Website Editor No Comments

Tax Time, Ready or Not

It’s always a huge relief to many people who get their taxes done early.  That gray cloud of stress that nags at you to get it over with can be gone in a matter of weeks instead of months.  April is right around the corner, and here are a few tips to cross that task off your to-do list way before spring. Read more

taxCatch Up on Your Books

If your books are behind, the first step is to get everything recorded so that your tax return will be accurate.  With automated bank feeds and data entry automation, this is easier than it’s ever been before.  Cash transactions or receipts lying around that your accountant doesn’t know about, should call for a red flag.  Be certain to get those pulled together so nothing is left out.

Make Year-end Changes

Some companies may need additional year-end adjustments, and now is the time to make them.  These include items such as loan balances if the interest adjustment has not been booked every month, depreciation and amortization. Also included are accounts receivable write-offs, accrual vs. cash basis adjustments, and possibly clean-up work.  Have your accountant help you with these items.

Double-check Vendor Documents

If you hire contractors and sent them 1099s, make sure you have the proper onboarding documents for these individuals which includes a W-9.  You may also want to have a workers compensation certificate from them in order to avoid paying it yourself.

Note Deadlines

Get clear on the deadlines for your corporate, franchise tax, individual and any other tax returns that are required.  Even though you might hire someone to complete and file your return, you’ll want to make sure the deadline has been met.

Stay Organized

As you receive your 2016 tax documents, keep them all together in a special place.  Download them or scan them in and keep them all in one folder.  If your tax accountant has a client portal, upload them as soon as you get them.

Your tax accountant appreciates getting your information as early as possible.  The sooner you get the documents to them, the sooner the whole process can be complete.  Even if you owe money and want to file at the last minute, you can still be complete with the process except for the filing which can be deferred.

Try these tips to reduce tax stress this winter and spring.  And, as always, if we can help you with any of this, please reach out.

Website Editor No Comments

The New I-9 Form and What it Entails

The I-9 form is used for employment eligibility when hiring new employees.  It is one of many forms that need to be completed when you onboard a new employee. Read more

i-9 form

The New I-9 Form

Effective Tuesday, January 17, 2017, the new I-9 form, which is dated 11/14/2016, must be used.  Here is a summary of the changes.

  • Section 1 asks for “other last names used” rather than “other names used,” and streamlines certification for certain foreign nationals.
  • The addition of prompts to ensure information is entered correctly.
  • The ability to enter multiple preparers and translators.
  • A dedicated area for including additional information rather than having to add it in the margins.
  • A supplemental page for the preparer/translator.

The instructions have been separated from the form and include specific instructions for completing each field.

The revised Form I-9 is also easier to complete on a computer. To check to see if you are using the correct I-9, check the form’s date, which should be 11/14/2016.  If you are using the one dated 03/08/2013, you are using the old one and must switch to the new one.

You can get the new I-9 form here:

https://www.uscis.gov/i-9

Patricia Anderson No Comments

Start the New Year with a 2017 Profit Plan

Are you ready for 2017 to be even better than 2016? If so, take a few minutes to reflect on the questions below and take action to set your 2017 profit plan. Read more

Question 1: What were the three best business things about 2016?

No need to re-invent the wheel. If you knocked it out of the park in 2016, can you wash, rinse and repeat these tasks in 2017?

If you’re having trouble thinking of three things, here are some hints:profit plan

  • What apps saved you time and money?
  • Did you make some good hires?
  • Did you let go of a bad hire or two?
  • Was there a marketing campaign that really worked?
  • Were there any events you went to that generated great ideas?
  • Did you add or remove products and/or services?
  • Did you buy new equipment or open a new location?

Summarize the three best things that happened in your business for 2016 and think about how you can repeat them to enhance your 2017.

Question 2: What were the three worst business things about 2016?

While we don’t want to dwell too much on our failures, we do want to learn from them. Think about the three things that are causing you to lose time, money or gain stress, and decide if you can make changes for 2017.

Question 3: What vision do you have for your business in 2017?

At the end of 2017, what has to have happened in order for you to have a successful year?   Think in terms of metrics as well as intangibles, such as peace of mind and happiness.

Once you know your destination, the fun is in creating a roadmap to get you there.

Your 2017 Profit Plan

If your vision includes financial goals, then creating a profit plan is one way to measure your progress throughout 2017. Start by deciding how much profit you want to make in 2017. From there, you can compute your revenue goal and make a plan. Then you can add expenses to complete the budget. Here’s an example:

Let’s say you want to make $50,000 in profit for 2017. You can do that in a number of ways:

  1. Generate $500,000 in revenue and $450,000 in expenses.
  2. Produce $2 million in revenue and $1,950,000 in expenses.
  3. Or $150,000 in revenue and $100,000 in expenses.
  4. And so forth.

