business - Linkenheimer LLP CPAs & Advisors

New Per Diem Business Travel Rates Kicked in on October 1

Are employees at your business traveling and frustrated about documenting expenses? Or perhaps you’re annoyed at the time and energy that goes into reviewing business travel expenses. There may be a way to simplify the reimbursement of these expenses. In Notice 2023-68, the IRS announced the fiscal 2024 special “per diem” rates that became effective October 1, 2023. Taxpayers can use these rates to substantiate the amount of expenses for lodging, meals and incidentals when traveling away from home. (Taxpayers in the transportation industry can use a special transportation industry rate.)

Basics of the method

A simplified alternative to tracking actual business travel expenses is to use the “high-low” per diem method. This method provides fixed travel per diems. The amounts, provided by the IRS, vary from locality to locality.

Under the high-low method, the IRS establishes an annual flat rate for certain areas with higher costs of living. All locations within the continental United States that aren’t listed as “high-cost” […]

By Linkenheimer LLP|2023-11-03T19:56:54+00:00November 3rd, 2023|business, travel|0 Comments

Tech Tuesday: Microsoft Lens, A Game-Changer for Business and Accounting

In today’s digital age, the transition from physical to digital documents is inevitable. Whether we talk about business contracts, receipts, or tax documents, the ability to quickly digitize and share documents is a necessity. Enter Microsoft Lens, a mobile application designed to scan, enhance, and digitize a wide array of documents. For business environments and especially for accounting firms, Microsoft Lens has the potential to revolutionize the way documents are handled.

What is Microsoft Lens?

Originally known as Office Lens, Microsoft Lens is a mobile application developed by Microsoft. It’s essentially an intelligent camera app that allows users to capture, clean up, and convert images of whiteboards, notes, and documents into readable and editable formats, such as Word, PowerPoint, PDF, and more.

Benefits in a Business Environment:

1. Digital Transformation: Physical paperwork can be cumbersome and a potential data security liability. By using Microsoft Lens, businesses can quickly transform paper documents into digital assets, making them easy to store, share, secure and access from anywhere.

2. Collaboration: Captured documents can be easily integrated with Microsoft’s suite of products, such as OneDrive, Outlook, Teams, Word, or PowerPoint. This ensures a smooth workflow, as colleagues can instantly access and […]

By Linkenheimer LLP|2023-10-31T17:38:39+00:00October 31st, 2023|business, Tech|0 Comments

What Types of Expenses Can’t Be Written Off By Your Business?

If you read the Internal Revenue Code (and you probably don’t want to!), you may be surprised to find that most business deductions aren’t specifically listed. For example, the tax law doesn’t explicitly state that you can deduct office supplies and certain other expenses. Some expenses are detailed in the tax code, but the general rule is contained in the first sentence of Section 162, which states you can write off “all the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business.”

Basic definitions

In general, an expense is ordinary if it’s considered common or customary in the particular trade or business. For example, insurance premiums to protect a store would be an ordinary business expense in the retail industry.

A necessary expense is defined as one that’s helpful or appropriate. For example, let’s say a car dealership purchases an automated external defibrillator. It may not be necessary for the operation of the business, but it might be helpful and appropriate if an employee or customer suffers cardiac arrest.

It’s possible for an ordinary expense to be unnecessary — but, in order to be deductible, an expense […]

By Linkenheimer LLP|2023-10-02T19:14:38+00:00October 2nd, 2023|business, deductions, expensing|0 Comments

What Businesses Can Expect from a Green Lease

With events related to climate change continuing to rock the news cycle, many business owners are looking for ways to lessen their companies’ negative environmental impact. One move you may want to consider, quite literally, is relocating to a commercial property with a “green lease.”

Increasing demand

Green leases are sometimes also known as “aligned,” “energy-efficient” or “high-performance” leases. Whatever the label, they generally use financial incentives to promote sustainable property management and energy usage. The leases typically include provisions related to cost recovery, submeters, data sharing and minimum efficiency standards. Done right, they can cut energy costs, conserve critical resources and improve building operations — offering benefits to property owners and tenants alike.

Businesses that sign on to green leases may gain several competitive advantages. Many customers and investors now prioritize visible commitments to environmentally friendly business practices. More and more job candidates do, too. Sustainability is particularly important to Millennials and members of Generation Z, who together now make up the largest subset of the U.S. workforce.

In addition, the pandemic boosted interest in so-called “healthy buildings,” which are often available through green leases. Healthy buildings feature more efficient lighting as well as pathogen-fighting heating, ventilation and air conditioning (HVAC) systems. […]

By Linkenheimer LLP|2023-09-27T15:48:39+00:00September 27th, 2023|business, energy|0 Comments

Could Your Business Benefit From Interim Financial Reporting?

When many business owners see the term “financial reporting,” they immediately think of their year-end financial statements. And, indeed, properly prepared financial statements generated at least once a year are critical.

But engaging in other types of financial reporting more frequently may help your company stay better attuned to the nuances of running a business in today’s inflationary and competitive environment.

Spot trends and trouble

Just how often your company should engage in what’s often referred to as “interim” financial reporting depends on factors such as its size, industry and operational complexity. Nevertheless, monthly, quarterly and midyear financial reports can enable you to spot trends and get early warnings of potential trouble.

For example, you might compare year-to-date revenue for 2023 against your annual budget. If your business isn’t growing or achieving its goals, find out why. Perhaps you need to provide additional sales incentives or change your marketing strategy.

By Linkenheimer LLP|2023-09-13T20:36:01+00:00September 13th, 2023|business, report|0 Comments