Tag: cpa tax services

Excellent Small Business Tax Preparation services

Posted on 14/11/2018

Small business owners go through a great ordeal during tax preparations. Finding a way to strike a balance between operations to marketing of the product and finding time to do yearly small business tax preparation isn’t easy. Generally small businesses lack the resource to keep a tab on daily accounts. Overtime these accounts add up to a seemingly insurmountable task which would require the assistance of experience and expertise in the concerned arena.

Tax Preparation

Here are 5 tips that can help small businesses be better prepared during Tax Preparations.

1. Stay Organised

In general, staying organized is critical when it comes to any aspect of life. In perspective of running a business it becomes even more significant, as the lack of discipline and organisation can break the whole system down. The terms of small businesses there are few things that need to be organized at every point in time.  Estimation of quarterly tax payments will be very important, lest said to avoid any penalties. Personal and business accounts must be maintained separately. It would be advisable to have a separate space solely for business. A good idea would be to start a savings account specifically for taxes. Also, in the spirit of keeping things organized it would be highly recommended to digitize receipts and keep a close track of them.

2. Integrate Technology

In today’s world, we find almost everything around us driven by technology. From the barcode on the groceries at the checkout counter to the phone controlled bedside lamps, we are propelling into a world of technology and automation. In such a day and age, electronic statements will help keep track of transactions closely. Downloading transactions and reconciling regularly would be a great way to consolidate your process, eliminate paper and keep finances up to date. Software can also help in reducing human errors and fine tune precision. It will help cut down data entry and save time and resources.

3. Hire a Hand

Sometimes it’s always wise to ask for help especially around the taxation season. Tax time is never the time to experiment. Hiring an advisor or an expert may also help save money in the long run. However, hiring a CPA may not always be possible with the limited financial resources of small businesses. Outsourcing is a highly potential prospect in such cases. It might be noteworthy to know that tax preparation fees tax deductible.

4. Stay Updated

Staying abreast with current industrial news is as important as staying on top of your accounting books. Following small business communities and financial personalities and affinity groups on social media will help along these lines. 

5. Be Inquisitive

Being inquisitive is highly essential when it comes to Tax preparations. Here are few of the top tax related questions that will help set a sense of direction and perspective. These are questions small business owners can ask their accountants.

  1. Are there any special deductions I can claim if I make any big equipment purchases?
  2. Should I make quarterly tax payments or pay all at the end of the year?
  3. Are there any special deductions I can claim if I make any big equipment purchase?
  4. What should I be aware of when hiring an independent contractor as opposed to an employee?

One Stop Solution: Velan Bookkeeping:

Looking to outsource your bookkeeping? Look no further!

We, at Velan bookkeeping are equipped with experienced bookkeepers at your disposal round the clock. With safety and security benchmark of international standards, we have etched a name for ourselves in the realm of outsourced bookkeeping services. Some of the services we offer include:

  • Bank Reconciliation
  • Statement of Assets and Liabilities
  • Accounts Receivable and Payable
  • P & L Statements
  • Payroll Services
  • Tax Preparation Services

Despite the exhaustive list of accolades and encomiums testifying the services we render, our prices are unbelievably competitive. So hang up on your fears and scepticisms and call us today to give your business the smooth sailing it deserves.

Phone:   +1-860-215-4997
E-mail: reachus@velan-bookeeping.com

Topics: Tax Preparation


Filing returns deadline 17th April 2018

Posted on 22/03/2018

Why file your tax returns ASAP?

The tax filing season has opened up to individuals. The Internal Revenue Services has shifted the deadline for tax filing to April 17, 2018. The filing deadline was extended by two days (usually, it is April 15 every year) because 15 April 2018 falls on a Sunday. The 16th is observed as Emancipation Day, a holiday in Washington D.C. Just like any other Federal holidays, Washington holidays have an impact on the deadline for filing of tax returns. Tax filers must regularly check with the IRS website for latest updates.

tax returns 2018

The IRS had announced Jan 29th as the official day of the start of tax season 2018. A projection indicates that 155 million tax returns will be filed for the financial 2017. 70% are expected to receive a refund. Though the IRS hasn’t promised a refund date, it is anticipated that more than 90% of the tax submitted will receive the refunds within 21 days. It is apparent that the sooner you file your tax returns, the sooner you are going to be refunded.

Why do we keep saying, earlier the better? Tax filing can be very time consuming if you don’t have the right documents and details for filing. Getting ready for filing is a tedious process. Gather all information on income statements and receipts for filing Form W-2 and Forms 1099. Itemized record of health insurance, job expenses records, charitable donation record and details on personal information.

