Three Ways To Avoid Critical Business Risks

It is critical for all small businesses to carefully weigh monetary concerns and assess financial risks. Financial risk management can help prevent financial disasters before they happen. What do financial risk management professionals and certified financial accountants recommend to help businesses stay on track? 

Carefully File Business Taxes 

Small business taxes should be as accurate as possible. Small businesses are much more likely to get audited than individuals, or even large corporations. There are several reasons. One of the main reasons is that small businesses generally receive capital from a variety of different resources. Make sure to carefully account for all of them on your tax return. Remember, if you have any cash reserves or cash profits -- even if they are relatively small -- you need to account for them. 

Don't Put All Of Your Eggs In One Basket 

An accountant for small businesses can help you with taxes and even help you prepare for audits, if necessary. They can also help you effectively and efficiently diversify funds. Capital and investments should come from different areas. Relying on a single investor or savings account can easily put the future of your company in jeopardy. 

Consider The Stability (Or Lack Thereof) Of Company Resources 

"The bad news is that companies that are natural resource dependent have to be extra cautious in a volatile commodities market to make sure they hedge their price risks," Forbes writes. While internet-based companies and office-based practices generally don't have to worry, companies who rely on natural resources, like foods or fuel, can have financial ups and downs that are completely independent of their specific business decisions. Finances may also depend on changing industries, shifting stocks, and fluctuating politics. If this applies to your company, set aside extra money and plan for the unexpected. 

Don't take unnecessary financial risks -- especially when it comes to new and/or small businesses. Diverse new business capital, file taxes very carefully, and consider all reasons why profits may fluctuate, even if it's not directly related to your company.

Three Reasons Americans Struggle When Filing Their Taxes

There is a good reason Americans hire more than 1 million tax accountants or small business tax preparation professionals per year. Unfortunately, filing taxes -- on an individual and/or on a company level -- is not necessarily straightforward. In fact, it can be far from it. Why are taxes so complicated? What do individual tax payers and businesses need to know before filing taxes?



There's Nothing Wrong With Asking For Help 

According to Business Insider, the pages of the U.S. tax code has increased by 16,775% over the last 100 years. With all of these tax codes, laws, and nuances, it is no wonder that U.S. tax payers will spend an average of eight hours preparing a single tax form. Moreover, "guess-timating" and writing off tax deductions that you are not entirely sure about can result in an audit. If you don't know what you are doing, hiring a professional can spare you audits, fines, and even potential legal troubles.

Company Taxes Should Not Be Up For Discussion 

One of the best accounting tips and tricks (and particularly for small businesses taxes) is to share financial information and tax information only when it's absolutely necessary. Your employees are not Skylar from Breaking Bad, and they are not likely to cover-up shady practices and tax write-offs for you. In fact, employees can earn up to 30% of business taxes collected when they tip-off the IRS. Pay all taxes on-time, and keep financial matters and financial risk management relatively confidential.

In Nearly All Cases, You Need To Pay Taxes 

Some studies show that as many as 47% of U.S. men and women do not pay taxes. Of course, there are reasonable explanations; some Americans do not meet the minimum income requirements, and therefore they are exempt from paying. However, there are a large portion of Americans who do not pay because they disagree with some -- or all -- federal taxes. This is a grave error. Write to your local politician. Vote. Do not risk legal troubles for tax evasion.

What are the best accounting tips and tricks? Hire tax services and professionals as necessary, always pay your taxes, and keep business taxes as private as possible.

How To Pick Up The Pieces After The Recession

Even though the economy is supposedly on the mend, many Americans are not exactly reaping the benefits. In fact, too many Americans are still pinching pennies, living paycheck to paycheck, and accruing even more debt -- instead of getting out of it. These things are not necessarily the direct results of the Recession, however. Ill-advised spending, saving, and financing definitely have something to do with it, too. If you are currently struggling to make ends meet, here are some things you need to consider while managing your money.


Take Some Accountability

Only 25% of Americans ages 30 to 69 use a financial planner to track their spending and savings -- and that number has actually increased by 21% since 1990! One of the simplest accounting tips and tricks -- and yet one of the most important -- is to be conscious of your spending. Keep track of money in a planner or online. Know how much you are bringing in from work (and any other sources of income), and know roughly how much you'll have left after paying monthly bills and going grocery shopping.

