Horse Business Accounting, Bookkeeping and Taxes

I'm never sure when I listen to Madonna sing "Material Girl" if she thinks that being a material girl is a good thing or a bad one. But being a material girl/guy in relation to your business is definitely a good thing when you are dealing with IRS matters....More

No one wants to see the IRS knocking at their door, requesting an audit of a prior year tax return. Sometimes, it's just the luck of the draw. But there are things that you can do (and NOT DO!!!) to decrease your chances of being audited....More

Horse businesses are a common target of the IRS because often times they don't follow these simple steps. Make sure that your are treating your business as a business and you'll reduce the risk of the IRS knocking on your door, or at the very least you'll be ready to explain your business financials when they do....More

There is a definite upswing within the IRS and DOL (Dept. of Labor) for enforcement audits regarding employment records. The IRS has even increased their staffing for carrying out these efforts. Even if your firm has never violated one IRS or DOL rule, they can still find you in violation of record keeping rules and apply substantial penalties. Now is the time to gather employment records together that you are required to keep under federal law....More

SP, LLC and Subchapter S -- what does it all mean and why do you need to know? These are several of the different types of legal entities that businesses adopt which allow the business to take on an existence apart from its owners, though the owners still control the business. The type of entity that you choose will affect your...More

With show season firmly upon us, it is a good time to discuss which expenses which are incurred while you are showing "away from home" are deductible. In general, travel expenses are deductible if they...More

Last month, I discussed items that are deductible on your business tax return. This month, I'm going to mention some items that are not tax-deductible for your business. Let me just repeat one idea from last month -- In order for an expense to be deductible, it must be both ordinary and...More

With tax time right around the corner many equestrian professionals are getting their taxes together and trying to make the most out of any and all possible deductions here is a handy alphabetical list of...More

Horse professionals, don't leave money on the table! Watch this exclusive webinar with Len Green, one of the nation's top equine tax experts, to learn how to optimize your tax strategy and keep more of your hard-earned profits. What You'll Learn: • Key tax law changes that will affect equine businesses • How to maximize deductions and reduce your tax liability • Common tax pitfalls for horse professionals—and how to avoid them • Real-world strategies for making your business more profitable Bring your questions! This is your chance to get expert advice tailored to the horse industry. ...More

In this series of articles we discuss the four most important financial reports to understand and use in managing your horse business. The four reports are:· Profit & Loss Statement (also known as an Income Statement) Balance Sheet Accounts Receivable Report Cash Flow Report In our first article we discussed the Profit and Loss Statement. In this article we will discuss the Balance Sheet. The Balance Sheet is a snapshot of the business. It is a powerful indicator of the health of a business. It uses the following equation. ASSETS = LIABILITIES + OWNER'S EQUITY...More

One of the four important reports that you can use to keep informed about your business and to make good business decisions is the Accounts Receivable (A/R) Report. The A/R Report shows that you've made the sale, but not received the payment yet and lists the balance owed to you. This is generated from the bills for the lessons given, the horse shows attended, the breeding done, the vendors paid on behalf (blacksmith, vet), board, or supplies given (medical care, meds, supplies) to your customers. When you create an invoice and send it out for payment, this populates the list. The setup of the report gives you how long those unpaid invoices have been due to you. This is called "Aging" and is usually set up from the date due on the invoice. The report shows the breakdown in increments based on the number of days due. The most common is:...More

The final article in this series helps you to understand the importance of Cash Flow Analysis. This report is the listing of cash in and out of the business. It's the "reality pinch" to the "it's gonna be" of the Profit & Loss Statement. Cash Flow is more concerned with the timing of the business activity, whereas the P&L is more concerned with the end game....More

At many horse farms, the revenue from the farm represents the primary source of income for both the husband and the wife. In order to receive credit for their income for purposes of calculating future Social Security benefits, many couples have resorted to changing their form...More

On your list of things to do today, you have 4 lessons scheduled, 6 training rides, a feed order to make, and a lame horse to check. How about adding in a financial analysis of your business to that list? Most people run screaming from the room at the mention of anything to do with accounting. But to run a business, especially a horse business, owners need to have a basic understanding of their finances. In order to help you with your financial education, EquestrianProfessional.com is beginning a series that will explain accounting terms specifically geared to the horse industry. Definitions and examples will be horse related in order to help you understand more clearly how these terms impact your business....More

Internal Controls -- it sounds like something that relates to connecting to your core when you ride or possible a yogurt that aids with regularity. But if a CPA is writing about it, you know that it must have something to do with your business. In a nutshell, internal controls are the policies and procedures that you implement to ensure that you receive all of the money that your customers should pay to your business and only disburse the money that you intend for your business to pay out....More

So here we are in the middle of April. Where did the time go? This means that we have finished the first quarter of the year or 25% of the time we have. So let's do a quick check of how our business is doing using that 25% figure as a guide. Begin by looking at your Profit & Loss Statement from the period of January 1 to March 31, 2019. Review your income and expenses for that period. On the most basic level, you can see whether or not you have generated a profit for the first quarter. If you generated a loss, that doesn't necessarily mean it's a bad thing IF you know why. For example, if you are having a...More

If one of your new year resolutions is to get your office organized, here are a few tips that are quick and easy and will help you keep that resolution! Tame the top three time suckers - Receipts, Payroll and Purchases with these solutions....More

It all started innocently enough.  I had a potential client call me to ask if I would be willing to prepare her sales tax return for her.    I've prepared sales tax returns for over 20...More

USA Horse Business Onwers, trying to remember due dates for everything you need to do for payroll and 1099 vendors? Here's a quick checklist you can use....More

An independent contractor (IC) is someone who provides services to others, outside the context of employment. An employee is a person who provides services to a company on a regular basis in exchange for compensation (including trading work for free/reduced board, lessons, etc.) and...More