  1. Support appropriate documents for every expense and income must be  by .
  2. Make certain that you procure the W-2 from your employer well in advance.

Let’s discuss the reasons why we need to get our act together to file early returns.

Larger refunds for early filers

Data provided by the IRS reveals that early bird taxpayers enjoy a larger refund amount when compared to the others who file in later. The other reason is to ensure you are eligible for the claims on all deductions.  It goes without saying that itemizing your deductions can get you larger refunds, though the documentation for the same is time-consuming.

You don’t need to cut back on your resources to rush into an early filing, rather find an expert tax returns Preparer to make the filing right on time.

Hassle-free filing of returns

Whether you file your tax returns on your own or engage a pro, fix your own deadline well ahead of the April deadline. Feel relaxed and satisfied with the thought that your taxes for the year is taken care of while everyone you know is rushing to get it done.

Refunds protected from identity thefts

The early tax filing may not ensure identity theft using your Social Security Number, but it makes certain you get refunds on time.

Early filing allows time to make payment plans

Once the tax returns for 2017 is completed, the estimated tax to be paid will be determined by the filer or his tax expert. Now, you have more time on hand to get the money ready instead of breaking into some emergency fund. So, to buy time and get it paid, you have to assess your taxes, prepare all the relevant forms and documents well before the deadline – 17 April 2018.

Easy accessibility to tax professionals

Closer to the deadline, tax filers who are procrastinators would find it difficult to get a good tax professional as they will be busy doing crunch time this season. As a matter of fact, the tax deadline is getting closer, it’s high time you fix an appointment with your  tax expert.

Added to all the issues mentioned, tax professionals may tend to charge more when there is less time for assessment. Start today! Call our tax advisor to whom you can entrust your filing for maximum tax deductions.

Topics: Taxation


In-house Payroll Processing or Outsourced?

Posted on 14/03/2017

Is outsourcing the right solution to get your payroll sorted?

Payroll is one of the major costs for most of the businesses plus there is no assurance of ROI. Outsourcing is increasingly available for all parts of the business.

There are umpteen off-the-shelf payroll software packages available. Many businesses take the bait and often find that one-size-doesn’t-fit all.  Therefore, it is imperative to look at what values do the outsourcing company deliver.

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Typically, all in-house software is written and maintained by the in-house IT team.  Statutory calls for annual updates and this can be expensive for the company. This is because the systems employed would be often older ones and upgrading they cannot stay within the budget.

Outsourcing is the best choice for a business, if the business has to propel towards achieving the vision and mission rather fritter away time with payroll activities.

Some other reasons why outsourcing has become the go-to place for many businesses are:

  • Increased complexity
  • Ever-changing compliance requirements
  • Accuracy in payroll
  • Reduced risks
  • Latest technology employment

Nowadays, payroll providers also streamline a business’ processes and constantly deliver industry best practices.

As tempting as outsourcing may sound, there are due pros and cons associated with it. Taking this into consideration, we bring to you some important points to ponder on to conclude what’s the best fit for your business

  1. Flexibility- Change is a constant in payroll processing. Do you have enough resources available in your organization to make the eleventh hour amendments?
  1. Confidentiality– payroll is one of the most sensitive areas of the business. So discretion at all times is advised. Indiscretion can cost a fortune for the company.
  1. Time- does your business possess the time and knowledge to shift their focus anything but away from the business? Payroll requires constant updates. Do you have the time and resources to handle payroll in-house?
  1. Cost- cost is one of the major considerations any business may have when they consider payroll outsourcing. On one hand it is thoroughly beneficial to have staff in-house to handle your payroll. On the other hand, the cost involved in employing staff may not be as great. Besides costs will also include the cost of the software, maintenance, and the yearly mandatory updates.
  1. Reliability- needless to say, your employees would like to get paid on time every time. Your payroll has to be accurate and processed on the due date irrespective of the holiday or any other contingent situation.

What now?

If you have seen anything that might be advantageous for your business, contact at +1-860-215-4997 for more details. We’ll be glad to help you out.

Topics: Bookkeeping Services , Outsourcing Accounting


Things You Need To Do To Have A Stress-Free Tax Season

Posted on 09/12/2016

New Year is around the corner; and in a jiffy, your tax season will be here too!

All you need is a little knowledge and preparation to stay calm and composed when you file for the taxes next year. Whether you are electronically filing your returns or traditionally mailing your paper returns, below are the necessary information that you need to know.

stress-free-tax-season

4 THINGS YOU SHOULD START DOING RIGHT NOW TO WELCOME THE TAX SEASON STRESS-FREE

HAVE EVERYTHING ORGANIZED:

Collect all your records well in advance: Do not start filing your return until you have all the necessary papers in hand, which include:

  1. Tax Identification Number or Social Security Number: you must have this number for everybody mentioned in your return.
  2. Salary/ income statements: Collect all the salary or income certificates before you start filing.
  3. Routing numbers: have this 9 digit code right on hand if you would like a direct deposit of the refund.