Treat Your Savings Account Like Any Other Bill

Whether you are perusing individual or small business accounting tips, there is always a consensus about at least one thing: some savings are absolutely necessary to have. Living from paycheck to paycheck with absolutely zero leniency can easily pose problems, and a savings account (and one that you keep up!) is your defense against that. Treat it like any other bill. Pick an amount -- $30, $50, $100 or more -- and deposit that amount into your savings account every week or every other week, and don't make any exceptions.

Live A Little

Spending money responsibly is like eating healthy. If you always deprive yourself, you're vastly more likely to mess it up. Just like it's perfectly okay to go out to a restaurant, attend a holiday dinner, or eat a cookie from time to time -- these measures can actually help people stick to a healthy diet the other 90% of the time -- the same is true of spending. If you really want a new book, DVD, a new outfit, whatever, treat yourself once every two weeks or once every month. When you know that you can buy a little something extra sometimes, it helps put an end to impulsive shopping and irresponsible spending.

What is financial accounting? How much does it cost to hire an accountant? When managing your money, you don't necessarily need to know the answers to these questions. A professional can help you when managing your money and when consolidating debt. However, as long as you spend wisely, keep track of spending, and treat your savings account like a bill, you should be okay.

You'd Be Surprised What You Can Write Off As A Tax Deduction

Do you have a deadbeat boyfriend or girlfriend? That's great! At least for tax deduction purposes. "Couples who can claim their significant other as a dependent can also use them as a tax break," ABC News reports. The claimant must also pay half, or more, of their partner's expenses.

When it comes down to it, filing your taxes may seem like a stressful and less than pleasant time. With some creativity and luck, you can successfully (and entirely legally!) write off some pretty surprising things. The best tax preparation services share some of the strangest tax deductions.

It's All About That Work-Life Balance 

Want the federal government to pay you to get a babysitter? It is possible, with some caveats. If you take up volunteer work, for example, you may be able to write off the expenses of a babysitter. Any work must be for a non-profit charity, so keep that in mind.

Do You Feed Feral Cats? Apparently, That's Fair Game For a Tax Deduction 

"A couple who owned a junkyard were allowed to write off the cost of cat food they set out to attract wild cats," MSN writes. There is some bad news, though. This particular couple may have gotten pretty lucky, according to top tax services. Apparently, these particular feral cats also hunted the rats and snakes in the junkyard, doing something of a public service for the owners and patrons.

That's One Way To Win Over Customers

One generous businessman attracted new customers to his gas station with a one-of-a-kind promotion. The promotion involved some sales, but mostly just giving away free beer -- and he was able to write it off on his taxes. A small business tax accountant can work wonders. He or she will be able to help you file small business taxes, write off as many expenses as possible, and receive a higher return. The best tax preparation services will also save you considerable time. It takes eight hours for an individual to file their taxes -- imagine how long it might take a business or organization! With an accountant, you don't have to worry about it.

The IRS received 144,103,375 tax returns in 2012 -- and with some surprising deductions. Talk to a small business tax accountant about getting the most out of your business and your quarterly or yearly tax return.

It's Official; People Make Ill-Advised Money Decisions During The Holidays

It's Christmas in July! Retailer and small business celebrations range from simply having sales to decorating storefronts with Christmas trees and reindeer -- and sometimes even snorkeling Santas. Financial risk management firms and certified financial accountants, on the other hand, celebrate Christmas in July by sharing the bizarre, and sometimes even downright twisted, money decisions people all over the world make on Christmas.



'Tis The Season... To File Your Tax Return?



Apparently, some people suck all of the joy out of the season by taking the opportunity and the paid time off of work to file their tax returns, according to The Guardian. "On Christmas Day last year 1,548 people filed their tax return online -– a 40% increase from 2011," The Guardian continues. (Thankfully, these people only make up a small portion of the population. By comparison, there were 144,103,375 returns filed in the U.S. alone in 2012.)



Are Booby Traps A Sound Investment? These Vacationers Think So!



Sometimes even adults aren't very good at separating fact from fiction. Tax accountants reveal that some vacationers spend shocking amounts of money to literally booby trap their home while they are away for Christmas. "Typical precautions include positioning cardboard cut-outs or dummies behind netted curtains, icing steps and greasing doorknobs," The Guardian writes.



