It’s that time! For some you may have filed an extension for your 2020 taxes but water break is over, it’s time to get back in the game and tackle these 2021 taxes! If you didn’t take that route and looking to file net year… this is for you too!
Give or Obtain Your Personal Information (ID, SSN…)
Same for Your Dependents or Spouse
Download Those Bank Statements
Gather Those 1099s (Robinhood, Savings, Contract Work…)
Keep Receipts (Nowadays most receipts are digital)
Refer to your Bookkeeping or Spreadsheets on your Annual Expenses (better to have proof)
Track Your Commute to & from Work!
Do them Yourself or Outsource
File & Pay by the April 15, 2022
If you’re like most business owner in America, you will owe taxes when you file! Planning ahead is vital, because you may end up having to pay more with an installment plan, if you can’t cover the cost completely. It’s widely known, that ro be on the safe side, you want to save at least 15% of your business income to cover your taxes.
Stay Tuned on How you can Lower Your Tax Liability in the last Quarter of the Year!
There are numerous legal ways to deduct your business expenses during for Halloween season. You can deduct Halloween candy, decorations, anything that you can make BUSINESS-RELATED.
How to Write-Off Candy
The simple trick a lot of businesses use is the branding method. They take something that they want to use for their business and put their logo on it. A great example would be buying candy or other promotional products that you want to give to your clients or the community, then attaching your business card or something with your company image on it.
Deductible business expenses are considered to be ordinary and necessary. Boosting sales, creating client connections and will overall promote your business. If you decide to host a company Halloween party like “The Office”, that’s not dedutible. YOU HAVE TO HAVE MORE THAN JUST EMPLOYEES THERE, for these expenses to be tax deductible. Clients, Potential Clients and Family should be invited to get that write-off.
Alright, the party is over, what do you do with excess candy? You can donate the unused candy to Nonprofits and other tax-exempt organizations, according to the IRS. More deductible Halloween expenses follow the same guidelines as candy.
Sadly, individuals or W2, wage earners can not deduct these expenses.
Create Your Own Records (Payroll, Invoices, Debts)
Give Access to Financial Accounts or Bank Statements
Answer Bookkeeper’s Questions about scope of your business
Prodive with necessary info to understand your business process
Give previous tax returns
Bookkeeping is one of the oldest professions in the world! They offer support and guidance for any type of business.
Bookkeeping is recording and assigning financial transactions, journal entries, posting to ledgers and so much more. Bookkeeping is determing what systems to use, software to use, and essentially what expenses need to go. Bookkeepers are the tires to a car or the key to the door.
It’s that time! For some you may have filed an extension for your 2020 taxes but water break is over, it’s time to get back in the game and tackle these 2021 taxes! If you didn’t take that route and looking to file net year… this is for you too! If you haven’t already… HowContinue reading “Stay Ready so You Don’t Have to Get Ready”
There are numerous legal ways to deduct your business expenses during for Halloween season. You can deduct Halloween candy, decorations, anything that you can make BUSINESS-RELATED. How to Write-Off Candy The simple trick a lot of businesses use is the branding method. They take something that they want to use for their business and putContinue reading “Halloween Tax Deductions”
The process of doing your own or giving someone else the responsibility is tedious and can be time consuming. Going At it Yourself Learn the Basics for Your Industry Choose an efficient accounting software SEPERATE YOUR PERSONAL AND BUSINESS Create Your Own Records (Payroll, Invoices, Debts) Outsourcing? Give Access to Financial Accounts or Bank StatementsContinue reading “How does Bookkeeping work?”
By enlisting a Bookkeeper or even an Accountant, not only are you helping to grow their business but it’s their job to help you grow yours! Alot of people believe they need an Accountant as soon as they start a business and in some cases that’s true, but not having anyone is worse. Based on the few clients I endured while I was a W2 wage earner, 37% had to pay penalties to the IRS as of the beginning of 2021.
No One’s Saying You Can’t …
By outsourcing, it means you, the business owner is at a level where it’s no longer smart to do your own books! Not every business is scalable but, every business has the potential to grow. Of course, you can do it yourself as well!
Behind every good business is a great entrepreneur, behind them is a financial expert.
Bookkeeping hels a business stay in full control of it’s finances, overhead and taxes. Bookkeepers free your time while Accountants do far more than letting you focus on other things. Poor bookkeeping or none at all, is the leading reason business fail. It’ not exciting but it’s necessary.
Do you dread doing your books? At Assist And Align you won’t have to stress nor worry when it comes tax time. By maintaining balanced financials throughout the year your financial journey will be smooth and simple in the end!
Whether you’re in the development, start-up or growth phase, you need a bookkeeper!
Bookkeepers are needed when business owners face tough decisions regarding their business. Should I hire a contractor? Which product or service is driving my income? How much will I have to pay in taxes? When can I potentially make $10,000 a month?
