Just the thought of tax season approaching can cause people of all kinds to stress. Whether you are self-employed or own a small business, taxes are confusing and overwhelming. If you are a small business owner, we’re here for you! Follow along with these tips to see how you can best prepare for filing!
Here are some tips:
One of the first ways you can feel prepared is by consistently keep your personal tax information separate from your business’s tax information. It is important to remember you will have to file each separately, so keeping them from getting mixed together is a great way to avoid stress later on down the line.
Another great way to prepare is by keeping track of all your business records. Ensuring your payroll and other lists detailing your expenses are all in order is a great way to feel less lost. When you can easily lay everything out, there will be less confusion! If you are struggling with understanding the types of documents needing to be saved, hiring a professional bookkeeper is the best way to ensure your confidence.
Finally, seek help with payroll! While it may seem easy enough, hiring a professional who can keep track of all your payroll expenses and documents is a great investment. Not only can you cross the worry of weekly payroll duty off your list, but also come tax season you are going to have a perfectly laid out file. You and your tax professional will be much happier with perfectly kept records from an experienced bookkeeper!
Conclusion
Tax season is unavoidable, so instead of stressing and putting off the inevitable, feel prepared! Hire a bookkeeping expert to help you year-round. Visit MARIELA RUIZ, CPA, PLLCto get started today.
Tax season is upon us. Whether you intend on getting money
back from the government or paying in, every citizen is at risk of being
audited if the IRS is tipped off by discrepancies or other suspect information
on your tax return. Read the following tips to learn how to avoid an audit this
tax season.
Inaccurate Donated
Amounts
The IRS encourages individuals to donate clothes, food and even used cars to charities. It does this by offering a deduction in return for a donation. The problem is that it is up to the individual owner to determine the value of the item. As a general rule, the IRS likes to see individuals value the items they donate anywhere between 1% and 30% of the original price. Unfortunately, many taxpayers ignore this guideline or simply aren’t aware of it.
There are several other ways that the taxpayer can ensure that they are valuing donated goods at an equitable price. One of the ways is hiring an appraiser to write a letter, naming their opinion on the worth of the item.
Simple and Avoidable Math
Errors
Many returns are selected for audit due to basic mathematical mistakes. When filling out your tax return (or double-checking your accountant’s work) make sure that the numbers add up. Also, make sure that the total dollar value of and/or losses are properly calculated. Even the smallest errors can alarm the IRS.
Failure to Sign
A surprisingly large number of people simply forget to
sign their tax returns. Don’t be a part of this group. Failure to sign the
return will almost guarantee additional examination because the IRS will
wonder what else you might have forgotten to include in your records.
Under-Reported Income
It is vitally important that you report all income that you
received throughout the year from work and/or from the sale of an asset. If you
fail to report income and get caught, you will be forced to pay back-taxes plus
penalties. While it may be tempting to not report some income, it’s better to
be safe than sorry.
Home Office
Deductions
Be careful with home office deductions. Deductions that are
too large in proportion to your income can raise a huge red flag. For example,
if you earned money as an accountant working from home, extravagant home-office
related deductions will raise the ire of the IRS. Deduct only items that were used in the course
of your business.
Conclusion
When it’s time to file your annual taxes, make sure you cover
all your bases to avoid scrutiny from the government. While there is less than
a 1% chance you will be chosen for an audit, there’s no reason to not take
every precaution just to be safe. For exemplary accounting services and tax
services you can trust, contact the experts at Mariela Ruiz, CPA, PLLC.
Chances are you have seen the letters LLC posted after a company’s name, but do you know what it means? It’s important to first understand what a limited liability company (LLC) is and what it does in order to understand what a professional limited liability company (PLLC) is. Follow along with this blog to find out the difference between the two, who can form these groups, and why they do.
LLC vs PLLC
An LLC is a term used in the U.S. to describe a type of hybrid
corporate structure used by some professional companies. These companies are
owned by multiple partners, or members, which work to ultimately combine the liability
protections of a corporation with the tax benefits of a partnership. The most
notable difference here between the two is that unlike a PLLC, virtually anyone
can become a member of an LLC.
