Mazuma is now Vyde

Resources

Author: Jake Snelson

What Does Tax Reform Mean for Me & My Business?

Nothing is sure but death and taxes, or so the saying goes. But what about when there’s tax reform? What’s sure about that. Ben Sutton takes on the Tax Reform as his topic for our first Vyde Webinar in 2018. Regardless of your political affiliation or whether or not you have a small business – this tax reform effects you! If you’re wondering what specific changes were included in the bill passed by Congress and how it will effect you and your small business come tax time make sure you watch this episode. It’s packed with useful information and gives a good starting point with how the changes might effect you.

If you don’t’ have 30 minutes to spare, we’d recommend taking a look at the show notes below – you’ll get a good idea what topics we cover in this episode. We’ve even included start times so you’ll be able to skip ahead or go back and rewatch those issues that you’ve got questions or are just looking to learn more about.

INDIVIDUAL TAX ITEMS

Standard Deduction – Doubled

start watching at 2:20

Personal Exemptions Taken Away

start watching at 3:40

Increased Child Tax Credit (added a new tax credit for children over 17)

start watching at 4:58

Mortgage Interest decreased to $750k

start watching at 6:40

Medical Expenses

start watching at 8:10

State and Local Taxes (SALT)

start watching at 8:55

Health Insurance Individual Mandate

start watching at 9:28

BUSINESS TAX ITEMS

New C-CORP Tax Rate

start watching at 10:30

Section 179 & Bonus Depreciation

start watching at 11:16

Entertainment Deduction Taken Away

start watching at 13:23

Qualified Business Income Deduction (QBI Deduction)

start watching at 14:56

Do you have a question?

regarding the recent tax reform we didn’t answer? We’d love to talk taxes or bookkeeping with you. You can get connected with us here.

5 Tips for Starting a Side Business

So you’ve got a great idea and you’re working on starting a side business. We hear you. Owning and growing a small business is something that provides a lot of satisfaction, not to mention all the benefits that come with being your own boss. However, running a side business, or even a full-time business for that matter, is never as easy as it appears. So if you’re trying to decide the best way to go about making your good idea or hobby into a side business we’ve got 5 simple steps that will make your side business dreams into a reality.

Start out Simply

It all comes down to one simple question. Can you sell this to one person? If the answer is yes and you actually have – congratulations! Now it’s time to get moving on to the next step of making your side business idea a reality. If you haven’t asked yourself this question yet, it’s time get real. Instead of jumping ahead and investing cash into website, organizing an LLC, and marketing your products try selling your goods and services to one person, like a family member or friend. If you’re really looking to see if this venture will work, ask them for feedback on what caught their eye or how you could improve your product.

Once you’ve sold it, it’s time to set up shop. Still keep it simple. Starting a corporation or even an LLC takes more time and money that it may be worth at this point. Keep things easy by moving forward with your business as a sole proprietorship. Sell online. Operating at a smaller cost not only saves you money but gives you time to make the much needed cash you’ll be investing back into your business to make it grow.

Name Your Side Business and Check on Trademarks

Start thinking of names for your business. Make sure that your name makes sense and makes it clear to prospective customers what your business is or does. If you’re choosing a name that doesn’t clearly state what you do, consider adding a tagline, icon, or strategy that will help make it clear. Before you fall in love with your business name, do some research. Check out your business name against the Trademark Database at the US Patent and Trademark Office. Every state also has a government web page and most provide a business entity search. It will take a little research, but you’ll want to check both locations to make sure you’re name doesn’t infringe on an already existing business.

Make it Legal – State Filings and Business Licenses

No matter what your side hustle is, you’ll want to be sure you’re following the rules set by your state and county. You’ve probably already come across it, while researching for your business name and trademarks, but make sure to find out what’s required and complete the paperwork. Many new businesses start out as sole proprietorships, but now is a great time to consider the other business formation types, check what is required in your area, and decide if that’s the best fit for your venture.

