Thus, the passing of the new tax laws cause people who own small business’ to start thinking about whether they will be actually able to save money regarding the amount of money they pay for their taxes. Therefore, they are mindful of searching for great tax tips.

It is to be noted that the new tax breaks will not be applied to the taxes that business owners pay for 2017, which they file in 2018. But rather the savings and benefits that the new tax laws provide to small businesses will be applied to their taxes that business owners will pay for 2018. Thus, they will not be truly able to benefit from these tax savings until you file your 2018 business taxes in 2019.

Small businesses will be able to see a reduction of their taxes by up to twenty percent. That is a tremendous savings. A great tax tip is for companies to think about how they will re-invest that money they save, such as by buying new equipment, advertising the company more, or even brining on new employees or outsourcing your bookkeeping to create even more savings.

It is important for small businesses to reconsider their budgets that were made prior to the passing of the new tax laws in order to benefit from the breaks that the tax laws provide to small businesses. But the new tax taws can be complicated. Thus, it is wise to speak to an accountant or a financial advisor regarding tax tips to help save money.

Many businesses will experience the benefits of the tax breaks. But there are some small business owners who believe they may go out of business by the year of 2025. This is because some of the benefits will be phased out for small businesses by that time. Thus, these businesses will struggle without the tax breaks.

Getting a full view of your finances can be acheived through proper bookkeeping, giving you the ability to plan and make the best decisions that can be made according to your financials. For more information on how you can get a clear veiwof your finances month after click here.

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Many businesses find themselves unprepared when a new tax season rolls around. Poor accountability during the year leaves many companies scrambling to pull together the proper documentation for filing. Inaccurate paperwork can be disastrous for companies, resulting in fines and the possibility of serious charges.

Hiring the services of an outsourced bookkeeper for tax season assistance alleviates many of these burdens. Even so, all companies should follow certain steps to ensure that all of their necessary information is in order when it comes time to file their taxes.

Start Getting Ready Early

Taking five minutes out of the day to log expenses. Make sure your bookkeeper gets any receipts for lunches or trips taken for business as soon as possible. Document any amounts spent on items like new software for computers, new equipment, and any other office exspenes that have been recorded. This makes it much easier to total up expenses at the end of the year.

Get Your Employee Info In Order

Make sure you have current information for any employees or contractors you paid throughout the year. Get current addresses for anyone who’s moved or who might no longer be employed at your company. You’ll want the most accurate information possible on any W-2s or 1099s you need to prepare.

Maximize All Deductions

This is where doing your due diligence in logging expenses during the year pays off. Your accountant should offer you advice on every deduction available to you. Be sure you’re taking into account any of the below actions your company might have taken:

• Charitable contributions
• End of the year bonuses given to employees
• The purchase of new office equipment

Don’t Leave Your Company Underprepared

Think about outsourcing your financials to the services of an outsourced bookkeeping firm to put your company on top. This type of tax season assistance makes it easier to prepare your taxes and relieve a lot of the stress of preparing tax filings.

For more information on how you can outsource your bookkeeping today click here for a quote!

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Find A Bookkeeping Firm Partner

Once you find a bookkeeping firm partner you agree on how they will service your accounts. They will show you their process for managing clients, and they will explain how they service the clients on your behalf. You may ask them to follow basic procedures that your customers expect, and you will receive a final report that shows what was done. This partnership will be comfortable for you because it does not require much work on your end. You take in the paperwork that your client gives you, and the bookkeeping firm sends back what you need. Outsourcing your clients bookkeeping functions not only keeps the shoebox’ out of your office but creates revenue and decreases the part-time staff you usually need to hire to help handle tax season.

Protecting Your Precious Time

Your time is valuable and scarce during tax season as an accountant because there is simply too much to do in a day. Tax season can be overwhelming, and you have organized clients that enter your office who need your full attention. The shoebox clients will suck up all your time because you spend your day digging through receipts rather than just preparing their taxes. Refocusing your efforts on your organized clients while sending your shoebox clients to a bookkeeping firm that will take care of it for you will keep both you and your clients happy during tax season meeting tax deadlines, and being able to process your client’s taxes faster than ever before.

There has never been a better time to start shifting your shoebox clients over to a bookkeeping firm now before tax season starts so that when the time comes your 16 hours days just turned into to 10 hour days. For more information on how you can start with BooXkeeping as your partner contact us today!

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Most of your clients do not have a real view of the frustrations CPAs have to deal with during this period. CPAs have to deal with issues like:

• Clients who keep their business and personal finances together
• Trashing of critical receipts
• Endless math mistakes
• A lack of proper accounting software knowledge
• Persistent demands by a client to have their taxes done first

And these are just a few!