Most business owners feel they can’t afford a bookkeeper. That’s never true! With the internet you have more resources to advisors with rates as low as $20/hour or per task to $400 a month. As a business owner you can do your own bookkeeping. Especially with Biden’s proposed tax laws and financial regulations that effect your business, now’s the best time to look into outsourced bookkeeping.
1. Bookkeepers Help You Save Money!
Bookkeepers minimize unnecessary fees like accidental overdrafts, high maintenance and service fees, insufficient funds, wire transfer, excessive transactions and even interest. These business expenses might not mean much but they add up quickly and can effect your cashflow.
Next, taxes! They play a major role in business and personal decisions. By having a bookkeeper, they help mitigate the overall liability owed to the government. With opportunity costs, it’s effectively cheaper for busy business owners to outsource their Bookkeeping, as opposed to doing it alone.
2. Bookkeepers Alleviate Stress!
It’s okay to admit, if numbers just aren’t your thing. No longer do you need to handle your business or even personal books, hand them over! By seeking the help of a Bookkeeper, you get rid of the headache that comes with financials.
Because Bookkeeping may require extensive research and knowledge to the average business owner, it’s better to save your energy spent on finances. Having to learn something new on top of being the busy business owner you are, can lead to other issues.
3. Bookkeepers Help Manage Cash Flow!
Cash Flow! This is the number one issue I’ve seen small businesses struggle with. Good cash flow is having enough assets to cover your liabilities with some to spare and not be in a bind. This is known as cash flow positive. Most businesses find themselves in the negative. Cash flow is the money coming in and out of your business!
A good cash flow isn’t just making more money than you spend or having cash on hand; it’s about being able to make normal business decisions that don’t drastically impact your business health.
4. Bookkeepers Are Experts!
Bookkeepers are experts, certified and educated. They may not go through the necessary education requirements as Accountants would, but they are pros! It’s always better to know and understand the expertise a certain Bookkeeper offers. Some are only specialized in a certain field, niche or industry.
5. Bookkeepers help Mitigate Error!
By having someone with experience handle your books, you get rid of the risk of having errors. Challanges and issues are known to arise when there’s one person doing alot. As a business owner, you’re used to handling things all on your own but it may be time to wave your flag!
Youtube videos can’t teach you everything and your buddy who’s good with numbers may not have the time to save you!
6. BOOKKEEPERS SAVE YOU TIME!
Instead of having to allocate time out of your already busy schedule, by not doing it at all. you leave more time for getting new client, more sales and new strategies that will help your business grow or scale.
Always think in terms of Opportunity Cost, the time spent doing one thing is a potential loss from doing the other. Business owners face this reality daily! As one grows, the apparent need to outsource bookkeeping becomes prevalent. One should always spend more time retaining and acquiring clients and not handling payroll, financials and other accounting services.
It’s time to hire a Bookkeeper when you’re too busy to do it yourself. When you start to get behind, that’s a sure sign to “call it quits”. Or even if you never started, it’s never too late to establish financial success for your business.
Not having the patience, energy or mental capacity is the next sign. Some find it to be boring and tedious, so why endure the pain any longer? If you’re not doing it well; bank recs, categorizing, math… then move on. Outsourcing ensures your business is in compliance and reduces internal fraud and misappropriation. As business owner, you should feel confident that your books are covered!
Lastly, you’re losing the will! If you strongly dislike bookkeeping it’s time to “call it quits” outsource. Assist And Align will gladly alleviate your stress, anxiety and burden of organizing your finances.
You should know as a Business Owner…
How much did I make in the month of July?
How much should be set aside for taxes?
Can I pay myself “x” amount?
How much should I put aside for Retirement?
What’s my 6 month’s average?
What is the total of my business expenses last month?
If you don’t, it’s alright! Look for a Bookkeeper who can tell you this information in the click of a button, a quick phone call or provide you with the statements for you to decipher yourself.
You need a Bookkeeper that has a clear understanding on how to help small businesses. What makes one a bad Bookkeeper? It’s fairly simple…
Things to Watch Out For…
Takes a While to Respond Back
There’s nothing more frustrating that someone not getting back to you in a timely manner. It should not take your Bookkeeper more than 3 business days to get back to you! There are some exceptions like, vacation, emergencies, things of that nature, but if your Bookkeeper is not meeting your needs in a good time, they may be doing the bare minimum, something unethical, etc. It’s okay to demand transaprency, especially when it comes to your money!
Don’t Know the Ins and Outs of Bookkeeping
It’s imperative that you don’t choose the cheapest person you can find, becuase you may “get what you pay for”. Finding an experience Bookkeeper may be harder than one knows. Bookkeepers are not “one size fits all”, just as not all businesses are the same. Getting a professional who is an expert in your field is your best option. Make sure they’re certified, educated or experienced.