A PLLC is essentially the same as an LLC but is owned and
operated by licensed members of the same profession who will only be performing
services specific to their profession. Some states require these professionals
to form PLLC’s rather than standard LLC’s because they are licensed specialists.
A major difference between these two types of companies is that members of a
PLLC are personally liable for their own malpractice, should it occur, but not
each other’s.
Who can form a PLLC?
In the states where PLLC’s are required to do business, groups are generally made up of lawyers, doctors, engineers, accountants, and other licensed professionals. This partnership arrangement requires documents to be filed with and approved by the state the business hopes to operate in. Additionally, each of the members will need to have their licenses validated by the state before approval.
Benefits of a PLLC
There are some pretty notable benefits in establishing an LLC or PLLC rather than a corporation. The main benefits of PLLCs are their limits on liability and the tax perks. More specifically, their limitations on liability for owner’s taxation and the availability of pass-through taxation. Pass-through taxation enforces that PLLC’s are the responsible parties at tax time, and not the owners. Additionally, these individuals will not be personally liable for the business’ debts or any lawsuits against the business.
Conclusion
At the end of the day, only licensed professionals
of the same profession can establish PLLC’s. Though it’s important to
keep in mind that each state has their own list of rules and
regulations about PLLC’s and the steps that must be taken to establish and
operate one. Ultimately, these two types of companies are much easier
and cheaper to form than traditional corporations are.
Deciding if you should choose to do business with a member of a PLLC is a no brainer. Professionals who are members of PLLC’s will most likely be very serious licensed professionals who are supported by a group of other educated professionals. For a top notch certified public accountant who is also a PLLC member, call on the offices of Mariela Ruiz, CPA, PLLC.
When it comes to our finances, there is no such thing as too
much organization and attention to detail. The notion of having our money taken
care of and kept in the right places can do wonders for alleviating our stress and
allow us peace of mind. One of the best ways to ensure our financial security
is by hiring a professional. The only tricky part of bringing in a certified
personal accountant (CPA) is finding one you can trust with your livelihood.
Keep reading to learn some tips on how to spot a qualified CPA and help you
keep the money rolling in smoothly.
They Are Always
Communicating With You:
One of the most vital aspects to a good CPA is their
communication skills. If your accountant isn’t keeping you in the loop about
what’s going on with your finances, that’s not a great sign it will be a smooth
working relationship. The ability to articulate information to you about the
state of any aspects of your portfolio, from your assets to your investments or
liabilities, is paramount to your future and the reason CPA’s are hired in the
first place.
They Plan Your
Finances Throughout The Entire Year:
While this statement seems to be a no-brainer, you would be
surprised to find out how many accountants struggle to focus on your long term
futures and securities as opposed to more immediate financial management
strategies. One of the best upsides to having a CPA you can trust should be the
knowledge that they are spending time planning your financial strategy
throughout the entire fiscal year or even longer, as opposed to advising you on
week to week transactions. Keeping an eye on the future while managing the
present is always the best way to grow your personal wealth, so finding a CPA
that understands that can be crucial.
They Give You Tips On
How To Budget:
Hiring a personal accountant that cares more about coming
in, doing the basic necessities of their job each day and then clocking out
will never bring you the returns that you are looking for. It is often hard to
see from the outside if your accountant is going above and beyond or not, but
one of the best indicators of this is the advice they give you and the
regularity with which they give it. Daily, weekly and monthly budgeting tips,
while not a requirement, should be expected from any CPA. The more any client
knows about their finances, the better it will work out in the long term.
Whether it’s merely calling to advise against a trend of purchases they see you
making or providing a helpful way to save money in an area they see you are
spending too much, a CPA is your financial lifeline, which means they should
always be there to have your back on any financial matter.
