CPA Blog

Like every business, a start-up needs a sensible budget

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Published: Thursday, 17 November 2022 16:06

Written by Phillip Strickler, CPA.CITP

An impressive 432,834 new business applications for tax identification numbers were submitted during October 2022, according to the U.S. Census Bureau. Indeed, despite the relatively higher costs of doing business these days, plenty of start-ups are still launching.

One thing that every new company needs, along with a business plan, is a sensible budget. And that holds true for well-established entities as well. Let’s review some fundamentals of budgeting for start-ups, which can also apply in some shape or form to companies that have been around for a while.

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Computer software costs: How does your business deduct them?

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Published: Tuesday, 15 November 2022 13:07

Written by Phillip Strickler, CPA.CITP

Computer software costs: How does your business deduct them?

These days, most businesses buy or lease computer software to use in their operations. Or perhaps your business develops computer software to use in your products or services or sells or leases software to others. In any of these situations, you should be aware of the complex rules that determine the tax treatment of the expenses of buying, leasing or developing computer software.

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Adopting a child? Bring home a tax break too

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Published: Tuesday, 08 November 2022 14:01

Written by Phillip Strickler, CPA.CITP

Two tax benefits are available to offset the expenses of adopting a child. In 2022, adoptive parents may be able to claim a credit against their federal tax for up to $14,890 of “qualified adoption expenses” for each child. This will increase to $15,950 in 2023. That’s a dollar-for-dollar reduction of tax.
Also, adoptive parents may be able to exclude from gross income up to $14,890 in 2022 ($15,950 in 2023) of qualified expenses paid by an employer under an adoption assistance program. Both the credit and the exclusion are phased out if the parents’ income exceeds certain limits.

Parents can claim both a credit and an exclusion for expenses of adopting a child. But they can’t claim both a credit and an exclusion for the same expenses.

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Reinforce your cybersecurity defenses regularly

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Published: Wednesday, 02 November 2022 14:17

Written by Phillip Strickler, CPA.CITP

If you’ve been in business for any amount of time, you probably don’t need anyone to tell you about the importance of cybersecurity. However, unlike the lock to a physical door, which generally lasts a good long time, measures you take to protect your company from hackers and malware need to be updated and reinforced much more regularly.

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