FINANCIAL HOUSEKEEPING | Review your W-4
If you are getting a big tax refund or owed Uncle Sam a big check for underpaying your taxes this year, your paycheck and W-4 form could help you smooth out your tax picture for next year.
Your W-4 is a withholding form. If you have a spouse, children and a mortgage, you may be able to claim exemptions to reduce your withholding. If your family has grown or changed since you last signed a W-4 form, changing your exemptions could make things easier along the way, and at tax time next year.
To get the most out of the process, discuss your W-4 with your tax preparer. Knowing the deductions you qualify for – even if they are one-time-only allowances – can help pinpoint your tax obligations much better than the common, impersonal estimate.
SHORT COURSE | Burn rate versus run rate
Companies have a burn rate only when they have negative cash flow, meaning that their spending outstrips their income; the term usually is used to describe companies being financed by venture capital.
Loosely speaking, this is the monthly rate at which the firm is burning through its capital, creating a picture of how long the company can survive if it does not raise more funding or turn a profit.
By comparison, a company’s run rate is a projection of its sales for the next 12 months, assuming that the current revenue rate does not change. It is an easy calculation, usually made by multiplying the company’s most recent quarterly revenues by four.
