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Returning Value Blog

What's the Best Accounting Method Route for Business Tax Purposes?

Posted by Lesley L. Price, CPA on Feb 12, 2024

Businesses basically have two accounting methods to figure their taxable income: cash and accrual. Many businesses have a choice of which method to use for tax purposes. The cash method often provides significant tax benefits for eligible businesses, though some may be better off using the accrual method. Thus, it may be prudent for your business to evaluate its method to ensure that it’s the most advantageous approach.

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Posted in Business Tax

Liquidity Overload: Why Having Too Much Cash May Be Bad for Business

Posted by Jessica L. Pagan, CPA on Feb 12, 2024

In today’s uncertain marketplace, many businesses are stashing operating cash in their bank accounts, even though they might not have imminent plans to deploy their reserves. However, excessive “rainy day” funds could be an inefficient use of capital. Here’s a systematic approach to help estimate reasonable cash reserves and maximize your company’s return on long-term financial positions.

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Posted in Business Tax

Update on IRS Efforts to Combat Questionable Employee Retention Tax Credit Claims

Posted by Nick Wheeler, CPA on Feb 05, 2024

The Employee Retention Tax Credit (ERTC) was introduced back when COVID-19 temporarily closed many businesses. The credit provided cash that helped enable struggling businesses to retain employees. Even though the ERTC expired for most employers at the end of the third quarter of 2021, it could still be claimed on amended returns after that.

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Posted in Business Tax

2024 Q1 Tax Calendar: Key Deadlines For Businesses and Other Employers

Posted by Jessica L. Pagan, CPA on Jan 24, 2024

Here are some key tax-related deadlines affecting businesses and other employers during the first quarter of 2024. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. If you have questions about filing requirements, contact us. We can ensure you’re meeting all applicable deadlines.

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Posted in Business Tax

Tax-Favored Qualified Small Business Corporation Status Could Help You Thrive

Posted by Lesley L. Price, CPA on Jan 23, 2024

Operating your small business as a Qualified Small Business Corporation (QSBC) could be a tax-wise idea.

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Posted in Business Tax

The Standard Business Mileage Rate Will Be Going Up in 2024

Posted by Murry Guy, CPA on Jan 17, 2024

The optional standard mileage rate used to calculate the deductible cost of operating an automobile for business will be going up by 1.5 cents per mile in 2024. The IRS recently announced that the cents-per-mile rate for the business use of a car, van, pickup, or panel truck will be 67 cents (up from 65.5 cents for 2023).

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Posted in Business Tax

2023 Year-End Reminders Regarding Common Fringe Benefits

Posted by Murry Guy, CPA on Dec 14, 2023

As 2023 draws to a close, employers should review whether they have properly included the value of common fringe benefits in their employees’ and (if applicable) 2% S corporation shareholders’ taxable wages. This is especially true for 2023 and beyond, as many employers continue to deal with remote or hybrid workforces.

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Posted in Business Tax

Giving Gifts and Throwing Parties Can Help Show Gratitude and Provide Tax Breaks

Posted by Jessica L. Pagan, CPA on Dec 12, 2023

The holiday season is here. During this festive season, your business may want to show its gratitude to employees and customers by giving them gifts or hosting holiday parties. It’s a good time to review the tax rules associated with these expenses. Are they tax deductible by your business, and is the value taxable to the recipients?

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Posted in Business Tax

2023 Year-End Guide - Tax Accounting Methods

Posted by Lesley L. Price, CPA on Dec 06, 2023

A taxpayer’s tax accounting methods determine when income is recognized and costs are deducted for income tax purposes. Strategically adopting or changing tax accounting methods can provide opportunities to drive tax savings and increase cash flow. However, the rules covering the ability to use or change certain accounting methods are often complex, and the procedures for changing methods depend on the mechanism for receiving IRS consent — that is, whether the change is automatic or non-automatic. Many method changes require an application to be filed with the IRS prior to the end of the year for which the change is requested.

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Posted in Business Tax

A Company Car Is a Valuable Perk but Don't Forget About Taxes

Posted by Nick Wheeler, CPA on Dec 04, 2023

One of the most appreciated fringe benefits for owners and employees of small businesses is the use of a company car. This perk results in tax deductions for the employer as well as tax breaks for the owners and employees driving the cars. (And of course, they enjoy the nontax benefit of using a company car.) Even better, current federal tax rules make the benefit more valuable than it was in the past.

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Posted in Individual Tax, Business Tax

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