Get Set up for Taxes

No business is successful if there isn’t some type of tracking system in place. At the very least you’ll need to set up some financials so you can rest assured that you’re ready to pay taxes on your earnings. Simple spreadsheets will do – simply track your business income and expenses, keep receipts, and check on the process of filing quarterly estimated taxes. You might even want to get an EIN from the IRS.

Make sure to put enough away for your taxes – we suggest between 15-25% of your net earnings.

Open an Business Account

This goes hand in hand with keeping financial records and being prepared for taxes. Although it’s not necessary for some business types, it keeps things simple and easy to follow. Business expenses and earnings always stay in one account while your personal finances are separate in a different account. That way when you’re filing taxes it will be easy to sort and provide proper paperwork to the IRS or the accountant you’ve hired to file your taxes. Not sure what makes a business banking account different than personal account? Do a little bit of research online and you’ll be able to compare different business account offerings and find one that fits your needs.

Once you’ve completed these steps, you’re a bona fide side business owner.

What is the first step to starting a side business?

Answer: The first step is to test your idea by selling to one person, such as a family member or friend. This helps validate your concept and gather feedback before making further investments.

How should I choose a name for my side business?

Answer: Choose a name that clearly reflects what your business does. Research the name in the Trademark Database at the US Patent and Trademark Office and your state’s business entity search to avoid any legal issues.

What legal requirements should I consider when starting a side business?

Answer: Ensure you’re complying with state and county regulations. This includes registering your business name, obtaining necessary licenses, and considering the appropriate business structure, such as a sole proprietorship or LLC.

How can I prepare my side business for tax purposes?

Set up a system to track your income and expenses, keep receipts, and understand the process for filing quarterly estimated taxes. Consider obtaining an Employer Identification Number (EIN) from the IRS and save 15-25% of your net earnings for taxes.

Why should I open a separate business account?

A separate business account simplifies financial tracking and tax preparation by keeping business expenses and earnings distinct from personal finances. This organization helps ensure accurate and efficient tax filing.

What should I do if I owe the IRS money?

Nothing is certain except death and taxes, or at least that’s how the saying goes. But it’s the uncertainty of how much is owed, and what to do if you don’t have enough to pay, that seems to bring a lot of worry and questions when it comes tax time. Today, we wanted to shed a little light on the question, “What should I do if I owe the IRS money?”.

The Do’s and Don’ts of Owing the IRS Money

The Don’ts

panic, be afraid, or delay filing
decide to put it off
don’t try to solve the problem alone – ask for help or additional information

The Do’s

file a tax return on time to avoid additional penalties and interest
pay what you can by tax day
check into payment options or talk to a certified accountant

Creating Your Strategy for Tax Payment

It’s fairly clear that you shouldn’t panic, but we understand that it’s easier said than done. So lets get to building you a strategy filled with action items so you can pick the best route for you and your small business in working with the IRS and getting them the money you owe. You’ll want to submit your paperwork for your taxes and pay what you can so you can decrease the overall interest and the penalty charges.

If you can’t meet the filing deadline, then request an extension to file. This doesn’t mean you’ll get an extension to pay, taxes are still due on the original date, but it will provide you with lesser penalties for late filing. Remember, the best thing you can do is get your finances in order, file your tax returns, and then get ready to work on what comes next – figuring out how to pay what you owe while keeping the penalties and interest owed to a minimum. Now lets talk payment options.

IRS Payment Options

What you might not know is that the IRS actually provides quite a few options for making payments, even when you’re late or can’t pay the full amount. There are 3 basic payment options. Each payment option is linked directly to the IRS pages outlining the details and forms you’ll need to submit, but you’ll want to read on to find the one that fits your circumstances best.

Online Payment Agreement

There are a few different options for online payment plans, so you’ll have to apply for this option and make sure you’ve met the standard requirements. For businesses, the IRS provides long-term payment plans (you’ll pay in installments). Here’s what you’ll need to do to qualify:

you’ve filed all required returns
owe less than $25,000 in combined tax, penalties, and interest.

If you’re a sole-proprietor or independent contractor you’ll apply for your payment plan as an Individual.

Keep in mind that a payment plan comes with some strings. There are fees that will be added to your tax bill for this option and are outlined upon approval.

