No matter what industry you're in, or the size of your business, you have various activities everyday and that includes accounting.
Whether the company is private or government-owned, it still makes use of accounting. Companies, offices, and various organizations or institutions cannot operate successfully without an accounting staff.
However, having an accounting staff can get very expensive and so most companies resort to auditing services or financial accounting services. Bookkeepers and accountants are not hard to find; with the use of the internet, you can easily locate them and make use of their services.
A company needs to seek help from a competent and experienced bookkeeper so that all financial activities of the company are monitored and evaluated. By doing so, the company can gain a lot of benefits which can lead to its growth and success.
It's now easy to monitor the sales as well the operating expenses. All expenditures and income are recorded and the accountant or bookkeeper can even provide you with strategies to help increase the profit and sales of a company.
Outsourcing is quite popular nowadays because it is a cost-effective measure for companies who want to cut-down their operation costs. Cloud bookkeeping and accounting services can provide any company or organization with the appropriate financial services, company laws, taxation, and other related matters.
Most of the services are secured, private, and cheap. New companies are opting for these financial accounting services. These accounting services are more affordable that having an in-house staff and you'll reap the benefits of their expertise.
It would be best to choose a financial accounting service based in your country because laws differ across the globe. So while you're conducting a search online, you have to check the location of the accounting service and if ever you choose a foreign accounting service, you have to provide all the necessary information so that nothing goes wrong. We don't recommend that!
The various services offered by Bean Counters Bookkeeping for example, are quite helpful especially in taxation, financial accounting, preparation of account statements, and even top brass services. You don't have to worry about privacy issues because all business dealings are confidential and safe. We can be trusted with your sensitive financial information.
However, it is a good idea to check out the background of any financial accounting services company, just to be sure. You can check out the customer testimonials to see if the previous clients are satisfied with their services. It's one way of telling if the service can be trusted and if it is reputable in the industry.
There are so many cloud based accounting services all over the world. Choosing just one for your company or organization is an overwhelming task. You have to give a large portion of your time in searching for reputable ones.
It would be best to hire a bookkeeper as soon as you start your business operation.
Individuals as well as businesses need it for their everyday expenditures. It's incredibly important to keep track of all financial and money matters.
If you're in the market for bookkeeping service, please consider The Bean Counters Bookkeeping team. Not only are we now accepting new clients, we hold degrees in accounting and are up to date on the newest tax laws.
We all love to criticize the IRS, don't we? It's easy to ridicule a huge organization of government bureaucrats who often seem to be Public Enemy #1.
Our negative attitude toward the IRS can lead to a strong desire to just ignore it altogether. But self-employed people who ignore the IRS do so at their own peril.
So when it comes to providing free information about taxes, let's not throw the baby out with the bath water. The IRS does provide some excellent resources to help us make the best of a potentially bad situation.
If you need tax assistance and prefer not to pay for it, do not overlook these five ways to obtain help from the IRS:
1. The Internet
There's a wealth of information just for small business owners and self-employed people at: http://www.irs.gov/smallbiz
Here you'll find everything from how to obtain a federal business tax ID to events and even online learning.
Need tax forms and/or their instructions?
Look no further than the IRS website:
Here you'll find a boatload of links to every tax form imaginable, available as downloadable PDF files or in fill-in format. All form instructions can also be downloaded.
The IRS has many free publications that explain virtually every major (and many minor) tax topics in great detail. Sure, IRS "pubs" are not always written in the most entertaining style, but hey, remember the price - it's FREE (well, actually your tax dollars pay for it, but you might as well use the resources).
2. Telephone Hotlines
Special toll-free numbers exist for the following:
-- To order forms & pubs: 800-829-3676 (in case you'd like to receive a paper copy via snail-mail)
-- To ask business tax questions: 800-829-4933
-- To ask personal tax questions: 800-829-1040
Use common sense when phoning the IRS: to avoid long wait times, don't call on Monday morning. And no matter when you call, be prepared! Write out your questions beforehand and have all relevant documentation in front of you, as well as a favorite book or magazine to read during the inevitable wait time. Stay calm; don't yell; treat the IRS employee like a human being and he/she will likely return the favor.
-- Need help with long-standing problems: 877-777-4778
-- Prerecorded messages on more than 100 topics: 800-829-4477
Topics include items such as:
3. TaxFax Service
Are you still using a fax machine? That's crazy! However, if you are, here's some good news. You can receive most IRS forms instructions via fax by calling 703-368-9694 from your fax machine.
4. Walk-In Offices
Need some face-to-face tax help? For a complete list of IRS offices in all 50 states, including hours of operation and contact information, visit: http://www.irs.gov/localcontacts
If all of this seems too overwhelming, we've got a solution to ease your anxiety. Our team of dedicated, professional bookkeeper would love to keep your books and tax issues in tip top shape all year round. We're currently accepting new clients, so book a free consultation today!
Most people probably think of bookkeeping and accounting as the same thing, but bookkeeping is really one function of accounting, while accounting encompasses many functions involved in managing the financial affairs of a business. Accountants prepare reports based, in part, on the work of bookkeepers.
Bookkeepers perform all manner of record-keeping tasks.
Some of them include the following:
1. They prepare what are referred to as source documents for all the operations of a business - the buying, selling, transferring, paying and collecting. The documents include papers such as purchase orders, invoices, credit card slips, time cards, time sheets and expense reports. Bookkeepers also determine and enter in the source documents what are called the financial effects of the transactions and other business events. Those include paying the employees, making sales, borrowing money or buying products or raw materials for production.
2. Bookkeepers also make entries of the financial effects into journals and accounts. These are two different things. A journal is the record of transactions in chronological order. An accounts is a separate record, or page for each asset and each liability. One transaction can affect several accounts.
