Hughey's Debits & Credits: Bookkeeping. Payroll. Taxes.

All posts tagged bookkeeping

Gavel (1)As a nonprofit organization, you have the option to take advantage of your state’s tax exemption status for sales taxes. This exemption will allow your organization to not have to pay sales taxes on purchases. This is a great way to save on the almost 10% sales tax here in Tennessee. However, are you or your staff guilty of tax evasion?

As an accountant, I am often making purchases for our nonprofit clients. I have copies of all the necessary documents in order to save our clients sales taxes. Your organization may have staff such as Program Managers or Executive Directors that has an exemption card with their name on it because of their frequent purchases for the organization.  Over the years, we have encountered countless times where staff members have been using the agency’s tax exemption card to save money on personal purchases. However, this is illegal and unethical to use the agency’s tax exemption card for personal use. The consequences could be years in prison and large fines for the State of Tennessee in addition to possibly losing some of your civil rights, such as the right vote or carry a firearm.  Contact your state’s sales tax division to determine your state’s consequences. Read more

Home Office 3Everyone wants a home office for tax purposes. With being able to write off portions of monthly expenses such as mortgage/rent, utilities, phone bills, security, and insurance, who wouldn’t want that? But is a home office right for your business?

Just like any other business decision, you should be aware of both the pros and cons before making your decision. Most of the time people only tell you this part of having a home office because it is a pro and everyone wants pros in business. Wouldn’t it be nice to have only pros in your business?

I will admit being able to write off portions of expenses that you will pay regardless is a tempting offer. With your home office being in your house, your commute to work is reduced significantly. Some joke to work in their pajamas which would reduce wardrobe time and office apparel expenses significantly. Both would reduce expenses for you. Wouldn’t that be a perk?!  Another pro is having everything nearby even when you are off work. The days of forgetting something at work would be over! The biggest pro is the flexibility! Modern technology has allowed the ability to be mobile. Often times all you need is a laptop, an internet connection, and a place to sit and you have a new location! Read more