** 4th Quarter 2021 update: I wrote this post in May, and boy did it come true. The good news is by reading this now, you still have a decent amount of time to get your Section 179 purchase financed, delivered, and put into service. But definitely act now. In 2021, you need to pay close attention to… Read More »
Let’s wrap up my little “leasing and accounting” series by going away from the complicated, and embracing the simple. People ask me all the time “what is the best type of payment structure for my business, leasing or financing?” And I always answer with another question: “what is your company goal in wanting this transaction?” Here are the… Read More »
In my last post, I went over book accounting and tax accounting. Now let’s take a look at how each views leasing. The first point I want to make is the one overriding factor that any business needs to determine is their goals for a lease first, then they should choose a lease that best meets their needs.… Read More »
Here’s something that’s a surprise to many non-businesspeople: There are actually two different accounting methods, and most successful businesses will compile reports and similar using both. The two accounting methods are: Book Accounting (which could simply be called “accounting”) utilizes Generally Accepted Accounting Principles (GAAP), whose rules are set by the Financial Accounting Standards Board (FASB). Tax Accounting… Read More »
As I write this, the biggest issue on the minds of businesspeople everywhere is “taxes”. Of course, this argument has been going on for centuries (the USA was founded partly due to unhappiness with taxes), but there is a very valid point here. “Enough with the taxes” say small and mid-sized companies, and they’re right. Businesspeople, especially those… Read More »