From your profit number, you can create a revenue plan. A revenue should include how many items you need to sell. Like this:

No. of units Price Revenue
Widget A 3,000 $200 $600,000
Part B 100 $2,000 $200,000
Service C 700 $1,000 $700,000
Total $1,500,000

Once you have your revenue plan, you can fill in your estimated expenses.

You might be thinking that this sure sounds a lot like making a budget. And it is. But it’s far more fun to work on something called a profit plan than it is a budget. And if you need us to do the number-crunching part, please feel free to reach out any time.

Here’s to a very happy and prosperous 2017.

Patricia Anderson No Comments

Five Money-Saving Things to Do Before Ringing Out 2016

Hopefully you’re having a wonderful December with all of the holidays and parties this month. And if you’ve spent too much on gifts and decorations, never fear. Here are five money-saving things to save on your accounting and taxes. But hurry, you only have until year-end to cash in a few of these tips. Read more

money-saving1. Check your profits    

After adjustments, are your books going to show a profit this year? If so, you may want to try to increase business spending before year-end so you won’t have to pay as much in taxes. Consider accelerating larger expenditures to reduce your profits and therefore, your 2016 taxes.

If your business is cash-basis and you pay with a credit card, pay the card off before year-end so that it will fall into this year’s deductions.

There are many tips on business deductions, so check with us to get the full benefit.

2. Eliminate payroll headaches

If your payroll system is causing you pain and suffering, consider switching. Year-end is the best time because switching costs are lower and year-to-date amounts don’t have to be entered. You’ll still want your old system to generate January’s W-2s, but if you start writing 2017 paychecks out of a new system, it will give you a clean break.

And if you’re not sure what system to move to, we have answers.

3. Make January smoother

January is typically a bookkeeper’s busiest month of the year. Many tasks can be done early, such as checking to make sure your W-9s are current and ordering W-2 forms if they are needed.   To avoid last-minute headaches, check with us to see what can be done early. It may help keep your accounting costs lower.

You may also want to consider automating more of your accounting system. Adding an app to your existing system may save you time and money in 2017.

4. Give to your favorite charity

Giving to your favorite charity may reduce your personal taxes if you plan to itemize your deductions on Schedule A of Form 1040.

There are many personal deductions that can help reduce your taxes, so check with us for options to minimize your tax payment.

5. Get ready for tax time

Start collecting the documents you need for tax time so they’ll be handy when you need them. You may be able to upload them to your accountant’s portal, or simply set them aside in a special drawer or folder.

Go through your receipts to be sure you communicate all your possible deductions. If you’ve had a major event, such as a move, new child, new marriage, or new job, be sure to mention it to us.

When all of the parties are over and the relatives have left, try these tips to save time and money on your taxes and your accounting in 2017.

Patricia Anderson No Comments

Cool Apps: Google Forms

Do you ever need to collect information from your customers? There are many ways to do it: a form in Microsoft Word®, a fillable PDF, and a Web form are all very common. Less common but slicker than the rest is the option of using Google Forms. Read more

google formsYou’ll need a Google ID, and most people use their gmail account for this. Go to Google Drive from your menu, or you can access it from this URL: https://drive.google.com.

In Google Forms, you can have customers complete a line or paragraph of text, select from multiple choice, check a box, select from a dropdown, rate an item on a linear scale, or enter a date or time. To design the form, decide what questions you want to ask your customers.

Start creating your new form by clicking the button labeled New in the top left corner of the screen and select More, then Google Forms.

Title the form by typing over Untitled Form. Your first question is already formatted for you. Multiple choice is selected, and you can change the question type by clicking the arrow on the right side of the Multiple Choice option. Over on the left, you can type your first question or label. Let’s say you need to know their name, so you would enter “Name” in the field and change the question type to Short Answer.

To add a field, click the plus sign on the vertical menu to the right of the form. Repeat this until you have all your form fields entered. If you need to add instructions, choose the TT option on the vertical menu just below the plus sign. You can also add images, video, and sections to your form using this menu.

Clicking the Send button allows you to email the form, get a link (click the chain icon), or add it to a web page (click the <>).

There are dozens of options and settings for your form. You can change colors (palette icon at top right), preview your form (eye at top right), or modify your settings (gear icon). The three vertical dots at the top right provide more functions. If you need a team member to access the responses or edit the form, you can Add Collaborator from this menu. You can even turn the form into a quiz.

Once people start submitting their answers, you can review them by clicking the Responses tab at the top of the form.

Google Forms are versatile, professional-looking, and best of all, free. Give them a try next time you need to collect information from your clients.