Christmas Spending Makes People Desperate



Only a quarter of American households use a financial planner, according to tax services companies. Another one million Americans will hire an accountant for help with taxes as well as some know-how about other top accounting tips and tricks. They may desperately need it, too. According to The Guardian, taking out loans shortly before Christmas is incredibly common. Moreover, people are most likely to take out loans that are immediate and have high interest rates, such as payday loans.



Should you booby trap your home while your away on Christmas vacation? Certified financial accountants can help you answer some of the toughest money questions, and before the true Christmas and holiday season rolls around.

Do You Qualify For These Weird Tax Exemptions?

There are approximately $5 million dollars worth of tax exemptions ready and waiting for Americans who are lucky enough to qualify for them. (That figure is up from $1 million just a few years ago.) Taxpayers have plenty of time to prepare for next season, and -- with that in mind -- the best tax preparation services know that it can be helpful to be familiar with all legitimate tax deductions, even the weird ones. Starving Artists Are In Luck! According to tax accountants, you can get a sizable tax deduction simply by being an artist who is a little hard up for cash. Be warned, though, that the qualifications for this particular deduction get very specific. "Performing artists get a deduction for expenses they incur while employed under certain circumstances, which seem almost ridiculous in their specificity: They have to have at least two employers and receive at least $200 in income from each; job-related expenses are more than 10 percent of income from performing artist jobs; and their adjusted gross income cannot exceed $16,000," The Fiscal Times explains. Can You Write Off Body Oils? A quarter of American households use a financial planner to map out their budget. If you are a professional body builder, tax services recommend keeping track of every expense -- large and small. Why? Professional body builders can actually write off any body oils they use prior to competitions, The Fiscal Times continues. Let The Government Help Pay For You To Quit Smoking Quitting smoking may seem like a smart move for managing your money -- and now you can get the government to help you pay for it, too! If you can get your doctor to officially state that smoking is not good for your health (hint: that shouldn't be difficult), the IRS will reimburse you for any cessation aides, patches, products, or programs. What are the top accounting tips and tricks? Americans hire one million accountants, including some best tax preparation services, with good reason. These tax preparers recommend getting any legitimate deductions that you can -- whether that means quitting smoking or cashing in on being a starving artist.

Employer Reimbursement for Individual Premiums

Employer Reimbursements for Individual Premiums

Is this practice allowed?

In the past, some employers have reimbursed employees for the cost of medical insurance the employees purchased through the individual market.  The reimbursements were made pretax.  In this way, the employer sought to provide health coverage to their employees without establishing a group health plan.

Is this still allowed under the Affordable Care Act?

No!  As of January 1, 2014, this practice is no longer permitted.

We strongly advise that you contact your employee benefits advisor or us with any questions or concerns you may have with this change!

How to Handle Small Business Taxes

It is estimated that Americans spend around $28 billion dollars a year filing tax returns in the United States. If you own a small business, that money might seem like it could be better used somewhere else; why pay someone when you could do them yourself? But the truth is that hiring a small business tax accountant or financial analyst can have more benefits than simply completing your small business taxes.
Around a quarter of all Americans between the ages of 30 and 69 have a financial planner to manage their assets. This means that a quarter of all Americans are making a smart financial choice, because certified financial accountants and financial analysts help with more than managing your money; in addition, financial advisers help companies and individuals organize and analyze their finances for better financial success. By hiring an accountant for small business taxes, you won't simply file your taxes; instead, you will have an accurate record of all your financial data. This data can then be used in the future, with help from these same tax services, to make better business decisions. This means that your company could potentially profit from investing in financial services.
So if you're considering whether or not you should hire a financial expert to help with your small business taxes, examine your choices: you could invest in your financial future by hiring a financial analyst help help with your small business tax prep, or you could be one of the many Americans wasting money by attempting to handle your finances alone. Don't miss out on a better business future: hire a small business accountant today.

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Corbett Signs Into Law Measure Barring Double Taxation

Gov. Tom Corbett signed into law legislation introduced by Rep. George Dunbar (R-Westmoreland) that protects Pennsylvania businesses against double taxation. House Bill 1513, now Act 42 of 2014, clarifies the assessment of the business privilege tax in Pennsylvania by restoring predictability and fairness.

