A business income statement shows the extent to which activities have caused an increase or a decrease in equity, or net worth, over some period of time. However, a business’s equity can also increase, if an owner invests assets in the business.
Did you know that the IRS estimates that it takes the average person 23 hours to prepare and file a form 1040? If this sounds like more time than you'd like to expend, seek out a qualified tax accountant who can get it done in a fraction of the time.
One of the most famous business accountants of all time is famous not for his exceptional accounting and bookkeeping skills but because he invented bubblegum! In fact, the American accountant Walter Diemer, who in the 1920s worked for the Fleer Corporation, spent his spare time inventing bubble gum!
Did you know that over 90% of small businesses fail or change ownership within the first five years? If your business fails under a sole proprietorship, you do not have to worry about communicating with or filling out special forms for the IRS. You simply file a Schedule C with your next return and stop doing business.
Have you ever been hesitant to send in your tax return to the IRS because you just know there’s something you overlooked that they’ll catch? Let’s talk about how working with a tax accountant can help you to alleviate some of that stress.
Comedian Bob Newhart and musician Kenny G started off as accountants. Singers Mick Jagger and Janet Jackson studied accounting in college before embarking on their current careers.
The U.S. tax code is filled with thousands of laws regarding local, state and federal taxes, and they change all the time. Thankfully, you don’t have to know them all. Your accountant will apply them to your tax situation.
While aggressive spending at the end of the year for your business can certainly help with taxes, keep in mind that there are only some places where this can be deducted. While paying yourself a bonus can help zero out your business bank account, that amount cannot be deducted.
Not sure whether or not you need to hire a tax attorney? The general rule of thumb is to hire an accountant if your tax situation is complicated or complex, if you think you might make a mistake on your taxes, or if you are seeking to minimize your tax burden.
Current Expenses are written off in the year that they occur and are usually consumable or everyday expenses to keep the business running, such as rent, electricity, and office supplies.
Did you know that some enrolled agents have worked for the IRS for 5 years in a capacity that required them to regularly interpret tax laws and regulations? The other way EAs gain certification is by passing a competency exam administered by the IRS itself.
It’s important to remember that not filing your return is actually more costly than not paying your full amount due. While you may be concerned that you won’t be able to afford your tax liability this year, putting it off could result in a hefty fee for missing the filing deadline.
It’s important to remember that no matter who prepares your tax return for you, you’re still ultimately responsible for its contents. Let’s talk about how we can give you an extra layer of confidence that your numbers are all accurate.
We understand that you work hard for your earnings and don’t want to see more than your fair share go to the government. Working with an accountant can help you take advantage of deductions and credits you didn’t know you qualified for.
Pop Quiz: What does the word "debit" mean in Latin? a) he trusts, b) he owes, c) he counts, d) he's in debt. Answer: B. Debit means "he owes."
Although most business owners would like to comply with tax laws, the truth is that they are complex enough so that it's all too easy to let some requirements slip through the cracks. One of your tax accountant's jobs is to keep you in compliance so you avoid costly penalties and time-consuming audits.
Like any government agency, the Internal Revenue Service has a certain amount of red tape and bureaucracy that you must go through in order to get a result. An enrolled agent is familiar with the ins and outs of the IRS and can represent you far more efficiently than you could yourself.
Overpaying taxes is so common the IRS has estimated Americans overpaid by more than $1 billion in 2013. Much of that involves returns prepared by the taxpayer. An accountant will check for any and all errors and make sure any tax bill is as low as possible and any tax refund is maximized.
Changes in family situation can mean big changes in your tax returns, too. Issues such as splitting assets after a divorce can cause a real headache come tax time. In this situation, a tax professional's help can be invaluable in making sure your return is prepared correctly.
National statistics show that approximately 50 percent of all small companies are out of business within four years. Relying on the advice of an expert, such as an accountant, can increase the odds that you will have a successful business.
Since an enrolled agent specializes in tax law and has to pass stringent IRS exams, you might think they would be more expensive to work with than other types of accountants. Actually, depending on the complexity of your situation, it can often be cheaper to have an EA prepare your tax return.
Income taxes are not new in the world. One of the first recorded income taxes was used to fund the Crusades. King Henry II put forth the Saladin tithe in 1188 to help fund the Third Crusade.
Did you know that the software professional tax accountants use is very different from the "do it yourself" programs on the market? Professional programs are far more sophisticated and automate much of the process, leaving much less room for human error.
Master of Science in Taxation, or MST, is a course of study that focuses on tax law, accounting, auditing, business law, and ethics. It prepares professionals that want to pursue tax practice in both public and private sectors.
Do you have someone in your business that is specifically assigned to bookkeeping? Experts recommend that if it is possible, you assign someone in your organization to track your billing.
Why hire an accountant for your business? Small business accountants can provide financial advice and planning when making important business decisions.
Any time you get income from a long-term investment or selling capital, you have to deal with capital gains tax, but there are a variety of ways this can be minimized, which is why it's important to make sure you consult with your tax accountant.
Do you know the difference between an EA and a CPA? While a CPA deals with a broad range of accounting, an enrolled agent is a government-certified professional duly authorized to represent taxpayers, whether an individual or a business entity, in dealing and negotiating with the IRS.
A business accounting service will take care of far more than just keeping and maintaining accurate expenses. The service will also keep thorough and accurate financial records, and give invaluable advice and guidance on all tax-related issues.
If you are facing an IRS tax audit, the best thing you can do is to hire a tax professional to help you deal with the IRS. He or she can appear before the IRS in your place or with you to mediate things between you and the IRS.
