Tax 101: Deduction vs Credit

When it comes to understanding taxes, two terms that are used interchangeably are tax credits and tax deductions. Although they work in a similar way, they both have completely different meanings. Both can help you reduce your tax in different ways, and are easily confused by some people.

Tax Deductions

Are the dollar amounts offered by the IRS used to reduce your adjusted gross income which also lowers your taxable income (the income you would pay taxes on). This is a big help! There are two types of deductions: standard deduction or itemized deductions.

TaxesDavid BazileAugust 21, 2019Accounting, Taxes, Tax Deductions, Tax Tips, Tax Credits

9 Small Business Accounting Best Practices to Consider

If you want to be successful in business, you’re going to have to learn how to keep the books in order. According to the Small Business Administration, learning accounting is important for business owners because sound financial information enables them to make informed business decisions.

Don’t be left in dark about your company’s money situation. Use these nine accounting best practices to help get your bookkeeping on the right track.

1. Determine your accounting method.

There are accounting two methods: cash and accrual. Accrual accounting is a method in which a business puts transactions on the books as soon as the transaction is made. Cash accounting — the more common of the two methods, according to the SBA — occurs when a business records transactions once payments have been received or made. Each method has advantages and disadvantages.

AccountingManny AlmonteMarch 12, 2019Accounting, financial tips, money management, small businessComment