Use a cash-flow budget to track your daily cash flow - the inflow of revenue and outflow of expenses during each month. This will help you plan ahead for difficult times when you might need more inventory to prepare for a busy season, but have bills due before the sales happen.
Don’t think that only high-powered companies need accountants. Virtually all individuals can benefit from the help that an accountant can offer, particularly accountants with expertise in taxes. It’s easy to miss the latest deductions and credits allowed by the federal government.
Did you know that the Internal Revenue Service only allows certain individuals to represent taxpayers in the event of an audit? If you hire a tax preparer and there is an audit, that person cannot represent you before the IRS.
Why work with a small business accountant? In 2016, new tax expensing and depreciation rules will take effect. These rules affect your options for deducting or depreciating equipment and machinery, and set new limits on both.
According to the New York Times, one of the top five reasons that small businesses fail is due to a poor business plan. An experienced tax accountant can help you formulate your business plan so that potential investors can see your vision, along with some numbers to back up your optimism.
Only the top tax experts in the country become enrolled agents, with only an estimated 46,000 agents in the U.S., according to the National Association of Enrolled Agents. That’s in part because every enrolled agent must have a minimum of 72 hours of continuing education every three-year period after becoming an EA.
When keeping records for all income and expenses, an easy way to track it all is with the use of technology. Using a software package to log and keep track of everything going on will help you stay on top of your finances.
According to a report from the Government Accounting Office (GAO), individual taxpayers overpay their taxes by $400, and almost $500 million nationwide in overpayments are made because tax payers do not take all of their allowable deductions.
Why work with a small business accountant? More than half of all small business owners spend more than 40 hours a year on tax preparation, and close to 40% devote more than 80 hours a year to taxes.
EA accountants are authorized to handle any type of tax matter. Why? They have passed the comprehensive Special Enrollment Exam, which covers federal tax laws, audit, and collection procedures relating to individuals, corporations and partnerships.
When it comes to filing your tax returns or dealing with a potential audit, accuracy and thoroughness are critical. By hiring an EA accountant, you can help to ensure a favorable outcome and minimize your tax burden.
What is a safe harbor deduction? In some instances, your business has the option to treat certain depreciable assets as materials and supplies, which means you can deduct the full cost of the item up to a set limit.
Self-employed individuals generally must pay self-employment tax (SE tax) as well as income tax. SE tax is a Social Security and Medicare tax primarily for individuals who work for themselves. A tax preparer can help you calculate this and make sure your payments are made on time.
There is a definite growing need for representation in tax preparation. Given the state of recent economic trends, many people find themselves in financial difficulty. Many are delinquent on their tax obligations. If this is your situation, our firm can offer the expert representation you need.
Did you know that the Rosetta Stone has content related to a priest's exemption from taxes? In fact, many ancient documents from around the world are tax related.
Accounting software is usually found to be expensive and is often difficult to use. Hiring a business accounting service can provide you solutions to all of your accounting and taxation problems.
Unfortunately, the US tax code is an evolving guideline that can be difficult for the average person to stay current on the changes. When you need to ensure that your taxes are completed using all the most current and factual information, we can help.
It’s always a good idea to consult an EA accountant before you set up your small business to help you decide how you will handle your taxes. An EA must pass a taxation test administered by the Internal Revenue Service and thus have a strong understanding of current tax laws.
Although you may pride yourself on being able to complete your tax returns on your own each year, starting a new business can require tax forms you’ve never heard of. Even if you plan to do your own taxes going forward, you may want to consider working with a tax accountant the first year you’re in business to ensure you’ve taken advantage of all the appropriate deductions.
The contributions by an employer to plan something during an employee’s election are mentioned under Elective Deferrals. The exceptions here are that this should not be a part of the employee’s gross income.
NAEA members are required to complete 90 hours of continuing education every third year reporting period. Because of the knowledge required to become an EA and the requirements necessary to maintain the license, there are only about 46,000 practicing EAs in the United States, such as those in our office.
Coordinating federal and state tax returns requires an informed approach. While a deduction may save money on your federal form, it may cost you more on your state form. Dedicated tax accountants will show you all the options and their impact.
