What Is the Difference Between 1099-NEC and 1099-MISC?
What Is Form 1099-NEC Used For? Form 1099-NEC is used to report nonemployee compensation. The IRS reinstated this form in 2020 to separate contractor payments from other types of miscellaneous income. Before then, these payments were reported in Box 7 of Form 1099-MISC. This change made contractor reporting clearer and reduced classification errors. Who Files Form […]
How to Prepare an Income Statement: Simple Steps (2025 Guide)
What Is an Income Statement? An income statement, also called a profit and loss (P&L) statement, summarizes your business’s financial performance over a set period—monthly, quarterly, or annually. It answers three core questions: Unlike day-to-day bookkeeping, an income statement highlights trends that help guide planning, pricing, and spending decisions. What Is an Income Statement Used […]
What Happens If You File Your Taxes Late? IRS Penalties Explained
What Is the IRS Tax Filing Deadline? The federal tax filing deadline is typically April 15th, unless it falls on a weekend or holiday. For the 2025 tax year, the deadline remains April 15th. It’s important to know that the IRS treats filing your return and paying your taxes as separate requirements. Missing either deadline can result […]
IRS Mileage Rates for 2025 & 2026: What You Need to Know
2025 and 2026 IRS Standard Mileage Rates Effective January 1 of each year, the IRS releases optional standard mileage rates that simplify how taxpayers calculate deductible vehicle costs. These rates apply to cars, vans, pickups, and panel trucks regardless of fuel type (gas, diesel, hybrid, or electric). Standard Mileage Rates Summary Category 2025 Rate 2026 Rate […]
Audit vs. Assurance – What Is the Difference?
What is an Audit? An audit gives your HOA the highest level of financial confidence within the broader world of audit and assurance. A licensed CPA goes through your records, tests the numbers, and studies your statements to see if they reflect real activity. The work reaches deeper than most people expect. The CPA traces […]