Before 2020, business owners used one universal form, Form 1099-MISC, to report nonemployee compensation and other types of payments (e.g., rent). But after a 38-year absence, Form 1099-NEC made a return in 2020. So, how do these forms differ? Read on to learn all about Form 1099-MISC vs. 1099-NEC and which form you need to […]
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Form 1099-NEC for Reporting Contractor Payments
July 28, 2026After a 38-year absence, Form 1099-NEC made its return in the 2020 tax year. For the last few decades, business owners were responsible for using Form 1099-MISC to report nonemployee compensation. But with Form 1099-NEC, employers can say hello to a revamped form and goodbye to reporting nonemployee compensation on Form 1099-MISC.
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How to Transition From DIY Bookkeeping to a Professional Accountant
April 2, 2026Key Takeaways − It may be time to hire an accountant if bookkeeping eats your time, feels confusing, or risks mistakes Before you transition, clean up your records, choose accounting software, and document your processes. A smooth handoff includes: organizing data, granting secure access, and setting expectations with your new accountant. The right accountant plus […]
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Cost-benefit Analysis: The True Cost of Accounting Errors vs. Hiring a CPA
April 1, 2026Key Takeaways − Accounting mistakes can quietly cost you thousands in penalties, lost deductions, and bad decisions. Hiring a CPA costs money, but it can reduce errors, improve tax savings, and give you better financial insight. DIY accounting vs. hiring an accountant isn’t all-or-nothing. You can combine simple software with expert help. For many small […]
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Signs Your Small Business Has Outgrown DIY Accounting
March 31, 2026Quick Answer: You’ve likely outgrown DIY accounting when bookkeeping eats your nights and weekends, you’re second-guessing your numbers at tax time, and your books can’t keep up with growth. At that point, it’s time to upgrade your system, your support, or both.
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What Is Quick Ratio? Learn How to Swiftly Calculate This Metric
February 20, 2026Does your business have enough liquid assets to cover short-term liabilities in a pinch? To find out, you can use the quick ratio. Keep reading to learn the quick ratio definition, how to calculate your ratio, and more.
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Check Your Financial Records With a Trial Balance
February 19, 2026Are you an accounting wizard? Maybe, maybe not. Regardless, your math needs to add up. And sometimes, even the greatest mathematicians make mistakes. If you make an accounting error, you must find it before it harms your business. That’s where a trial balance comes in.
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How to Create a Profit and Loss Statement
June 16, 2025A profit and loss statement is one of the most important tools you have in your business to determine profitability. Do you know how to create a profit and loss statement?
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Which Financial Statement Is Prepared First?
May 12, 2025Your business’s financial statements give you a snapshot of the financial health of your company. Without them, you wouldn’t be able to monitor your revenue, project your future finances, or keep your business on track for success. So which financial statement is prepared first?
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What Is a Financial Statement? [+ Examples]
April 17, 2025Business owners need to have a pulse on their organization’s financial performance and cash flow for decision making and obtaining business financing. You can learn how your business is doing holistically by preparing different financial statements. So, what is a financial statement?
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