Expenses Archives - Page 6 of 7

Dec
07
2016

Bill.com: Is it worth it for your business?

Recently, more and more companies have been partnering up with QuickBooks Online to enhance your experience with cloud based accounting. Bill.com has been the most popular update to come up in the recent years, and it may be worth looking into for your business

What is Bill.com?

Bill.com is a US based cash flow management and accounting system. It has the capability to process bill payments, send invoices, collect payments,

May
20
2016

Store or Shred? This Is How Long You Should Keep Your Tax Records

“Now that my income tax return has been filed and the filing deadline has passed, I can shred all my tax documents, right?” Wrong!

After you file your tax return, you should keep your tax return and records that support an item of income, deduction or credit shown on your tax return until the period of limitations for that tax return runs out. The period of limitations is the period of time in which you can amend your tax return to claim a credit or refund,

May
11
2016

What if a Nonexempt Employee Works Overtime Performing Multiple Jobs with Different Pay rates?

If you have nonexempt employees who work more than 40 hours in a single workweek performing two or more different jobs with different pay rates, you need to make sure that you are paying them properly. The Fair Labor Standards Act (FLSA) allows two different approaches to computing the rate for which overtime is paid:

1) The weighted average, which is the default approach outlined in 29 C.F.R. 778.115; or

2) The established rate associated with the job that caused the overtime to occur,

Apr
14
2016

Proposed Changes to the Minimum Salary for Exempt Employees

Between 1940 and 1975, the minimum wage for exempt employees was raised every five to ten years. In 1975, the minimum salary for exempt employees was set at $8,060 and $8,840 per year, depending on job duties. Roughly 30 years later, in 2004, the Department of Labor (DOL) updated the minimum salary for exempt employees to $23,660 per year. Now, the DOL is proposing an increase to $50,440 per year.

In general, an employee is considered exempt if all of the following apply.

Feb
17
2016

U.S. GAAP Changes to the Recording of Lease Expense

According to the AICPA, there has been widespread concern that the current nature of lease expense is not being accounted for in a way that truly represents the economics behind lease transactions.

On November 11, 2015, the Financial Accounting Standards Board (FASB) finalized a standard for the accounting of lease expenses. On January 12, 2016, the international accounting standards board issued its version for the change to accounting for leases requiring leases to be reported on the balance sheet either as an asset or a liability.

Dec
08
2015

Business Entertainment Expenses

When are entertainment expenses of a business deductible on a tax return? And which expenses are really entertainment for tax purposes in the first place?

Susan blog

A business can deduct 50% of its expenses to entertain clients, customers, or employees if those expenses are ordinary and necessary and they meet certain requirements. Ordinary means the expense is common and accepted in your trade or business. Necessary means the expenses are supportive and fitting for your business.

Nov
11
2015

Functional Expense Allocations

Non-profit organizations are required to report expenses by functional classification. The allocation of expenses is presented within the Statement of Activities or related notes to the financial statements. The functional expense reporting gives the donors more information about the types of programs and activities the organization has completed during the year to fulfill their mission.

The functional expense classifications are listed below:

Program Services – expenses relating to goods and services being distributed to beneficiaries,

Apr
28
2015

The Importance of Separating Your Business and Personal Expenditures

As a business owner, it seems as though there aren’t enough hours in the day. As a result, it makes perfect sense to take shortcuts when you can find them. For example, you are paying business bills…it’s late, you’re tired, and you realize that your home mortgage is due. So you pay it using the business checking account. Another example is using the business credit card to pay for personal expenses, like trips to the grocery store or filling up your vehicle with fuel.

Mar
07
2015

Stale-dated checks: What to do with them?

You have just finished reconciling your bank statement and you notice that a check you wrote six months ago has still not cleared your bank account. What do you do about it?

First, determine if it is a live check or not (such as an automatic withdrawal or credit card charge). Make sure that a replacement check was not cut or an order cancelled. If a replacement check was cut, then void the outstanding check.

Feb
26
2015

Keeping the Cash Safe – A Brief Control Overview

Whether you are a non-profit organization, a for-profit company, or an auditor, you have most likely encountered the need to understand what it means to have strong internal controls over cash, controls that are in place and operating effectively. So what exactly is an internal control (IC) and why does it matter?

An internal control is a financial process or procedure that enables the organization to safeguard its assets. When conducting an audit,