Category Archives: Education

Education, Illinois, Tips

Some Restaurants Adding Surcharge in Response to Minimum Wage Hike

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Just read a well-written article about how some restaurants are dealing with the quickly-rising (after years of stagnation) local minimum wage, which was shared by one of my most respected restaurant accounting colleagues, Stacey Byrne.  It hit home, as we’re dealing with many of the same issues in Chicago: my small business restaurant clients are committed to living wages and benefits for their workers, as well as a safe and inclusive work space, but their margins are already so narrow, in what is a famously competitive and labor-intensive industry; also, the discrepancy between the massive amounts front-of-house are taking home and the paltry amounts back-of-house are taking home is painful — many chef-owners make substantially less than their FOH staff, or are committed to trying to even out this inequity and internal struggle. Many of them are switching to service charges instead of tipping, or re-structuring so that back-of-house workers have customer interaction, and can therefore participate in tip pooling.

Definitely worth a read: California Restaurants Add Surcharge After Minimum Wage Hike.

And for a reminder on how tipping works, an earlier blog post: Restaurant Tipping — How It Works.

Education, IRS, Tips

Not All High-Deductible Health Insurance Plans Are HSA-Eligible

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I’m getting a lot of questions from clients right now about whether or not they should set up a Health Savings Account.  The answer — for most — is that it’s a moot question.  They probably aren’t eligible.

Just a high deductible isn’t enough. Health insurance plans must meet other criteria to become HSA-eligible.

As this article from The Finance Buff puts it, “a high-deductible health plan is not necessarily a High Deductible Health Plan” (HDHP): Not All High Deductible Plans Are HSA Eligible.

According to IRS Publication 969, to be an eligible individual and qualify for an HSA, you must meet the following requirements:

  • You must be covered under a high deductible health plan (HDHP) on the first day of the month.
  • You have no other health coverage.
  • You are not enrolled in Medicare.
  • You cannot be claimed as a dependent on someone else’s tax return.

The IRS defines a high deductible health plan as any plan with a deductible of at least $1,300 for an individual or $2,600 for a family, but as we just noted, not all plans that have a high deductible are eligible.  Value Penguin explains:

In actuality, few are HSA-eligible, because the IRS specifies—deep in its guidelines—that “except for preventive care, [the] plan may not provide benefits for any year until the deductible for that year is met.”

If you aren’t sure if your health insurance qualifies you for an HSA, call the insurer and ask. If you purchase a plan through the federal Marketplace, the answer should be in the plan information available through the exchange website.

Education, IRS, Tips

Five New Year’s Resolutions Every Tax Pro Should Make for 2017

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My favorite blogger is back again with his list of New Year’s Resolutions for Tax Pros. In his characteristically disarming comedic style (“…while being able to speak confidently about the tax law will undeniably make you more appealing to the opposite sex, that’s not my main motivation here…”), he walks us through some suggestions for making 2017 a better year as tax planners and preparers.

As Nitti explains, “the five resolutions discussed below share a common theme — each one will help you adjust to the changing landscape we’re sure to face as 2017 unfolds.”

1. Learn the Trump Tax Plan
2. Be Able to Explain the Difference Between Static and Dynamic Scoring
3. Understand the Tax Consequences of Entity Conversions
4. Learn the Ins-and-Outs of Section 1202
5. Understand How to Compute and Minimize S Corporation Built-In Gains

Read the full article here: The Five New Year’s Resolutions Every Tax Pro Should Make-2017

Education, IRS

Comparing Income, Corporate, Capital Gains Tax Rates: 1916-2011

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I recently rediscovered a pretty fascinating chart I originally found a couple years back (when looking for holiday presents for my father — yes, I was born a nerd and came by it honestly), comparing various top tax rates through history.  It only contains data up through 2011, but I’m hopeful the author, Catherine Mulbrandon, will update it again at some point.  All of her graphics are pretty interesting — clear and to-the-point — and her Visualizing Economics blog is worth a visit whether you’re an economics nerd or a graphic design nerd.

Reminder: your marginal tax rate is the rate you pay on the “last dollar” you earn; but when you view the taxes you paid as a percentage of your income, your effective tax rate is less than your marginal rate, especially after you take into account the deductions and exemptions, i.e. income that is not subject to any tax.

Source: Comparing Income, Corporate, Capital Gains Tax Rates: 1916-2011 — Visualizing Economics

Education, Tips

CPA Academy Webinar – Financing Sources for Small Business Owners

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Just a quick note about a FREE webinar coming up tomorrow (Tues, Dec 13) I just saw advertised on CPAacademy.org regarding financing sources for small business owners.  I’ve said it so many times: insufficient capital is one of the primary reasons for the failure of small businesses, and I’ve had too many clients fall prey to unscrupulous lenders that take advantage of their needy situation.

This may be one for both accountants and their clients to attend.

Learning Objectives

  • Understand the pros and cons as well as lender requirements for the main types of financing.
  • Learn about financing options for start-ups, business owners with poor personal credit, and other challenging situations.
  • Help your clients prepare for financing and avoid expensive pitfalls.
  • Get free tools you can use to help your clients evaluate costs and make better borrowing decisions.

Source: CPA Academy

Education, QuickBooks Software, Software, Tips

QuickBooks Online Interface Overhaul

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Our good friend Charlie Russell over at Accountex Report (formerly Sleeter) has helped us out once again by 1) warning us that QuickBooks Online is once again changing its interface and 2) letting us know what the changes are and how we’re likely to be affected and react.

His summary?  Meh, it’s fine — it’s not as major as the last time they did this, and it’s mostly being done to create consistency across all their online product platforms (which is a good thing).  His (and I couldn’t agree more) main complaint is that they need to keep these “redesigns” around for longer, allowing us to get used to them and become more efficient with our navigation and data entry.

