DeFreitas & Minsky Accounting Blog

Small business owners don’t have it easy. Within the first 18 months, eight out of 10 new companies close their doors for good. One major reason is an inability to balance the books. If you are an aspiring entrepreneur, your company will have a much better shot at success if you learn how to manage finances the right way.

No matter how much you earn, managing money is not easy. It requires much more than self-discipline. You must develop a plan and follow through with it. Thankfully, there’s help available today. You can quickly and easily download a daily budget app on your phone that can guide you through personal financial planning.

As a small business owner, you are probably very focused on growing your business. But, are you neglecting your personal financial health at its expense? These five financial tips will help you understand whether you are placing enough resources into individual money management.

Your credit score is an important indicator of your individual financial health. It can be used to determine everything from an auto loan rate to a home equity line of credit. Since a good score will increase your options and may even save you money, you should invest some time today in learning how to raise your credit score.

The recent Federal tax reform package could significantly cut into your tax refund next year. The Tax Cuts and Jobs Act greatly reduces the amount of property tax a homeowner is eligible to deduct in 2018.

If you run a business, you know expenses pile up quickly. But, the good news is that you can get some of that money back. Companies that turn a profit are eligible to claim many deductible business expenses come tax time.

A business’ taxable income is the portion of its profits that are subject to Federal and State income tax. This can be calculated by subtracting permissible tax deductions from gross sales. It’s an important figure to know, because it helps you determine how much of your business’ profits you will ultimately be able to keep.

Although the recent Federal tax overhaul probably padded your paycheck a little, your old tax withholding form could cause you to receive a financial surprise when you submit your 2018 tax return.

“Following the major changes in the tax law, the IRS encourages employees to check their paychecks to help ensure they’re having the right amount of tax withheld for their personal situation,” said Acting IRS Commissioner David Kautter.

If you are a new homeowner or have never applied for the New York State STAR credit, you may be able to save hundreds of dollars on your next tax bill. The state School Tax Relief Program, also known as the STAR Program, is a school tax rebate program that annually reduces homeowners’ school district property taxes on their primary residences.

If you live in New York, you must pay state income tax to support municipal services. Although New York State’s personal income tax is structured similarly to the Federal income tax, it has its own tax rates and brackets.