5 ways to speed up collections
Turning receivables into cash is among the most important things a business must do. Of course, it’s easier said than done. Here are five ways to speed up collections: 1. Streamline the billing process. You can’t collect what you don’t bill. Invoice customers promptly — as soon as the product ships, if possible. Or, if […]
Climbing the “hierarchy of needs” to find employee engagement
In 1943, psychologist Abraham Maslow set out his “hierarchy of needs.” This theory suggested that human behavior is a response to a variety of needs ranging from physical survival to self-actualization. At this point, you may be wondering, “What does any of this have to do with my business?” The answer is that truly engaged […]
Outsourcing an IT function? Ensure the dollars make sense
Many of today’s businesses have taken to outsourcing various IT functions. The goal of doing so is usually to save money. But rushing into such an arrangement could mean losing money on the project itself while diminishing employee morale and even compromising your reputation. Here are a few best practices to follow to help ensure […]
Prevent expense account padding with the right policies
Ask employees whether padding expense account reports is wrong and just about everyone will say “yes.” Yet inflated expenses continue to cost businesses thousands of dollars annually. For this reason, every company must establish the right policies to stop it. How it works To stop expense padding, you need to know how it works. Expense […]
Using independent contractors? Protect your business with these tips
Many businesses use independent contractors to keep payroll taxes and fringe benefit costs down. But using outside workers may result in other problems. The IRS often questions businesses about whether workers should be classified as employees or independent contractors for federal employment tax purposes. If the IRS reclassifies a worker as an employee, your company […]
The IRS can reclassify S corporation distributions as wages
If you run your business as an S corporation, you’re probably both a shareholder and an employee. As such, the corporation pays you a salary that reflects the work you do for the business — and you (and your company) must remit payroll tax on some or all of your wages. By distributing profits in […]
Grantor and Crummey trusts can be good options to fund a grandchild’s education
Do you wish to play an active role in funding your grandchildren’s college educations? As you examine the financing options, don’t forget about their impact on your estate plan. Two trust types to consider are grantor and Crummey trusts. Grantor trusts A trust can be established for your grandchild, and assets contributed to the trust, […]
Private foundations aren’t only for the rich and famous
If creating a family legacy of charitable giving is important to you, a private foundation might be the right estate planning vehicle. And this option isn’t just for billionaires. You may be able to effectively establish a foundation with an initial contribution as low as $250,000. Tax impact A private foundation is a tax-exempt entity […]
Now’s the time to start thinking about “bunching” — miscellaneous itemized deductions, that is
Many expenses that may qualify as miscellaneous itemized deductions are deductible only to the extent they exceed, in aggregate, 2% of your adjusted gross income (AGI). Bunching these expenses into a single year may allow you to exceed this “floor.” So now is a good time to add up your potential deductions to date to […]
Prepaid tuition vs. college savings: Which type of 529 plan is better?
Section 529 plans provide a tax-advantaged way to help pay for college expenses. Here are just a few of the benefits: • Although contributions aren’t deductible for federal purposes, plan assets can grow tax-deferred. • Some states offer tax incentives for contributing in the form of deductions or credits. • Indiana offers a tax credit […]
