When it comes to running a business successfully, you certainly need quality bookkeeping.
It will help you avoid any kind of miscalculations that might lead your company to a lot of undue stress. Leaving this important issue to your existing employees would be a bit unwise. Not only that they already have their own administrative and sales tasks, it is more likely that they input the data incorrectly. This simple mistake might also cost you a lot of money. Now that you know the significance and importance of bookkeeping to your business and company, it is without a doubt that you hire reliable bookkeeping services.
If you like to save your money on this expense, it would be best if you can choose a virtual bookkeeping service. The Bean Counters Bookkeeping is provides virtual bookkeeping services to many customers with small businesses. Thanks to the quality bookkeeping services, you can now have more focus on how to run your business.
Bookkeeping can be a very time-consuming task for any company. It has to be conducted properly and it is important that you can avoid any kind of miscalculations. Taking this task on your own might be an option, but one thing is for sure, you'll not have enough time to focus on growing your business.
It's almost impossible to come up with plenty of time for your family, friends, and hobbies. It's best to leave this important task in the hands of professional virtual bookkeeping service providers. Not only will it allow you to pay more attention to growing your business, virtual bookkeeping services will also save your time.
We are located on the coast of North Carolina, but more than happy to serve the clients outside of our area. In fact, our clients are located across the US. All our services are designed to save your money as well as your time. The Bean Counters Bookkeeping has what it takes to provide you with relevant financial data which you can use to make critical business decisions.
The Bean Counters Bookkeeping can be your business partner as well. And as a reliable partner, we will help you grow a more productive and successful business. That way, you'll have more time to manage the financial details of your business. We'll remove the need to hire an additional employee to take care of your bookkeeping issues. More importantly, we will provide you with all the updates you'll need including budgeting and forecasting, accounts payable and receivable, day-to-day bookkeeping services, payroll, QuickBooks set up, QuickBooks training and interpreting financials. The Bean Counters Bookkeeping is also capable of providing additional services like invoice creation, cash flow analysis and job costing.
Employee taxes can be one of the most difficult to understand areas of running a business and hiring employees. If you don’t understand all the complexities involving employee payroll tax, it can also get you into a heap of trouble.
The first employee tax factor you should understand is what taxes you are responsible for as an employer. There are three employee taxes that you will be responsible for paying.
The first is Medicare and Social Security tax. This is often referred to as FICA and provides welfare benefits funding for senior citizens. As an employer, you are responsible for paying half of the FICA taxes and withholdings for your employee while the remaining half is withheld from their paycheck.
You are also responsible for paying federal unemployment tax (FUTA). This tax funds the state unemployment benefits and the administrative costs associated with those benefits. It is important for you to know that you must pay 6.2% federal unemployment tax on the first $7000 earned by each person you employ during the calendar year.
In addition to federal unemployment tax, you must also pay state unemployment tax. These taxes are based on the location and size of your business as well as the number of employees you employ. Since each state operates its own unemployment program, these rates do tend to vary; so, it’s best if you check with your own state’s unemployment division for specific details.
In addition to the taxes you must pay as an employer, you are also responsible for withholding employee tax. Even though this is the employee’s contribution, it is your responsibility to handle the employee tax withholding. You will need to pay close attention to the employee tax form, or W-4, completed by the employee to know exactly how much money you need to deduct from the employee’s paycheck. Usually the amount of money you must withhold will depend on the number of withholding allowances claimed by the employee, their marital status and any exemption from withholding taxes that the employee might claim.
It is very important that you stay on top of your employee’s tax forms because they have the right to change them by submitting a new W-4. If an employee submits a new employee tax form, thereby changing the amount of their withholding and you fail to deduct the correct amount of money, you could be subject to penalties by the IRS.
You will need to deposit both the taxes that you are responsible for paying along with the employee tax withholdings in an authorized depository for Federal taxes. These taxes will be due either semi-weekly or monthly. Your employee tax withholding due dates will be determined by the size of your payroll, dictated by the schedule. Usually, however; if your payroll is less than $2,500 every three months, you can file quarterly. If your employee taxes are larger, you’ll need to file more often.
As most employers know, employee taxes can be a real headache. Unfortunately, the employee payroll tax problem is a headache that simply must be endured. With a little understanding and careful attention to detail; however, the hassle of filing employee tax withholdings can be a little less of a bother.
While death and taxes are the only thing certain in life, you can make the latter a little less painful by using a virtual bookkeeping team who is on top of all the intricacies of taxes, deadlines, and law changes. The Bean Counters Bookkeeping team can make sure you’re compliant, on time, and help you get a better picture of your business’s financial picture.
Reach out today and let’s chat.
What does an audit do?
If a business breaks the rules of accounting and ethics, it can be liable for legal sanctions against it. It can deliberately deceive its investors and lenders with false or misleading numbers in its financial report. That's where audits come in. Audits are one means of keeping misleading financial reporting to a minimum. CPA auditors are like highway patrol officers who enforce traffic laws and issue tickets to keep speeding to a minimum. An audit exam can uncover problems that the business was not aware of.
