Cashflow |
Both individual and businesses. Balancing your books. Prediction of where your money is going. How you know if you business is going to be viable. Need to collect money for business or you don't have money to pay bill and will fails. Accounts receivable payable? Knowing your revenue streams and timing.
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Budgets |
You budget is an estimate of your income versus your expenditure over a certain period of time. Your everyday expenses needs to be covered by your revenue stream. Need to allow a certain amount of money in your accounts to be able to meet your budget.
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Social Security |
Social Security is is paying yourself for a future income for when you retire. It pays for medicare and social security. It needs to be 15.3% of your net sales or income. Self employed people who lies about their income will have nothing to claim when they retire. Being honest about your income benefits your own future.
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Estimate Taxes |
Estimated Taxes covers your social security as a self employed person as well as your income tax. You income tax is for state and federal tax. The state tax is what you pay to support the state you live in and helps to run the state. You pay according to your resident state. The federal tax goes from 10-38% of your income and it runs the federal government of the United States of America.
Your income tax is a graduated percentage of your income paid to the government. You pay estimates to avoid penalties for not paying enough. Estimate taxes are paid quarterly on April 15, June 15, Sept 15 and Jan 15. If you pay late you could be accessed interest or penalty. You need to figure out your profit and loss and pay in at least your 15%. There is no way getting out of paying your self employment tax. If something happens to you and your children are under 18 they can collect on your social security. If your spouse dies and you have children under 18 you can collect on your spouse for your children . Social security is not welfare, you have paid into it yourself so the money belongs to you. |
Foreign Tax Returns |
When you acquire income in a foreign country you get taxed there. Them you file your taxes in the USA you can then get credit on the taxes paid to a foreign country. If you are paying into social security you want to recognize all of your revenue from all sources to get credit for taxes paid in a foreign country.
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Issuing 1099 |
The vehicle that defines income that you have paid to self employed individuals for doing a service for you. Requirement of your clients to issue 1099 for services they have paid for. Your 1099 needs to match or exceed your bank statements for income and deposits.
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Desk Audits |
A Desk audit is issued either by the sate or by department of revenue because you have done something they consider wrong or questionable. You will get a notice in the mail with intent to access. You need to explain the bill or you would owe it. The government will never call or email you about an audit. An official and legit audit would be mailed to your address.
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