Tag: tax preparation services

Outsourced Bookkeeping Services Basics for Small Businesses

Posted on 09/01/2019

When it comes to running a business, a clear and detailed record of the history of transactions involved would be vital to the seamless and efficient functioning of the overall enterprise. It wouldn’t be an exaggeration to say that the survival of most businesses rely heavily on how these transactions are recorded and managed. Organizing these records can be done on paper, with the help of software or by employing of a hired hand. Without a proper bookkeeping system, a business can become vulnerable are susceptible to legal problems and cash flow issues.

Outsourced Bookkeeping Services Basics for Small Businesses

A smooth tax filing can only be asserted by a proper bookkeeping process. Business records are key ingredients without which sorting through the numbers would become messy and complex. Hence as an exercise of caution, it is important to keep the following information in the books:

Revenues and Expenses

Revenues, in general, refer to the money that the business receives from customers. This makes up the accounts receivables column in the book. Staying on top of the book would imply keeping it up to date and promptly sending out bills and invoices.

Keeping track of expenses is just as critical as keeping track of revenue.

In general, revenue and expenses constitute the most basic information in the book. Keeping a close check on them would prove to be highly critical.

Inventory

Inventories are prone to merchandise misplacement, theft, and other mishaps. It is highly critical for businesses to maintain a clean and clear record of inventories to prevent the occurrence of such events. Keeping inventory holdings to a minimum would help in better tracking of sales and trends. The numbers in the inventory should be periodically tested by physically counting the products.

Accounts Payable

The money that needs to go out to suppliers and the money that is due from customers come under the accounts payable column. Data that includes invoice dates, numbers, amounts, terms, dates and amount paid and/or due, client information and balances needed to be organized and managed properly. A good bookkeeping practice, particularly Accounts Payable, can make payments easier.

Payroll Expenses

If there is one part of the book that needs to be up to date at any given time, this will be it. Besides being up to date, accuracy and precision is also highly critical. All this will come in handy during the tax filing season. Procrastination and sidelining of these activities can result in severe negative repercussions.

Purchases

Purchases are used to track materials of all sorts and kinds that are purchased for the business. It is an essential variable when it comes to calculating the profit of the company.

Velan Bookkeeping:

We at Velan are equipped with skilled accountants possessing over a minimum of 7 years of experience in the domain of bookkeeping. Available round the clock at your disposal, we cater to services with utmost sensitivity and sensibility that the work demands. With encomiums and testimonials speaking for themselves, one needn’t think twice before calling us. 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. Some of the services we provide are listed below:

  1. Bank Reconciliation
  2. Statement of Assets and Liabilities
  3. Accounts Receivable and Payable
  4. P & L Statements
  5. Payroll Services
  6. Tax Preparation

Call us today!!! And give your business the head start that it deserves!

Topics: Accounting , Bookkeeping Services


The 5 important bookkeeping tasks you should be doing every day

Posted on 22/12/2018

“A stitch in time saves nine”

In general, every little thing that you put off until tomorrow, that which can be done today pushes you one step closer to an insurmountable pile of tasks dwindling by a choking deadline. The consequences of procrastination have far more pronounced repercussions in the realm of bookkeeping. Certain bookkeeping tasks require to be taken care of year round. It has rather become a tradition for most people to do their bookkeeping once a year for taxes. To simplify the whole conundrum and decode the fiasco it would be important to understand what bookkeeping tasks you should be worried about on a daily basis.

The 5 important bookkeeping tasks you should be doing every day

The day to day bookkeeping activities that would require top priority would be the transactions that occur in a business’s financial world. Keeping track of money going in and out of a business is very crucial. With regards to the money coming in the customer invoices, payments coming in, and bank deposits need to be closely monitored. Think of the day to day bookkeeping tasks as the things that make the finances of your business tick.