The full article has lots of great screen shots and step-by-step info; I encourage a quick read (it’s only 2-pages long), as these changes are rolling out throughout the course of the month, and you’ll want to be on top of your game when doing financial reviews in January in anticipation of tax-time.

QuickBooks Online Interface Overhaul – Accountex Report

Education, Tips

Podcasts for CPAs

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I wanted to share a short and sweet little article from the American Institute of CPAs on podcasts that are popular among “young CPAs” (I don’t know what their demographics are, or why they’d angle it this way, but I’m 44 and I love some of these):

Listen to This! – AICPA

I’m especially a fan of Steve Bragg’s publications and was glad to see that he’s got a regular podcast.

And of course, I want to plug John Garrett’s Green Apple Podcast — not only is it entertaining, but I was his first interviewee back when he started publishing episodes!  I think he’s about 50 podcasts in, and the insights just keep coming.

 

Education, QuickBooks Software, Software, Tips

New QuickBooks Online Reporting – A Guide

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Okay, so Intuit says, “we improved reports to make them more professional looking and easier to customize.”  I am not a fan.  Any time I have to click more times to get to the data or the reports I need than I had to click previously, it’s NOT an improvement.

Nevertheless, onward.  The change is coming, and I’ve had a sneak preview for a while… I got the notice today that these reports are rolling out to my clients this week.  (You may already have them or it may be a while longer, as they tend to roll out changes in batches.)

I do, however, think that Intuit did a nice job with their guide to the new (and “improved”) reports — Improved QuickBooks reports • QuickBooks Online — complete with screen shots and step-by-step instructions (for things that should take you fewer steps; grrr).

But don’t blame me if you don’t like the new reports.  Blame Apple.  ;)

Education, Site News, Tips

Best Accounting Blogs of 2016

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FitSmallBusiness Best Accouting Blog 2016I couldn’t possibly be prouder than to announce that The Dancing Accountant’s blog has been chosen as one of the Best Accounting Blogs of 2016!  And it’s not just an exciting honor — it’s a humbling one, as many of the blogs that I read regularly (and in fact, that I link to from my own) were also chosen for the list.  Many of the colleagues I respect most, whose presentations I attend at my favorite conferences, are also on the list.  Industry leaders and technology gurus, software companies and app specialists, and quite a few niche CPAs made the list, too.  And with company like that… <blush>… I have to say that I am indeed, quite proud to have been tapped as well.

I’d like to thank the folks at Fit Small Business and encourage you to check out their site — they offer a comprehensive array of Buyer’s Guides and a pretty solid blog of their own, as well as a list of the Best Small Business Blogs of 2016.

I started this blog as a space to save my research on various client accounting and tax issues somewhere within reach and easy-to-find, where others in my situation might also benefit from it.  I had no idea it would develop such a following.  The best part about the information age is being able to share our knowledge and experiences with each other — thanks for reading!

Education, Illinois, Tips

Chicago Business Workshops for February

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Business Workshops for February
All workshops are free and are located at the City of Chicago Department of Business Affairs & Consumer Protection – City Hall, 121 N. LaSalle St., Chicago, Room 805.
2/10: How to Obtain a Sidewalk Cafe Permit
3:00 to 4:30 p.m.
Presented by BACP, Small Business Center (SBC) – Public Way Use (PWU) Unit, Anthony Bertuca
Attendees will learn the Sidewalk Cafe Permit Application process, and the requirements which will assist in preparation to submit an application. The entire application process may take 30 – 45 days, and the 2016 Sidewalk Cafe Season begins on March 1st.
2/17: Understanding Employee Classification: Hourly vs. Salaried & Contractors vs. Employees
3:00 to 4:30 p.m.
Presented by Charles Krugel, a Management Side Labor, Employment & Human Resources Attorney
There are changes coming to the definitions of hourly & salaried employees (overtime eligible vs. not) & independent contractors vs. employees (W2 vs. 1099). Over the next few years, fewer businesses will be able to avoid overtime & classifying workers as W2 employees. Management side labor & employment attorney Charles Krugel will discuss these proposals, including enforcement, & answer any of your questions concerning these topics.
2/19: Setting the Groundwork
9:30 to 11:00 a.m.
Presented by Lema Khorshid, Fuksa Khorshid, LLC
There are many legal considerations to keep at the forefront of your mind before starting your new business. This presentation explores different sources to fund your business venture, basic principles of how to protect yourself in the claws of litigation, employment laws, lease agreements and how to implement a solid intellectual property plan.
2/24: C Corp, S Corp, LLC – Which Is Right for My Business?
3:00 to 4:30 p.m.
Presented by The Law Project
The Law Project’s Small Business Program offers legal support to entrepreneurs who are starting or have their own small businesses as a strategy to create financial independence. Since most entrepreneurs operate on a shoestring budget, obtaining legal advice is often unaffordable. This workshop will provide entrepreneurs with information about choosing the correct corporate structure for their business.
2/26: Tax Issues for Self-Employed Individuals & Businesses
9:30 to 11:00 a.m.
Presented by Eric Sternberg of the Center for Economic Progress & Yolanda Ruiz of the Internal Revenue Service
This workshop will give an introductory understanding of common tax issues that self-employed individuals often encounter. Participants will learn when they must file a tax return, how to identify worker classifications, how to prepare for an IRS audit, how to make quarterly estimated payments, and how to navigate the IRS website. Participants will benefit from the perspectives of both the individual taxpayer and the Internal Revenue Service.
Click here to view a full monthly calendar.