Here is a link to an article from the Los Angeles Times. Apparently, Citibank has decided that frequent flier miles earned on credit cards are taxable income. They calculated the income to be 2.5 cents per miles and sent out 1099s to anyone who crossed over the $600.00 annual threshold. Will you credit card follow suit?

Chick HERE to read the article.

Today is the first day that employers can file 2011 payroll tax forms. The first thing that I did today was to file all of the Mobile CFO payroll tax returns. Everything went well except for the federal form 940. It said that I owed 21.00. QuickBooks never mentioned a 21.00 liability or I would have paid it right away.

Turns out the federal government imposed the tax on employers in 19 states (CA and MN included). These 19 states had outstanding unemployment loans to the feds, so the feds have decided to get the funds back from us. Go ahead and create a manual check for the tax, mail the form in and hope that QB incorporates the changes in the 2012 return. 

I really enjoyed "How Not to Grow" in the September issue of CFO magazine.  It has some good advice for anyone wanting to grow their business.  Two thoughts caught my eye:

1.  Make sure that you include the increased need for working capital in your borrowing needs.  "A company may borrow enough to fund some of the growth, but not realize that running a larger business will tie up [disproportionately] more money in inventory." and other areas.  That means that you will need not only to understand the capital needed to grow, but the capital tied up in inventory and accounts receivable.