They Don’t Mind
Explaining Anything To You:
To most people, this seems like a relatively simple and
obvious task for a CPA, because it merely requires them to not find your lack
of knowledge about intricate financial matter frustrating. However, it is
shocking how many CPA’s believe relative autonomy is the way to go when it
comes to your money, which is a relatively absurd notion. While it’s true that
any CPA should have deeper knowledge of your financial situation, there needs
to be a consistent dialogue between them and their client that centers around
informing them as much as they can about any financial matter. The more a
client knows, the better they can work with their CPA to ensure they flourish
when it comes to short-term and long-term financial goals.
Conclusion:
There are so many factors that go into choosing the right
CPA for you. It’s important to feel safe and secure leaving your finances in
another person’s hands, so why not know you are getting the best person for the
job right from the start? With Mariela Ruiz, CPA, there’s nothing
more important than the financial success of clients, so schedule a
consultation today and take that first step towards a more prosperous future!
Making the decision to
bring on a business consultant can be a step in the right direction for your
business. Whether you’re searching for a strategic planning partner or more insight
into your financials, finding a consultant who can keep your business on track
is a game changer. You should hire someone with background knowledge on your
industry, organized planning skills, and the ability to develop training
programs based on your needs. For more information on what a business
consultant can do for you, keep reading!
Initial Assessment
When you set up an
official meeting with a consultant, he or she will be able to provide you with
an initial assessment. With this assessment, the consultant can detail your
business’ strengths and weaknesses, as well as ways to implement improvements.
You can also discuss goals and expectations up front, which will help your
consultant understand what your wants and needs are. The more information you
give up front, the better results and growth you will see overall.
Strategic Planning
Once you’ve gone over the
assessment of your business, here’s where your consultant’s organized planning
skills will come into play. He or she will come up with manageable business
strategies that you can start applying to the company. Small adjustments to
your business, like upgrading to newer technology or addressing management
problems, are just some of the suggestions your consultant might talk to you
about. Of course, a quality
business consultant will hold you accountable to make these actions,
while giving you guidance along the way. The proper consultant would want your
business to succeed!
Effective Training
If your business is
underperforming in certain areas, your consultant might recommend management
and staff development training. Training targeted for specific levels in your
departments can improve communication between management and build quality
leadership skills. Although the progress and change you’re hoping for will take
time, aiming for the desired results is possible today. Your commitment as a business
owner and as a leader to the company is important; your goals can be achievable!
Conclusion
If you want to see
improvements for your business, we suggest hiring a business consultant to meet
your financial and consulting needs. Here at MARIELA RUIZ, CPA, PLLC, we can
address your management concerns and form a plan of action. To get in contact
with one of our professional consultants, please call or visit our website today!
When it comes to accounting and bookkeeping, there are many
differences. While these careers have many similarities and common goals, they
are there to support your business in very different ways and for different parts
of its business operations. Simply put, bookkeeping is more transactional and
administrative while accounting is there to give you proper business insights
based on bookkeeping information. We understand that you might not know the differences
between these careers; we hope the following blog will give you all the
information you need.
Accounting
As previously stated, accountants take care of the big
picture by providing you with business insights based
on bookkeeping information. An accountant will process all the financial
information that was brought to you by the bookkeeper or business owner. From
there, he or she will create a financial model using that information. Accountants’
analysis should inform you on business trends and growth opportunities.
Accounting Duties:
Analyzing costs of operations
Aiding in the understanding of the impact of
financial decisions
Completing income tax returns
Preparing and adjusting data entries
Preparing company financial statements
Bookkeeping
Bookkeepers, on the other hand, will play more of an
administrative role in the business. They are more focused on recording
financial transactions. This will help
build a business to be financially successful. The bookkeeper is on the ground
floor, managing your daily transactions and looking out for changes to the
organization or significant financial events that should be addressed
immediately.