See what’s changed this year: The Department of Revenue time and again amends the tax rules. Avoid any undesired surprises. Take a look if there’s any changes for this year’s tax filing.

Think about e-filing: it is always best to go e-filing, that is if you qualify. E-fling is highly recommended by the DOR as the processing is much quicker and this means you can also get your refund quicker.

GOING TO MAIL YOUR TAXES? THEN IDENTIFY THE APPROPRIATE FORM:

If you go for mailing your tax papers, it often gets you confused on where to start and how to proceed. Below are some of the most important documents you need:

  1. Personal income tax return
  2. Business expenses and additional income
  3. Fiduciary income tax return
  4. Healthcare proof
  5. Capital loss and gain, dividends and interests
  6. Senior tax credit
  7. Royalties & real estate rentals
  8. Use of Tax exemption
  9. Sale of motor vehicles
  10. Amendments after filing.

EXTENSIONS… EXTENSIONS……

We know it sometimes becomes hard to file your tax returns before the deadline. Fret not! You can very well get an extension of 6 months. To do so, you can either choose electronic options or make use of one of the two forms given below:

  • Individual resident or nonresident- if you are an individual use Form-4868
  • Partnership or Fiduciary- if you are in a partnership, use Form- 8736

*Condition: If you wish to get an extension, you must qualify for the same. That is, you need to pay any tax that you already owe the government.

FIGURE OUT THE RIGHT MAILING ADDRESS FOR THE RESPECTIVE FORMS

If you choose to mail a paper return or make a payment, you must be careful to which address you send them out to. For, the addresses depend on the forms itself.

Call @ +1-860-215-4997 to have a stress-free tax period.

Topics: Taxation


Searching for ways to save some TAX?

Posted on 01/12/2016

So, HOW CAN YOU PAY LESSER TAX AND SAVE MORE FOR YOUR RETIREMENT?

Have you ever wondered about this? And then thought Super contributions could be the best way to start saving more for retirement rather than paying the humongous amount of tax.

If you have not, think now! For, Super gives you incredible tax benefits.

At some point in time, everyone would ask this one question to their accountant which is “How can I save tax?” And the practiced response they get is “Have you ever considered Super contributions?”

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Super contributions and Tax benefits:

Super contributions provide you with some uber-cool tax benefits and the best part is your wealth remains undiminished. All you are doing with the super contribution is that you are diverting some of your capital to a super system where it is considered as an investment which can be enjoyed when you retire. Simply put, this contributed sum remains yours rather than the governments.

What exactly is your tax benefit?

Let’s say $200,000 is your income per annum, and you are contributing $10,000 for your personal tax or super contribution.

Have a look at the table below to find the difference between the two:

PERSONAL TAX SUPER CONTRIBUTION
You contribute : 39% You contribute : 15%
39% of $10,000 : $3,900 15% of 10,000 : $1500
You pay : $3,900 You pay : $1,500
You get : $6,100 You get : $8,500

Difference amount: $2,400.

You can invest the same in your super funds and guess what; the benefits yielded by this investment in future will also be taxed at the rate of 15%. This is way lesser than the non-super investments.

Are there any downsides to this?

Yes, there is. There’s one element which could be a major pitfall to super contributions which is the inaccessibility to super funds until the release conditions are met. Mostly, this condition of release can be met when one reaches the preservation age which is 55. For young people, the dilemma in choosing either super investments or personal tax can be quite annoying.

Are these tax benefits lucrative all the time?

Briefly put, no. These tax benefits are not applicable for everyone. For people with income below $18,200 will be worse as the 15% contributions are exponentially higher than the 0% personal tax. For people with income between $18,200 and $37,000 have only a slight difference between the contributions rate and the tax rates. For people with income over $180,000 have very good advantages of choosing super contributions over personal taxes.

Things to bear in mind:

You need to be watchful about the amount you invest in super contributions. You need to ensure that your investments do not exceed the concessional contributions cap to avoid any repercussions.

You also need to pay attention on where you make the investment. Check whether contributions go to funds that yield good returns and has reasonable fees. Bear in mind, a tax saving can be easily destroyed by the poor performance of the fund.

Ergo, it is always good to do a little research and get some professional guidance before you decide anything in this regard.

Call at +1-860-215-4997 to explore more about how Velan can help you.

Topics: Taxation