Archive for the ‘Business’ Category

New Filing Requirement for Business Owners with Self-Insured Health Plans (such as HSA’s and FSA’s)

Posted on: July 21st, 2014 by admin No Comments

Hidden within the Affordable Care Act of 2010 is a new tax that many businesses are not aware of.  In 2013, many employers were subject to the new Patient-Centered Outcomes Research Trust Fund Fee for the first time.  Self-insured health plans, as well as issuers of some health insurance policies, are now required to report […]

COST/PRICE MODEL: USE YOUR INCOME STATEMENT TO CHECK YOUR PRICES

Posted on: May 10th, 2014 by admin No Comments

Successful businesses set prices and then deliver services or produce goods at costs that are lower than these prices. The difference between the cost and the price creates the profit that the business earns as goods and services are sold. To price correctly, most companies develop some type of Cost/Price Model to estimate their costs, and then they apply […]

Presidential Budget Proposal includes tax changes- summary (FY 2015)

Posted on: March 26th, 2014 by admin No Comments

President Obama released his fiscal year 2015 budget last week by submitting to Congress a 3.9 trillion federal budget proposal aiming to increase government revenue by way of several large tax changes and numerous small ones.  While there are some favorable provisions, we expect this proposal will increase tax burdens for most of our clients.  […]

Fiscal year 2015 Budget Proposals- full version

Posted on: March 7th, 2014 by admin No Comments

Click online below to read 12 page full briefing by CCH 2015-Federal-Budget-Proposals  

GROSS PROFITS, OPERATING INCOME, NET INCOME AND EBITDA

Posted on: February 10th, 2014 by admin No Comments

—WHAT’S THE DIFFERENCE? Part One— Company owners, managers, bankers, and investors often talk about profits or income when discussing the financial performance of a business, but each may focus on very different numbers. While gross profits, operating income, net income and EBITDA all relate to earnings, each emphasizes a different aspect of financial performance. We will define each term by […]

ARE YOU PREPARED? NEW IRS REPAIR VS. CAPITALIZATION REGULATIONS

Posted on: February 10th, 2014 by admin No Comments

The IRS released final regulations dealing with when taxpayers are required to capitalize and when they can deduct expenses for acquiring, maintaining, repairing and replacing tangible property. All businesses that own fixed assets will be affected in some manner and are required to comply with these new regulations as of January 1, 2014. There are four basic areas which are […]

ROLLING FORECAST: THE BUDGET ALTERNATIVE

Posted on: January 10th, 2014 by admin No Comments

The benefits companies receive from traditional annual budgets may be diminishing. Given the current economic environment that most businesses face, they are constantly dealing with volatility and ever changing risks, thus the past is not always a good predictor of the future. Budgets are created based on prior periods and management assumptions, which now may be wrong. According to the Beyond Budget Round Table, by […]

Beware: Two New Taxes

Posted on: December 10th, 2013 by admin No Comments

Although the tax law is modified each year, the types of taxes we pay remain relatively constant. These include taxes on sales, income, property, estate/gift, social security, unemployment, etc. However, beginning in 2013, there is an introduction of two new taxes, which are part of the Affordable Care Act: Net Investment Income Tax and an additional Medicare Tax on wages and […]

Private Businesses Should Build An Income Budget

Posted on: November 10th, 2013 by admin No Comments

One way to start the dreaded but necessary BUDGET discussion with my private business clients is by admitting that, “I hate budgets”. Most of them quickly agree and then add, “Budgets take too long; budgets do not generate income; budgets are too complicated; budgets are always wrong…”

Are You Engaged in a Business or a Hobby ? The IRS May Not Agree

Posted on: October 9th, 2013 by admin No Comments

No matter the legal form of your business, the IRS may challenge your assertion that you are engaged in a business rather than a hobby. There is a significant difference in how the tax code treats hobby income and expenses versus business income and expenses. The IRS estimates that incorrect deductions of hobby expenses account for an estimated $30 billion […]