Developing an annual budget

As we approach the end of the calendar year, it is good business practice to finalize an operating budget for 2011. Developing annual budgets aides organizations in understanding the amount of income they will need to raise in order to meet expenses and hopefully make a surplus. Start by analyzing year to date actual income and expense figures. Compile input from managers and contractors as to what they project for the upcoming year. Throughout the year assess actual income and expense versus budget on a monthly or quarterly basis and determine any corrections that are necessary.

New Tax Credit

We recently received this IRS notice and want to be sure our clients are aware of this tax credit.

"If your small business or tax-exempt organization pays employee health insurance premiums in 2010, you may be eligible to claim a new credit on your 2010 tax return. Employers with fewer than 25 employees (more if you have part-time employees), and less than $50,000 in average wages, may be eligible. Eligible small employers could qualify for a credit worth up to 35% of premiums paid in 2010 (for businesses) or 25% or premiums paid (for tax-exempt groups). Visit www.irs.gov or consult your tax professional to learn more about whether your small business qualifies for this valuable incentive to provide health coverage for your employees."