Reminder: Profits and Cash Flow Are Not the Same
Many profitable businesses experience cash flow shortages, especially during periods of rapid growth. Business owners may find themselves puzzled by owing taxes while struggling to cover everyday expenses. The confusion often stems from the fundamental differences between profits and cash flow. Understanding Operating Activities Profits are closely linked to taxable income and are reported at […]
Four Cost-Cutting Strategies to Boost Business Profits
Many businesses aim to increase profitability by boosting sales of products and services. However, higher sales volumes don’t always lead to higher net profits, especially if your expense structure is inefficient. This is why it’s essential to focus on expenses as well as sales to improve profitability. Conducting a formal expense review can be a […]
Navigating Partner Business Expenses: Guidelines and Tax Implications
It’s common for partners to cover expenses related to their partnership’s business operations, particularly in service-oriented partnerships like architecture or law firms. These expenses might include entertaining clients, transportation for meetings, professional publications, continuing education, or home office costs. But how are these expenses treated for tax purposes? Let’s break it down. Reimbursable Expenses: Partners […]