Help for CPAs

These and more issues are likely to push any CPA up the wall as he or she fights against time to ensure that their clients’ records are filed. One of the best ways of dealing with such issues is by using white label bookkeeping services to manage specific CPA functions.

From the CPA’s viewpoint, outsourcing some bookkeeping function will help ease the tax season workload and enable the CPA to focus on the more pertinent issues that require critical attention. Below are some of the immediate benefits of working with a white label bookkeeping service.

1. Deeper Client Relationships

As a CPA you can leverage on time you gain to develop and deepen relationships with your clients. Such relationships usually suffer during the tense tax period. This is possible without affecting the quality of work you deliver to your clients.

2. Increased Profitability

You are better able to manage the limited resources in your organization while carrying out your core business functions for enhanced profitability.

3. Reduce Costs

The costs associated with hiring specialized accounting staff during the tax period are removed. Your white label bookkeeping partner shoulders the burden at a percentage of what it would have cost your business.

Getting tax period help is as simple as engaging a white label bookkeeping professional to carry your burden and costs associated with providing only the best results to your clients. After all, when you have happy clients, you have less stress during tax season.

For more information on how you can win the war during tax season contact us today!

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Unrealistic client expectations

Government action may cause glitches in the regular routine as it did in 2013 during the Government Shutdown. According to Peter Griffin, President of CBS Tax in Cincinnati, Ohio, “… everyone wants to come in at the same time, and no matter how you staff, someone will probably have to wait.”

Firm Preparation

Many CPAs have to train and retrain after updating IT systems and probably hiring new staff to ensure adequate tax season help for handling increased work volumes.

Easing the CPA’s Pain Points

One of the most pragmatic methods of dealing with the issues raised above is the use of bookkeeping professionals to manage that specific function of the CPA’s work. In a 2006 study of 228 global CFOs, seventy-three of them indicated a willingness to outsource processes that are ‘not core’. Looking from a CPA’s viewpoint, outsourcing bookkeeping functions will ease the tax season workload and enable the CPA to focus on the more strategic issue that demands critical attention. The following are immediate benefits of outsourcing bookkeeping functions. The following benefits accrue to the CPA in the short term.

1. Increased profitability: Limited resources can be better managed while core business functions receive adequate attention for enhanced profitability.

2. Deepen Client Relationships: The CPA can leverage the time gained to develop and deepen client relationships that typically suffer during these tense periods. This is accomplished without a reduction in quality of work delivered.

3. Reduced Costs: The costs of hiring specialized accounting staff is removed as the outsource partner shoulders that burden at a percentage of the costs.

Getting tax season help is as pragmatic as engaging a bookkeeping professional to shoulder the burden and costs of providing the best results while delivering value to the client’s shareholders and bottom line. For more information on how we can help elevate your Tax season stress click here.

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In Compliance?

It is not uncommon to use services of a repairman early in the year, paying him less than $600, then utilize the same service again later having the total for the year exceeding the $600 limit. Often times as a result, you may have overlooked getting all the data needed to file the 1099 for that service. You will want to make sure you get the service providers name, business address and tax ID number.

So it’s safe to say that, it is good practice to always have individuals that are not incorporated complete and sign an IRS form W-9 the first time you utilize their services if you think by chance you might use them again in the same year. Having properly completed and signed W-9 forms for all service providers and independent contractors eliminates any possible oversights and can protect you against IRS conflicts and penalties.

The IRS W-9 form, Request for Taxpayer Identification Number, is issued by the government as a means for you to acquire the data that is required to file the 1099s from all of your vendors. It also provides you with the verification needed that you complied with the law if a vendor provides you with incorrect information. It’s highly recommend by any accounting bookkeeping services that with potential vendors, you have them  complete the W-9 form prior to engaging in business. The form is available from the IRS here and can be printed out or filled onscreen and then printed out. The Form W-9 is only for your use and is not submitted to the Internal Revenue Service (IRS).

How to avoid penalties

Copies of the 1099 Forms need to be sent to the IRS by February 28th except on leap year which would be February 29th. They must be submitted on OCR forms (Optically scannable forms) or electronically. The firm that prepares your 1099s in OCR format to the IRS should also prepare the 1096 submittal form. This provides the recipient file copies and copies for your records. All copies to recipients must be sent by the last day of January to avoid any penalties. Hiring a bookkeeping service can also help you in the prevention of unwanted penalties as most will be reminding you it’s time to file your various forms.

Outsourced Bookkeeping Services to the Rescue

The penalties for failure to file the required information are $260 for each informational return, and up to the maximum of $3,178,500.  Please note the amounts shown are for 2016 filings and are  adjusted annually for inflation. Click here for more information on how an accounting bookkeeping service like BooXkeeping can make sure you are prepared year after year!

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