TessMore Finance Blog

Definition: The term burden rate refers to the allocation rate of indirect costs to direct costs. Usually, it covers two areas, including labor and inventory. Companies allocate indirect costs to the direct costs for products or services through the burden rate. Companies incur indirect costs in many forms. However, these costs may not always be apparent. Companies sometimes also refer to them as hidden costs associated with running operations. Usually, they include unknown variable costs that can create issues in determining product costs. Companies must apply those indirect costs to their direct costs to understand their processes better. Direct costs, in contrast, are much easier to establish. Usually, companies calculate these costs as they incur them during production. Direct costs include any expenses directly occurring due to manufacturing products . For service firms, they consist of costs directly attributable to the process of rendering services. However, these costs do

You have the idea, the drive, and hopefully the funding, but as a small business owner, you’ll be faced with a plethora of decisions from conception to day-one operations. Choosing the right financial institution is not the least of them. Here are 8 essential banking tips that could help. Careful consideration needs to be taken when banking on your financial services provider. Small businesses account for 99.9 percent of businesses in the United States, the Small Business Administration reports , so it’s no surprise that most financial institutions are vying for your business. Unsurprisingly, more than two-thirds (79 percent) of respondents in a survey of 600 small business owners (with an annual revenue of up to $20 million) use the same financial organization for both their personal and business financial needs, according to the Banking Administration Institute , a Chicago-based nonprofit financial services research firm. Yet another survey , by PwC, of 570 small and medium-siz

A great way to track work-related mileage is through Hurdlr . It’s an app designed to make life easier for freelancers, independent contractors, and other professions that need help tracking income, expenses, and mileage. By using Hurdlr , you’ll also be able to estimate your tax burden and track tax deductions throughout the year. How You Use Hurdlr for Taxes Ideally, you’ll use one specific bank account for your business expenses and income. Once you’ve linked your account, Hurdlr is able to track income and expenses easily . You can also link Hurdlr to services like PayPal, Square, Stripe, Freshbooks, and others to stay completely synced. How Does Hurdlr Track Mileage? There’s a mileage tracking function that runs in the background and tracks mileage automatically. It can even integrate with Uber’s app. There’s no need to manually track your mileage anymore. Hurdlr tracks everything efficiently and automatically . It keeps track of deductions, reimbursements, and so much

D o you drive for your job or business? Then you might be eligible for a mileage deduction. Here is an easy-to-understand guide to the IRS standard mileage deduction. Happy filing! In 2023, you can deduct 65.5 cents per mile driven for business uses. If you drive a lot, either for your business or for an employer who doesn’t reimburse your expenses, keeping careful track of your miles will give you the biggest tax deduction. 1. What Kind of Driving is Deductible? If you drive for business in some way and your employer does not reimburse you for gas, those miles are eligible for the deduction. Common jobs which accrue deductible miles include realtors, sales, and contractors. In addition, miles logged for charitable organizations and medical or moving expenses can also be deducted. Here’s the full list: Business Use : $0.655/mile Medical, Moving Purposes (active duty only): $0.22/mile Charitable Organizations : $0.14/mile 2. Is it Worth My Time to Log the Miles and File th

T here are several financial benefits of working from home. And not just for the employee. The employer can benefit too. I’ve been working from home for several years now since I quit my day job . And my team of three employees is entirely remote. I’ve loved it. If you’re interested in testing this out for yourself, stick around. I feel like I can give some honest feedback about the financial benefits of working from home (wfh). Financial Benefits of Working from Home [for Workers] 1. Lower Car Insurance That’s right. One of the first things I did once I no longer had a commute was to call my car insurance company and tell them my commute had changed. With fewer estimated annual miles on your car, they’ll likely lower your premium. This didn’t save a great deal for me. I saved around $10 on my monthly premium payment. My commute wasn’t bad before. But it’s a small savings I’ll gladly take towards more affordable auto insurance . How much can you save? That depends on how many

Update: Currently it is estimated that taxpayers will have ( according to the IRS website ) until April 18, 2023, to pay and file their 2022 taxes. Head’s up…many post offices stay open later on tax day to ensure you get your return filed. Tax Penalty if You Don’t File on Time You will be penalized 5% (of the amount of additional taxes you owe beyond what you paid in) each month you haven’t filed. This penalty maxes out at 25% of the additional tax you owe. So if you owe $100 in additional taxes, after April 15th you’d owe $105 ($100 plus the 5% penalty). Wait to file more than 60 days after the tax deadline and you’ll face a minimum penalty of $435 or 100% of your tax, whichever is the smallest. Important note . Always file even if you cannot pay. The penalties for not filing listed above are much steeper than the penalties for not paying. The failure to pay penalty is onlu 0.5% for each month you don’t pay, capped out at 25%. If you can’t file a complete return, file an exte

C ontributing to an IRA is a smart move. There are two major varieties for the typical taxpayer to take advantage of: Traditional or Roth. The Traditional IRA gives you a tax deduction on contributions, while the Roth IRA lets you take distributions from the account in retirement without paying taxes. They are both excellent tools to help you build a substantial portfolio enabling you to support yourself when you can no longer work. I highly recommend you use one or both to help you save for retirement today . But there are income limits that might affect your ability to use these accounts to the fullest. And these limits change each Fall (for instance, here’s the 2023 announcement from the IRS ). Let’s look at each one closely. Historical Traditional IRA Income Limits For those who participate in their employer’s retirement plan: Year Married Filing Jointly or Qualifying Widower Married Filing Separately (lived with spouse) Single, Head of Household, or Married Filing

S o you want to create a resume for a part-time job. Maybe this is your first job? Maybe you’re in college and you just need a little income. Maybe you’re returning to the workforce on a part-time basis? I’ve had over 15 part-time jobs in my lifetime. One thing I know is that you need a good resume before you apply for that part-time job . Let’s break down everything there is to know about writing a resume for a part-time job. Yes, this is a special scenario and it does require a special effort. But we won’t leave you hanging to write it all yourself. You’ll appreciate these resume examples that you can copy. You’ll also love this free resume template pdf you can download. Just want the free template? Jump to it here . How to Write Your Own Resume for a Part-Time Job Okay, so you’re ready to create your resume. Here are some basic pointers to keep in mind as you write: Practical Resume Writing Tips to Keep in Mind Here’s resume writing 101. You gotta get these things right. E