John A. Knutson & Co., PLLP (JAK + CO®)’s Post

Tax Information Every Business Owner Should Know: To comply with tax regulations and manage finances efficiently, small business owners should have an understanding of accounting periods and methods. Get critical information here: https://bit.ly/49aYSSd #SellYourWay #SellABusiness #BusinessAccounting

Why Learning Taxation and Accounting Matters in Business Today https://lnkd.in/gPSqxDWV #taxation #accounting #business #skills

Learn the 10 essential accounting KPIs your firm should track—from revenue metrics to leadership benchmarks—and start improving your firm’s performance today. #accountants #cpa #tax #finance

Discover how tax & accounting firms boost revenue and align with client needs using innovative pricing models—beyond the hourly rate! #TaxProfessionals #InnovativePricing #ClientSatisfaction #RevenueGrowth #accounting #news #finance https://lnkd.in/en-irJZw

#BusinessOwners: Be sure to evaluate whether #cash or #accrual accounting is best for your business to ensure you are using the most beneficial approach for tax purposes. https://lnkd.in/epjUzN_3

Are you making any of these accounting mistakes? We’ve outlined the top 5 accounting pitfalls that small business owners trip over, so you don’t have to make the same mistakes #businessadvice #SmallBusiness #accounting #tax #accounting #sussexbusiness #smebusiness #kentbusiness #watsonassociates #taxplanning

Tax season can be overwhelming, but a good review checklist can make it manageable. It guides reviewers through complex returns, highlighting areas that need extra attention. For managers, it provides a quick way to assess the thoroughness of each review. What key items are on your tax return review checklist? A recent blog post shares more thoughts on optimizing tax season workflows. It's a great resource for firms looking to streamline their processes during busy periods. Check it out: https://lnkd.in/dAve_49N #Accounting #GrowthStrategies #Entigrity

