Latest news with #Section280E
Time Business News
29-04-2025
- Business
- Time Business News
A beginner's guide to choosing the right bookkeeping service in Las Vegas
Running a business in Vegas is like playing blackjack—you need to know the rules, keep an eye on the numbers, and avoid costly mistakes. But what if your accountant doesn't know the house rules? Whether you're a seasoned casino operator, a bustling nightclub owner on the Strip, or a family-run restaurant on Fremont Street, financial missteps can be costly. If your accountant doesn't understand the ins and outs of Las Vegas business compliance, you could be facing fines, tax penalties, or worse—a business shutdown. That's why choosing the right Las Vegas bookkeeping and accounting service is critical—and here's how to do it right. Before choosing the right bookkeeping service, it's essential to understand the city's business landscape and regulatory requirements—ensuring you find a provider equipped to handle your specific needs. Las Vegas businesses, especially in hospitality, gaming, and nightlife, deal with a significant amount of cash transactions. While cash flow can be lucrative, it also creates complexities in bookkeeping, such as: Tracking cash transactions accurately to prevent financial discrepancies. Preventing fraud and theft through proper internal controls. Staying compliant with IRS cash reporting requirements, especially regarding large transactions (Form 8300 for reporting over $10,000 in cash). Having a bookkeeper well-versed in these regulations helps businesses avoid theft, fraud, heavy penalties, and audit risks. Las Vegas is home to businesses in highly regulated industries with strict compliance requirements. For example, the gaming industry must adhere to Nevada Gaming Control Board (NGCB) regulations, requiring meticulous financial tracking. Similarly, cannabis businesses must navigate the complexities of IRS Section 280E, which restricts standard business deductions. Whether it's managing cash-heavy transactions, tracking gaming revenues, or handling the unique tax obligations of the cannabis industry, your accounting provider should act as a financial safeguard, ensuring your business operates smoothly within legal boundaries. Las Vegas experiences seasonal shifts in tourism, meaning businesses in hospitality, entertainment, and retail must plan for fluctuations in revenue. While peak seasons (holidays, conventions, major sports events) bring surges in cash flow, off-peak months require strategic budgeting to cover operational expenses. Bookkeeping services in Las Vegas must understand these business cycles to help create financial strategies that manage both busy and slow seasons effectively. Nevada is attractive to business owners because it has no state income tax . However, businesses still need to stay compliant with local taxes, including: Modified Business Tax (MBT) : Applies to businesses with payroll expenses exceeding $50,000 per quarter. : Applies to businesses with payroll expenses exceeding $50,000 per quarter. Sales and Use Tax : Businesses must charge the correct rate (currently 8.375% in Clark County) and file sales tax returns accurately. : Businesses must charge the correct rate (currently 8.375% in Clark County) and file sales tax returns accurately. Live Entertainment Tax (LET): Affects venues hosting ticketed events and performances. Incorrect tax filings can trigger audits, penalties, and even business license revocations. An expert bookkeeper ensures timely and accurate tax filings to keep your business running smoothly. Understanding Las Vegas' unique business regulations is crucial and compliance isn't something you can entrust anyone with. So, how do you find a provider that truly understands the complexities of bookkeeping in Las Vegas? Here's what to look for: A bookkeeping service that understands Las Vegas-specific regulations is a necessity. The city's unique business environment presents challenges that a generic bookkeeping service might overlook. From managing high cash volumes and staying compliant with strict industry regulations to navigating Nevada's tax landscape, an experienced bookkeeper ensures your business remains financially stable and legally compliant. A bookkeeper with industry-specific expertise understands the nuances, compliance requirements, and operational complexities of your particular field. For businesses operating in cash-heavy environments like gaming, hospitality, and retail, managing transactions accurately and ensuring compliance is critical. Regulated industries like casinos and restaurants have strict financial reporting requirements. A bookkeeper with experience in your field understands how to navigate these regulations, ensuring your business meets all tax and licensing obligations without costly errors. Additionally, industry-specific knowledge allows a bookkeeper to recommend the right accounting tools and systems. Whether it's POS-integrated bookkeeping for restaurants, casino management software for gaming businesses, or inventory tracking solutions for retail, they should have experience working with financial systems tailored to your industry. In Sin City, businesses often operate 24/7, requiring instant financial oversight and quick decision-making. That's why bookkeeping services in Las Vegas must utilize cloud-based tools like QuickBooks Online, Xero, or NetSuite that allow business owners to access their financial data anytime, anywhere. Another key benefit of using cloud-based tools is security. These platforms offer bank-level security with encryption and multi-factor authentication, protecting sensitive financial data from breaches, theft, or loss. Finally, cloud-based bookkeeping fosters better collaboration between business owners, accountants, and financial advisors. Instead of waiting for end-of-month reports, stakeholders can access up-to-date financial statements in real time, leading to proactive financial planning rather than reactive problem-solving. One of the most critical factors when choosing a bookkeeping service is understanding their pricing model. A transparent fee structure ensures that you're not hit with unexpected costs or hidden charges that can disrupt your business finances. A reliable bookkeeping service should provide: Clear pricing tiers based on the scope of services (e.g., monthly reconciliation, payroll, tax preparation). Upfront disclosures about any additional costs for extra