If you are looking to outsource your accounting duties for your small business and you choose the wrong person, it can create huge financial problems. Selecting the right accountant to take care of your finances is a decision that should not be taken lightly.
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.
What does that mean? The Time Period Principle means that financial reports should be reported over a standard time period, typically monthly, quarterly or annually.
Did you know that one of the most common tax mistakes in the United States is using the wrong IRS form? There are so many different kinds of forms that this mistake is easy to make. Your best bet is to hire a tax accountant.
One of the major differences between a CPA and an EA is that EAs have passed a comprehensive, two-day exam enabling them to specialize in taxes and tax planning. This gives us an edge when working with more complicated tax situations.
Why is a sole proprietorship the most popular choice for small businesses with a single owner? An accountant can explain that unless the small business poses unusual liability risks, business ownership can handle most liability issues for small business owners.
It’s important that your tax returns be as accurate as possible. If you believe (or even suspect) you made a mistake on your return, contact your tax accountant as soon as possible, as you will need to file an amended return.
If you’re like many small business owners, you most likely try to keep as many tasks in-house as possible in order to save money. Remember, outsourcing tedious tasks – like tax preparation – can help you focus more of your attention on revenue-generating tasks.
Did you know that the IRS has established standards for tax preparers that are in effect? You can go to the IRS website at IRS.gov and search for tax preparers in your area that are registered with them.
The accountants counting the ballots were not at fault with the 2016 Oscar faux pas, when Warren Beatty and Faye Dunaway announced the wrong winner for "Best Picture." Dunaway and Beatty were handed the wrong envelope!
Are you aware of the fact that giving a large gift to someone can lead to a tax consequence? There are several other possibilities that may require you to redo your calculations.
Not only do Enrolled Agents prepare tax returns, but they also provide tax assistance for estates, trusts, partnerships, corporations and other entities that are required to report taxes. Enrolled Agents specialize in taxation and receive their authority from the federal government, not the state government.
Believe it or not, there are a large number of people who have to worry about income from a foreign source, including people who own mutual funds or stocks of foreign companies. If you're going to have to deal with any foreign income, it's vital to work with a tax accountant.
Accounting mistakes can unfortunately result in lost revenue or, worse, a tax audit. Hiring a professional accounting service puts all of your bookkeeping in the hands of meticulous professionals to minimize errors.
What exactly is an Enrolled Agent? This is a taxation specialized that can offer tax advice and services in addition to being able to represent taxpayers before Internal Revenue Service disputes and issues. Enrolled agents can represent individuals, small businesses and large corporations.
Did you know that a tax accountant not only focuses on completing the previous year’s returns but also helps you to prepare for the future? They will be able to give you advice and guidance on how to reduce your tax burden for the coming year.
One of the things that a business accounting service can do better than a traditional in-house bookkeeper is foresee trends. Keeping highly accurate expense records makes it possible to foresee any potential financial gains or even losses before they occur.
Does it really make a difference who I choose to help me with my taxes? A tax preparer may have some knowledge about taxes and preparing returns, but if you are selected for an audit, a tax preparer can’t represent you before the IRS. An enrolled agent, on the other end, is licensed by the government and can appear before the IRS with you or on your behalf.
Gross income is the total number of sales generated for a business in a set time period. Net income is the gross income minus the expenses the business incurs during a specific time period.
If you are dealing with an IRS audit or some kind of complex collections issue, then an enrolled agent (or EA) is going to be your best bet. Due to the EA status, he or she will have unlimited representation rights before the IRS, which can be extremely helpful in expediting the process.
Taking advantage of an independent contractor can save your company the cost for salary and benefits, but it’s important that you understand the IRS definition of an independent contractor. An accountant can ensure you do not run afoul of any state or federal regulations.
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.
Have you been considering letting your friend or relative to do your taxes for you because they’re good with numbers? Unfortunately, what they don’t know about the changing tax laws could cost you quite a bit more in penalties than if you paid an accountant from the start.
Do you know that any income which a Non-resident happens to earn from outside the United States is not considered as taxable income? All sources of income for residents are taxable as per the existing Federal Laws.