Payroll and gross receipts taxes are two types of taxes businesses may have to pay. Payroll tax is a tax on an employer’s total payroll expenses, including salaries, wages, bonuses, and employee benefits. The exact amount of payroll tax owed depends on the jurisdiction and the specific tax laws in place. In the United States,...
Our recent addition to the client roster, a newly established firm, has been grappling with the demands of building its internal organization and processes amidst a busy schedule. As a result, there has been a persistent concern about critical tasks slipping through the cracks. Unfortunately, this has resulted in a few near misses and one...
The one thing about budgets is, ultimately, they are wrong. After all, they are the best guess of what we think might happen in the future. Maybe we are out networking and meeting that client that changes everything, or maybe Murphy’s Law kicked in; whatever the reason, it’s likely that you exceeded in some areas...
When valuing a company, traditional methods often involve looking at industry comparatives and applying valuation multiples, commonly a multiple of EBITDA (Earnings Before Interest, Taxes, Depreciation & Amortization). But for small business owners, who often strategize to lessen their tax burden by reducing profits, EBITDA might not accurately reflect the business’s true value. That’s where...
When managing a business, inventories are not merely an accounting requirement but an essential tool for strategic planning and compliance. At ZümiFi, we understand that proper inventory management does more than satisfy tax obligations. It provides invaluable insights into your capital budget, helps manage your resources effectively, and even aids in planning to replace assets...
For entrepreneurs, the topic of taxes is often accompanied by stress and financial anxiety. But it doesn’t have to be this way. By adopting best practices for tax planning, you can turn a stressful necessity into a manageable, routine aspect of your business operations. Smart Planning: The Cornerstone of Tax Management Good tax management starts...
New Law Alert: Navigating AB5 in 2023 Attention, California businesses! We’re three years into the implementation of AB5, but its nuances continue to echo in the business sector. If you haven’t aligned your operations with this regulation, now’s the time! Navigating AB5 in 2023 ZümiFi’s Pro Tip for 2023: As you gear up to prepare...
CA AB5 clarified things but was also stricter regarding who is legitimately considered a contractor vs. who is an employee. This new law (passed in Sept 2019) takes effect on January 1, 2020. ZümiFi is encouraging ALL clients to be aware of these new legal requirements and understand how this may (or may not) impact...
When does a purchase become an asset, and when is it simply an expense? Enter the capitalization policy. This policy sets a threshold to determine if a large purchase should be classified as a business asset or can be directly expensed. For years, many tax preparers operated with a threshold as low as $500. Meaning...
Why Documentation is Essential in Business We all hope to avoid audits. But if that day ever comes, producing accurate documentation is the key to validating what you’ve declared on your tax returns. At ZümiFi, our primary approach as a virtual bookkeeping firm is to be as electronic and efficient as possible. This is why...