Who was the first U.S. president in the modern era to release his tax returns to the public? Gerald Ford released his personal income tax return in 1976.
Are you concerned that the IRS is going to take your assets over unpaid back taxes? Let’s talk about what solutions are available to you to help protect your belongings.
Why hire an accountant for your business? Accountants are a necessary resource on current tax laws – they can keep you out of trouble and maximize your assets.
Are you handling the tax returns for your small company? Are you certain that you are maximizing the allowable credits and deductions? Why not return your focus to running your business and let an EA accountant handle his or her area of expertise – your taxes.
Why hire an accountant for your business? Accountants can be a great resource for professional referrals and networking contacts in the business community.
The more complicated your financial life is, the greater your need to use the skills of a tax accountant. Laws become complex as income, property, retirement funds, and other aspects of your financial portfolio expand.
Did you know you can check the status of your tax return online? You can go online to check the status of your refund 72 hours after IRS acknowledges receipt of your e-filed return, or 3 to 4 weeks after you mail a paper return.
While you may be tempted to use a tax preparation software in order to save money on your tax prep this year, it’s not quite the same as getting professional advice. If you need to ensure that you’ve taken advantage of every penny in deductions and credits that you’re allowed, there’s no substitute for a tax accountant.
While it’s everyone’s duty to pay their taxes each year, we understand how easy it can be for individuals and businesses to fall behind. We’re here for you when you’re ready to take control of your IRS debts.
Marketing your small business should be traceable. If an ad runs on the radio or in the newspaper, you should be able see its impact. After an ad runs, there should be a spike in the numbers of inquiries or sales, which tells you your ad worked.
Most people find their accountants on the Internet, but be careful! Try an online directory rather than Google.
Unfortunately, the IRS won’t care how busy you were at work or that your child was starring in the school play when you don’t file your tax return in time. If you have too many other things going on to focus on completing your return, it’s smart to work with a tax accountant.
There are several benefits to going with an enrolled agent to resolve your tax issue. EAs can help ensure that clients are treated appropriately by the IRS, work out payment plans for the best possible terms, and ensure the IRS follows laws that protect taxpayers.
If you’ve already got a lot on your plate between work and family obligations, it can be difficult to find enough time to complete an accurate tax return. Whether you need a little advice on certain areas or someone to prepare the whole thing, we’re always here for you.
Like attorneys and certified public accountants (CPAs), enrolled agents have unlimited practice rights. Basically, this means that they are unrestricted in terms of which taxpayers they can represent, what type of tax matters they can handle, and which IRS offices they can represent clients before.
Taxpayers are legally responsible for what’s on their own tax returns even if prepared by someone else. So it's important to give your tax preparer all of the documentation they will need in order to file your taxes correctly.
We understand that a new business owner has been spending their time getting the business off the ground, not studying IRS code changes. When you need to ensure that your tax return accurately reflects your self-employed income, we’re here for you.
It’s important to remember that you don’t have to wait until tax time to begin working with a tax accountant. Whether you need help setting up your new business or you want to learn how to maximize your itemized deductions in the coming year, we’re always ready to help.
Wondering what the difference is between an EA (enrolled agent) accountant and a CPA (certified public accountant)? An EA focuses on taxes for businesses and individuals, while a CPA will often specialize in other areas like financial services and general business accounting.
If you are facing an audit, an enrolled agent can really help with your case. EAs have extensive knowledge of tax laws and the inner workings of the IRS to be able to clearly and accurately present your case and conduct the necessary negotiations.
It’s important to remember that any errors created in your tax return by a software program will ultimately be your responsibility. If you need to ensure your tax return is as accurate as possible before sending it to the IRS, it’s best to work with a tax professional.
Capital Expenses are items that will help generate revenue for your business but have a long lifespan. These could include a car, computer, desk, or other large items that are not considered consumable and are written off over time, usually 3 to 7 years.
As accountants we don’t shape tax policy. We can, however, use our expertise to help you make the most of every small business deduction allowed by law at the federal, state and local level.
Bring a copy of your previous year's return when meeting with your tax preparer. He can use it to see what credits you've previously qualified for, and to identify any red flags due to inconsistent information.
It’s important to remember that any errors created in your tax return by a software program will ultimately be your responsibility. If you need to ensure your tax return is as accurate as possible before sending it to the IRS, it’s best to work with a tax professional.
Capital Expenses are items that will help generate revenue for your business but have a long lifespan. These could include a car, computer, desk, or other large items that are not considered consumable and are written off over time, usually 3 to 7 years.
Over the past couple of decades, tax laws have become increasingly complex, both at the federal and at the state level. Hiring an EA accountant to help you navigate the tax landscape and minimize your burden will always be your best bet.
If you plan to realize annual net investment losses, be sure to adhere to the “wash sale rules.” These rules stipulate that you cannot reinvest those same proceeds into a nearly identical investment for the 30-day window before and after the sale, or you may not be entitled to the tax loss.
As accountants we don’t shape tax policy. We can, however, use our expertise to help you make the most of every small business deduction allowed by law at the federal, state and local level.
Bring a copy of your previous year's return when meeting with your tax preparer. He can use it to see what credits you've previously qualified for, and to identify any red flags due to inconsistent information.
It’s important to remember that any errors created in your tax return by a software program will ultimately be your responsibility. If you need to ensure your tax return is as accurate as possible before sending it to the IRS, it’s best to work with a tax professional.