Protect your Identity and your Tax refund:

For your own security ask your Tax preparer if your tax information will be outsourced outside of their office to get your taxes done or it will be prepared onsite?

Some preparers are sending information outside of the country and that is placing taxpayer’s information at risk.

Refunds:

Please note, if you request efile and also ask for direct deposit, you will get your refund within 10-14 Business days. Do not accept instant tax refunds, because you will lose 10-30% of your refund of money you can use to pay off debts or save for emergency.

NEW DEADLINE 1099 and w2s

New 1099 filing Deadline is January 31 this year to both the government and the employees and subcontractor’s

If you own your own business be sure to issue 1099 to all individual subcontractors you paid more than $599.99

 

Grow your business by learning to hire and delegate

As a business owner learn to hire help, delegate and let it go!

When you hire help, take the time to train them on what needs to be done and leave them to the task.

 Check on them initially and if after checking on them 2 to 3 times all is well leave them alone and check in occasionally.

When you do this, you can then focus on the big picture and grow your business and take it to the next level.
 Add people to your team gradually though. Hiring too many people at the Same time can also hurt the growth, because you won't have the time to train them probably.

Once the one you hired is doing alright on their own, then you add the next help, train up and add the next one. Eventually you will have a wonderful team to help build your dream. Be sure to pay them well and treat everyone of them with respect. Register for QuickBooks Online version in person class 

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The difference between profit & cash in the Bank.

I get asked by business owners. Why is my  profit not the same as my bank account balance?

Sometimes not all expenses can be written off in the year when it is incurred depending on the type of accounting system being used (accrual or cash basis). If you are a business owner, I am sure your Accountant has mentioned it.

If not, the simple explanation is under the accrual method you get to write off expenses even if you have not paid cash for them when they are incurred in that year.
Using the cash method, you can only expense when you pay for them.

For the Revenue side, under the accrual you have to include the sales in income even if you have not received the payment and under cash method you include sales in income after you have been paid.

I prefer the accrual method for most of my clients since the IRS limits the use of cash method for certain limit of income level. My goal is to grow my clients to go over that threshold so I start out with the big picture in mind. Consult a qualified Accountant in your area to guide you. Start your accounting system before your first sale. Take a short ABCs of accounting from a community college in an evening course to understand basic accounting as an entrepreneur.

It doesn't have to be a full blown accounting associate or bachelors degree. Understanding basic accounting will make you understand when your accountant is explaining your business to you.
I do take the time to educate my clients though as I coach them throughout the year.

We can help you if you need us.  Check us out at Http://www.JNKcpa.com
 

 

If you sell products, offer several payments options. You can learn how to setup in QuickBooks Online or QuickBooks Desktop on how to accept credit cards by attending our QuickBooks classes. You can also use bank Ach transfers through QuickBooks online to get paid with a very little fee.  At present it is 50cents through QuickBooks online.

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Federal and State Quarterly Estimate payments.

Depending on your business entity structure, you may need to do Quarterly Estimate payments to avoid penalties from federal and state for not paying enough.

Most employees don't have to worry since their withholdings are done each paycheck. And if you do payroll for yourself through your company that you own, you might be  alright, but check with your accountant.

Sometimes, depending on your structure being C corporation. S corporation or Limited Liability Company (LLC) one person LLC or partnership, the profit may be higher even after you deduct  your pay check and therefore after you add that to your personal taxes you may owe more federal and state taxes.

Try to keep up your bookkeeping to know how much profit you have year to date before you do your Quarterly Estimates. They are usually due. April 15, June 15, Sept 15and Jan 15. The Jan 15 one is the 4th Quarter estimate. This is the last chance you have to make sure you have paid enough estimates throughout the year.

If you need help making sure your books are up to date and you paid enough estimates we can help you if you are not working with any qualified Accountant. Visit us atHTTP://www.JNKcpa.com and to learn more about QuickBooks to help keep up the bookkeeping

Register for QuickBooks class