The New Year is fast approaching and it is so important to take some time to look back at what financial decisions we made over the past 12 months and to reflect on what went right and what mistakes we do not want to repeat. Here are my tips to end 2018 and to start the New Year off right:
#1) If you have employees, you will have until January 31, 2019 to get them their W-2's and 1099's. If we are taking care of your books and/or payroll, please get us updated information as soon as possible. It is pertinent that we do not miss the January deadline. For contract labor or "subs" you are not required to issue them a 1099 unless you paid them more than $600 in total for the year.
#2) Get your bookkeeping for 2018 up to date and completed. If you own a business and you have inventory, now is the time to get an accurate count. Make sure all your expenses and income are accounted for so that you do not miss out on crucial tax benefits of operating a business.
#3) Have any business losses? Losses happen and is all part of the entrepreneurial game. Without some risk, would there be much appreciation for the reward? If your business didn't see much profit in 2018, it may provide you a tax break to help with cash flow. If your business had more expenses than income, tax refunds from previous years for that loss may be available. Check with my office if this is your situation.
#4) Pull together all those receipts. Now is the time, if you haven't already, to enter all those expenses and offset any income you may have to pay less taxes. Get with me and we will go through your expenses and losses and calculate your tax liability. Never assume that an expense is not business related unless you ask your accountant. Some people do and then loose out on legit tax benefits.
#5) Setup your tax-planningsession now. It is time to take a look back at what went right, what didn't work and what changes can be made now before we are hit with the New Year. It is much simpler to be Proactive rather than Reactive, especially when it comes to taxes. Take the time to make a plan and stay up on your books! It's your business, pay attention to its financial health.
And my final and most important step - Don't hesitate to pick up the phone and call me. It is easier to find a solution to a problem ahead of time than it is to unravel a mess that was not being attended to after time. After all, that is why I am here. Let me do what I am best at and you - Go build your business!!!
Monday August 8, 2016
Bookkeeping - Your Books Your Time Often times it is difficult for the business owner to keep up with all of the financial information that involves their business. It is overwhelming and time consuming. Then we ask the question of ourselves, Is this really an important document? As you review all those documents here are some tips to remember: Plan for major expenses Do not miss a business opportunity because your financial documents were not in good order. Be ready if you need a... Read More
Monday December 7, 2015
Received a letter from the IRS? Its okay, breathe. There are certain things in life that we simply cannot ignore although we may want to - taxes, the dentist, the list could go on and on. For our purposes today, the of those things in life is a letter from the IRS . Of course, it is easy to assume the worst, but there is a high possibility that it is something harmless. The important thing therefore is to be always prepared and know how to respond to the letter. Read... Read More
Monday November 23, 2015
Let's do a quick "business travel expense review" so you can make sure to save yourself some money come April 2016. I n order to legally deduct 100% of travel expenses you incur this Holiday Season, you must meet these requirements: Rule #1 Business Activity: The foundation for deducting travel expenses is that the travel benefits your business . There are many ways traveling outside of your city can be helpful to your business. Whether it isscouting out new rental properties or attending a conference or networking event -... Read More
Monday November 9, 2015
Around this time of the year - there doesn't seem to be enough hours in the day. Whether it is finishing year-end projects, preparing for the holidays, traveling, hosting family friends, orplanning for next year - we all can get lost in our daily small tasks, become stressed, and forget to take breaks to look the big picture. Did you know that the brain only functions in one of the two main emotions? Either love or fear. When we get stressed, we are in the fear state and our brain releases the stress hormone "cortisol". But when we feel... Read More
Monday October 26, 2015
As a business owner, you haveprobably thought to yourself: how do Ireceive the profits from my company and pay the least amount of taxes on my hard earned profits? If you have a S-Corp there are two ways to receive your profits: (1) Pay yourself a salary (2) Pay yourself with distributions Sadly, there is a large difference between these two option: A salary is subject toemployment taxes (usually around 15%) and the all too familiar payroll-related taxes (withholding, Medicare, etc.). In contrast, a... Read More
Wednesday October 14, 2015
The most important tool you can use to protect yourself from scams is KNOWLEDGE.It is important to learn what scams are common and how to recognize and report them. Telephone Scams In this scam the caller pretends to be from the IRS with the intention of stealing either money or the identity of the victim. The tone of the calls can vary from collecting obligations to the IRS or issuing huge refunds that the victim supposedly is not aware of. Threats of legal action, arrest, or revocation of drivers license form part of this scam. ... Read More
Wednesday September 16, 2015
The air is starting to get cold crisp in the morning and pretty soon the leaves will start changing. But where do taxes fit in? There's No Better Time Than NOW There is no better time than the fall season to review any year-end tax planning decisions that could lead to savings come April 2016. Below are 10 year-end tax tips that can help you keep your hard-earned money: 10 Year-End Tax Saving Strategies The # 1 Loss of Wealth in the U.S. is TAXES Average American loses between 40% - 50% of annual income... Read More
Wednesday September 2, 2015
REAL ESTATE REPORTING Real estate reporting it is one of the most complex areas when it comes to tax law. Let's learn about an important mistake many make when bookingtheir costs: - A REPAIR vs AN IMPROVEMENT - It is common for improvements to the property to be incorrectly reported as a "repair". So what's the big deal? Well, these two types of cost are actually treated quite differently in the world of accounting and taxes. | Repairs 101 | A repair cost keeps your property in its normal operating condition.... Read More
Sunday March 9, 2014
Dear Clients and Friends, Obama Care tax effectively puts 3.8 percent on top of the tax you are paying, which results in tax rates of as high as 43.4 percent for 2013 unless you know how to avoid it. Affordable Care Act The Obama Care tax is in reference to the Affordable Care Act pushed by President Obama and may also appear as Medicare tax or Net Investment Income Tax (NIIT) as well. This particular tax is classified as an investment tax. Therefore, if you create an earning on your investments, then you can be sure that 3.8... Read More
Monday March 3, 2014
Dear Clients and Friends, Here are some easy tips you can follow to ease your pockets from heavy tax. Retirement plans can give you a big boost. Maximizing your retirement plans, such as your 401(k) and Individual Retirement Accounts or IRA can reduce your taxable income. Your contributions to a 401 (k) may reach up to $17,500 or $23,000 for ages 50 and above, while in a regular IRA its $5,500 or $6,500 for ages 50 and above. 401 (k) plans are on a pretax basis, which directly reduce your taxable income while... Read More