Offer in Compromise

Offers in Compromise provide you with the chance to settle your tax set for less than the full amount you owe. Each application is considered on it’s unique circumstances which include: your ability to pay, income, expenses, and asset equity. Most applications are approved when the offered amount represents the most the IRS can expect to collect within a reasonable period. You’ll have a variety of forms you’ll need to submit and you’ll find those and be able to read all the fine print on this option here.

Temporarily Delay Collection

Temporarily Delay Collection means the IRS has determined that you’re unable to pay any of your tax debt. It DOES NOT mean that you’re debt free, rather that you’re collection has been put on hold until your financial situation improves. This option DOES NOT delay interest on the amount you owe, but adds the penalty fees and additional interest to your total owed. The IRS also has the right to file a Notice of Federal Tax Liens to protect their interest in your assets, so you’ll want to consider how this option will effect your abilities to run and grow your business before you take it.

When to Look for Accounting & Tax Help

The last thing you want to do is dive into making decisions without having all the information you need. Taxes are tricky – there are a lot of specifics and we totally get that dotting and crossing financial i’s and t’s might not be your thing. Racking up debt or having a stack of bills isn’t something you want to do either. So when do you take on a professional bookkeeper for your business or hire a certified accountant to file your taxes?

Seek out a professional accountant and see if they provide consultation services. All you might need is to sit down with an accountant once or twice a year. They know the ins and outs of tax codes, and can help you with a long-term financial strategy, both to get you out of debt, and also in working to pay off any overdue taxes to the IRS. Make sure to keep a list of questions that you have regarding your finances and taxes so you’re money is well spent.

Have additional questions or want to look into working with us? We’d love to talk with you – contact us here.

FAQs about Owing the IRS Money:

What should I do if I owe the IRS money?
Act promptly. File your tax return on time to avoid penalties and interest. Pay what you can by tax day. Seek professional advice if needed.
Can I delay filing my taxes if I can’t pay?
You can request an extension to file, but taxes are still due on the original date. However, this can reduce penalties for late filing.
What payment options does the IRS offer?
The IRS provides online payment agreements, offers in compromise, and temporary delay collections. Each has its own eligibility criteria and implications.
How do online payment agreements work?
If you owe less than $25,000 in combined tax, penalties, and interest, you may qualify for a long-term payment plan. Fees apply, and all required returns must be filed.
When should I seek accounting and tax help?
- Consider consulting a professional accountant if you’re uncertain about tax matters or need help with financial planning. They can provide valuable guidance and ensure compliance with tax codes.

5 Bookkeeping Tips & Strategies for Freelancers and Small Business Owners

Whether you have a steady nine to five or you’re a full-time entrepreneur managing your finances requires a lot of diligence. As a freelancer or small business owner you often are wearing many hats as you work on marketing, production, managing inventory, scheduling appointments and so on. Keeping the books may be on your ever-growing to do list, but it’s easy to push it to tomorrow, especially when you’re busy running the day to day stuff.

But putting your finances first can create a lot of freedom, not to mention help you grow your small business quickly. Who doesn’t want more time to network with clients, work to accomplish goals, or have enough extra cash to expand? We’re sure you’re nodding your head in agreement. So how do you as a freelancer, make your money work for you, instead of the other way around?

We’ve got a few strategies that might help you work bookkeeping into your normal routine. Plus we’ve proven that even just one or two will help grow your bottom-line and make your small business flourish.

Bookkeeping Strategies

Make a Plan – A dream is going to stay a dream, unless you make a plan. Taking even a few minutes to jot down a few goals and plan out your fiscal year can make all the difference when it comes to managing your money. It doesn’t really matter how you divide up your goals, but keep in mind that no one can do anything at once. As accountants and small business owners ourselves, we like breaking the year in to quarters. Sit down with a calendar and assign goals and tasks to each business quarter. You’ll want to dream big enough to make you stretch a bit, but plan well enough that executing the particulars is doable.

Tip: When you’re setting financial goals, play it smart. Ask yourself 2 questions.

