All businesses need help in their reporting. The question is, what kind of help do you need? We can classify the needs of most businesses in three sections – 1. Painkillers, 2. Moving the Needle, and 3. Process Improvement. Let’s break it down.
Painkillers -The biggest pain in any business has to do with compliance, or making sure that correct forms are filed with the state and Federal governments, and that the correct source paperwork is available in the event of an audit.
Most people think of income taxes first when it comes to compliance. And yes, we can absolutely help with income tax returns. We are able to file income tax returns for any business entity (1065 partnership, 1120S S-Corp, 1120 C-Corp, and Schedule C of the 1040 for sole proprietors) and for any states that require them.
We can also advise on what expenditures are tax deductible. Not all cash outflows are expenses and not all expenses are tax deductible, and we can consult with you to maximize your deductions. If a capital improvement makes more sense from a tax perspective, wouldn’t you want to know?
Such tax returns as payroll and sales tax should also be included in compliance. If you have a payroll company handling your payroll, which may or may not include independent contractors, they should take care of payroll related forms (940 , 941, 944, W-2, W-4, I-9, W-9, 1099). If not, then feel free to talk with us to see what remains to be done.
The third section in the pain category involves sales tax. Depending on your state, not all businesses may be subject to sales tax. In Utah, sales tax is collected on sales of products, but not anything attached to a real estate structure or certain food sales. You will need to know the rules for your state. If you’re selling online, there may be more work to be done to ensure that you’re compliant. Many states and municipalities are looking to sales tax to make up revenue shortfalls from income and property tax.
If you’re not sure, give us a call and we can put that together for you.
Once you get out of pain, it’s time to look at moving the needle.
What I mean by that, is once you’re sure you’re in compliance, it’s time to look at the reports you need to grow your business. I’ll talk more about that in tomorrow’s post, as well as how to use your accounting professional for process improvement.
Donna Harris holds a BSci in Accounting and is the owner of Bookkeeping Made Simple. She expects to complete her MBA by May, 2022.
Donna Harris, BSci Accounting, MBA, founded Bookkeeping Made Simple with the understanding that small businesses is the heart of the American economy. After offering to do books for a friend who said he didn't have enough work to keep someone in the office 20 hours a week, she recognized the need for an efficient, online system. She has 20 years of bookkeeping and accounting experience and is excited to help small business owners achieve their goals. She enjoys spending time with her family and traveling whenever possible. She also loves reading, hiking, camping, cooking, yoga, and fitness. A huge believer in lifelong education, she is currently working on her master's in Accounting.