Estimate vs. Proposal: What’s the Difference in a Construction Project?   If you’ve ever wondered where to draw the line between an estimate and a proposal, you’re not alone. In the construction industry, the terms “estimate,” “quote,” “bid,” and “proposal” are often used interchangeably; however, they serve distinct purposes.    Let’s break it down, estimate vs. […]

What is a TCC Number?   A TCC number, or Transmitter Control Code, is a unique code given by the IRS.   To use the IRS FIRE (Filing Information Returns Electronically) system, you need a TCC. You can obtain it by submitting Form 4419, which helps the IRS identify the data transmitter.   You can visit the FIRE […]

Can I Rent My Own Property to My Business?   Yes, you can rent your personal property, such as an office or a warehouse, to your business. This is a common strategy for tax planning and asset protection.    Leasing or renting property to your business can be a smart strategy but only if you do it […]

Asset-Backed Loan vs. Cash Flow Loan   An asset-backed loan is secured by collateral like equipment, inventory, or real estate. If you don’t repay, the lender can take the asset.    A cash flow loan, on the other hand, is based on your business’s projected income and profitability. It’s unsecured, which is riskier for lenders and often […]

Can I Be a Sole Proprietor and Have Employees?   Yes! As the sole proprietor, you can hire employees but are fully responsible for all business facilities. It’s because, as the sole proprietor, you have no legal separation between you and your business.    In addition, you’ll need to obtain an EIN (Employer Identification Number) from the […]

Can You Write Off a Storage Unit on Taxes for Business?  Yes, you can write off a storage unit on your taxes if used for business purposes. The cost of a storage unit is considered a deductible business expense under rent or storage costs. However, only the business-related portion can be deducted if the unit […]

How Long Does It Take to Get a Plumbing License? The time it takes to get a plumbing license varies by state but typically ranges from 2 to 5 years. Most states require a combination of classroom education, hands-on apprenticeship, and passing a licensing exam.  Some areas allow you to start as a trainee or […]

What Do Uncollected Funds Mean?   Uncollected funds refer to money deposited into a bank account, usually via check, that isn’t available for withdrawal yet. Banks place holds on such deposits to ensure the funds are received from the payer’s account before making them accessible. The length of the hold depends on factors like the bank’s policies, the check […]

What is a Deposit in Transit?  A deposit in transit refers to a payment that has been recorded in a company’s accounting books but hasn’t yet cleared the bank. This usually happens when a business deposits cash or checks near the end of a financial period, and the bank processes them later. These deposits appear […]

What is a Purchase Allowance?  A purchase allowance is a price reduction that a seller grants to a buyer after a sale. This reduction generally happens due to minor defects, late delivery, or other issues with the product.   Instead of returning the goods, the buyer keeps them at a discounted price, and the seller adjusts […]