Tax Identity Theft is a Significant Threat

I take security very seriously, so I want to post a reminder that tax identity theft is a growing problem. Unfortunately, it can take many forms, so beware if you:

R&D Tax Credit Changes Benefit Small Businesses

Do you design, develop or improve products, processes, techniques, formulas, inventions or soft ware?  If your company has invested time, money and resources toward the advancement and improvement of its products and processes, then you may qualify for the R&D Tax Credit. 

The intent of the Sec. 41 research and development (R&D) credit is to give companies incentive to invest in innovation within the United States. The R&D credit is available to companies in a variety of industries that develop new or improved products or processes. Certain wages, supplies, and contract research costs

Taxes and Divorce

If you’re going through a divorce I don’t need to tell you it’s a significant emotional and financial event. The last thing you may have on your mind is how the breakup will affect your taxes. Most people think that their divorce attorney is going to take care of things. However if your divorce attorney does not have a tax background only basic thought will be given to the tax planning.

Work Opportunity Tax Credit

What is WOTC?

WOTC is a Federal tax credit available to employers who hire and retain veterans and individuals from other target groups with significant barriers to employment. Employers claim about $1 billion in tax credits each year under the WOTC program. There is no limit on the number of individuals an employer can hire to qualify to claim the tax credit, and there are a few simple steps to follow to apply for WOTC.

· WOTC Program Brochure

· Video: An Introduction to WOTC

· WOTC Tutorial: A Step-by-Step Guide for Employers

· Employer's Guide to the WOTC

How does WOTC Work?

Seven Steps for Making Identity Protection Part of Your Routine

The theft of your identity, especially personal information such as your name, Social Security number, address and children’s names, can be traumatic and frustrating. In this online era, it’s important to always be on guard.

Here are seven steps you can make part of your routine to protect your tax and financial information:

Tips for Wise Business Decision-Making

As you manage your business, you will be faced with important decisions that may impact the future of your company. This may seem stressful, but keep these tips in mind and you'll find yourself making wiser decisions in no time:

Elements of an Effective Business Planning and Budgeting Process

In my last posting I discussed the importance of having a Planning and Budgeting Process for your business.   Every business has this process some more formalized than others.  The following is a list of the universally accepted elements to an effective business planning and budgeting process.

Key Benefits of the Business Planning and Budgeting Process

This is the time of year that business owners need to continue to focus on the current year but also start thinking about next year. When we think about the future of your business the Planning and Budgeting Process comes to mind.  Every business has this process, some more formalized than others.   The benefits of planning and budgeting usually will outweigh the effort.  It's like anything else the more you put into it the more one can potentially get out of it.  The following discussion outlines the potential benefits of planning and budgeting.  (Pretty much a list of the typical roles and responsibilities of management.)

Open Database Connectivity (OBDC) in Excel

     As promised the following is the information on Open Database Connectivity (OBDC) function in Excel.  As you recall from my last blog we covered how Excel can connect to external data to create reports that can be refreshed or updated with current information.  ODBC complaint databases can be connected to Excel using the Data Connection Wizard or Microsoft Query.
     Microsoft Access can be used to extract data stored in external databases and then the data is transferred to Excel to create reports.  But if your accounting software supports ODBC, then Excel can access your historical data in your general ledger directly without re-keying any data or going

Built-In Office Data Connections (ODC) files in Microsoft Excel 2007

     One of the many Data Tools in Microsoft Excel is the Office Data Connection (ODC) designed to facilitate the re-use of external data connections.   Using this tool one can easily create financial reports that can be updated/refreshed with the click of a few buttons.  Excel has three built-in ODC files.  All three are web queries: 1) MSN Currency Rates, 2) MSN Major Indices, and 3) MSN Stock quotes.   To set-up these built-in ODC files in Excel 2007 open a blank workbook and simply click Data, Get External Data,

Tax Breaks for People with Disabilities Are Often Overlooked

Greetings.  As you know most accountants are very busy this time of year.  I haven't been able to write as much as I'd like, but I ran across the following tax information that I wanted to share.  The authors at http://www.allsup.com/ did a good job of summarizing tax breaks for disabled individuals so there's no point in me rewriting their article.   I have no affiliation with Allsup but I do like their article reprinted below.

4 Self-Employment Tax Savings Ideas for Small Business

There have been a lot of temporary and proposed tax changes targeted toward small business.  Of all these changes and proposals the Self Employment (SE) tax changes are some of the more helpful.  Here's some background and ideas to help you reduce your SE tax.

2 Popular Tax Breaks to pay for College and other Education Planning Ideas

The cost of college can be challenging for most parents and young adults getting ready to start.  Even if one plans ahead chances are you will not save enough to cover all of the expense.  One can not discount the value of a college education.  A recent article in Time magazine estimated that nearly 40 % of the

Federal Student Aid Planning, FAFSA application

The Free Application for Federal Student Aid (FAFSA) application needs to be submitted shortly after January 1 for students starting or returning to college in the fall.  As with most government programs funds are finite so it's best to apply early before the money runs out.  See http://federalstudentaid.ed.gov/  if you are interested in additional information on Federal Student Aid.  The website has a forecasting tool that is useful to determine how much financial aid one will qualify for if you'd like to get an early estimate for planning purposes.


 
Andrew Jordan, CPA
ajordancpa@comcast.net

Mining the Company Data

Data mining is the process of extracting patterns from data.  Data mining is seen as an increasingly important tool by modern business to transform data into business intelligence giving an informational advantage.  It is currently used in a wide range of profiling practices, such as marketing, surveillance, fraud detection, and scientific discovery.  (Source: Wikipedia definition of data mining)

Most business software allows one to extract data very easily by downloading it into Microsoft Excel or other types of files.   The data can be downloaded to included a number of data field combinations within each record. Once the information is in Excel it can be manipulated with

Break-Even Analysis Part 2

Break-even:  As one can see from my previous B/E analysis posting the additional sales needed to "breakeven" on a new hire decision can be challenging.  With new revenue hard to come by, why would a company add staff if sales have to be increased so much to make a profit on the decision?

Break-even Analysis

One way to look at a spending decision in one's business is to determine how much the company sales have to increase in order to pay for the amount one wishes to spend.  For example if you're making a $30,000 hiring decision and your contribution/gross margin is say 50% the company's sales will need to increase $60,000 in order to "break-even" on the decision.  In other words

Welcome!

Welcome to the Personal and Business Financial Forum started by me, Andrew Jordan, CPA.   I'm a financial professional with over 25 years experience working with businesses and individuals as a CPA, Financial Manager and Consultant.

Feel free to post your questions or comments.   My areas of expertise are tax, accounting, general business management and finance for businesses and individuals.  I can also be reached at ajordancpa@comcast.net for additional information.  Look forward to hearing from you!

Best Regards,

Andrew Jordan, CPA, MSF, CGMA