The cents-per-mile rate for business miles decreases again for 2021
A lower IRS mileage rate means smaller tax deductions for business miles for 2021. The optional cents-per-mile rate used to calculate the deductible costs of operating an auto for business has decreased by one-and-one-half cents to 56 cents per mile. It was 57.5 cents for 2020 and 58 cents for 2019. The rate partially reflects the current cost of gas, which is down from a year ago. This mileage rate is useful if you don’t want to keep track of actual vehicle-related expenses. But you still must record certain information, such as the mileage, date and destination for each trip. The mileage rate can also be used for reimbursing employees. Many rules and limits apply. Contact us for details.
View your financial statements through the right lens
How can you best extract useful insights from your financial statements? One way is to view your financial statements through a variety of “lenses” provided by key performance indicators (KPIs). For example, working capital (difference between current assets and current liabilities) is a relatively simple KPI for measuring liquidity. Various KPIs called turnover ratios show how efficiently companies manage their assets. And, to assess profitability, private companies can look at profit margin (net income divided by revenue) and gross margin (gross profits divided by revenue). Contact us with any questions you might have about generating financial statements and getting the most out of them.
Don’t forget to take required minimum distributions this year
If you have a traditional IRA or tax-deferred retirement plan account, you probably know that you must take required minimum distributions (RMDs) when you reach a certain age. Once you attain age 72 (or age 70½ before 2020), you must begin taking RMDs from traditional IRAs and certain retirement accounts. If you don’t withdraw the minimum amount each year, you may have to pay a 50% penalty tax on what you should have taken out but didn’t. In order to provide tax relief due to COVID-19, the CARES Act suspended RMDs for calendar year 2020 but only for that one year. That means if you’re required to take RMDs, you need to take them this year or face a penalty. Contact us if you have questions.
The new Form 1099-NEC and the revised 1099-MISC are due to recipients soon
There’s a new IRS form for business taxpayers that pay or receive certain types of nonemployee compensation and it must be furnished to most recipients by Feb. 1, 2021. After sending the forms to recipients, taxpayers must file the forms with the IRS by March 1 (March 31 if filing electronically). The requirement begins with forms for tax year 2020. Payers must complete Form 1099-NEC to report any payment of $600 or more to a recipient. February 1 is also the deadline for furnishing Form 1099-MISC to report certain other payments to recipients. There’s no automatic 30-day extension to file 1099-NEC but an extension may be available under certain hardship conditions. Contact us for help.
Key Financial Ratios for Manufacturing Companies
A manufacturing company requires efficient use of inventory, equipment, and personnel to develop its products. A company uses the following financial ratios to evaluate its business. These ratios can also be used to gauge the appropriateness of operations and to determine how well the manufacturing process is going. These financial ratios are equally useful to […]
Care for Your Employees
Cultivating a strong brand results from investing in the customer experience while concentrating on employee needs. Here’s how you can enrich the lives of your employees and their families to build a promising future. Concentrate on culture The difference between a good company and a great one is culture. This is a fact. According to […]
Five ways to jumpstart operations in the next normal.
In the wake of radical and rapid disruptions from Covid-19, organizations have a window of opportunity to rewrite and transform their entire operations strategies The coronavirus pandemic has challenged supply and demand norms across sectors, and the speed of disruption exposed points of weakness and fragility in global supply chains and service networks. Yet at […]
Ways to Prevent Staff Discipline and Termination in Self-Storage and What to Do When You Can’t
Staff discipline can be unpleasant but necessary. Handled correctly, it’s an opportunity for team improvement. Learn ways to prevent the need for corrective action in your self-storage operation and how to proceed when it becomes inevitable. The most unfortunate part of being a self-storage supervisor is having to occasionally discipline or even terminate employees. The […]
Top 5 Midwestern Markets for Multifamily Development
Construction projects in five metros account for more than 60 percent of the region’s units underway, according to Yardi Matrix data. As the COVID-19 pandemic presents larger challenges for all real estate asset types, development in the Midwest’s multifamily sector continues to move forward. Although fewer new projects are breaking ground and construction timelines are being […]
Americans on the Move: How We Relocated in 2020
Each year, United Van Lines surveys its customers on how its trucks and vans are used for relocation. In 2020, trends regarding Americans on the move mirrored recent years with a clear uptick in relocation from city life associated with COVID-19. The company’s 44th Annual National Migration Study, reveals in 2020 that Americans continued to move […]
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