February 2020

PPC, KPI, if you’re thinking of hiring someone to help market your accounting firm, you might have heard these terms. But what do they mean? There’s no reason for an accountant to find them intimidating because they’re all based on math. Each of them tells a story about how your website and marketing efforts are producing results.

Does your 2020 business plan include purchasing fixed assets? Maybe you’re expanding your bakery and will need to buy a new commercial fridge and oven. Or, perhaps you need additional machinery to handle planned growth and new orders.

Hiring a CPA to help you with your accounting and your taxes is a smart thing to do. Whether you’re a business owner or a regular taxpayer, a quality CPA will be a huge asset in many different ways. A CPA acts in the role of a financial advisor, a strategic unofficial business partner and a confidant.

No one wants to go through an IRS audit. These days, an audit happens when the IRS thinks that the tax money they could recoup from an audit exceeds the cost of performing the audit itself, or if they believe there may be criminal activity involved. As long as you’re doing everything right, there’s no specific reason to worry about an audit.

The CAT is applicable to tax years beginning January 1, 2020. This includes all business types, not just corporations. If you are a larger business, operating in Oregon (commercial activity of $750k or more), you are required to register for the new Oregon Corporate Activity Tax (CAT) tax - within 30 days of meeting the $750k threshold.

Beginning on January 1, 2020, the standard mileage rates for the use of an auto will be 57.5 cents per mile driven for business use. That's down 1/2 cents from last year.