Professional Accounting Blog

    Accounting For Your Prosperity

    Brent Thompson

    Brent Thompson is a Senior Manager in the Tax Services Group. Brent and his wife Rachel have four daughters and enjoy cycling and hiking in CVNP.

    Recent Posts

    10 Differences Between QuickBooks Desktop and QuickBooks Online

    Posted by Brent Thompson on Mar 10, 2015 8:45:00 AM

    Topics: Small Business

    Have you heard about the online version of QuickBooks? If you haven’t yet, you will soon. It’s gaining notice in the world of accounting software. Since it’s an online product, technically it’s a service not software. There are several other ways online differs (some good, some bad) from the desktop version:

    1. Flexibility: The ability to access your data file from any computer with an internet connection is certainly convenient.
    2. Reduced administration: Updating installation and file backups become a thing of the past. Intuit automatically updates the website and your data is stored in the cloud.
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    How The Final Repair Regulations Will Impact You

    Posted by Brent Thompson on Feb 3, 2015 2:44:00 PM

    Topics: Tax Planning & Strategies

    With the 2014 implementation of the final repair regulations, the IRS hopes to reduce decades of controversy with taxpayers surrounding the determination of whether to deduct an expenditure as a repair or capitalize it as an improvement. Although the final repair regulations are expansive and complex, they have generally been well-received by tax practitioners and taxpayers, as they reduce much of the ambiguity that surrounded the deduct vs capitalize decision.

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    When are 1099’s Required?

    Posted by Brent Thompson on Nov 13, 2014 9:00:00 AM

    Topics: Small Business

    The question seems fairly straightforward. So then why does the IRS have 8 pages of instructions regarding the 1099-MISC form? There are multiple types of 1099 forms, but the following information applies to the 1099-MISC only. Let’s see if we can’t make this a bit simpler.

    Who?

    If you are making payments in the course of your trade or business, then filing the form 1099-MISC is required. Nonprofit organizations, trusts of qualified pensions or profit sharing plans of employers, payments by government agencies, and a few others are also considered to be engaged in a trade or business. 

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    Should I Take That Discount?

    Posted by Brent Thompson on Apr 17, 2014 2:52:00 PM

    Topics: Small Business

    First Things First 

    The first thing most new small business owners set as a priority is generating sales. There is an instinctive drive in the entrepreneur to find customers. Part of that drive is the sense that if someone turns over their hard-earned money, it’s a validation of the business concept. 

    However, those business owners who succeed quickly learn to also make the bottom line a focus. Generating sales is rewarding, but those sales must generate enough profits to survive and grow.

    There is yet another step to learn in growing a successful business. When a company has sales and profits, it must also have adequate working capital and cash flow. This final aspect of running a small business is the third essential step to long-term growth and stability.

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    Why You Need a Financial Statement

    Posted by Brent Thompson on Mar 25, 2014 8:42:00 AM

    Topics: Small Business

    There’s More to it Than Profit & Loss

    As a small business owner you are a risk-taking entrepreneur who likely has an instinctive feel for how your business is performing. You are well aware of how much (or little) income is being generated and you have a good grasp of how expenses are shaping up. This gives you a rough idea about profitability. So why is there never enough cash? Why do those crazy accountants say you owe so much tax? Why isn’t the banker as excited as you?

    Generally, entrepreneurs understand the basics of Profit and Loss. Income and expenses are the lifeblood of your existence. The elements of a Balance Sheet can be a bit more elusive. At its simplest, the balance sheet shows what the business owns, what it owes and what’s leftover for you.

    First Up: What is Owned or, in Accounting Speak, Assets

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    Collection Best Practices

    Posted by Brent Thompson on Feb 18, 2014 2:04:00 PM

    Topics: Accounting & Auditing

    The sales have been made, revenue has been trending up for a while, and customers and management are happy. But you seem to be having some concerns regarding cash flow. Does it seem like you seem to be struggling to make payroll once in a while, or even pay some invoices timely? Is it possible that part of the problem could be your collection efforts?  The following are some simple strategies that could help your company with getting cash in the door quicker than anticipated.

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    Why Budget? Tips for Easing the Budgeting Burden

    Posted by Brent Thompson on Dec 19, 2013 9:00:00 AM

    Topics: Small Business

    Budgeting can be a powerful tool used to define your business strategy. It can also provide timely information that enables a company to grow, meet goals, identify opportunities and help company personnel make successful decisions.  In general, budgeting can aid in cash flow management by preparing in advance for future cash needs as well as identifying profitable segments of a business. 

    So why is it that so many businesses don’t prepare budgets or if they do prepare budgets they aren’t being utilized?  The answer probably lies somewhere between the fact that they can sometimes be challenging, cumbersome and even time consuming.  Don’t worry.  It doesn’t have to be that way.  Here are some tips you can use to help ease the burden and to ensure that your budgeting process isn’t so painful.

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    1 Reason Small Business Owners Need to Think About 1099 Forms

    Posted by Brent Thompson on Nov 19, 2013 10:34:00 AM

    Topics: Small Business

    And 7 things that are good to know 

    1. It's the law.

    This could be the shortest blog post ever for that reason. . . but it’s not.

    To expound, the IRS requires that all income be reported. The various Forms 1099 (17 at last count) provide the means of reporting very specific income types that might not be captured elsewhere. If your business paid somebody (other than employees on payroll or for product purchases) the IRS wants to know about it. In fact, business income tax returns now include a question asking if Forms 1099 were filed as required with your signature, under penalty of perjury, certifying your response to be true.

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