Most businesses must pay taxes to the IRS. And, companies report information about their income, tax deductions, and tax payments on small business tax returns, which vary based on business structure. When nonprofit organizations apply for and gain tax-exempt status, they do not have to pay federal income taxes. So, do nonprofits file tax returns? […]
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According to one report, 65% of business comes from existing customers. But, do you know how much value each customer adds to your small business over the course of your relationship? To estimate the total that customers will spend at your company, calculate customer lifetime value.
Read More How to Find Your Customer Lifetime Value
Hooking new customers is an expensive pain point for many businesses. Your new customer acquisition cost (CAC) can be anywhere from five – 25 times as expensive as hanging onto your current buyers. How much are you dishing out on marketing to potential customers? Is all that spending paying off? To measure your efforts, you […]
Read More How to Find Your Customer Acquisition Cost
In business, the value of your assets doesn’t stay the same. An asset’s market value might be higher or lower than its book value. If the value of your assets permanently changes for the worse, you need to record the impairment of assets.
Read More How to Handle Impairment of Assets the Right Way
When you run a small business, one error in your accounting books can result in inaccurate financial statements, poor cash flow management, and even an IRS audit. To make sure your records are accurate, familiarize yourself with account reconciliation.
Read More Account Reconciliation for Small Business Owners
You might be familiar with the process of collecting sales tax from consumers. But, how much do you know about use tax? Understand the difference between sales tax and use tax, as well as your use tax responsibilities.
Read More Use Tax: What Small Business Owners Need to Know
Before you make business decisions or claims about profitability, you should have hard data to back it up. Small business financial ratios quantify your accounting data so you can improve operations, give lenders or investors insight into your business’s profitability, and measure growth. One popular metric businesses put stock into is the LTV:CAC ratio. Your […]
Read More Measure Your Marketing Efforts With the LTV:CAC Ratio
When you think of nonprofits with tax-exempt status, your mind might go straight to charitable or religious organizations. However, these types of groups aren’t your only options for becoming a tax-exempt nonprofit. If you own a social welfare organization, you can apply for 501(c)(4) status with the IRS.
Read More 501(c)(4) Social Welfare Organizations: How Much Do You Know?
Choosing a business structure is one of the first and most important business decisions you make. The type of entity you choose affects what business taxes you owe, your profits and losses, and the level of control you have in your company.
Read More Protect Your Business With a Partnership Agreement
When running a business, you likely face setbacks due to unforeseen costs. Unplanned expenses, like inventory shrinkage, can lead to a drop in profits and require you to alter your accounting books. To combat significant inventory shrinkage, you must familiarize yourself with what it is, why it happens, and preventative actions you can take. And […]
Read More What Is Inventory Shrinkage?