Do you expect to receive forgiveness and debt cancellation of a loan, such as the Paycheck Protection Program loans made during 2020? While your business can greatly benefit from the forgiveness of a loan, it also creates an unusual new set of entries on your financing books. Why? Here are five key things to know.
1. Loans Are Actually Liabilities
When you take on a loan, you create both an influx of cash and a new liability.
As you begin the work of estate planning, some of your biggest resources will be a team of qualified professionals. While this should certainly include an attorney, it should also include a certified public accountant (CPA). What can an accountant do for you during each stage of your estate planning process? Here are a few key things.
Before Estate Planning
Before you actually draft a plan for your assets, you'll need to do some preparatory work.
When you own and run your own contracting business, you may not have a lot of time to manage your books. Still, you cannot allow your bookkeeping to fall behind. You must know how much cash flow that you have on hand with which to operate.
Instead of trying to make time in your busy day for managing your books, you can outsource them to accountants who serve contracting businesses like yours.