Accounts Payable is a part of any healthy business – so are local government agencies. And as your business gets more complicated, you get more invoices, and report to more government agencies.
Over the past few years, a number of our clients have received faxed and mailed notices instructing them to complete a corporate compliance form. Some of these notices are directed at directors or officers, while others are for the general corporation. (more…)
I am always amazed at the number of business owners who think they are going to save money by handling their own accounting.
I am sure there are many that can do it – as far as I am concerned Bookkeeping is just a matter of balancing your checkbook and categorizing the payouts. And accounting is just the next step in the process – analyzing the categorized numbers. And if that was all an accountant or bookkeeper did, I would say go for it – buy a copy of QuickBooks and save yourself a bit.
But the financial side is the least of what accountants do. (more…)
Mortgage rates are still at some of the lowest rates seen in years, and with some of the current programs like the HARP program, allowing a debt to value ratio of 125%, many people are taking advantage of them.
Unfortunately, not everyone understands what is deductible or non-deductible mortgage interest. And since it all is reported on a single form, the IRS is starting to take a much closer look at this on people’s individual returns. (more…)
Federal and California State income taxes are pre-paid.
For most people who are paid through payroll, this means that the estimated taxes are withheld from your paycheck throughout the year, and then you file a return to claim a refund or make up the balance due. But if you have multiple sources of income, or receive your income without having any withheld for tax, you may become subject to estimated taxes and underpayment penalties. (more…)
As a parent, you may be interested to know how 529 plans help families save for college. A 529 plan is an educational savings option that is operated by a state or educational institution, with tax advantages that make it easier to save for college and other post-secondary training for a designated beneficiary, such as a child or grandchild. These plans are also referred to as qualified tuition programs, tuition plans, or 529 programs. (more…)
In a court case involving an individual, the judge allowed $780 as a business deduction for auto use. The individual claimed $6,033 on his tax return, but he was missing that critical mileage log to prove his business use. They could have preserved the additional $5,253 in deductions by following a few simple rules. (more…)