers.

Gifts to charity is a good place to start. Most taxpayers know that when you give a gift of money or items to a qualified charity, you can deduct the value of this gift, with proper documentation. One common item that gets missed is the miles that you drove or out-of-pocket expenses you paid for the charities benefit.

Most taxpayers also consider mortgage interest. Though less taxpayers are claiming the interest on their mortgage (due to no longer taking itemized deductions with the increase in the standard deduction), mortgage interest still remains a large deduction. An additional deduction that is sometimes missed are the points associated with refinancing your mortgage. Additionally, when you pay-off or refinance a mortgage that has points still remaining, you can deduct those points in full. Be aware that using the same lender for another mortgage often means that the remaining points simply get rolled into the new mortgage and are therefore not deductible.

Written by Kazim Qasim | Posted in Tax Deductions • TaxConnections

07 Mar 2019

Cash Versus Accrual Under The Tax Cuts And Jobs Act

The Tax Cuts and Jobs Act of 2017 has led to changes in the way companies choose to be taxed. Prior to the tax reform, many businesses were required to use the accrual method of accounting. But with the change in tax law, businesses with $25 million or less in annual revenue over the prior three years can use the cash method. More businesses are choosing the cash method of accounting instead of the previous accrual method, but what is the difference between cash and accrual methods of accounting?

Every business must make a decision on how and when to record income and expenses. Making the choice between the cash and accrual methods is about the timing of when revenue and expenses are recognized and reported. On their most basic levels, cash accounting is a recording of the transaction when the money actually changes hands, while in accrual accounting the transaction is recorded when it is earned or established. Cash is immediate and accrual is anticipated.

Written by Kazim Qasim | Posted in TaxConnections