What is the Difference Between Tax Credits and Tax Deductions
Tax Liability Your tax liability is the total amount of tax on your income minus any non-refundable credits such as child tax credits and dependent care credits to name two. Your tax liability can also include additional taxes like self-employment tax, household employment tax, and tax penalties. Tax credits and tax deductions are arguably the best things we have in our tax system. Both will reduce […]
What Does an Accountant Do?
What is an Accountant? While the title: “Accountant” is sometimes used interchangeably to include “CPA”, “Bookkeeper” and “Financial Planner” there are important differences to keep in mind. If you are in the market for accounting services be sure to understand the benefits, limitations, and qualifications of each. Related Articles When to Hire a Forensic Accountant […]
When to Hire a Forensic Accountant
What is a Forensic Accountant? Forensic accountants are certified public accountants who are specialists in unfolding any questionable or suspicious financial issues for businesses, nonprofits, governmental entities, and individuals using an accurate and investigative method of gathering financial data. They are usually asked to assist in searching for any facts that would justify any fraudulent […]
Form 1040-EZ vs 1040A vs Form 1040
The Form 1040EZ no longer exists for use by taxpayers, but previous EZ filers may still qualify for a “simple return.” The IRS and Treasury Department attempted to simplify the basic Form 1040 document from a few pages to a “building blocks” system; the Form 1040 is now a single primary page with six new […]
What is Financial Planning?
What is financial planning? Financial planning is the process of documenting your current financial situation and setting future monetary goals. This process is utilized both by individuals and their families, and executives and their businesses. By considering financial assets, equity and liabilities one can get a clearer picture of both micro and macro activities necessary […]
How Small Business Owners Can Manage Their Accounting
When running a small business, you should have a basic understanding of accounting. Knowing the basics will make you feel confident in the future of your business, and you’ll have better knowledge to plan for your long-term financial success. As a small business owner, accounting helps you track and manage your money effectively, especially if […]
How Accounting and Accountants Help Small Businesses
As a small business owner, you may realize the importance of accounting in your business. Accounting helps your business reach success by knowing the needed information regarding cost and earnings, profit and loss, liabilities and assets for decision making as well as the activities for planning and control measures within the business. Accounting not only […]
What is a W4 Tax Form?
What is a W4 Tax Form? Anytime you start a new job, you’ll be required to fill out a new W-4. Your new employer gives you this form to fill out so that they can withhold the right amount of income tax from your paychecks. It’s important to get it right so that you don’t […]