Bookkeeper Duties:
Completing payroll
Maintaining and balancing subsidiaries, general
ledgers, and historical accounts
Posting debits and credits
Producing invoices
Recording financial transactions
Businesses will succeed more often than not when they have a
complete picture of their finances, and bookkeepers and accountants each look
at a business’ numbers through different lenses. In order to receive the best
advice for your business, it is essential to have both an accountant and
bookkeeper by your side. If you are looking for someone you can trust with your
bookkeeping or accounting services, you can count on MARIELA
RUIZ, CPA, PLLC. No matter what you are looking for, we have got you
covered.
Nobody looks forward to doing their taxes. If you’re a business owner, doing taxes can be a huge, time-consuming burden. Seeking help from a professional is a service you should really consider! To learn more about why you should contact a professional during tax season, continue reading our blog!
Employees
Doing taxes by yourself when you have a large group of
employees can be nearly impossible. Trying to run your business professionally
while keeping track of everyone’s wages and taxes is a stressful burden. When
you hire a professional, they are able to help by keeping track and crunching
all the numbers for you. This allows you to focus on being a professional and
attentive business owner without the constant worry about your tax status.
Save Time
At the end of a long day, nobody wants to come home and focus
on numbers all night. As a business owner, you are already doing a lot of work
that often cuts into your personal time. Between worrying about your facility
and how your employees are performing, you don’t have time to stress about sorting
forms and numbers for tax season. Instead of spending your free time doing more
work, allow a professional to step in. Their job will be to take care of the
numbers and forms while you spend some much needed time away from work and with
your family instead.
Numbers
Not everybody is an expert in math. If you struggle with numbers or simply would rather not deal with them, hiring a professional to work on your taxes is best. Keeping track of everything can be stressful and is unneeded when you can easily have someone handle your receipts and payroll information.
Laws
As a business owner, it’s important to know all the laws regarding your business. However, having tax laws memorized can be a bit excessive. When doing your business taxes, you don’t want to risk making any mistakes. Contacting a professional can minimize the risk of illegally doing anything that may harm your business. You’ll have peace of mind and also a connection to other business-minded people!
Conclusion
At the end of the day, taxes are stressful. The last thing
anyone wants to do is come home after a day of work and continue to sort tax
information. If you’re interested in hiring a tax professional to help with
your books, check out our website to get started!
As a business owner, you
understand the importance of making sure your finances line up month after
month. Hiring a CFO or chief financial officer to keep an eye on your business’
money is a big step. Keep reading to learn four of the qualities to look for in
your ideal candidate in order to ensure a prosperous future for your company.
CFO display.
Knowledge of Your Company’s
Industry
Every industry is different and
each has different financial needs. Ensuring you choose a financial team member
that understands the ins and outs of your company’s financial field is
incredibly important. In order for your CFO to be successful in the company
they need to fully understand where your clients and stakeholders are coming
from to make the best money choices.
Reliability
If you are ready to take the step
of hiring a CFO, you’re choosing to hire a leader that you will be able to rely
on in any given situation. They will not only be leaders of your accounting and
financials but they should also be reliable during difficult times in order to
keep the business moving forward.
Problem Solving Skills
No matter what stage your
business is in, there are always problems to be solved. Whether concerns faced
by small businesses or issues that arise after profitability, you need to trust
your CFO will have the problem solving skills necessary to address the issue.
Nameplate with CFO printed on it.
Wide Range of Financial Knowledge
It goes without saying that your
CFO needs to understand the ins and outs of finance. However, it would also be
highly beneficial to work with someone that understands other aspects of
business such as investments and risk management. A CFO with this knowledge
would be incredibly helpful for the growth of your company.
Thoughts
Choosing to work with anyone in a
financial capacity is a big step, especially if you own a business. These are
only a handful of the qualities needed in the perfect CFO for your company.
That’s why MARIELA
RUIZ, CPA, PLLC prides our self on holding all of these and
many other positive aspects that make a good chief financial officer. Visit our
website today to learn how we can best help your company keep growing.
