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

All posts tagged Money

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

When we work with our NonProfit clients, one of the biggest struggles they face is properly accounting for cost allocation. 

From staff to board members, we often find a lack of detail and planning when it comes to cost allocation. What you don’t know CAN indeed hurt your organization when it comes to State Agency approval.

Let’s talk about why you need to have a deep understanding of this process.  We never want an organization to lose their state funding, risking everything for lack of accountability.

Cost Allocation: What Does That Mean?

Cost allocation is an accounting method used to determine cost to cost objects. In nonprofit accounting, it is used to determine the percentage of shared items that should be billed to each program. Read more

Donation Matters

WHAT you do after you have your donor’s check in hand matters more now than ever before.

Why?  Donors want to feel a part of your mission and they want transparency.

What happens next?

Someone from your office mails them a generic thank you card saying their donation was appreciated and is tax deductible.  Good enough?  Not even close.

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