How much money does will it take to run a sustainable business? (This means that you’ll need to take into consideration the cost of running your business, as well as what amount you’ll need to live on and meet your other financial obligations.)
How much money would I like to make? (This is the question where you put your dreams in the mix – make sure that you’re picking number that makes you stretch but that is still realistic.)

Then you’ll want to take those numbers and break them down. How much would you need to make each month? Each week? Each day? to reach your answers to questions 1 & 2. From here you’ll start looking at how to earn those amounts and go from there.

Make it a Date – We’ve found that we’re more consistent in sitting down with the books when we make it a date. Make it a point to sit down with your books regularly. Schedule it in your phone, in your work calendar, or even take a day off where you spend just a few of the hours working on your books with no interruptions. If you already do that, sit down and make a short list of financial matters you don’t seem to get around to – then plan to knock one out at the end of your bookkeeping sessions until you’ve completed the list.

Tip: Not everyone thinks working with numbers is fun. So take the idea of “date” literally. Make the hours you spend working on books fun by eating your favorite food, listening to music, or even meeting up with a business partner or another entrepreneur and working on the books at the same time.

Keep it Simple – We see it happen all the time. Just like New Year’s Resolutions people start off hardcore and get burned out quickly because it’s too cumbersome, detailed or just not their thing. Don’t plan to implement a complicated bookkeeping software if you’re a bookkeeping newbie or are barely keeping track of things with paper and pencil. Simple spreadsheets can get the job done and often cost far less (or are free) than the best software out there.

Tip: Look for other ways to simplify. Consider consolidating accounts, or putting all your spreadsheets together but separated by tabs, use automated bill pay if you can, and separate business and personal finances to avoid the headache of having to sort it out every month.

Put Money Aside for Taxes – The idea “a little becomes a lot” holds true when it comes to taxes. Nothing is more painful than having to cut a large check not to mention how stressful it can be the you know taxes are coming but you have no idea how much they’ll be or if you’ll have enough to cover them come tax time. Decide right now that you’ll set aside money for taxes every time you do your books. That way you’ll be ready and have at least a good chunk of cash ready when it comes time to pay.

Tip:

Quarterly taxes are something you can expect to happen 4 times a year. Include the dates. Because you’re a freelancer you’ll need to withhold your own taxes rather than rely on a W-2.

Pay yourself first – it seems like you should put the money where the need is and then pay yourself out of whatever’s left. But when you run your own business, it’s even more important to pay yourself first so you ca put money aside for savings. Any easy way to make sure this happens first thing is to set up an automatic transfer – you’ll hardly notice it and little by little it grow.

Tip: Sometimes as a freelancer income varies quite a bit month to month, so the idea of setting up an automatic transfer for a set amount can be iffy. If that’s the case, decide right now on a percentage that you can pull out of every paycheck that you’ll set aside for your own wages.

Now which strategy will you implement first in your bookkeeping approach? Have additional questions, we’d love to talk with you. Contact us here.

Top 10 Business & Accounting Posts for Realtors, Brokers & Property Managers

We’ve pulled together the Top 10 business and accounting posts for realtors, brokers and property mangers and complied them all in one place. Here at Vyde, we get that work keeps you busy – you’re in the industry of helping families, couples, and individuals make a fresh start with a new home. That said, there’s a lot going on behind the scenes as well – phone calls, setting up appointments, researching listings, and making new contacts – and that leaves little time to focus on bookkeeping or financial strategy.

These posts are filled with the expert advice we share with our clients who work in your industry. Our clients have implemented new ideas and put in processes and we’ve enjoyed hearing about the successes that come from having a strong bookkeeping and financial strategy for their business. So grab a pen and paper and take a minute to read through the posts that interest you most. We’d also love to hear your thoughts and successes in the comments below.

Top 10 Business & Accounting Posts for the Real Estate Industry

Have more questions about bookkeeping and taxes when it comes to your real estate business? We’d love to chat. You can contact us here.