All business audits share things in common, but do you
know what they entail? The auditor, whether someone within your business or an
external auditor, will do a thorough evaluation of your accounting books and
financial statements. They usually check an entire year’s worth of financial
data, including income and expenses. If you’re a small business owner, or maybe
just curious about the auditing process, keep reading to learn about the
different audits for businesses.
Internal Audit
An internal audit is a
self-audit that’s scheduled and conducted by a representative of your own
company. Many businesses do an internal audit once a year to ensure the
accuracy of their books and financial statements. An internal audit
is for your own purposes, and to check for errors or other issues.
Larger companies usually
have audit departments, but a smaller business might employ just one or two
people to conduct audits. Internal auditors don’t just check business finances;
they also check company policies, procedures, and processes to check compliance
with internal guidance and federal, state, and local laws.
External Audit
An external audit, also
known as an independent audit, is an audit conducted by someone outside the
organization. This is called an independent audit because the auditor has no
loyalty or responsibility to the business that could create a conflict of
interest. In their report, they’ll have to provide an opinion as to whether
your company passed the audit. An auditor might take one of the following
stances in a business audit:
Clean
opinion – The business’s books and financial statements accurately
represent the company’s financial position.
Qualified
opinion – The auditor disagrees with parts of the company’s financial
records, but the audit was too limited in scope or access to come to a
definitive conclusion.
Adverse
opinion – The auditor found that the business financial records materially
misrepresent the company’s financial position.
Disclaimer of
opinion – In this type of report, the auditor doesn’t give any opinion on
certain financial records.
IRS Audit
An IRS audit occurs when the IRS finds potential
errors in your tax return. Usually, the IRS schedules audits for tax
returns that were filed in the last three years. A few factors can trigger an
IRS audit. For example, if you claim losses for multiple years in a row or
report high income levels, you may be subject to an IRS audit.
Conclusion
As you’ve read above,
small businesses go through the audit process to check on financial records and
other important documentation. Whether it’s an internal or external audit, it’s
best to let a professional do the job. At MARIELA RUIZ, CPA, PLLC, we
have the audit services you need to keep your business in check. Contact our
team today!
Running your own business can be a tricky and stressful job. Taking charge and managing everything from stock and employees, to sales are all important tasks you must take care of when you are a business owner. While some of these tasks can only be handled by the owner, there are other tasks that can be overseen by a professional who is willing to help. A bookkeeper is one of the best resources you can have as a business owner. Follow along with this blog to find out why you should hire a bookkeeper.
Personal Escape
One of the most difficult aspects of running
your own business is finding balance. Outside of your business, you also have a
personal life. It can be all too easy to get caught up in everything that needs
to be done at work. While it’s great to be focused on your work life, having
some personal time to spend with your family and friends is equally as
important. Hiring a bookkeeper to manage all your business finances can help you
find time to spend outside of the office. You can leave work knowing that
someone is going to help balance and take care of your expenses, transactions,
and income.
Second Opinion
Staying sharp and up-to-date on all current
business owner education and information is important. However, some aspects of
running your own business can be opinion based; that is why having a bookkeeper
who sees all your finances and income can help you view things through a
different perspective. If you are considering making a few changes within your
business, your bookkeeper should be your go-to person for a second opinion.
Scheduling
Being a business owner can be very demanding. There are multiple places where you need to be, differing situations you must take care of, plus attempting to balance family time. All of these things must be handled while also keeping track of when bills are due. Hiring a bookkeeper can make a huge difference in your ability to balance all these tasks and deadlines. Your bookkeeper will be able to take care of the books and pay all your bills on time so that you can keep up with your travel and family obligations. Bill deadlines are just another thing you can cross off your to-do list when you hire a bookkeeper.
Conclusion
Running your own business is a very demanding
job. Having as much help as possible is very important. Hiring a bookkeeper to
help you keep track of all your financial moves can make all the difference in
your ability to balance work and personal life. Knowing that your books are
being taken care of and your bills are getting paid even while you’re away can
give you peace of mind. If you’ve been convinced, head on over to our website
to get started with your bookkeeping process.
