Choosing the self-employed career path gives you a lot of personal power, and as we know, with great power comes great responsibility.
And one of those responsibilities is paying your taxes... But, just because you’ve chosen to shoulder additional responsibilities as a small business owner doesn’t mean that your stress level needs to rise just as much as your commitments have! You can learn how to cover all of your bases without stretching yourself to a breaking point.
One of the reasons tax season can be so stressful is because we try to ignore it for 11 months of the year. Running a business really requires you to be mindful of what and when taxes must be paid, and also how your income affects what you owe.
When you are aware of your tax obligations all year long.... tax season will no longer be a seasonal stressor, instead it becomes a review of what you’ve already done (and saved). For...
We know how demanding and stressful and hard it is to be self-employed.
We know how exhausting, frustrating and rewarding being your own boss can be. We also know that carrying around that stress can negatively impact all aspects of your life, not just your business!
And we know that when we're stressed.... how hard it is to stay inspired and focused on your passions and goals.
So we wanted to take a minute to share with you a stress reduction exercise that we do when we're feeling completely crushed by the overwhelming weight of the responsibilities of being self-employed...
So.... Whether you started your business 10 years ago, 10 months ago, or you've just come up with 10 ideas for your first business, we want to give you some strategies that work for us when we're feeling burned out and uninspired.
Whenever we're feeling like we can't keep up our head above water, it helps for us...
The 1099-Misc form is used to report non-employee income payments. If you only have regular employees, you’ll be giving them each a W-2 instead.
As a small business owner, it’s very likely that you will receive and send a 1099-Misc form at the beginning of the new tax year. These forms are used to show the IRS what you paid any non-employee workers.
If you’re are a contractor, your employers will send you a 1099 as a tax document recording how much money they paid you for that tax year. You will use these documents to provide the IRS with gross amount of money that you made as income for the tax year.
As a small business owner, there are several conditions under which you are required by law to send 1099s to your vendors or contractors:
Why do we need to reconcile our bank & credit card accounts?
To keep it simple... Because we want to make sure the transactions reflected in your business records match the transactions recorded by your bank.
We use bank (and credit card) statements to double check that the accounts in our bookkeeping system, accurately reflect the transactions in the physical account they represent.
The use of systems like double-entry bookkeeping help ensure that you enter the correct numbers in the right places; bank reconciliations is the "bow" you tie on your account that lets you know that all of your transactions were recorded correctly, then they match the actual transactions and balances in your bank accounts to make sure you didn't make any mistakes.
Now you might be wondering, do ALL of my accounts need to be reconciled? The simple answer is no. But to help you know which accounts do need to reconciled, here's a quick refresher about how your accounts...
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