Q: Why should I consider outsourcing my bookkeeping?
A: Most business owners feel like they are running constantly in many directions. Bookkeeping is an important requirement of all businesses and one that cannot be neglected. Outsourcing your bookkeeping tasks to us will free your time to focus on activities that will add value to your customers and increase your profits. You will also have the peace of mind that experienced professionals are maintaining your financial records and preparing you tax returns.
Q: How often should I see my Accountant?
A: A regular quarterly meeting to review management reports and tax issues should be your goal. A meeting once a year to prepare your taxes does not allow you to take full advantage of your financial professionals’ years of knowledge and experience, and could cost you dearly.
Q: Does my company need Audited Financial Statements?
A: It really depends on a few factors. The most important questions to ask yourself are: Who are the intended users and are there any specific reporting requirements by the end users. Audited financial statements are generally required by lending institutions and/or government agencies. The end users generally require you to produce a set of audited financial statements annually.
Q: I have not filed my taxes in years how do I fix it?
A: The first step in clearing up a non-filed tax issues it to file tax returns for the years outstanding.
Q: If I have not filed in years how much will I owe?
A: You will not know this till we prepare your tax returns. In many cases, people who have been employed and receiving regular paychecks during the non-filing period find that they are actually owed a tax refund. IRS does not charge penalties for unfiled tax returns that result in them owning you a refund. This is because most people have more taxes taken out of their paychecks then they actually owe at year-end. If this is your case, contact us today as there is a statute of limitation of IRS refunds of 3 years and you could be losing money now.
In other cases people find themselves owing the IRS and those balances increase due to penalties and interest. The good news it that there are many programs that the IRS has setup to assist taxpayers in getting caught up. Unfortunately the taxpayer is not eligible to take advantage of any of these programs until all the un-filled tax returns are filed.
Q: I am self-employed, how do I pay my taxes?
A: The self employed are required to make estimated tax payments to the Federal Government and to the State on the due date specified. This is most often April 15, July 15, October 15 and January 15 of the following year. For sole-proprietors, the estimates are based on the net profit generated from the business. As a result it is important to maintain your records/bookkeeping to ensure that you are not over paying or under paying your taxes.
Q: Can I take a deduction for a home office?
A: A home office is a popular deduction for the self-employed like to take. Generally, in order to claim a business deduction for your home, you must use part of your home exclusively and regularly:
- as your principal place of business, or
- as a place to meet or deal with patients, clients or customers in the normal course of your business, or
- in any connection with your trade or business where the business portion of your home is a separate structure not attached to your home.
Please note the words “exclusively and regularly” are very important.
Q: Should I get a loan to start my new business?
A: The answer to this really depends on many things, including the kind of business you are starting, how much it will take to get the business operational, your personal income needs and weather or not the business’s net profits can support the principle and interest repayments. Getting the right advise now can same both time and money. If you determine that a business loan is right for you we works with various business loan brokers and can guide you through the loan application process.
Q: How should I structure my business?
A: Choosing a business structure depends on the goals / objectives of the owner. There are many factors to consider in the evaluation process including tax treatment, the level of liability the owner wants to retain, estate planning and business transition issues, startup cost and complexity of the business. Because of the complexity involved, there is no one best answer. Our firm offers a free no hassle initial consultation where we can spend some time discussing the goals and objectives for your business to help you arrive at the best choice.
Q: Do I need Accounting Software?
A: At a minimum, your business needs an efficient, easy-to-use system that will provide timely and relevant information to help control your cash, understand and improve the financial position of your business, create invoices, manage your bills and monitor operating results for management and tax purposes. Our firm has certified QuickBooks ProAdvisors on staff who can help clients find the right solution for their specific needs. There are many different QuickBooks software packages as well as online solutions available starting as low as $200 for a software package and $13/month for an online solution. With a little help from us, they are easy to setup and maintain.
This page is intended to provide general information only. This should not be construed as accounting or tax advice, which has to be addressed to particular facts and circumstances in any given situation.
Any tax and accounting advices contained in the body of this page is not intended or written to be used, and cannot be used, for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.