“This new law is all about providing tax fairness and predictability for Pennsylvania’s job creators,” says Dunbar. “When businesses are double-taxed, they cannot invest that lost money in their operations or hire more workers.”

HB 1513, which passed the House 182-15 in October and the Senate 34-16 last week, is a response to a 2007 Pennsylvania Supreme Court decision, Rendina Inc. v. Harrisburg and the Harrisburg School District. In that case, the court reversed its previous position that a municipality cannot tax an entity that lacks a permanent base of operation within its borders. This decision created a great deal of uncertainty and, in some cases, the potential for double taxation of gross receipts.

Taking effect on Jan. 1, 2014, Act 42 will specifically prohibit municipalities, cities, and other local governments from arbitrarily or excessively applying local business taxes to any company or employer that performs work within their boundaries for 15 days or less within the calendar year. Act 42 will also protect businesses from being charged the gross receipts tax twice by separate municipalities for the same earnings.

“What we have witnessed under previous law is that municipalities and other local governments were over-stretching to find ways to expand existing revenues,” says Dunbar. “In doing so, many of them viewed out-of-area businesses as prime targets for increased taxation. Now that my legislation has become law, this double-taxation loophole is finally closed and all local business taxes can be collected fairly and equitably without stunting economic expansion and job creation.” 

For more news items and updates, visit http://www.picpa.org

Why Does Your Small Business Need an Accountant? Three Reasons....

Did you know that by the third year of business, 44% of start-ups have folded? According to Statistic Brain, some of the top reasons this can occur include having "no knowledge of financing" as well as "nonpayment of taxes."
There is one big mistake many small business owners tend to make when it comes down to tax time -- they don't bother communicating with their accountant (if they have one to begin with). A tax accountant shouldn't just be there for last minute consultations. Instead, they should be a key voice in business operations throughout the year. This is the single best way to avoid becoming one of the 44% before you even know what's happening. What should know about planning your taxes this year? Here are three things you should keep in mind.

1. Having Current Financial Statements is Needed for Lenders
If there's one thing small businesses often need -- especially new ones -- it's money. This means you will need to go to a lender for a loan. If your financial statements are outdated or ill-prepared, you're going to be less likely to qualify for a business loan. An accountant for small businesses can help keep track of information like this.
2. Using Accounting Software Without Understanding the Mechanics Behind it Isn't Enough
There are some great automated tax services out there, but they aren't always enough. As an article in the small business section of Fox.com points out, "throwing data into QuickBooks without knowing the key elements of the bookkeeping process can create some disastrous results, and those results may adversely affect your tax return." It's a good idea to seek a professional's opinion in any area you're not quite sure about.
3. Cloud Computing Can Help You Track Real Time Finances
SmallBizTrends points out that cloud accounting software can help both you and your small business tax accountant better understand your company's real-time finances. This will both cut down on how long you need to spend talking to them, as well as improve your ability to make business decisions based on your current financials. Meetings are more effective when everyone is on board with your current status. Says SmallBizTrends:"One of the benefits is that your accountant gets to know your business. The busy work is already done."
Do you plan on hiring a small business tax accountant? Let us know in the comments.

An Accountant For Small Businesses Can Steer a Company Towards Success

As tax season comes upon us, many business owners are starting to really wonder, "Do I need an accountant for my small business?" Perhaps at first they thought they could handle things, but as they started to work on taxes, they realized how far out of their element they were. These business owners are master of their trade, experts of their own industry, but they might lack the essential financial knowledge needed to keep a business running as smoothly as possible.
What these owners don't realize is that an accountant for small businesses can offer more than just tax services, though. This professional can help them streamline their business for success by acting as an advisor who helps assess financial risks, plans for growth, manages cash flow, and keeps books in good order.
An accountant for small businesses can help an owner reach maximum, cost-effective efficiency in regular business practices and procedures. Payroll systems will be standardized, budgets will be organized, alternatives to costly expenses will be offered, and advice on loans and investments that are best for a business can all be given by an accountant for small businesses. No matter how great or small the risk, an accountant for small businesses can provide useful advice on strategic planning and financial structuring that'll help guide a business owner.
Bookkeeping is also one of the most important benefits that an accountant for small businesses offers. He or she can record all sales and purchases, regular expenses, bank balances and all other financial events relating to a business. If business owners don't have accurate records of financial transactions, they can't create a sound budget and foresee potential losses.
Whether a small business needs a financial analyst or tax accounting, all these roles can be taken care of by hiring an accountant. This can mean the difference between financial freedom and financial ruin. If you have any questions, feel free to ask in the comments.

