How to evaluate the Cuba opportunity for small businesses

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Since President Obama announced his intention to restore diplomatic relations with the government of Cuba, there has been tremendous speculation regarding the opportunity for U.S. businesses. Much of this speculation assumes that the law codifying the U.S. embargo will be changed and U.S. companies will be permitted to invest. Many analysts have arrived at the conclusion that Cuba represents a lucrative opportunity for U.S. businesses because: There are over 11 million consumers with nearly … [Read more...]

How to manage small business bookkeeping

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Angus Reid Public Opinion recently conducted a survey of business owners generating up to $5 million in revenues and employing up to 100 people to understand what they like and dislike about running their companies. The worst-ranking task was bookkeeping with 85 percent indicating they dislike it and 46 percent stating it was their least favorite task. The problem is that bookkeeping can be tedious, time consuming and the business benefits aren’t as obvious as those from sales or marketing. When … [Read more...]

Tax insight: IRS issues new rules on expensing and capitalizing property

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Since 2003 the IRS has been working to revamp how businesses should account for money spent on buying, making, improving and repairing tangible property. The final regulations were announced in 2014 with an important update made in 2015.  Why would such a seemingly arcane tax accounting topic take a decade to finalize? The changes affect over $17 trillion in tangible assets owned by U.S. businesses and may require accounting changes for virtually every company in the country. The new … [Read more...]

How a 1031 exchange works

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1031 exchanges offer business owners and real estate investors a solution to a “good” problem. When you buy an asset like a warehouse, office building, rental apartment or piece of land, it will likely increase in value over time. When you sell it for a profit, there is usually a hefty tax bill that must also be paid. Those taxes eat into the money you earned on the transaction which in turn leaves you with less cash available to reinvest in a new property. To solve this problem, Congress passed … [Read more...]