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.
Once your business successfully passes the five-year hurdle, it will be time to talk with a Certified Public Accountant about switching your company from sole proprietor to another business entity. A simple bookkeeping entry allows business owners to transfer all of the business assets from sole proprietorship to the new entity without any tax penalties.
Hiring a business accounting service means more time for you to spend on company growth. Having all of your bookkeeping done by a professional service also means that you can spend your time more effectively, minimizing bookkeeping time that can be better spent on other tasks.
One smart tax management tip for small businesses is the strategy of deferring income. Basically, any income received by December 31 counts for the current year. By simply shifting income to after January 1, you delay it from being counted as income, potentially saving you some money.
When you're a small business owner, friends hand you the check for dining and drinks, saying, "But you can write it off!" What they don't understand is that doesn't make it free--you still have to pay for it!
Buying a new house or starting a new home-based business can add to your tax complications. There may also be some knowledge gap that can keep you from filing your returns on your own, so it's important to work with the right tax accountant.
Fun Fact: The asset-to-liability ratio shows the difference between current assets and current liabilities, which is called working capital.
Did you know that in addition to the stringent testing and application process EAs go through, the IRS requires enrolled agents to complete 72 hours of continuing education every 3 years? These stringent requirements help ensure that EAs are well versed in the latest tax law changes.
Do you know that you can have your tax issues settled with IRS and avoid getting yourself involved in court proceedings? The administrative appeals process allows an independent review of the claims of the taxpayer and IRS.
Proper documentation is required in the case you have made any charitable contributions, whether it is money or other donations. This may be required to claim the deductions when filing returns.
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.
Do you know what a business plan is? This is a detailed document complete with sales projections and other figures designed to convince potential investors that your business can be a success. A tax accountant can help you put together a convincing business plan.
If you or a member of your family was ill, some or all of the medical expenses may be eligible for deductions. Just how much you can deduct, though, depends on several factors, and an experienced tax accountant can help you understand what you are allowed to deduct.
The financial aspects of small business ownership can be overwhelming. Consider the services of a professional small business accountant to free your time for the things that you are in business to do.
Not all possible deductions have use-it-or-lose-it conditions attached. In some instances, there is a window of opportunity that allows deductions from a previous year to be taken in a following year. A tax accountant can provide the answer.
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.
It’s important to remember that owing significantly more in taxes than you can afford to pay doesn’t have to be an annual occurrence. Working with a tax accountant can help you to devise a plan for pre-paying a larger portion of your taxes instead of having the unpayable lump sum in April.
Because different users have different needs, the rules governing financial accounting are subject to many more rules than management accounting. The governing rules that financial accountants adhere to are called Generally Accepted Accounting Principals, or GAAP.
While EAs specialize in such things as business taxes, they can help you with a wide range of tax situations. This includes helping you deal with the tax implications of a rental property or a move to another state during a reporting year.
A good accountant can help you make sense of the tax laws and provide you with financial advice that will help you grow and manage your small business. How has hiring an accountant benefited your business?
We recognize that not everyone has the time necessary to sift through updates to the IRS’s tax code in order to find the answers they needs. Since tax professionals are already up on tax code changes, working with one can help you to cut your tax preparation time considerably.
It’s important to remember that the average person doesn’t usually know about all the tax deductions and credits out there until they apply to them. If your tax situation has recently changed, let’s talk about what new savings you may have available.
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.
The first federal law authorizing taxation of personal income was passed in the 19th century. Designed to generate revenue to cover expenses associated with the Civil War, the law was called the Revenue Act of 1861 and was repealed in 1871.