Why Update Business Accounting Software?


Many entrepreneurs ask us why update business accounting software so often? Well, when you buy accounting software, even if the installation goes well, you will eventually grow frustrated when you don’t get the return on investment you’d expected. There’s a simple reason for this: Stuff changes.

Technological improvements are occurring at a breakneck speed. So yesterday’s cutting-edge system can quickly become today’s sluggishly performing albatross. And this isn’t the only reason to regularly upgrade your accounting software. Here are two more to consider. [Read more…]

How to Decrease Your Business Insurance Costs


Adequate insurance coverage is, in many cases, a legal requirement for a business. Even if it’s not for your company, proper coverage remains a risk management imperative. But that doesn’t mean you have to take high insurance costs sitting down.

If you are wondering how to decrease your business insurance costs, there are a wide variety of ways. Just two examples are staying on top of facilities maintenance and improving the safety of those who work there. [Read more…]

What Are the Tax Implications of Making an Employee into a Partner?


In today’s competitive environment, offering employees an equity interest in your business can be a powerful tool for attracting, retaining and motivating quality talent. But what are the tax implications of making an employee into a partner? If your business is organized as a partnership, however, there are some tax traps you should watch out for. Once an employee becomes a partner, you generally can no longer treat him or her as an employee for tax and benefits purposes, which has significant tax implications. [Read more…]

Hire Your Children to Save Taxes for Your Business and Your Family


It can be difficult in the current job market for students and recent graduates to find summer or full-time jobs. If you’re a business owner with children in this situation, you may be able to provide them with valuable experience and income while generating tax savings for both your business and your family overall. [Read more…]

Don’t make hunches — crunch the numbers

Some business owners make major decisions by relying on gut instinct. But investments made on a “hunch” often fall short of management’s expectations.

In the broadest sense, you’re really trying to answer a simple question: If my company buys a given asset, will the asset’s benefits be greater than its cost? The good news is that there are ways — using financial metrics — to obtain an answer. [Read more…]

Can I Claim My Airbnb Rental as a Hotel?

A young couple run on the sandy beach toward the house in the late afternoon light.

by William E. Rogers MBA, CFP, EA

Vacation rentals are nothing new. For centuries travelers have opted to stay in private residences over hotels for a variety of reasons. It’s quite common here in Southern California with the lure of our local beaches and mountains for property owners to rent out their properties on a transient basis. Vacationers have long used the Internet to search for available properties by visiting sites like Craigslist or VRBO.com (Vacation Rentals by Owner). The emergence of Airbnb over the last few years has taken the industry to a whole another level. In fact, Airbnb has gained such large scale prominence that its nightly occupancy rates rival many major hotel chains. In 2015, 155 million guests stayed in Airbnb hosted properties that is 22% more than Hilton Worldwide.[i] Unlike other aspects of the sharing economy, long established tax rules do exist for vacation rentals. [Read more…]