Profile cover photo
Profile photo
O'Connor & CO. CPAs, LLC
34 followers -
Providing professional tax preparation to Individuals with complex tax situations and bookkeeping services to Individuals and Businesses
Providing professional tax preparation to Individuals with complex tax situations and bookkeeping services to Individuals and Businesses

34 followers
About
Communities and Collections
View all
Posts

Do you have deductible bad business debt?

Can you deduct your bad business debt this year? According to the IRS, the debt must be closely related to your trade or business. This type of bad debt is typically involves unpaid customer invoices, but it can also include business-related loans. To qualify as a deduction, these two statements must be true:

• The amount is already included as income or as an asset
• The debt is considered to be partially or completely worthless

Call for help determining whether or not you can deduct your bad debt as a business expense.

Add a comment...

Want to minimize rent and storage costs? Consider this

Have you ever considered that you could be spending less on storage and rent? Consider these ideas for cutting down on costs. For many small businesses, office rent and inventory storage costs are perceived as fixed. But are such expenses truly inflexible? Oftentimes, no.

Because rent and storage costs often constitute a significant portion of a business's total expense budget, creative owners who find ways to minimize those costs may reap substantial rewards. Consider the following questions when trying to shave some money off your rent and storage costs:

• Rent — Is it negotiable? If your business is located in an area with unoccupied office buildings, you may enjoy a strong bargaining position. Open up negotiations, especially if you're nearing the end of a lease term.

• Moving — Is it an option? Just because you settled in this location years ago doesn't necessarily mean you should stay put. You might get better lease rates across town, closer to your customer base or suppliers. Or you might pick up stakes and take your business back home.

• Subletting space — Should you become a landlord? If your current landlord agrees and your lease terms allow, additional cash may be generated by setting aside space for a rent-paying partner or another company. But be sure to consider possible ramifications. Confirm that you won't need the space in the near term, and don't forget to specify conditions under which the location can be reoccupied or the lease terminated.

• Inventory control — Can you minimize storage costs? If goods have been sitting on your shelves for too long, it may be time to sell, donate or otherwise dispose of them. Insurance, spoilage, interest and taxes (basically all the costs associated with storing unused or obsolete inventory) can eat up your budget in a hurry. If storage capacity is limited, disposing of obsolete stock may also free up space for saleable items and fresh materials.

Add a comment...

Help your child earn....saving for retirement really early is Awesome!

A way to give your child a head start on their retirement is to open a Roth IRA as soon as they start earning money. Set a goal to reach before they graduate and watch the balance grow 40x by the time they reach retirement age. Some ideas to get them earning money are babysitting, mowing lawns, summer jobs, internships or even hiring them to work for your business.

Hire your child for the next couple of months to give yourself a business deduction and a way to fund retirement for your child....keep the net pay and fund an IRA for them. Under a certain amount of income, there will not even be an income tax associated with their wages.  Also, under a certain age, they are exempt from FICA...so hiring your child can be a great idea on several levels.

Add a comment...

Post has attachment
Open enrollment for 2019 health insurance policies begins Nov. 1. Check out Healthcare.gov for more info.
Add a comment...

Protect your privacy in 5 simple steps

Your information privacy is important … yet it’s at risk every day. Take these steps to help you manage and protect your personal data.

Do you use a smart phone, tablet or desktop computer to connect with friends and make purchases, as well as share health concerns with your doctor? If so, your privacy may be at risk.

Companies called "data brokers" routinely compile information about your habits and preferences, including your favorite brands, recreational pursuits and credit habits. Data brokers use this information to create profiles and scoring models, which are then sold to retailers, advertisers and other organizations.
Although much of this activity is legitimate and may even help you snag a good deal, being careful when sharing personal information is always a smart choice. Here are suggestions on how to do so:

1. Think twice about what you share on social media. At best, data-mining companies may scour your profile to create a consumer file that's sold to marketers. At worst, fraudsters may use your posts to steal your identity or break into your house when you're on vacation. This doesn’t mean you have to close all your social medial accounts. Instead, be cognizant of the level of details you share about your life and your loved ones.

2. Be wary of free Wi-Fi. Some retailers use cell phone networks to keep track of the aisles you visit in their stores. Your local coffee shop might have a free — but unsecured — network. By logging on, you may unwittingly provide access to private information on your laptop or phone.

Use your own network or hotspot if you need to get online and want a secure way to do so.

3. Delete cookies. Small text files called "cookies" can be created and stored on your computer when you visit websites. Although cookies usually cannot be used to reveal personally identifying information, marketing firms may use the data to create a profile of your surfing habits.

Clear your browsing history and delete cookies on a regular basis. Use your browser's privacy settings to make this task happen automatically.

4. Lock down and protect your devices. You wouldn't leave town with your doors unlocked. Don't make the same mistake with your mobile devices and computers.

Establish a boot and/or reactivation password on each device. Use a cable lock when leaving your laptop in public places. Install anti-virus software on all mobile devices, and keep a watchful eye on easily stolen electronics.