Don’t Give Access to See Your Books
This is a major red flag! As the business owner, you should have access to the software and your books regardless of if you pay the subscription. It’s not safe to work with a Bookkeeper that gatekeepers or is so secretive of their work. It makes transparency impossible!
Not asking the Right Questions
There should be a system in place to ask necessary questions. Question along the lines of identifying the problem or challenge , type of business, more detail about business, number of accounts and types, and expectations…
Slow to Produce Financial Statements
Your Bookkeeper should provide access to financial statements for the prior month, no later than the middle of the next month. This is important, because it can become annoying to ask your Bookkeeper for these statements when you need them and they take a while to produce them. You Bookkeeper is doing their job when you know when to expect these documents without having to ask.
Don’t Provide Suggestions
Businesses should provide better business practices willingly, because happy client makes a happy bookkeeper. Its their job to consult with you on new policies that may affect your business as well as ways to save your money.
Accounts Aren’t Balanced, Organized and Updated
By this point, the is a deal breaker. If your account aren’t ready for the next cycle by the middle of the next month, you’re better off keeping the fee you pay your Bookkeeper and paying your kid to do it for you. It’s never okay to be behind on your books! Your business can’t grow or scale if you don;t have clean books; you’d have to wait to get funding, wait to find out your sustainability and you won’t be able to plan for the future.
This is the overall goal of Bookkeeping! This information should be stored in a server from start to finish, or to when the business started making money.
Deadlines = Efficiency! When Bookkeepers are inable to work in certain paramaters, it shows that maybe they’re not in the right profession. Missing deadlines can cause late fees, penalties and a loss of business. This will slow the business down tremedously.
When you’re reaching out to professionals to help you with your business, the consultation, the meeting, any other factors that made the conversation possible, is tax deductible. Let’s say you use your personal cell phone for business, that business percentage of your phone is tax deductible.
So what does that look like?
By using your data plan and phone to reach out to professionals, customers and vendors for your business, the business portion of the total usage is deductible. This applies to a home office, car + car expenses, health insurance, and so much more.
Everyone wants to pay less money in taxes, to best achieve this, seek the professional guidance from tax, accounting and bookkeeping experts! By consulting with an advisor, they will save you money and the money you pay them will lower your taxable income! It’s a win, win!
Check Out the IRS updated link, on all business expenses that you can report!
Today only, coffee shops and franchises have promo codes and offers on COFFEE!
iS cOFFEE a tAX DEDUCTION?
As a small business owner, you CAN deduct coffee as a business expense if:
~ Coffee is reasonable and necessary ~ You are tracking coffee expenses ~ Coffee is a fringe benefit employees ~ Purchased and provided to business employees ~ Coffee is provided to improve productivity ~ You host a business meeting in person over coffee ~ Coffee is provided to provide a better work environment ~ You’re Buying for your home office
Coffee for the office is tax deductible!
Now, if you’re a w2 wage earner, coffee is not a tax deduction. If you get coffee on the way to work, it’s not a business expense.
Bookkeeping is recording financial transactions or information that pertains to business operation. It entails creating a filing system that categorizes income to the appropriate accounts as well as differentiating types of expenses.
Businesses and individuals need bookkeeping! People do this without even realizing it’s bookkeeping. Examples are when someone creates a budget or system that tracks money going in and out of the account, so they can be better prepared during tax season.
In most cases a business has a bookkeeper to stay in compliance, manage cash flow, perform multiple clerical duties and tell how the business is performing. By tracking the money that comes in and out, it leaves little room for error and fraud. Bookkeeping tells the business owner and individuals how much they will owe or get back from taxes. Not only that, bookkeeping is the proof behind the numbers.
Bookkeeping also entails knowing some tax laws; what’s tax deductible, what are the limitations, and usually paying payroll taxes. Bookkeepers prepare invoices, financial statements, pay bills on behalf of the business, reconcile bank and loan amounts to provide up-to-date balances.
Bookkeeping is a subcategory of Accounting. Bookkeeping as apposed to Accounting doesn’t deal with auditing . There is a common misconception that bookkeepers don’t do taxes, and some do, some don’t. According to the law, anyone over the age of 18 can prepare tax returns. Taxes are complex and require extensive research, knowledge and understanding.
Two Types of Bookkeeping
One entry is made for each transaction into a journal or log.
Only one account is affected; the account balance will increase. or decrease.
It’s easy to maintain with little requirements; favorable among small businesses.
Two entries are made; a debit and a credit.
Two or more accounts are affected and the entry must balance.
These are usually called Journal Entries.
This is a great system to avoid error.
Bookkeeping is necessary in every business! It’s the recording of a business’ financial transactions from accounts having anything to do with business. Bookkeeping and Accounting work closely together to ensure your business is in compliance and ready for tax season. With software like QuickBooks, single entry bookkeeping makes managing your books easier!