Here is a list of tasks that if done on a daily basis will not only help alleviate a great deal of burden during the tax season but also help establish transparency and clarity on a whole new scale:

1. Monitoring and following up with client invoices:

Paying detailed attention to client invoices is absolutely critical to run a business in the black. Maintaining a track record and having a clear understanding of clients, the dispatch of respective invoices, whether their payments have been received on time, and whether they have an outstanding balance will all add up to the smooth functioning of the business. If the business offers a 30/60/90-day payment terms, it is imperative to monitor which clients have past-due accounts. By attending to client invoices on a daily basis one will be able to understand the clients with whom caution should be exercised, and clients who are genuine assets to the business.

2. Processing payroll and maintaining employee records:

Even when it comes to solo-entrepreneurs, monitoring payroll should be made a daily bookkeeping task. It can be consolidated later on a weekly basis to get a clearer perspective. Understanding how payroll expenditures affect a business and then analyzing the areas where the company could use extra manpower would be very useful n helping the business grow.

3. Recording the financial transactions of a business:

As a profession Bookkeepers provide essential services to businesses by processing and recording everyday transactions and producing financial statements. They are responsible for recording financial transactions, maintaining accurate records and providing reports or statements to managers. These transactions will have to be required to be maintained as a permanent record. Software like MYOB, QuickBooks can be employed to carry out this practice. Digital spaces can only get cheaper. But rental rates can fluctuate. Keeping physical documents not only collect dust but also age and fade with time. You also have to make space in the office to keep these physical documents.

4. Reconciliation of Bank Accounts:

It should come as no surprise that bank statements are one of the most important documents to keep. They are the only business record one can count on. The bank statements are the basis for everything else the business stands on. Bank reconciliation, usually the simplest is also one of the important processes of bookkeeping. Do not thrash your bank statements, at least keep a record of the soft copies.

For Instance, at the end of the month, you realize that there is a difference between your accounting records and the bank statements. Wherein you should expect a cash of $6,600, your bank statement shows only $6160. Having a day on day tracking would help easily pinpoint as to where things went wrong.

5. Reporting any irregularities in data to management:

Any irregularities noticed, should be notified to the management immediately for preventive or remedial measures. If prompt measures and actions are not taken, these irregularities could lead to a more complicated issue that would take a lot of time and effort to sort out. As the saying goes “Nip it in the bud”, it is best to eradicate these problems when spotted.

Velan Bookkeeping:

We at Velan are equipped with skilled accountants possessing over a minimum of 7 years of experience in the domain of bookkeeping. Available round the clock at your disposal, we cater to services with utmost sensitivity and sensibility that the work demands. With encomiums and testimonials speaking for themselves, one needn’t think twice before calling us. 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. Some of the services we provide are listed below:

  1. Bank Reconciliation
  2. Statement of Assets and Liabilities
  3. Accounts Receivable and Payable
  4. P & L Statements
  5. Payroll Services
  6. Tax Preparation

Call us today!!! And give your business the head start that it deserves!

Topics: Bookkeeping Services


Preparing for 2018 Tax Filings

Posted on 04/12/2018

With the rush of the upcoming holidays and just weeks away from the New Year’s tax season officially getting underway, it is just about right time to consider your tax preparations. Tax season creeps upon millions of taxpayers every year as a recurring exercise. Instead of being caught off guard towards the end, one can actually follow few guidelines to start preparing for the upcoming 2018 filing season and gain an advantageous head start.

Preparing for 2018 Tax Filings

1. Review your filing status:

Filing status can impact as to how much one owes in taxes each year, and whether or not one would have to file at all. It is also important to forecast if ones filing status will change during the course of the year.

For someone who’s single and is planning to get married by Dec. 31, 2018, choosing to file a joint or separate return with the future spouse would be viable options.

Alternatively, one might be filing as a single taxpayer if he/she expects to get divorced during the year or as head of household if single and having a child or taking on another dependent.