A Complete Guide to Preparing your Businesses Taxes – Free Downloadable Checklist

There’s so much to do when it comes to running your small business. Hunting up paperwork, although important, isn’t probably at the top of your to do list – except at tax time. Make preparing for this year’s business tax filing a breeze by using our hand checklist. It includes all the items you’ll need to have on hand or provide to your accountant so they can file your taxes and you can get back to running your business.

General Information

A copy of your last filed tax return
If this is your first year filing a tax return for the business, we will need the following information for each owner:
- Full name
- SSN or EIN
- Address
- Phone Number
- Ownership percentages
Info about ownership changes occurring during the year

Documentation

December bank and credit card statements
All 1099s received
Merchant account annual summaries (Amazon, PayPal, Stripe, etc.)
Statements for outstanding loans (car loans, business loans, loans from owners, etc.) including the balance due at 12/31/2017
Information on large assets purchase, if not already provided (purchase price, amount financed, date purchased)

Common Business Deductions Not in Bookkeeping

The following items most likely will not show up in your monthly bookkeeping reports, so we would ask you to provide the information at year end if you haven’t already:

Business miles driven
Business use of home expenses

Tip: Spend just a few minutes each day gathering the items listed in each section – General Information, Income Items, and Deduction Items. Store all your papers in a manila folder and keep it handy so that if you run across items you can slip them in and then sort later. Also keep a stack of sticky notes or a pad of paper and pen handy so you can to down questions for your accountant as you think of them. Print off the downloadable checklist below and paperclip it to the front of your folder – check off the items as you find them, so you can see your progress.

Download the 2017 Business Taxes Checklist Here

Looking for some help on preparing your personal taxes for filing? We’ve got a handy checklist for that too – you can find it here.

A Complete Guide to Preparing your Personal Taxes – Free Downloadable Checklist

For an accountant and the early bird, January signals the start of tax season. We’re busy prepping our client’s books and hoping their doing the same. But not everyone loves tax season like we do; in fact, we know many people dread it. There’s all that paper work to find and put in one place. And don’t forget any receipts or paper work documenting applicable deductions. And it does seem that without fail your accountant will end up calling you to ask questions regarding your paperwork causing you to hunt up additional info and/or wrack your brain to remember the details of a purchase, expense, or contribution.

To keep everyone from having to spend a lot of extra time, we’ve put together a complete guide to preparing your personal taxes. If you follow this list, you’ll have a fairly comprehensive stack of paperwork that will streamline filing your taxes and hopefully help you avoid those phone calls form your accountant. Here’s what you’ll need to provide your CPA or gather together before you file your taxes for 2017:

General Information

Full names and relationship of all family members
Social security numbers for all family members
Birth dates for all family members
Filing Status – Married, Single, Head of Household, etc.
Full address
Estimated Payment Information (Dates and amounts of each payment) if applicable

Income Items (as applicable)

W2s received
1099s, 1098s, 1095s received (interest, dividends, capital gains, IRA withdrawals, etc.)
K1s received
Unemployment benefit statements
Social security benefit statements
Alimony
Rental property income documentation
Other Business income
Tax refunds from the State
Documentation related to any other income received

Deduction Items (as applicable, make sure to note questions you have and ask your CPA)

Health insurance status (were you covered all year?)
Changes in dependents
IRA/Retirement Contributions
Mortgage interest
Charitable contributions (cash, miles drive, other donations, etc.)
Medical expenses (including health insurance premiums)
Real estate and other taxes
Unreimbursed employee expenses (personal expenses paid for business, job search costs, uniforms, etc.)
Child and dependent care expenses
Questions about any other deductions

Download the 2017 Personal Taxes Checklist Here

Looking for some help on preparing your business taxes for filing? We’ve got a handy checklist for that too – you can find it here.

The 10 Most Popular Business & Accounting Posts of 2017

Year-end is a great time to do a lot of things. As accountants, wed recommend tying up loose ends in your business, working on closing your books, and gathering essential paperwork to make filing taxes a breeze. But the new year is also a great time to focus on things that went right in your business. It’s also a great time to look around and decide what things you might want to work on or learn more about.