After completing an audit examination, the CPA prepares a short report stating that the business has prepared its financial statements, according to generally accepted accounting principles (GAAP), or where it has not. All businesses that are publicly traded are required to have annual audits by independent CPAs. Those companies whose stocks are listed on the New York Stock Exchange or Nasdaq must be audited by outside CPA firms. For a publicly traded company, the expense of conducting an annual audit is the cost of doing business; it's the price a company pays for going into public markets for its capital and for having its shares traded in the public venue.
Although federal law doesn't require audits for private businesses, banks and other lenders to private businesses may insist on audited financial statements. If the lenders don't require audited statements, a business's owners have to decide whether an audit is a good investment. Instead of an audit, which they can't really afford, many smaller businesses have an outside CPA come in on a regular basis to look over their accounting methods and give advice on their financial reporting. But unless a CPA has done an audit, he or she has to be very careful not to express an opinion of the external financial statements. Without a careful examination of the evidence supporting the amounts reported in the financial statements, the CPA is in no position to give an opinion on the financial statements prepared from the accounts of the business.
What's in an Audit Report?
Most audit reports on financial statements give the business a clean bill of health, or a clean opinion. At the other end of the spectrum, the auditor may state that the financial statements are misleading and should not be relied upon. This negative audit report is called an adverse opinion. That's the big stick that auditors carry. They have the power to give a company's financial statements an adverse opinion and no business wants that. The threat of an adverse opinion almost always motivates a business to give way to the auditor and change its accounting or disclosure in order to avoid getting the kiss of death of an adverse opinion. An adverse audit opinion says that the financial statements of the business are misleading. The SEC does not tolerate adverse opinions by auditors of public businesses; it would suspend trading in a company's stock share if the company received an adverse opinion from its CPA auditor.
One modification to an auditor's report is very serious - when the CPA firm says that it has substantial doubts about the capability of the business to continue as a going concern. A going concern is a business that has sufficient financial wherewithal and momentum to continue it normal operations into the foreseeable future and would be able to absorb a bad turn of events without having to default on its liabilities. A going concern does not face an imminent financial crisis or any pressing financial emergency. A business could be under some financial distress but overall still be judged a going concern. Unless there is evidence to the contrary, the CPA auditor assumes that the business is a going concern. If an auditor has serious concerns about whether the business is a going concern, these doubts are spelled out in the auditor's report.
Are you dreading clearing the accounting and bookkeeping work that's piled up in your desk or in your inbox? Decide to outsourcing accounting and bookkeeping to deal with the issue with ease and precision.
This is the simplest way for small business owners to deal with the heavy workload of making sure their finances are in order. However, don't outsource until you have proper knowledge about all the aspects and details of outsourcing.
Imagine you're going to give out your entire business process to be handled by another organization. I'm sure you'll want to know all you can about this particular aspect. You don't want to be caught unaware; if something goes wrong with the entire process. Research and more research is the answer.
Choose the right company to do your bookkeeping work. Numerous virtual bookkeeping firms come up with attractive and lucrative offers to do the work for small businesses like yours. Find out as many things as you can about the company before you actually let them do your work.
The internet is a storehouse of information and utilizing it in the best possible manner is your responsibility. Check out the services provided by various companies. Also, read the testimonials from firms who have already done accounting and bookkeeping for other small businesses. Do they have glowing reviews? Are the reviews in line with what you'd expect?
Next, check out the various security measures put in place by the bookkeeping company to protect your company and customer data. This is an important aspect of with which you must take special care. In this day and age, people have become increasingly skeptical about giving out information about their financial details online. For good reason. Security measures must be stringent enough to deal with this issue and to also bring back the faith of customers to the entire process of outsourcing.
Then, make sure the bookkeeping firm will be able to meet important deadlines with plenty of time to spare. Highly qualified professionals know which forms and payments are due to the IRS and local governments and when they're due. They strive to provide the best possible service that you can afford within your budget. They essentially become part of your team, so choose wisely.
Monetary wise, outsourcing your bookkeeping works well for most small businesses. You don't need to undertake any additional financial investment such as overhead for an employee. In fact, excellent virtual bookkeeping firms will work to find more money for your company. Imagine you don't spend an extra cent and yet end up earning profits!
Check to see if the bookkeeping firm offers free consultations. You can take this opportunity to ask questions about the quality of the work, how your finances will be handled, and any communication expectations. Based on this, you can decide whether you actually want to move forward or find another bookkeeping team better suited to your business.
Outsourcing is beneficial to your business in many ways, but all of these benefits are subject to your working with the right bookkeeping company. Why not try outsourcing your bookkeeping and accounting and experience a faster and more efficient way of doing business today!