Category Archives: Education

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.
Education, Illinois, Tips

Restaurant Tipping – How It Works

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UPDATE 11/12/2019 — in 2018, changes were made by the Department of Labor to allow tip pooling with back-of-house employees as long as the state does not have more restrictive laws. This article does a great job of summarizing the changes:

Do You Know Where Your Tip Money Is Going? – Eater

In recent discussions with clients and friends about this year’s change in Chicago minimum wage for tipped versus non-tipped employees (and how that intersects with minimum wage rules for tipped employees at the Federal level or in other states), as well as conversations about restaurant “service charges”, and how they differ from tips… I realized that many folks — even restaurant owners — don’t understand how tipping works from a business perspective, and may not be reporting their tips — or paying their employees — appropriately.  I found this particular Chicago Tribune article from last year to give an especially good overview explanation:

How Restaurant Tipping Works – Chicago Tribune

Another site, the “Wiser Waitress,” writes from the perspective of employees — who unfortunately, often are misinformed or uninformed about their rights, about tip pools, about tracking and reporting and paying taxes on their tips.  This site is not as well-written, and it’s not an Illinois-specific set of information, but it does cover many of the issues that tend to be sticky points.  I also find it helpful to read from the angle of someone who is being taken advantage of — because, in my business, we’re always looking at the poor restaurant owner, who has to pay their employees more than they pay themselves.  It’s interesting to see how waitstaff see it.

The Wiser Waitress – Wages & Tips

Lastly, but in some ways most importantly, the Illinois Restaurant Association has an excellent FAQ regarding various governmental, tax, and labor requirements that apply to restaurants.  This organization is well-worth a membership if you are a restaurant owner or someone who works with restaurants.  They offer different membership types with different benefits, and their website is quite informative:

Illinois Restaurant Association FAQ

Tipping, service charges, minimum wage, front of house, back of house… it’s all substantially more complex than you’d think.  Make sure to learn the rules, track your tips (employees), tip payouts (employers), and educate others wherever you can.

UPDATE: I came across an excellent, two-part, detailed article from the Restaurant Accounting pro herself, Stacey Byrne, on the topic of “Accounting & Payroll Issues for Restaurant Tips and Service Charges” (Part One & Part Two), and want to share it here for you as well. Must-read resources for anyone doing restaurant accounting!

Education, IRS, Tips

NCBA Cooperative Professionals Conference, Nov 9-11

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Are you a legal or accounting professional working for or with a cooperative? The 2015 Co-op Professionals Conference, scheduled for November 9 – 11 in Minneapolis, Minnesota, is your chance to share best practices with colleagues and earn up to 12 hours of Continuing Legal Education (CLE) and Continuing Professional Education  (CPE) credit. With in-depth discussions on co-op organization, governance, financing and taxation, attendees will become experts on the unique legal and accounting issues co-ops face.

Last year I attended the National Cooperative Business Association’s first-ever “Cooperative Professionals Conference“.  It was incredible — as much as I’d learned at the National Society of Accountants for Cooperatives conference earlier in the year, I’d felt like it catered to large-scale industries like agriculture and rural electric… where were the worker co-ops, grocery co-ops, housing co-ops?  Where were the types of cooperatives that I worked with and of whom I was a member?

Here they are!  Although NCBA works on behalf of cooperatives everywhere, they definitely serve as the primary resource for small business co-ops.  The conference — which invited accountants and attorneys from across the country to learn and network together — was a resounding success, and they decided to do it again this year.  I was honored to be invited to join the plenary committee and to co-chair two of the workshops, and I couldn’t be more excited about them.  See the schedule here.

This conference is not just for accountants and attorneys that already work with cooperatives.  In fact, one of the sessions I am co-chairing is a “Co-ops 101” pre-conference… designed to provide the basics of cooperatives, as well as legal, accounting and taxation issues specific or common to co-ops.  It should be amazing.  Please join us in Minneapolis this November 9-11, and spread the word!

Education, Site News, Tips

Interview on the new Green Apple Podcast highlighted in Accounting Today

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A month ago, I received an intriguing email from a guy named John Garrett — a CPA-turned-comedian who gives frequent keynote addresses, and who is working on a podcast and book about accountants who stand out in their careers: in part due to being recognized for their interesting hobbies.  One of the fine folks at CPA.com had suggested to him at a recent conference that he speak with me.

Turns out we got along really well — he’s an engaging, funny person and asks interesting questions, and he interviewed me for his Green Apple Podcast (as the folks he hopes to highlight stand out, “like green apples in a red-apple world”).  It went so well, in fact, that he decided to feature me as his first interviewee when the podcast went live this past week.  Quite the honor — and as if that weren’t enough, Accounting Today picked up the news and mentioned me in their post!

If you’re a fellow accountant, I strongly recommend this podcast series.  The first three episodes are up now, and they really are inspiring and entertaining.  And if you’re not a fellow accountant, I suggest you listen anyway — much of what John’s trying to share is generally applicable, especially if you’re in the corporate world and feel disconnected from your colleagues.  He also speaks a lot about how we can inspire each other to share, to follow our dreams, and to conquer fears.  Can’t wait to hear more from this series.  Check it out here.