5. Pay with cash. If you don't want strangers to learn your purchasing habits, use physical money. Sometimes that's the best way to keep private information to yourself.

We are in a day and age where our information is too readily available and privacy is almost something we no longer think we have a right to. Until you have had your identity stolen and spent months, countless hours trying to correct it, you won't know the damage it can do. Protect it to begin with.
Add a comment...

Don’t pay more because of underpayment penalties

A great way to make sure your tax bill isn’t larger than it has to be come April is to keep track of your 2018 withholding and/or estimated taxes. If you’ve underpaid, consider adjusting your withholding for the last few months of this year, or increasing your remaining quarterly estimate.

We have found many clients have withholding amounts that WILL NOT cover their 2018 tax liability, especially when combined with a spouses' income. Don't wait for what will surely be an unwelcome surprise in April 2019. Know where you stand on your payments today. Get tax planning if necessary to avoid the bad news or being unable to pay your outstanding liability due to too little withholding during 2018.
Add a comment...

Survive financial stress with these 3 mindset changers

Finances stressing you out? A few small tweaks to your mindset could help you handle the hard stuff. These are good ideas to put into place as the holiday season starts and you feel pressure to spend money you may not have.

Because financial stress is a normal part of life for most people, learning to cope with money worries is important — vital, in fact — for maintaining positive relationships, job productivity and personal health
.
If you're dealing with excessive anxiety about your finances, consider implementing the following three policies:

• Move forward and control what you can. If you've been laid off from your job, for example, don't spend time mulling over the idiosyncrasies of your old boss, the shortcomings of the guy who took your job, or anything else that's beyond your ability to change. Looking ahead and focusing on the things you can control can relieve stress now.

• Take charge. When dealing with personal finances, uncertainty can generate stress. Use your energy to start creating positive changes. For instance, preparing a written budget can bring your money worries into focus and provide a starting point for action. You may find that cutting out a few unnecessary luxuries can provide breathing room.

Getting the debt monkey off your back may take time, but watching your credit card balances decline for a few months can provide relief and hope for the future.

• Recalibrate your priorities. Remember that life is a lot more than money. If you're burdened with financial worries, take time to consider the many good things in your life you enjoy: health, family, nature — whatever gives you pleasure and a sense of well-being apart from your checkbook.

Sometimes talking to a trusted advisor also helps. If you'd like help with your finance or tax issues, give us a call.
Add a comment...

Secure your CPA firm for 2019 now

We turned down 15 - 20 people during the first 2 weeks of October who needed an individual return prepared. Late in the game I know, but we turned down people all tax season long as well. Individuals seem to be having a hard time finding firms that are still taking on individual clients, so it might behoove you to call during the down time BEFORE tax season to ensure you have someone to work with on your 2018 Individual return. We primarily work with businesses and the people who own them, so if you own a business and want to get secured with my firm, feel free to contact us. Our individual clients own a business, rental properties or have other complications, so we do not take all individual clients either, so find a firm that is a good fit for you now. Don't wait until early 2019 and have to scramble like so many people who called us this year.
Add a comment...

Do you have deductible bad business debt?

Can you deduct your bad business debt this year? According to the IRS, the debt must be closely related to your trade or business. This type of bad debt is typically involves unpaid customer invoices, but it can also include business-related loans. To qualify as a deduction, these two statements must be true:

• The amount is already included as income or as an asset
• The debt is considered to be partially or completely worthless

Call for help determining whether or not you can deduct your bad debt as a business expense.

Gurus for business: We use technology, standardized processes and apps to streamline your accounting so together, we can focus on the growth and improved success of your business tricia@oconnorcpafirm.com

Add a comment...

Do you have misclassified workers?

Have you misclassified your worker as an independent contractor or employee? Find out now and make a fix.

Independent contractor and employee — Do you know the difference between the two classifications? As you prepare your third-quarter 2018 payroll reports, take time to review the status of your workers to help you stay away from misclassification issues down the road.

Knowing the difference is crucial

Often, figuring out if a worker should be classified as an independent contractor or an employee isn't easy.

The IRS looks at several factors when determining if a worker has been improperly classified as an independent contractor by an employer. But the final determination depends on the facts and circumstances specific to your business.

Where should you start?

Under IRS rules, control is one useful way of resolving the issue. Evaluate your right to control both the end result expected of the person performing the service for your business, and the means of achieving that result. More control (like providing an office, materials or equipment) can indicate employee status.
What to do if misclassification occurred

If your workers have been misclassified, you'll need to begin treating them as employees. When you voluntarily change the classification of your workers, you may also be able to participate in the Voluntary Classification Settlement Program. This IRS program provides partial relief from employment taxes that would have been due in prior years, as well as the related penalties.

You can find more information on how the IRS classifies workers the Independent Contractor (Self-Employed) or Employee page on the IRS website.
Add a comment...
Wait while more posts are being loaded