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by The Bean Team on December 31, 2019
3 MIN READ
As another year comes to a close, we thought what better way to celebrate than with a walk down memory lane? So we rounded up our top five most popular blogs of 2019.
This list includes the must-know bookkeeping basics for business owners, like how to know who should receive a 1099 and how to pay yourself (the right way!).
Happy reading!
#1. How to Determine Who Receives a 1099
When it comes to 1099s, many business owners find themselves in a guessing game, wondering what exactly the rules and requirements are. This is a dangerous game to play because the penalties add up quickly when it comes to 1099 mishaps.
With that in mind, let’s set a few things straight about 1099s, from determining who gets one to all those pesky “exceptions” to the rules.
#2. Common Bookkeeping Mistakes Made by Financial Advisors
Financial advisors are well-versed in the art of holistic financial planning and investment management. But what happens when it comes to their own bookkeeping? Often times, financial advisors aren’t as on top of their business’s accounting.
That’s because keeping good books requires something that many advisors don’t have - time. Keeping good books requires time to get organized and to categorize expenses correctly. A busy advisor often just doesn’t have the hours to dedicate to the task!
#3. New Rules for Filing Form 1099-MISC
2018 ushered in numerous regulatory changes to the tax code, reminding us that tax reporting isn’t getting any easier any time soon. With frequent revisions to tax rules and regulations, business owners must do their due diligence to stay on top of changes from one tax season to another.
We’ve written previously about 1099 forms. A 1099-MISC is similar to a W-2 and is used to track the income of independent contractors/businesses who are not set up as corporations. Broadly speaking, it is given to non-employees paid by your business.
#4. Are You Paying Yourself Properly?
As a business owner, you have a lot of responsibilities. Often times, especially in the early stages of your business, you’re both rowing the boat and steering the ship. That’s why it’s so important to pay yourself appropriately for all the work you do.
Like everything else with your business, how you pay yourself is a decision, and there are many different options with different implications. While most employees are paid wages or a salary—compensation that is subject to income tax withholding and employer taxes—depending on what type of business you own, you may be paid very differently. Plus, you not only have to think about how you’ll be paid, but how much you’ll be paid (and no, you can’t just pay yourself your dream salary right away).
So, as business owner, are you paying yourself properly?
#5. 10 Totally Random But Interesting Accounting Facts
Fact: there's much more to accounting than just numbers and data entry.
While accounting isn't widely known as the most exciting career, it has a long and storied past dating back to the ancient accountants of Mesopotamia who used clay tokens to keep track of things like animals and grain.
Fascinating, right?
Well, there's more where that came from. Here are ten more totally random—but totally awesome—accounting facts.