services. Transparent pricing options, such as fixed monthly fees or customized packages tailored to your business needs. Your bookkeeping service should have the right credentials and experience to handle the complexities of Las Vegas business finances. Always check: Client testimonials and reviews from businesses in your industry. Case studies showing how they've helped businesses stay compliant and financially sound. Referrals from other business owners who can vouch for their reliability. A Las Vegas bookkeeping service with strong credentials and positive client feedback, such as CoCountant, is a sign that they are trustworthy, knowledgeable, and capable of handling your business's financial complexities. Your Las Vegas bookkeeping service must understand the city's unique financial landscape, which includes complex tax regulations, industry-specific compliance requirements, and a cash-heavy business environment. A generic approach won't cut it. Working with a specialized firm ensures your business stays compliant with industry-specific regulations, tracks cash flow to prevent shortages, and optimizes budgeting during high and low revenue seasons. TIME BUSINESS NEWS
Newsweek
28-04-2025
- Business
- Newsweek
Congress, Don't Give the Marijuana Industry a Tax Cut
Advocates for ideas and draws conclusions based on the interpretation of facts and data. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. The Trump administration's mantra is to cut waste and cut costs. So, it might seem unthinkable that the federal government would give an addictive industry a tax cut. But that's exactly what many are proposing. Last year, companies that make highly addictive and dangerous drug products spent more than $4.5 million convincing lawmakers that today's high-potency marijuana and psychoactive THC drugs are safe. Among their top priorities was supporting former president Joe Biden's push to make marijuana a Schedule III drug. That would cost the federal government billions in revenue at a time when it needs every penny to close the budget gap and assist middle-income Americans struggling with inflation. The addiction industry has marketed the effort to reclassify marijuana as a leap forward for research and criminal justice reform. In reality, it is neither of those things. Extensive research already occurs on marijuana in the United States and Europe, which is why we have a growing corpus of scientific and medical data about its harms, which include a significant risk of psychosis and schizophrenia. President Biden already signed a law in December 2022 that expanded research opportunities for marijuana without rescheduling the drug. Criminal justice reform won't be achieved, either. Rescheduling would not reduce any existing criminal penalties and, according to reports as recently as December 2023, no one is even in federal prison simply for possession of marijuana (you'd be hard pressed to find any in state prison, either). Why, then, is Big Marijuana so desperate for rescheduling? It's simple: it would save the industry over $2 billion annually. The crux of the issue is just one sentence in the IRS tax code, known as Section 280E. This provision prevents businesses that traffic in Schedule I or II drugs from deducting business expenses for tax purposes. The provision makes sense; companies that profit off dangerous, federally illegal drugs should not receive tax breaks. Schedule III would release the marijuana industry from the constraints of Section 280E, resulting in a boon to corporate profits. Washington would also lose billions in annual revenue at a time when it is attempting to prioritize tax relief for Americans and closing the deficit. House Budget Committee Chairman Jodey Arrington (R-Tex.) and Senate Finance Committee Member James Lankford (R-Okla.) are fortunately seeing the truth behind the sleight of hand and have introduced new legislation, the No Deductions for Marijuana Businesses Act, which would protect Americans' health and safety and keep billions the federal coffers every year, regardless of whether the Trump administration backs the Biden rescheduling initiative. CHEROKEE, NORTH CAROLINA - APRIL 20: Customers take pictures of a flowering marijuana plant in a building owned by the Great Smoky Cannabis Company April 20, 2024 in Cherokee, North Carolina. CHEROKEE, NORTH CAROLINA - APRIL 20: Customers take pictures of a flowering marijuana plant in a building owned by the Great Smoky Cannabis Company April 20, 2024 in Cherokee, North No Deductions for Marijuana Businesses Act would amend Section 280E to specifically include marijuana, ensuring the federal government retains the billions in annual revenue that comes from the industry, regardless of the drug's schedule. To be clear, the bill would not levy any new taxes or penalties against the marijuana industry. It would merely cement the tax structure under which the industry has been operating for more than a decade. The bill is already proving its political salience. It has powerful backers including House Freedom Caucus Chairman Andy Harris (R-Md.) and four House Ways and Means Committee members, including Blake Moore (R-Utah), vice chairman of the House Republican Conference. And it would give lawmakers more room to cut taxes for families, which should be a no-brainer, even in today's divided Washington. If the marijuana industry is allowed to deduct its marketing and research and development expenses, the nation will end up with more addiction and more potent, industrialized drug products. The marijuana industry's predatory marketing tactics already pose a detrimental threat to vulnerable communities. Marijuana advertisements that push products designed to appeal to kids, like gummies and THC sodas, are proven to drive up youth use. The industry targets minorities and even pregnant women. Our tax policy shouldn't incentivize industries that have demonstrated a caustic impact on our communities. Few fights are as worthy as the battle to protect Americans from addiction and drug-induced debilitation. In the name of public health—and fiscal responsibility—Congress must incorporate the No Deductions for Marijuana Businesses Act into the final reconciliation package. We owe it to taxpayers, our youth and our nation's most vulnerable communities. Dr. Kevin Sabet is the president of Smart Approaches to Marijuana (SAM) and a former three-time White House drug policy advisor. The views expressed in this article are the writer's own.
