Tag: Sales Tax Preparation

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


Plan Ahead to Make Tax preparation Easier for You

Posted on 12/10/2018

Planning, in general smoothens the course along every walk of life. And planning ahead provides the added advantage of forecasting possible scenarios down the road. Many perceive taxes as a once-in-a-year exercise, but it has all the elements of being a year round agenda. To exercise precaution, it is highly recommended that you keep receipts for all expenses and possible tax deductions that you consider claiming. Scanning and electronically filing for better accessibility will come handy for tax preparation services and audit purposes.

Tax return preparation

If given its daily due, taxes can become a lot less daunting than they are generally believed to be. Let’s take a look at few practices that if followed, will help alleviate the burden and reduce the headaches and gray hairs you’ll accumulate come April.

Adam Spiegel, a Miami-based certified public accountant recommends using the word ‘plan’ as a guiding acronym for the year:

P: Prepare your records ahead of time.
L: List your issues and questions.
A: Analyze your financial statements for accuracy.
N: Note the changes in laws during the year and discuss them with your tax advisor.

1. Forecast filing status

Filing status can have a have an impact on how much you owe in taxes each year. It can also determine whether or not you have to file at all. It’s is a healthy habit to forecast if your filing status will change during the course of the year.

For instance, you may be presently single but with plans of tying the knot by the end of the year. In such a case you may choose between filing a joint or separate return with your future spouse when you file your upcoming taxes.

Conversely, you may be looking to file as a single taxpayer if an imminent divorce is in order during the year, or you may also file as head of household if you’re single and have a child or are taking on another dependent.

2. Look Back to Leap Forward

Now that you would have filed your 2017 tax returns, this would a good time to look back and consider the areas that were the most problematic. This exercise will help tackle similar problems with ease in the coming tax season. Certain problems can be easily circumvented by effecting necessary precaution.

For instance, if you did your own taxes and hit several dead ends along the way, it’s would sound logical to assign the task to someone experienced. While an in-house tax preparer might be too expensive, options like outsourcing that can be effective and budget friendly.

3. Familiarize yourself with new tax rules

It is highly critical to stay abreast with rules that would have an impact upon the taxes. For example, with the implementation of Tax Cuts and Jobs Act that took effect in December 2017 there has been some major changes to the U.S Tax code. These Tax codes could generally mean two things.

  • Some of the tax breaks you might have taken advantage of in the past may no longer be available.
  • There may be new tax breaks that you could use to your advantage.

 4. Contribute to your retirement accounts throughout the year

It is preferable to use an Individual Retirement Account (IRA) instead of saving account. Many taxpayers generally put their saving into a typical bank account that earns taxable interest. However, you can avoid paying tax on the interest each year by depositing money into a traditional IRA instead where the interest will accumulate tax-free. When you do, you might also be also eligible to claim a deduction each year for a certain amount of contributions you make to the account

5. Automate the Accounting process

Accounting solutions go a long way in driving efficiency and accuracy all year long. If you don’t use accounting solution, it’s high time you consider getting one. Gone are the days when installed desktop software was the only possible solution. Today, we have a wide range of online solutions available. As an added bonus, the usage of online solutions helps eliminate the need to invest a large amount of money upfront with the assurance of access to the latest version of the tool. Your accountant can help you determine the best fit, and bonus points if the solution lets your accountant have access to your real-time data.

Still a little too much?

Most of the suggestions mentioned above cater to individuals without complicated tax situations. However, if the taxes seem a bit overwhelming to handle, there always exists the option of hiring tax preparation services. Though one way to go about it would be hiring a solid CPA, this can be a bit too expensive for small businesses. In such cases, Outsourcing is the most practical solution.

Why Velan?

We at Velan Bookkeeping are a well acclaimed and renowned bookkeeping firm that fix accounting related issues with the required sensitivity and sensibility that the work demands. Our distinctive, trustworthy and effective methods have helped many companies overcome issues that would have certainly staggered their progress. Having been shaped and moulded with over a decade of experience in this arena, we cater to a web of services like:

  • Bank Reconciliation
  • Statement of Assets and Liabilities
  • Accounts Receivable and Payable
  • P&L Statements
  • Payroll Tax Preparation
  • Sales Tax Preparation
  • Individual Tax returns Preparation
  • Corporate Tax returns Preparation

Our pricings are highly competitive and guarantee international standards in terms of delivery. We cost less than an in-house accountant’s salary exclusive of his paid vacations, incentives and bonuses. With accolades and testimonials such as those bestowed upon us, one needn’t think twice before picking up the phone to outsource their bookkeeping and accounting services with us.

