The Accounting Equation: Assets = Liabilities + Owners’ Equity

Your business is built on the accounting equation: Assets = Liabilities + Owners’ Equity Assets are what your business owns.  Liabilities are what your business owes.  The difference between these what you – the owner – actually own: owner’s equity. Suppose your business has $100,000 in assets and $30,000 in liabilities.  Then $70,000 of your […]
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Your Super Bowl Winnings are Taxable and Your Losses Might be Deductible

If you won a wager on yesterday’s Super Bowl game, congratulations. Here’s the bad news: It’s taxable. According to the IRS, all income (unless it is considered “exempt”) is taxable whether from legal or illegal sources. Remember The Untouchables? This was how Eliot Ness ultimately nailed Al Capone – for failure to report taxable income. Needless to say, […]
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Save receipts for home improvements

Whenever you make improvements on your home, save the receipts.  These improvements may include additions and other improvements that have a useful life of more than 1 year. They can also include special assessments made for local improvements, and even amounts you spent to restore damaged property. Improvements increase the “adjusted basis” of your home […]
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Measuring productivity

I’ve written extensively about doing more with less – productivity.  Productivity is a very powerful tool, and it can allow youto dramatically increase your revenues and profits, without spending much more on assets or expenses. How can you measure productivity? First, define your process.   What is it that you want to do more productively? […]
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