3. Bookkeepers prepare reports at the end of specific period of time, such as daily, weekly, monthly, quarterly or annually. To do this, all the accounts need to be up to date. Inventory records must be updated and the reports checked and double-checked to ensure that they're as error-free as possible.
4. The bookkeepers also compile complete listings of all accounts. This is called the adjusted trial balance. While a small business may have a hundred or so accounts, very large businesses can have more than 10,000 accounts.
5. The final step is for the bookkeeper to close the books, which means bringing all the bookkeeping for a fiscal year to a close and summarized.
The Bean Counters Bookkeeping team provides all of these services PLUS
Examples of Other Services include:
Just the thought of taxes can scare people out of their minds. You have to keep all your records and documents in order to be able to file easier at the end of the year. Home business owners have their own set of allowable deductions that differ from other businesses. You have a chance to save a lot of money by knowing how to take advantage of you home business situation.
Know what your deductions are.
There are several deductibles that the home-based business owner is entitled to. There are auto/vehicle deductions that can help with mileage, gas, insurance, and/or other related expenses. You can write off your business cards and stationary, plus any business meals and entertainment. All business traveling expenses, education, and even the interest on your business credit card can be counted in your favor. Your Internet service and web page related expenses could be deducted as well. Office furniture, supplies, your phone and other communication devices are also necessities that have deductions. Any postage or delivery of goods charges is also considered a business expense. The home-based owner can also get deductions on rent and utilities that keep the business running. Deductions that you will want to use are:
* Half of your self-employment tax amount, which can offer you a huge savings.
* As much as 100% of your medical insurance costs for you and your family.
If you make more than $600 per year in self-employment you must file your taxes. You may qualify for the C-EZ form if you have had a bad year or just got started. Your total business expenses will have to be less than $5000 for that year; you have no inventory, or have to file a 4562 form (depreciation and amortization form). Make sure first and foremost that your expenses are less than $5000 and that you have taken all the deductions you are entitled to.
A large decision is who will be doing your taxes. You need to decide if you plan to do them yourself or if you want someone else to do them for you. There are several advantages in using a tax professional. They can save you much time and unneeded frustration. They can spot deductions you might miss or not know about. It also saves you from being responsible for any errors that were made in the preparation, which could end up saving you thousands. No matter how you decide to prepare your taxes be sure to claim all possible deductions to save you money in the long run. A business has many breaks for the taxpayer for a reason and you should make sure you know what you qualify for and how to save.
Home Office Tax Expenses
America is a country built on small businesses. Yes, the big companies are the darlings of the media, but the guts of our economy are the little guys pursuing the American Dream from the extra bedroom. Fortunately, the tax code contains deductions tailored to help cut your tax bill.
When claiming home office tax expenses, it is important to keep a receipt for each and every amount you are claiming. When dealing with the IRS, receipts are your ammo. Keep them at all costs.
When maintaining a home office, taxpayers often wonder how they differentiate a business expense from a simply home expense. The key is the square footage. Simply divide the square footage of your office by the total square footage of the home. This number is typically represented by a percentage such as 20 percent. Put another way, the home office represents 20 percent of the square footage of the house. Once you have the above answer, you can multiply it by the total yearly amounts paid for rent or mortgage interest, insurance, maintenance, utilities, taxes, depreciation of the home and repairs. Each of these home office tax expenses figures can then be deducted.
In addition to the above, you can also deduct expenses completely related to the business. For instance, the purchase of a desk for the office is entirely attributable to the office and can be deducted in full.
Words of Caution
There are some limitations to home office tax expenses. If you are reimbursed by an employer for various home office expenses, you cannot also claim those expenses as a tax deduction. Sorry, no double dipping.
For some time, there has been an urban myth that the Internal Revenue Service keeps a close eye on home-based businesses. This may have been true ten years ago, but is clearly not the case today. To this end, the IRS has actually come out and issued clear statements to the contrary. Do not fail to claim home office tax expenses because of a fear of an audit. It is simply not a rational fear!
Running a small business can be both stressful and incredibly gratifying. Make sure you claim home office tax expenses to help your cash flow.
The Bean Counters Bookkeeping team would love to help you sort out your books, loans, credit cards, and taxes. Book a free consultation today and let's get you compliant this year.
This is that time of year when we all start getting those emails that want to scam us into revealing our secret codes and passwords.
You know the ones that have subject lines like: “Your Account Is About To Be Closed,” “There’s A Block On Your Account,” “Could You Help Me Claim My Funds,” or my all-time favorite “Congratulations – You’ve Won The Giveaway.”
Most of us have spent more than usual recently, and the last thing we need is for our bank or credit cards account to be hindered. That is exactly what these “phisher” are counting on, and unfortunately some of us are tempted to follow the instructions sent to investigate.
First and foremost, DON’T FOLLOW THE INSTRUCTIONS IN THE EMAIL! If you think there might be a problem, access the account in question as you normally do on your PC and not with the link supplied in the phony email.
There are some very authentic looking email supposedly from banks, that even go so far as to copy the colors of the bank logo and stationery style. But, don’t fall for the scam. In fact, don’t even open the email, because many are just set to loose a virus program on your computer by being opened. Simply forward the suspicious email to the “spoof email” address supplied by your bank, or credit card company.
Nearly 10 million Americans fell prey to identity theft last year, costing businesses and individuals billions of dollars. Here are some other tips to help you:
This may all seem like a lot of unnecessary work, but if you’re ever the victim of identity theft – even just once – you’ll realize that it’s well worth the effort.
Many of us forget that were it not for what we carry in our wallets or in our purses, we’re all John and Jane Doe’s if we can’t speak due to injury or are unaccompanied by someone who knows us. How much less stressful is it to know that in a bank box, no matter where you are, there are items that can verify your identity. Better to be safe, than sorry!