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

 

 

 

 

Topics: Tax Preparation , Taxation


Impact of the New Tax Rates on Your Pocket

Posted on 28/09/2018

As a consequence of the latest tax reform, there are going to be changes in Federal revenue tax charges for nearly all taxpayers. The charges of some of the taxpayers’ are likely to change greater than others. A closer look into the new tax rates and corresponding brackets will help shed some insight into the possible impact that will ensue.

Impact of the New Tax Rates on your Pocket 3

The following tables compare and contrast the changes in the Tax rates and brackets for 2017 and 2018 along the Single and Married filing categories.

New Tax Brackets for Single Filers

New Tax Brackets for Married Filing Jointly

A clear dip by an average of 2% to 4% in the tax rates is pretty apparent while going over the tables. These dips arise mainly out of the Tax Cuts and Jobs Act. However, the lowest rate – 10% remains unchanged. Another point to be noted is that, it isn’t just the tax rates that have been changed, but also the brackets within which they fall, and this has been done not just to adjust inflation.

For instance, in the Single filer’s category let us consider the 24% tax bracket for 2018, which has been brought down by 4% from a thumping 28%. Simultaneously, it must be noted that the in 2017, the 28% tax rate was applicable to income levels between $93,701 and $195,450, where as in 2018 this bracket ranges between $165,001 all the way to $315,000. So, in other words, not only has the tax rates come down, but the brackets have also been readjusted so as to accommodate more income in the lower tax brackets too.

Income under the lens of Taxation

It’s a fairly common misconception to think that when a particular income reaches a certain bracket level, the entire income would be subjected to a tax deduction of the tax rate corresponding to that bracket level. It has to be understood that the only the taxable portion of the income is taxed at the applicable bracket rate. Say for example, a single person makes $10,000. He/ She would have to pay a flat 10% on the first $9,525 of the income and 12% on the remainder of the income.  The taxable incomes referred to in the tables above are your income after all your adjustments and deductions.

Tax Bracket Implications:

Your tax bracket rate is the amount you pay on each additional dollar you earn. You can use that information to determine how much you get to keep if you earn another dollar, or how much good a deduction does you. So it is important to know what bracket you come under.

Does a drop in tax rate mean a lesser Tax Bill?

It is highly probably that a dip in the tax rate of your bracket could translate to a lower Tax Bill. However, it has to be noted that the new tax law changed more than just the tax rates. It has also doubled the standard deduction, eliminated personal exemptions and added expanded credits for dependents. It has also changed the rules for deducting state and local and mortgage interest among other things. Your tax bill may go down, but along the high income spectrum, some may find that they now pay more.

It’s always wise and smart to estimate your taxes during the year to make sure you’re not overwhelmed by a big tax bill when you file your return. It’s also important to ensure that the IRS doesn’t hold any money that you don’t owe them in case you’re overpaying. Though the money will eventually return in the form of a tax refund, why let them hold it all year interest-free?

The feeling of having an expert, whose professional life is dedicated to taxes, and that you’re not left alone with the pile of forms and numbers is quite relieving. Hiring a tax preparer makes the process easier, less stressful and time-consuming, which is something a lot of people are ready to pay for. By outsourcing tax preparation service, one can increase the productivity of firm and profitability by freeing them to focus on higher value client service. This will also help to achieve better personal and professional life to contribute more in each field.

Why Velan?

We at Velan Bookkeeping are a well acclaimed and renowned bookkeeping firm that fix accounting related issues with the required sensitivity and sensibility that the work demands. Our distinctive, trustworthy and effective methods have helped many companies overcome issues that would have certainly staggered their progress. Having been shaped and moulded with over a decade of experience in this arena, we cater to a web of services like:

  • Bank Reconciliation
  • Statement of Assets and Liabilities
  • Accounts Receivable and Payable
  • P&L Statements
  • Payroll Tax Preparation
  • Sales Tax Preparation
  • Individual Tax returns Preparation
  • Corporate Tax returns Preparation

Our pricings are highly competitive and guarantee international standards in terms of delivery. We cost less than an in house accountant’s salary exclusive of his paid vacations, incentives and bonuses. With accolades and testimonials such as those bestowed upon us, one needn’t think twice before picking up the phone to outsource their bookkeeping and accounting services with us.

