There are more changes in tax credits and deductions for 2019. How will you be affected? Are you prepared? Check out this video to learn more and to avoid taking a big tax hit.

If you have questions on estimating where you stand, please schedule a complimentary consultation to review your tax status and planning needs.

The information presented is of a general nature and should not be acted upon without further details and/or professional guidance. For assistance in identifying and utilizing all the tax deductions to which you are entitled, please contact us, your CPA or tax preparer.

The information presented is of a general nature and should not be acted upon without further details and/or professional guidance. For assistance in identifying and utilizing all the tax deductions to which you are entitled, please contact us, your CPA or tax preparer.

When you sell an inventory item, the asset is reduced and the Cost of Goods Sold account is increased, moving the item from an asset to an expense. It’s no longer an asset once it’s sold, and the cost of the item sold reduces your profit and is expensed into the Cost of Goods Sold account.
 
Some accountants will abbreviate the Cost of Goods Sold account to COGS, and you might hear them call it that.
 
In the case of wholesale and retail businesses, the cost of goods sold is the amount that was paid for the inventory items to be sold.

• In the case of a manufacturer, the costs can include the cost of raw materials, labor to produce the item, and sometimes additional allocations of other related costs.
• Construction businesses may have a Cost of Construction account or Contract Costs instead of COGS.

Service businesses will typically not have a balance in the Cost of Goods Sold account. If they do have direct costs, the costs are often coded to a Supplies account under expenses.
 
At any point in time, the cost of items you purchase are in two different accounts:

1. The unsold items are reflected in the asset account, Inventory, on your Balance Sheet report.
2. The sold items are reflected in the Cost of Goods Sold account, on your Income Statement report.

  
It’s important that the Cost of Goods Sold balance is accurate, because there are many good things you can learn from it when you compare it with inventory. You can learn how fast your inventory is selling, and you can determine your gross profit margin.
 
If your inventory purchases have not been coded correctly, you can take inventory and arrive at the correct cost of unsold items. If your physical inventory does not match your books, your accountant can make a correcting entry between Cost of Goods Sold and the Inventory account so that both are accurate.
 
If you have further questions about the Cost of Goods Sold account, feel free to reach out any time. And if you are still manually handling inventory tracking, please schedule an appointment to discuss options to more efficiently account for your inventory and COGS.

This is general information and should not be acted upon without first determining its application to your specific situation. Please contact us, your CPA or tax adviser for additional details.

Why pay more for software and services than necessary? Check out our Resources page for information on discounts available to our clients.

The information presented is of a general nature and should not be acted upon without further details and/or professional guidance. For assistance in identifying and utilizing all the tax deductions to which you are entitled, please contact us, your CPA or tax preparer.

Why pay more for software and services than necessary? Check out our Resources page for information on discounts available to our clients.

​Renting out private homes as vacation rentals has become very popular in many areas. If you are thinking of jumping into this market, check out this video to see one option related to tax-free rentals.

If you either received or are expecting a tax refund, you may be feeling the temptation to splurge and enjoy the money immediately. After all, you worked hard for that money.
 
While enjoyable, is the splurge you are considering as valuable as investing in your future financial security? While everyone’s needs are different, consider some optional uses of your refund that may work for you:

• Contribute your refund to your employer’s 401(k) plan. If your employer offers a matching contribution, that’s an immediate return on your money in addition to deferring taxes on your contribution. And, funds in the plan grow free of tax until withdrawal.
• Use your refund to pay down credit card balances – you’ll earn a guaranteed double-digit return.
• Consider investing your refund in your child’s education. Both Section 529 college savings plans and education savings accounts offer tax-advantaged ways to save for college costs.
• Take full advantage of your IRA options for retirement savings. Both Traditional and Roth IRAs are great ways to save for retirement.
• If you’ve maximized your retirement and education savings, and your credit cards are under control, put your refund in diversified investments that make sense for your age and financial situation.
• Ask yourself if getting a big refund every year is a smart idea. Would you rather invest your money during the year instead of making an interest-free loan to the government? If so, consider filing an updated Form W-4 with your employer.

Longer term planning generally requires a vision of where you'd like to be in the future? Do you have such a vision? 

If you'd like to review the effect of any of the above choices on your financial situation, please reach out to a trusted financial adviser for additional assistance.

This is general information and should not be acted upon without first determining its application to your specific situation. Please contact us, your CPA or tax adviser for additional details.

Most people do not understand the value of knowing their effective tax rate. Do you? Check out this helpful video for tips.

​Tax credit or deduction - do you understand the difference? How do they affect your tax bill? Check out this helpful video for tips.

Tax brackets, tax dollars, tax credits, oh my! Do you understand how earnings affect your tax bill? Check out this helpful video for more information. And please don't hesitate to give us a call for assistance with your tax planning and preparation.

The information presented is of a general nature and should not be acted upon without further details and/or professional guidance. For assistance in identifying and utilizing all the tax deductions to which you are entitled, please contact us, your CPA or tax preparer.