When planning for your business taxes, it’s important to remember that a dollar spent does not equal a dollar’s worth of tax savings. Depending on your tax bracket and business structure, that dollar deduction will only translate to up to sixty cents in savings.
Tax deductions can significantly lower tax bills both for individuals and businesses. However, there are specific IRS regulations on the documentation required for any type of deduction. An EA accountant can advice you on the proper documentation to keep in your files.
When you run a small business, every dollar counts, which means you don't have money to waste on taxes or expensive tax software that doesn't work. The best way to make sure you're getting the most out of your taxes is to have your taxes done by a tax accountant.
If you own your business, how you structure it determines how you are paid, how profits and losses are determined, and what your tax liabilities are. Let us help you with planning to make sure your business thrives.
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 enrolled agents (EAs) are actually federally licensed? This can be very convenient in certain business situations, as your EA can assist you across state lines and even concerning foreign issues.
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.
Fun Fact: The asset-to-liability ratio shows the difference between current assets and current liabilities, which is called working capital.
If you’re one of the unlucky Americans to be audited by the Internal Revenue Service, collect your tax documents from the past three years and visit your CPA. He or she will help you determine your next steps to get through the audit as painlessly as possible.
It’s important to remember that there is absolutely no shame in admitting that you aren’t sure about what you’re doing with the various tax forms. With tax laws that change regularly, it’s often best to work with a tax accountant who understands the nuances of the changes.
Did you know? An asset is any item this is owned by an individual or business entity, especially those that can be sold or liquidated into cash. Examples: cash, securities, cars, real estate, inventory or other property. Assets are equal to liabilities on a balance sheet.
You should consider your accountant one of your most trusted advisers. To ensure you have a good relationship, be sure to maintain open communication with your accountant. Feel free to discuss long-term goals and plans instead of solely focusing on your annual tax return.
The concept of enrolled agents (EAs) predates the creation of certified public accountants by more than a decade. The first reference to EAs occurred in 1884, when they were authorized to combat fraudulent claims following the Civil War.
More than one-third of the taxes collected are sourced from the top earning individuals. This includes the category of individuals who usually earn an annual sum of $ 147000 or above.
While the Revenue Act of 1942 increased the number of citizens required to pay taxes and increased rates, it allowed for deductions based on medical and investment expenses for the first time.
Fewer things are more time consuming, stressful, or burdensome to the small business owner than tax season. In fact, the many tax forms can be confusing and at times almost overwhelming. This is one reason why hiring a business accounting service is so valuable.
Essentially the adjusted gross income for tax purposes is an individual’s total gross income, minus any specific deductions. Deductions that are typically included in this calculation include business expenses and certain domestic expenses such as alimony.
Being recognized as an Enrolled Agent is the highest credential the IRS awards and maintaining this requires adhering to their rigid ethical standards and completing a minimum number of continuing education courses every two years.
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.
If you are facing a tax problem (such as filing back taxes, paying off a tax debt, or fighting an IRS audit), then hiring an EA accountant is a good option. These tax professionals specialize in the resolution of complex tax challenges and issues.
The best way to avoid tax problems is to hire a professional tax preparer or accountant to complete your return. Doing so may even save you more money in taxes than you will pay for the service.
Hiring Small Business Accounting Services will help you understand the tax process and expectations, invest in a bookkeeping program or service, and overall help you get started, giving you all the tools you need to keep your business up and running.
Others can talk about taxes and a few other sources may be able to represent you, but if you need a true professional, look with confidence to our enrolled agents. We have a professional who specializes in your exact needs.
For more than 40% of small business owners, bookkeeping and payroll chores are two of the most dreaded tasks. They dislike the complexity of compliance, changing regulations, administrative headaches, and time it takes away from their business.