Advantages A limited number of employees have access to the control elements within the workflow. For example, in payroll, the person who write the checks are not the same person who signs the checks. When fewer people are involved, it’s easier to monitor actions and guard against irregularities. Making transactions transparent helps to increase efficiency. …
The process of creating and maintaining internal controls is a crucial part of managing a any business. These goals are related to the overall effectiveness and efficiency of the entity’s operations and the protection of its assets from loss. 5 Components The five key components of internal controls are: Control Environment Risk Assessment Control Activities…
If you’ve been watching any streaming services this winter, they’re filled with scammer stories that seem too outrageous to believe, such as “Inventing Anna,” “The Dropout,” “Ozark,” and “Dirty Money.” What do they all have in common? High-profiles and big-money fraud. What does this have to do with you, a business owner? There are a…
In the past, Form 8812 automatically calculated what your credits for qualifying children and other dependents should be and applied to your refund or tax due. For 2021, this has changed when the American Rescue Plan was enacted. The IRS made monthly Advanced Child Tax Credit (CTC) payments of up to half of your 2021…
The short answer is Yes. How to accomplish this should be done with a tax advisor and planning it out to maximize the tax strategy. Please read below to learn more about it. When you have a property as your primary residence, the only deduction you have available when you sell your property is meeting…
It is true you could legally avoid depreciation. However, if you depreciate every year it will put yourself at a disadvantage and lose the opportunity to claim tax benefits. Depreciation will not be avoided and when you sell the property you must “recapture” all the depreciations regardless whether or not you took it. This can…
Virtual Currency (Cyrptocurrency) is considered very secure because they use strong cryptography to verify the transfer of assets. When you buy and sell virtual currency, blockchain is used to record the transaction. Unlike transactions in stocks where you have a few lines listing Sale Amount and Date vs. Purchase Amount Date, blockchain can have a…
It is a pointy situation, but you should consider the IP PIN opt-in program Identity Protection PIN are not just for individuals who experienced identity theft. Starting in 2021, there is a volunteer program to opt into the IP PIN program to protect yourself from tax-related identity theft. I encourage anyone to opt-in because there…
Core Business Applications my clients use for Accounts Payable: QBO, Hubdoc and Bill.com Cloud accounting and it’s ecosystem is essential for any business. Invoicing customers, receiving payments, paying bills and keeping your data organized. For the “accounts payable department” of the business, Quickbooks Online with Hubdoc and Bill.com helps you perform this function with high…
How to use equity in your home and bypass the $750K Mortgage Interest Limitation Here’s what’s happening: Under Tax Cut and Jobs Act, for tax years beginning after December 31, 2017 and before January 1, 2026 a taxpayer may not deduct home mortgage interest expense greater than $750,000 mortgage on taxpayer’s principal residence. Here’s what…