Payless Taxes LLC | Accounting and Tax Blog

Understanding and implementing effective construction accounting principles is vital for contractors to make profitable decisions and streamline financial management. Below are five essential tips and best practices for contractors to enhance their accounting processes: 1. Always Job Cost Job costing is a specific accounting method that tracks all costs associated with a particular job. Treating each job as a single account allows contractors to: Job costing involves tracking direct costs such… Read More

What is a Construction Purchase Order (PO)? A construction purchase order (PO) is a legally binding document sent to a materials vendor to honor a sale. It outlines the details of a given purchase, including quantity and price, serving as a legal promise that the contractor will collect and pay for the materials at a later date. Once accepted by the seller, the PO becomes a binding contract, ensuring both… Read More

Construction accounting brings a different set of rules when compared to more traditional styles of accounting. The perfect example of this is percentage of completion.  Whether you rely on recognizing revenue through percentage of completion or not, understanding the fundamentals of this process is vital to ensure that when you do encounter this method, you have the knowledge needed to ensure accurate billing, tax reporting, cash flow management and overall… Read More

Do you own a rental property for which the average rental period is seven days or less for the year? Such properties can include condominiums, cottages, cabins, lake or beach homes, ski lodges, and similar properties. If the period of average rental is seven days or less, you have a vacation hotel of one sort or the other, as uniquely defined by the tax code. Seven days example: Say you have… Read More

Estimated tax tip savings: If you spent $3,700 on deductible lodging over the past year, depending on your tax bracket you could save up to 28 percent—or $1,036—which is a tidy discount on your hotel bills. Until recently, the IRS would not allow you to deduct expenses for lodging unless you traveled away from your tax home. Good news: The rule has now changed, and it opens up some great tax… Read More

If you are looking to maximize the productivity of your staff and office resources, you want to consider a record-keeping company to help you with your books. A record-keeping company like Payless Taxes will help you improve your tax planning and preparation process. Here’s how you can improve your business’s record-keeping process with the help of Payless Taxes.    Organize and Manage Files   With Payless Taxes, you will find… Read More