About Me

medical bills and taxes - can you deduct them?

Do you have a lot of medical bills that you pay on each month? Could those medical bills be deducted from your tax bill this year? I was helping my mother take care of all of her finances after my dad passed away. I didn't realize how many bills she had coming in each month for medical treatments that my dad had undergone months, even a year earlier. I started doing some research about medical bills and tax deductions. If you have medical bills, take a minute to read through this blog to gain some knowledge that can help you decide what you can do when tax time comes around.

Tags

medical bills and taxes - can you deduct them?

Five Things Small Business Owners Always Forget to Include in Their Cash Projections

by Don Walters

Whether you're trying to grow or simply trying to remain sustainable, your company's cash projections are the key to your financial future. Through cash projections, you can determine whether you have enough money to expand and whether you might encounter a shortfall. Cash projections are essential to the process of securing loans and finding investors -- and they are important for your future business analysis as well. 

1. Maintenance and Repair Costs

Cash projections generally take the average costs of the organization and project them outward. But there are some costs that may not  be on an average chart that can still be projected. A company that has just purchased its equipment will often need to begin substantial maintenance and repairs on that equipment within a few years. Even if the company hasn't experienced these repair issues beforehand, they will come up later and will need to be planned for.

2. Seasonal Changes

It's always critical to compare months on a year-over-year basis rather than comparing current months with the month directly prior. This is because seasonal changes control the volume of sales in practically all industries. When you project out, you will likely be looking at September 2015 and September 2016, not September 2016 and October 2016.

3. Hardware and Infrastructure Upgrades

Every company needs to regularly upgrade its hardware and its physical infrastructure. Most organizations should plan ahead to determine exactly when this will be, as it will lave a significant impact on their budgeting analysis and cash projections.

4. Current Debts and Unpaid Invoices

Many companies operate on an accrual method of accounting, which means that they may have outstanding debts and unpaid invoices that they still need to factor into their future projections. This is especially problematic for smaller companies which may not yet know how many accounts they will need to send to collections or may never recover.

5. Training and Transition Costs

When projecting out an expansion, small business owners often forget that there will be costs associated with training new employees, re-training old employees, and transitioning the organization overall. Not only will there be a lot of employee time lost to the transition, but there will also be incidental issues such as contract negotiations, utility issues, and unexpected moving costs.

Though you can perform a budgeting analysis and cash projection on your own, it's very easy to make mistakes that could be quite costly in the end. A professional accounting and bookkeeping service can provide you with all of the information you need to take charge of your company's financial future. Talk to an accountant like Heller David  to learn more about the bookkeeping and budgeting services you could take advantage of.

Share