The e-learning industry is projected to grow to more than $300 billion by the year 2025. You may feel that now is the best time to take advantage of this growing industry. If so, health care online course company tax planning and e-commerce online course company accounting could impact the success of your business.
Basic Health Care Practice Online Course Company Accounting Tips
Monitoring cash flow may be at the heart of a successful e-learning company. Here are some tips that may help:
- Track earnings and expenses weekly. If there are discrepancies, it may be easier to rectify them quickly by doing so
- Avoid pay bills until they are due. Rushing to pay bills may lead to a cash shortage.
- Think of offering your students monthly subscriptions or payment plans. This way, funds are more likely to come in on a regular and timely basis.
Factor in All Expenses
The more thorough your health care practice online course company bookkeeping is, the more accurate picture you may have of your financial standing. Another thing to consider is that your company may have some fixed costs. These may include:
- Domain name and hosting
- Technology and software expenses
- Renting a facility and utilities
- Employee salaries
Your healthcare practice online course company bookkeeping should also record variable costs. For example, your online course may be so popular that you need to increase your hosting package. At first, shared hosting may be best. Then, more expensive virtual private hosting or even dedicated hosting may be required. Other variable costs could include marketing and advertising.
Taking a Proactive Approach to Tax Planning
It's recommended that you consult a health care practice online course financial adviser to help you identify which of your services are exempt from taxes and which ones are tax payable. Some basic taxes you may need to know about include:
- Estimated taxes, like self-employment and income tax
- Employment taxes, including FICA, local, and state taxes. These are withheld from your employees' gross wage. You are also responsible for state and federal unemployment taxes
- Sales tax is a pass-through tax that most states impose on customers, and this means that when you sell a course, sales tax is added to the price of the online course.
Although your customers pay sales tax, traditionally, you are responsible for collecting, depositing, and reporting the tax.
In calculating and collecting sales tax, you serve as a middleman between the US government and your customers. An experienced healthcare online course company CPA should be able to assist you in this area. An expert is usually familiar with the tax rate in different states, including the five states that do not charge sales taxes. Teaching courses online may give you the freedom to sell your product to people all over the country. But that freedom could create some confusion about which states you need to collect sales tax from. Here are two essential questions that you should discuss with your CPA before selling products internationally.
- In what state does my health care practice online course company have a nexus?
- If a customer purchases a product in a state where my online course company has a nexus, do I collect at their locality rate or mine?
Identifying Partnerships that May Lead to Success
Is your organization looking to reorganize its financial functions to increase efficiency? Would your organization benefit from reducing the time spent on financial management and reports preparation? If so, here at Fusion CPA our financial advisers offer to help guide your health care practice online course company. We provide cash flow analysis and strategic tax planning services for small and medium-size online course companies. Our goal is to give small and medium-sized owners access to expertise and high-quality resources. As online course company financial advisers, we work with companies at any stage to help them to grow their annual revenue, identify unique economic opportunities, streamline financial processes, and more. You can learn more about our services by clicking the button below to schedule a complimentary discovery call today!
This blog article is not intended to be the rendering of legal, accounting, tax advice or other professional services. Articles are based on current or proposed tax rules at the time they are written and older posts are not updated for tax rule changes. We expressly disclaim all liability in regard to actions taken or not taken based on the contents of this blog as well as the use or interpretation of this information. Information provided on this website is not all-inclusive and such information should not be relied upon as being all-inclusive.