Estimated tax refers to the quarterly payment of tax. The tax amount is based on the reported income of the filer. Most small business owners, independent contractors, and freelancers are required to report estimated taxes for the quarter. In this blog post, you will learn how to estimate tax using the accounting data prepared by […]
Nominal Account – Definition with Examples
You just got to know the difference between cash and accrual basis accounting. Another accounting term that baffles some business owners is a nominal account. Nominal Accounts are general ledger accounts that are closed at the end of the fiscal year. When do you use nominal accounts? And why would you use them? Nominal Accounts: […]
Best Practices for Organizing Business Receipts?
The task of organizing receipts or documents for income and expenses is at the back of the mind for most business owners. Accurate record keeping of these documents per IRS guidelines is essential as it will be helpful to defend your income and expenses during an audit. What are the best practices for organizing business […]
The 12-month Rule for Prepaid Expenses Explained
Businesses that use the cash basis of accounting record prepaid expenses at the time of payment. Under the accrual-based accounting method, the prepaid expense is recorded as an asset at the time of payment. The balance in the prepaid account is gradually transferred to the specific expense account over time. ThIRS requires all businesses irrespective […]
All About Submitting Form 1099
The IRS requires that taxpayers report certain types of income in Form 1099. Some of the income that is reported in the form include tax dividends, state tax refunds, IRS distributions, and credit card and debit card debt forgiveness. In this blog post, we will covertdue dates and other important information regarding Form 1099. You […]
Control Accounts for Small Business Owners
One of the most important parts of the double entry accounting method is the control accounts. The account is a cornerstone of bookkeeping. Outsourced bookkeeping service providers use the accounting method for preparing error-free financial reports. In this blog post, you will know what exactly a control account is. In addition, you will know about […]
Using Small Business Bookkeeping Services for Your Company in Virginia
Despite your success in running your own company, you may have no skill to handle your business’s books. You lack the time and patience to figure out complex mathematical figures. You do not want to risk your business’s future on your own ineptitude in keeping the books accurately. However, you also may not want to […]
Advantages of Professional Bookkeeping Services in Virginia
Regardless of the size of your organization, efficient bookkeeping services are crucial for your success. You can get this accomplished by hiring an additional member for your staff, or you can partner with an outside organization that can offer many more benefits. Here are the advantages of professional bookkeeping and accounting services for your business. […]
7 Bookkeeping Mistakes Small Business Owners Must Avoid at All Cost
Bookkeeping is an accounting activity that needs to be accurate at all times. It should be without any errors. This is important not just to avoid mistakes when filing taxes. Accurate bookkeeping will help you make informed decisions that will improve the bottom line. Avoiding bookkeeping mistakes will help in knowing the exact financial position […]
5 Best Business Bookkeeping Software Reviewed
Accounting software helps streamline bookkeeping activity. Using accounting software reduces errors and speeds up the bookkeeping process. The transactions can then be easily categorized into different categories. Selecting the right accounting software requires careful consideration. Here we will also review the best accounting software that professional outsourcing bookkeeping service providers use to record accounting data. 1. […]