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

** The images and statistical data used in this blog are a product of research of various websites. All references used are purely for informational purposes only. Consult your own tax, legal and accounting advisors before engaging in any transaction.

 

 

 

Topics: Tax Preparation , Taxation


Why Use a Professional for Your Tax Preparation Service

Posted on 27/09/2018

The line of horror movies stacked up for release this year a little ahead of the tax season is highly symbolic of what is to come. Once again, we stand on the brink of another tax season, quite aware of what awaits us. The thought of a myriad of paperwork built around umpteen hours of strenuous study and scrutiny is capable of sending shivers down one’s spine. Redundant obsequious squealing from the coffee machines would be fairly common hearing pre-tax season. Like most other things in life, taxes are hardly black and white but hidden in the greys and can be extremely complicated and challenging. With the tax season around the corner, it’s common knowledge that it is never too early to start preparing for the upcoming tax return. Doing this in advance will not only save you money but more importantly, time.

Why use a professional for your tax preparation service

With a list of options available to help tide over the complexities that unfold while doing the taxes, a highly recommended suggestion would be hiring a professional to take over the tax preparation service. However, you might be tempted to file your taxes by yourself so as to save a little bit of money. Spoiler Alert! Chances are you’ll be losing more money than you’d be saving. By the time you realize you are losing out more money than you saved by filing on your own it would be a little too late. Here are some of the benefits that come with a professional tax preparer:

1. Time Saving

It is a common understanding that time equals money. Likewise, your time is also valuable and should be used scrupulously. In an attempt to save some money, one might end up spending more than twice the optimal amount of time preparing for taxes. Many people end up stuck in front of their computer for hours when they are filing their own taxes. Self-filing programs can cause issues for people who are not tech-savvy, and you end up wasting more time than if you just hired a professional to file for you.

2. Avoidance of adverse consequences   

As you sign the end of your tax return, you declare that the information is true and accurate to the best of your knowledge. If the IRS audits your return and finds errors, you could face potentially serious legal consequences. Having a professional prepare your tax return adds a little safeguard to potential liability. You need to be cautious, however. As stated, a tax professional can make a mistake. Go over the return yourself to ensure that all the numbers are correct and accurate.

3. Saving Money

There is an endless list of circumstances and technicalities that can literally make the tax season excruciating for the majority of taxpayers. Infused with a significant number of clauses, conditions and preferences, it generally would take an educated professional capable of assessing the individual’s financial situation and tax status in order to save money by finding applicable deductions. The irony is that more often than not, people who hire tax preparers end up saving more money on deductions than they pay for the preparer’s services, not to mention the stress and strain they avoid by doing so.

4. Reduction in Errors

The IRS holds a list of the most common tax errors. On that list are computation errors when determining taxable income, entering payments on the wrong line and simple math errors. An error on your return can delay any refund due. If you err and the mistake results in tax liability, interest and fines accrue from the date you filed the taxes. While no tax professional is perfect, the chances of making a simple mistake on a return are reduced when you use a professional tax service.

5. Liberation from Stress of the highest order

The feeling of having an expert, whose professional life is dedicated to taxes, and that you’re not left alone with the pile of forms and numbers is quite relieving. Hiring a tax preparer makes the process easier, less stressful and time-consuming, which is something a lot of people are ready to pay for.

As for those who are looking for a middle ground between paying high rates for a professional tax preparer and going head on with the onerous paperwork themselves, there’s always the option of outsourcing.  Though outsourcing rates are relatively cheaper they come with the certified benchmark for quality and compliance.

Why Velan?

We at Velan Bookkeeping are a well acclaimed and renowned bookkeeping firm that fix accounting related issues with the required sensitivity and sensibility that the work demands. Our distinctive, trustworthy and effective methods have helped many companies overcome issues that would have certainly staggered their progress. Having been shaped and moulded with over a decade of experience in this arena, we cater to a web of services like:

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

Our pricings are highly competitive and guarantee international standards in terms of delivery. We cost less than an in house accountant’s salary exclusive of his paid vacations, incentives and bonuses. With accolades and testimonials such as those bestowed upon us, one needn’t think twice before picking up the phone to outsource their bookkeeping and accounting services with us.

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

Topics: Tax Preparation , Taxation