𝗪𝗵𝗮𝘁 𝗶𝘀 𝗗𝗲 𝗠𝗶𝗻𝗶𝗺𝗶𝘀 𝗦𝗮𝗳𝗲 𝗛𝗮𝗿𝗯𝗼𝗿 𝗘𝗹𝗲𝗰𝘁𝗶𝗼𝗻 : 𝗘𝘅𝗽𝗲𝗻𝘀𝗶𝗻𝗴 𝗦𝗺𝗮𝗹𝗹-𝗗𝗼𝗹𝗹𝗮𝗿 𝗔𝘀𝘀𝗲𝘁𝘀? #USTaxation,#TaxReporting 💡 𝗨𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱𝗶𝗻𝗴 𝘁𝗵𝗲 𝗗𝗲 𝗠𝗶𝗻𝗶𝗺𝗶𝘀 𝗧𝗵𝗿𝗲𝘀𝗵𝗼𝗹𝗱 The de minimis 𝘀𝗮𝗳𝗲 𝗵𝗮𝗿𝗯𝗼𝗿 𝗶𝘀 𝗮 𝘁𝗮𝘅 𝗽𝗿𝗼𝘃𝗶𝘀𝗶𝗼𝗻 𝘁𝗵𝗮𝘁 𝗮𝗹𝗹𝗼𝘄𝘀 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀𝗲𝘀 𝘁𝗼 𝗱𝗲𝗱𝘂𝗰𝘁 𝘁𝗵𝗲 𝗰𝗼𝘀𝘁 𝗼𝗳 𝗰𝗲𝗿𝘁𝗮𝗶𝗻 𝘀𝗺𝗮𝗹𝗹-𝗱𝗼𝗹𝗹𝗮𝗿 𝗮𝘀𝘀𝗲𝘁𝘀 𝗶𝗻 𝘁𝗵𝗲 𝘆𝗲𝗮𝗿 𝘁𝗵𝗲𝘆 𝗮𝗿𝗲 𝗽𝘂𝗿𝗰𝗵𝗮𝘀𝗲𝗱, rather than capitalizing and depreciating them over their useful lives. This can simplify accounting and tax compliance for businesses. The key factor determining the de minimis threshold is whether the taxpayer has an Applicable Financial Statement (AFS). ➜𝗧𝗮𝘅𝗽𝗮𝘆𝗲𝗿𝘀 𝘄𝗶𝘁𝗵 𝗮𝗻 𝗔𝗙𝗦: For businesses required to file financial statements with the SEC, have certified audited financial statements, or submit financial statements to a federal or state government agency (excluding the SEC or IRS), 𝘁𝗵𝗲 𝗱𝗲 𝗺𝗶𝗻𝗶𝗺𝗶𝘀 𝘁𝗵𝗿𝗲𝘀𝗵𝗼𝗹𝗱 𝗶𝘀 $𝟱,𝟬𝟬𝟬. ➜𝗧𝗮𝘅𝗽𝗮𝘆𝗲𝗿𝘀 𝘄𝗶𝘁𝗵𝗼𝘂𝘁 𝗮𝗻 𝗔𝗙𝗦: Businesses that do not meet the criteria for having an AFS can use a 𝗱𝗲 𝗺𝗶𝗻𝗶𝗺𝗶𝘀 𝘁𝗵𝗿𝗲𝘀𝗵𝗼𝗹𝗱 𝗼𝗳 $𝟮,𝟱𝟬𝟬. ➜𝗦𝗮𝗺𝗽𝗹𝗲 𝗗𝗲 𝗠𝗶𝗻𝗶𝗺𝗶𝘀 𝗘𝘅𝗽𝗲𝗻𝘀𝗶𝗻𝗴 𝗣𝗼𝗹𝗶𝗰𝘆 To effectively implement the de minimis safe harbor, businesses should establish a clear accounting policy. Here's a sample policy: 𝗣𝘂𝗿𝗽𝗼𝘀𝗲: This policy outlines the 𝗰𝗿𝗶𝘁𝗲𝗿𝗶𝗮 𝗳𝗼𝗿 𝗱𝗲𝘁𝗲𝗿𝗺𝗶𝗻𝗶𝗻𝗴 which assets will be capitalized and depreciated, and which can be expensed under the de minimis safe harbor. 𝗖𝗮𝗽𝗶𝘁𝗮𝗹 𝗔𝘀𝘀𝗲𝘁 𝗗𝗲𝗳𝗶𝗻𝗶𝘁𝗶𝗼𝗻 𝗮𝗻𝗱 𝗧𝗵𝗿𝗲𝘀𝗵𝗼𝗹𝗱𝘀: A capital asset is defined as property 𝘄𝗶𝘁𝗵 𝗮 𝘂𝘀𝗲𝗳𝘂𝗹 𝗹𝗶𝗳𝗲 exceeding one year 𝗮𝗻𝗱 𝗮 𝗽𝗲𝗿-𝘂𝗻𝗶𝘁 acquisition cost exceeding: >$5,000 (if the business has an AFS) >$2,500 (if the business does not have an AFS) Assets meeting these criteria will be capitalized and depreciated. Assets costing less than the applicable threshold will be expensed in the year of purchase. 𝗖𝗮𝗽𝗶𝘁𝗮𝗹𝗶𝘇𝗮𝘁𝗶𝗼𝗻 𝗠𝗲𝘁𝗵𝗼𝗱 𝗮𝗻𝗱 𝗣𝗿𝗼𝗰𝗲𝗱𝘂𝗿𝗲: >Assets 𝗰𝗼𝘀𝘁𝗶𝗻𝗴 𝗯𝗲𝗹𝗼𝘄 the de minimis 𝘁𝗵𝗿𝗲𝘀𝗵𝗼𝗹𝗱 𝗮𝗿𝗲 𝗲𝘅𝗽𝗲𝗻𝘀𝗲𝗱. >Assets with a useful life of 12 months or less must be expensed. 𝗗𝗼𝗰𝘂𝗺𝗲𝗻𝘁𝗮𝘁𝗶𝗼n: Invoices supporting the acquisition cost of each asset must be retained for at least 𝘀𝗲𝘃𝗲𝗻 𝘆𝗲𝗮𝗿𝘀. 𝗘𝘅𝗮𝗺𝗽𝗹𝗲: If X Corporation has a written policy to expense assets costing $5,000 or less and purchases 10 computers at $5,000 each, it can expense the entire $50,000 purchase under the de minimis safe harbor. 𝗞𝗲𝘆 𝗖𝗼𝗻𝘀𝗶𝗱𝗲𝗿𝗮𝘁𝗶𝗼𝗻𝘀: 𝗘𝗹𝗲𝗰𝘁𝗶𝗼𝗻: Businesses must make an annual election to use the de minimis safe harbor. 𝗗𝗼𝗰𝘂𝗺𝗲𝗻𝘁𝗮𝘁𝗶𝗼𝗻: Accurate and complete documentation is crucial for supporting de minimis expenses. RSM US LLP LinkedIn LinkedIn Guide to Networking

Harnessing Advanced Accounting Techniques for Optimal Tax Benefits Click the link to learn more: . . . #AdamHodsonCPA #Accountant #CPA #SmallBusinessTax #TaxPreparationService #BookkeepingService #FinancialAdvisory #WealthManagement #LasVegas

Tax season can be overwhelming, but a good review checklist can make it manageable. It guides reviewers through complex returns, highlighting areas that need extra attention. For managers, it provides a quick way to assess the thoroughness of each review. What key items are on your tax return review checklist? A recent blog post shares more thoughts on optimizing tax season workflows. It's a great resource for firms looking to streamline their processes during busy periods. Check it out: https://lnkd.in/dbhag4wK #AccountReview #ReviewChecklists #Accounting