Accounting Tips For You

Some Good Business Accounting Questions And Answers

Here’s a good question/answer session I was reading through.  It doesn’t really cover anything in particular but it does talk about what’s comming down the pipe in 2012.  You can read this in a few minutes and I think you’ll feel enlightened:

Are you seeing more bankruptcies and foreclosures despite the official end of the Great Recession?

I have not seen as many bankruptcies or foreclosures in the latter part of 2010 as compared to 2009 and early 2010. However, many clients are experiencing more difficulty than ever in collecting receivables and loans. We are also seeing a number of businesses sell out due to a negative long-term outlook of the owners or merge with larger entities to stay competitive. It does not appear that we are out of the woods yet by any stretch.

 

What advice do you have for business owners who trying to stay afloat?

Obviously keeping a close eye on costs is imperative. Cash flow now is more important than ever. If you provide credit to customers, staying on top of receivables is a must. Talk to your banker and/or accountant if you are carrying substantial debt and see if there is some way to refinance to lower interest costs; or, at the very least, spread your payments over a longer period of time.

If you pay for health insurance, take a fresh look at your plan and see what other options may be available.

And of course, let your accountant know whats going on in your business. Too often, clients will not let us know about something important until the end of the year or worse, when tax filings are due. The result is often lost opportunities to save or at least defer taxes. Keeping lines of communication open is very important.

 

What should employers do to prepare for whats ahead in 2012?

Stay on top of whats happening. There are a number of tax provisions set to expire at the end of 2011 and 2012. Be sure to take advantage of them if you can as there is no guarantee they will be extended. These include such things as the limits on the 179 deductions (allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year), bonus depreciation, tax rates on qualified dividends and long term capital gains and lower Social Security withholding on employees just to name a few.

 

See the Original Story here