BUSINESSTOWN Understanding Taxes for Small Business

Depreciation and Amortization Basics

What Is Depreciation? The bookkeeping and accounting concept of depreciation is really pretty simple. Asset depreciates. Measuring the loss in value over time of a fixed asset, such as a building or a piece of equipment or a motor vehicle, is known as depreciation. Depreciation is considered an expense and is listed in an income... READ MORE

A Beginner’s Guide to Inventory Accounting

Inventory accounting is more of an issue for product businesses, such as manufacturers, wholesalers, and retailers. However, if you are in a service business that also has some inventory, it could impact you, too. Inventory accounting comes into play when you buy, use, and also hold in inventory identical goods at different prices. This leads... READ MORE

Q&As: What’s the Best Way to Do My Accounting?

Q: How can accounting help me make money? A: Quite simply, accounting tells you whether you are making money. If you create a profit and loss statement each month, you can ascertain your position quickly. If you are losing money, you can make changes in your operations, such as increasing prices or reducing expenses, to... READ MORE

Prioritizing Bills When Money Is Short

When your cash crunch is looking particularly severe and you can’t pay all of your creditors, decide which ones to pay first. Sit down and strategize who you are going to pay first. Don’t just react to phone calls from creditors and try to do it day by day. If you do, you will make... READ MORE

A Comprehensive Guide to Business Taxes

Why can paying taxes be fun? Because they are more fun than going through an audit! And audits can be more fun than having your assets seized for failure to pay taxes! As Bill Bruns, one of my favorite Harvard Business School professors, would say, “I want to pay more taxes”—meaning you should look at... READ MORE

Understanding Employment Taxes for Small Businesses

Whether you have one employee or a hundred, you will be way ahead of the game if you get an outside firm to handle your payroll tax reporting and payment. So, before you do anything else, get yourself a payroll service to take all of the time, hassle, anxiety, and risk out of the payroll... READ MORE

Understanding Sales Tax for Small Business

Collecting Sales Taxes In most states and in many cities in the U.S., you must collect sales taxes on applicable sales. Historically, states and cites that charge sales tax only taxed products and not sales. However, now a few states are charging sales tax on a broad range of services; other states are taxing a... READ MORE