We’ve gathered quite a bit of knowledge as we’ve worked with our clients. Some of the most frequently asked questions have stemmed from their desires to grow their business and go far beyond just the bookkeeping and financial aspects. We’ve learned right along with them in those areas (marketing, management, building community, etc), and given our best advice when it came to accounting matters and how to manage and track the dollars and cents.

After taking a look at our stats, we’ve pulled together the 10 most popular business & accounting posts for 2017. You’ll find they cover a lot of accounting but also a few great topics that seem to be on the minds of many small business owners. We hope you’ll find some key pieces of information that might help you as you plan your strategy for the new year ahead.

General Top 10 Posts

Saving on Taxes – Last Minute Questions to Ask Your CPA

Everyone wants to save on taxes. Everyone. But who really has time to figure out all the details when it comes to taxes and bookkeeping for small businesses? We’ve taken some of the questions we hear the most from small business owners and those just starting out in entrepreneurship and answered them. They’re the same answers we give to our paying clients – it’s our best advice and it’s helped dozens of small businesses be successful when it comes to saving on taxes time and again. So grab a pen and something to write with – we hope you’ll find a few good ideas to apply to your own business.

Want to catch a sneak peek of what’s included in the webinar? Scroll down to find the questions we cover and when to start watching. You’ll be able to find the things you’re most interested about and have an idea of other things we cover so you can come back and watch on those later.

What’s an EIN and do I need it?

(start watching at 1:14)

What’s the best way to figure out how much I should set aside for taxes?

(start watching at 2:35)

Should I pay my taxes quarterly or just once a year?

(start watching at 5:47)

I only pay taxes on the money that I take out of the business, right?

(start watching at 9:40)

Is medical insurance premium tax exempt for joint filing?

(start watching at 11:12)

Is there anything I can do before the end of the year that will help me save on taxes?

(start watching at 15:19)

What is a SEP IRA?

(start watching at 18:52)

If it passes, will the proposed tax bill effect my 2017 taxes?

(start watching at 22:57)

How do I know how long it should take for me to break-even, or be out of the red, as I start my business?

(start watching at 24:53)

Do you have a question regarding your personal or small business taxes we didn’t answer? We’d love to talk taxes or bookkeeping with you. You can get connected with us here.

The Ultimate Guide to Business Holiday Gift Giving

With the holidays upon us, it’s the perfect time to make your list and check it twice when it comes to gift giving. We’re sure you’ve got it covered for family and friends, but have you thought about employees, clients, and co-workers? There are a ton of questions, dos and don’ts, and even great ideas on how the gifts you give can potentially provide you with a tax deduction. That said, you’re busy with the holiday bustle and don’t have time to call your accountant, figure out gift giving rules outlined by the IRS, or even create a strategy for your business holiday giving.

We’ve talked about it in year’s past, and this year we’ve pulled it together so you have an easy reference point. Figure out what to give, to whom, and how much to spend (and what that means in possible tax deductions). Plus, have a strategy for sending, giving and review the dos and don’ts of business holiday gift giving – to make your gift the most meaningful and this holiday season the least stressful.

Want to know what gifts are tax deductible?

Vyde’s Business Holiday Gift Giving Guide: Part 1

Want to figure out what to give and who to give it to?

Vyde’s Business Holiday Gift Giving Guide: Part 2

Need to know the do’s and don’ts of of client gift giving?

Vyde’s Business Holiday Gift Giving Guide: Part 3

Need ideas broken down by budget? We’ve listed our top gift ideas by price range.

Vyde’s Updated Holiday Gift Giving Guide for Small Businesses and Entrepreneurs

Want to know more about giving year-end employee bonuses?

Small Business Owner’s Guide to Year-End Employee Bonuses & Holiday Gifts: Part 1

Want other ideas for employee gifts if bonuses don’t fit this year’s budget?

Small Business Owner’s Guide to Year-End Employee Bonuses & Holiday Gifts: Part 2

Vyde is a licensed accounting firm (CPA) based in Provo, Utah, and members of the AICPA. We provide professional accounting services to businesses and individuals, with a focus on small business bookkeeping and taxes.