How Can Your Business Benefit from a Small Business Accountant

In 2011, over 145 million individual income tax returns were filed in the United States. These tax returns showed earnings of over eight trillion dollars for the year. For businesses, the Internal Revenue Service states that over six million tax returns were filed. Many individuals filed their own taxes electronically, but businesses had to spend more time on their filings throughout the year to account for estimations in payroll and profits. This generally means that an accountant for small business is used.

A small business tax accountant takes all quarterly profits and losses into account to make sure that tax payments are complete by the end of the calendar year. Tax laws and regulations for the state are followed when taxes are completed. If you own a small business, then you should know that a tax accountant offers the best tax preparation services. These professionals also provide other benefits to your business.

1. Tax laws and regulations change every year, and the vast majority of these differences effect businesses. A small business tax accountant can verify that you and your business are in compliance with all tax laws. Also, the accountant can explain to you how the variations in the law affect the way that you plan financially throughout the year. With tax knowledge up front, you can change your business model and product prices to account for tax loses that you may incur.

2. A small business tax accountant is knowledgeable about technology and how to implement financial and tax software to assist your business. Computer programs are utilized by accountants that calculate taxes, revenue, loses, and payroll costs. Also, financial software can help to establish a long-term plan for your business. Current financial information used by the accountant can show future outlooks concerning your business. This can help you to see potential problems and issues well in advance that concern your business.

3. Tax accountants can assess your assets properly. This is incredibly important when taxes are filed, because deductions and business costs can be used appropriately when taxes are prepared. Asset assessments reduce small business taxes considerably. Your accountant will use your receipts, financial records, and expenses to provide the best tax outcome for you. Most individuals lose hundreds of dollars each year due to the improper filing of taxes. The same can be said of a business that says no when they ask, do I need an accountant for my small business?

4.Tax accountants can help you network with other businesses. Small business accountants and financial planners work with a variety of businesses. This means that the professionals can be a great asset when you are looking for new vendors, business partners, or clients who are interested in your business. Your accountant also will speak highly of your business after seeing reputable business practices and a good financial outlook.

Three Advantages the Top Tax Preparation Services Could Provide You

Three Advantages the Top Tax Preparation Services Could Provide You

On average, most Americans spent about eight hours a year preparing their taxes before filing them with the IRS. This may not come as much of a surprise, but most experts would probably claim that eight hours is not nearly enough time!



The best tax preparation services will only come from a licensed and experienced tax accountant who's able to keep up with all of the changes year after year. Before you write off hiring a tax services agent, you'll want to make sure that you know all of the advantages that you could enjoy.

Credit Rating Secrets The experts at the best tax preparation services could give you a number of ways to improve what might otherwise look like a lackluster credit rating. Many of the methods aren't as obvious as one might think, which is why a professional is often needed. Improving your credit rating could help when it comes to dealing with future landlords or potential employers.
Someone Who Knows the Rules It's no secret that the IRS adds thousands of new rules each and every year. An ordinary person simply can't bone up on them in time to meet the April 15th deadline. With the help of a financial analyst who keeps up on all of the new and changing rules each year, you'll never have to worry about making a critical mistake on your taxes.
Additional Tax Breaks A personal or small business tax accountant could show you a number of ways to pay less in taxes. They could also help you to receive a bigger refund at the end of the year. There are a number of tax breaks that many people are not aware of, especially if they are a small business owner. Hiring someone from the best tax preparation services in your area could help you to save more money than you ever thought possible.
Like most other people out there, you probably dread having to make the check out to Uncle Sam every year. Hiring a qualified accountant is the best way to make sure that filing your next set of tax returns is not as costly or painful an experience as you might fear. When your financial future is at stake, don't gamble by doing your taxes on your own. With things like this, you're better off leaving it in the hands of the professionals.

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New Video on Understanding Comfort Letter Requests

Requests for third-party verification letters (comfort letters) are rising. Lenders, government agencies and others are looking for assurance on, or verification of, a variety of information. How should CPAs respond? This video provides details.

For more information please visit the AICPA website here.