Form W-2 and Form 1099s

This is a quick reminder that the IRS requires that you furnish your employees their W-2 and your contractors their Form 1099 by Monday January 31, 2011.





If you need assistance in meeting this deadline please contact me and I'll see if I can help you.





Best wishes, 

Gina

http://GLGcpa.com

Tax law can change daily, please talk to your tax adviser before making decisions that will affect your taxes.

Use Tax in QuickBooks

Typically when you go into a store a buy a taxable product the store collects the sales tax from you and remits that tax to the appropriate taxing authority.  However, when you buy items via the internet or out of state the company you buy it from may not be required to collect the sales tax from you.  If they do not collect the sales tax from you then you become responsible for remitting "use tax" to the proper tax authorities based on that purchase.

Many small businesses purchase items over the internet for their business from vendors who do not collect sales tax.  When this happens it's best to immediately record it in your accounting records so you don't forget to pay it.  You can usually remit this right along with the sales tax that you collect from your customers.

If you're using QuickBooks for your business, this is one approach that MAY work for your company.  This approach is NOT a good approach for every company.  It's best to talk to your QuickBooks ProAdvisor and/or accountant to determine if this method of tracking use tax will work for your business.

By doing the following the use tax that your company owes will show up in the "Pay Sales Tax Window":

1. Create a "Sales Tax Item" called "Use Tax" and use your use tax rate and your sales tax agency.


2. Create a "Other Charge Item" called "Reversing Items Sold" and indicate that this is a nontaxable charge and code it to an Income account.  You can create a new account for this or you could code it to the one you use for your inventory parts items.


3. Create a "Other Charge Item" called "Use Tax Expense" which should also be nontaxable and coded to an expense account such as "Use Tax Expense".


4. If you don't already have an item to subtotal the invoice add that as well.


5. Create a customer for your business in the Customer List and for the default tax code (in the Additional Info tab) use the "Use Tax" item you created.


6. Write invoices to yourself for the inventory part item you purchased.  Use the items cost as the selling price.  This will assure that you're calculating use tax on the cost of the items.  Once you are done entering the items you purchased without paying sales tax subtotal the invoice (use the subtotal item).  On the next line, use the "Reversing Items Sold" item and enter the subtotal of your purchase as a NEGATIVE amount.  This will zero out the cost of the pre-tax products on the invoice.  On the next line use the "Use Tax Expense" item and enter the amount of the use tax that is calculated at the bottom of this invoice as a NEGATIVE amount.  This will bring the total invoice to zero.

I've created this video, Record Use Tax in QuickBooks to demonstrate how to set this up, how to record an invoice and show you how it will look on your sales tax report.

Tax law can change daily, please talk to your tax adviser before making decisions that will affect your taxes.

A New Degree Can Make You a Better Entrepreneur

Earning a new degree can make you a better entrepreneur Being an entrepreneur is more than just having a great idea. Instead, it is about being able to execute and manage this idea. Having a small

business or bringing a great idea to life means understanding how to finance, sell, market, and then keep the accounting on this group.

This is where new degrees from online schools come into play. Having a degree in marketing, finance, accounting, and economics will give an individual a great number of skills that will help an individual become a successful entrepreneur or small business owner. The following includes some basic information about how a new degree will develop a person’s skills and make him or her a better entrepreneur.



Marketing is key to any business. After all, one has to sell an idea to people of all ages and backgrounds. Understanding how to create a marketing plan takes time. One has to understand the different marketing tools around – everything from advertising in local publications and holding promotional events to using social networking items – and understanding how to target specific groups of people. A degree in marketing will teach a person how to perfect the art of customer service, how to word advertisements, and how to really make items look attractive to specific types of people (businessmen, stay at home mothers, college students, etc.).



Economics is more than just counting money. Instead, it’s about understanding supply and demand. You need to be able to judge the market both in one’s community and around the world to understand how to lure people into a business or make an idea economically smart. After all, if there are tons of breakfast places in a community, one may want to rethink starting another one. Instead, a new idea should satisfy a need people have. This means understanding how to entice people into coming into your new business and investing in goods and services. An economics degree will help people read the news and read economic-focused statistics to understand how the market is changing and how changing interest rates and trends could affect the price of one’s goods as well as any small business loans one may have.



A business degree is another important investment. Such a degree will help a person manage the day to day operations of a group. Running a business is more than having a store and selling goods. Instead, it is also about understanding the basics of accounting – so that every expense is accounted for – as well as basic payroll information. Treating employees right means taking care of taxes, making sure checks are on time, and ensuring all laws are followed. Update one’s administrative skills and learn how to organize a store or price goods and services so that this idea or business is successful.



Starting a business means making a plan and understanding the ins and outs of how to make the most of an idea. Thus, one should know how to make a budget, develop a marketing plan, how to gauge the every-changing market, and how to keep track of how funds are spent or used. With enough planning, one can make the most of an idea. Entrepreneurs will arm themselves with important skills and information if they earn new degrees.

This is a guest post from C. H., a freelance writer.

Tax law can change daily, please talk to your tax adviser before making decisions that will affect your taxes.