Business Meals and Entertainment Deductions Eliminated Businesses and freelancers who tend to get work done over dinner or drinks unfortunately lost a major deduction (even if it was limited to 50% of the actual costs before). Meals and entertainment for business purposes are no longer deductible regardless of who pays. The only exception to this is for employers hosting holiday
There is no set definition of the term “independent contractor” and as such, one must look to the interpretations of the courts and enforcement agencies to decide if in a particular situation a worker is an employee or independent contractor. In applying the economic realities test, the most significant factor to be considered is whether the person to whom service
Most people, even accountants, don’t know the answer to this question. And, in most cases the answer doesn’t matter. But, in those cases where someone wants to be technically correct the answer lies in what services a person performs. If a person is doing bookkeeping, they are a bookkeeper. If they are doing accounting, they are an accountant. What is
Make the right move… It is common among cash-strapped small businesses for the owners and their employees take on many responsibilities simultaneously. The job of financial accounting and general bookkeeping thus often goes to someone within the business who has not been formally trained for the task. Though this may be an effective way to reduce expenses, it could lead
According to the Internal Revenue System, the business you are in affects the type of records you need to keep for federal tax purposes. Your record-keeping system should also include a summary of your business transactions. This summary is ordinarily made in your business books (for example, accounting journals and ledgers). Your books must show your gross income, as well
