Share what you know with millions of people

Focus is the best place to turn what you know into remarkable content

×

Diane Kennedy

Follow Following Unfollow

CPA, USTaxAid

90 points

CPA. Business Owner. Investor. Educator.

Aug. 1, 2011

Diane Kennedy and 4 other people answered this question

As my business grows, at what point do I need outside (or hire my own staff) help in accounting?

"Ditto" on everything that Kim said above. I would add two more items to consider.
(1) Tax law is constantly changing. Even with the simplest small business return, there are decisions to be made. Is it better to do a Section 179 or Bonus Depreciation ... more

July 6, 2011

Diane Kennedy and 3 other people answered this question

What are the advantages to an LLC compared to a Corporation?

An LLC (limited liability company) can elect how it wants to be taxed. So an LLC, can make an election to be taxed as an S Corporation or a C Corporation. For tax purposes, an LLC-S is identical to an S Corporation.
If you don't ... more

Business Finance

Company Formation

June 28, 2011

Diane Kennedy and 4 other people answered this question

Why are asests bigger than liabilities?

Oh, would that it was so! (assets are always bigger than liabilities) If assets are bigger then liabilities, as the other responders have stated, you have equity. And equity is what keeps us all in business and investments.
But asset values do go down and ... more

May 18, 2011

Diane Kennedy and 3 other people answered this question

How can one force a customer to pay outstanding debts without ruining the relationship?

When I saw the question, without your additional information, my initial response was "What relationship? Your customer ruined it by not paying."
But now that I see that you're collecting upon completion, here are some things I've seen done:
(1) Break up into 3 or more ... more

Customer Service

Accounts Receivable

March 26, 2011

Diane Kennedy and 1 other person answered this question

Won two iPads and 1 iTouch. Is it legal to lump them all together and tax me hugely w/no heads up?

Dottie, the IRS requires the awarding company to report the prize. You then have to pay tax on the value. Generally, companies will have some small print, or not so small print, that alerts anyone who enters a contest that they need to consult with ... more

Jan. 25, 2011

Diane Kennedy recommends this answer by Ryan Pollock

What is the worst airport?

The noise abatement rules at John Wayne Airport in Orange County often make for uncomfortable departures. Flying down the runway at or near full speed and a sharp bank turn after takeoff to avoid a "noise-sensitive area" make me wish I'd flown out of LAX. more

Business Travel

Jan. 25, 2011

Diane Kennedy and 6 other people answered this question

Why is accrual accounting essential to control?

Many of my clients are cash basis or hybrid basis taxpayers, but keep their books on accrual basis. That's because the accrual basis, which shows accounts receivable and payable, provides a better picture of the current profitability of the firm. The A/R and A/P also ... more

Dec. 28, 2010

Diane Kennedy and 2 other people answered this question

Effect of 100% write-off of PP&E in 2011

I suspect that businesses may be more likely to purchase new business assets in 2011. When you consider the 100% bonus depreciation in 2011 and the tax benefits that it could create, even if you finance the assets, it's almost too good to be true. ... more

Dec. 14, 2010

Diane Kennedy and 11 other people answered this question

Small Business Taxes Best Practices: What are your 3 tips for filing end-of-year taxes?

(1) Have up-to-date financial statements. These are critical for good planning.
(2) Get in touch with your tax pro as soon as possible. Estimate your taxes for the year and determine whether you can (and should) accelerate expenses and push off income to 2011.
(3) With ... more

General Management

Following 3 Topics

Following 0 People

Followed by 1 Person

Knowledgeable in 9 Topics

#45 of 749

#11 of 88

#57 of 341

#88 of 419

General Management

#215 of 1194

Customer Service

#191 of 785

#537 of 1456

Business Finance

#35 of 52

#56 of 91