2. Look back to leap forward:

It is expected that by now the 2017 tax filing would have be filed for or at least an extension applied. If the 2017 taxes have already been filed for, then a review considering the areas that were problematic or extra stressful would be helpful. This can come in handy in alleviating that stress for the upcoming season.

3. Set up your system:

Organizing tax records can be done in numerous ways. However, having an established filing system in place would feature as the core of the organizational structure. Waiting until 2019 is not a good idea to start sorting out important documents of 2018. While many important tax documents will arrive at the beginning of 2019, others like receipts for deductibles will sprout out along the year.

4. Save documentation for deductible items:

Receipts and other documents for eligible expenses are crucial components; though it might not be necessary to submit those receipts with the tax return, it may be required to substantiate the expenses if the IRS audits the returns. Hence, whether a business or a personal account, it would be wise to hold on to receipts meticulously.

5. Track your charitable contributions:

The old saying goes, “What goes around comes around.” When you do good for others, you deserve to get some tax benefits. Charitable contributions to qualified organizations in the itemized deductions may require a little extra documentation. For example, deductions for contribution worth more than $250 cannot be done without a written acknowledgment from the recipient organization.

It must also be noted that non-cash contributions may require different records, such as a description of the donation and its fair market value. In order to ensure full tax benefit of one’s generosity, keeping good records of all charitable contributions to qualified organizations throughout the year will be highly crucial.

6. Plan for your retirement:

Having 401(k) or traditional IRA, may help get a tax break by making a contribution to ones retirement account. The contributions made on these accounts are typically deductible on the pertaining tax return.

It would be useful to remember that though there are income restrictions and contribution limits that determine how much can be put in an IRA, and deferral limits on how much can be put into your 401(k). Understanding what those limits are, and how much can be contributed for the year will come in handy.

7. Forecast your estimated taxes:

It is common knowledge that underpaying taxes throughout the year can have very negative repercussions. If one is expected to owe at least $1,000 in taxes, the IRS generally requires one to make estimated tax payments throughout the year. This is especially highly critical for business owners or self-employed individuals who generally don’t pay income taxes on their earnings.

8. Stay abreast with the changing Tax rules:

The Tax Cuts and Jobs Act that took effect in December 2017 ha brought about drastic changes in the U.S. tax code.

In general, tax reforms can translate to two things:

  1. Some of the tax breaks you might have taken advantage of in the past will no longer exist.
  2. There may be some new tax breaks you can use when preparing for 2018 taxes.

Velan Bookkeeping:

We at Velan are equipped with skilled tax preparers possessing over a minimum of 7 years of experience in the domain of Taxation. Available round the clock at your disposal, we cater to services with utmost sensitivity and sensibility that the work demands. With encomiums and testimonials speaking for themselves, one needn’t think twice before calling us. Our pricings are highly competitive and guarantee international standards in terms of delivery. We cost less than an in-house tax preparer’s salary exclusive of his paid vacations, incentives and bonuses.

Not only do we regularly keep updated with the latest tax laws, but support high-end infrastructure which allows us to function as a virtual extension of our client’s team, while ably providing our cost-friendly services.

If you have any queries related to your tax returns feel free to contact us for detailed information, we will be glad to assist you.

Call us today!!! And give your business the head start that it deserves!

Topics: Tax Preparation , Taxation


Why Should Your Business Outsource Tax Return Service

Posted on 01/12/2018

Small business owners often find themselves worrying when it comes to filing tax returns. It is generally considered cumbersome for small businesses to collect all financial and business transaction records at the end of every quarter/year and put it across to the CPA to prepare tax returns.

Putting of tax preparations until the last minute can not only prove to be an expensive affair but also necessitate the recruiting of seasonal accountants and managing them for the associated period of time. An easier way around this fiasco would be to outsource tax preparation services by sending over the required documents to a skilled tax financial service provider in India.

By outsourcing tax return services, small businesses can get instant access to a team of dedicated and skilled accountants who are well acquainted with how things are best done. There are several reasons that strongly recommend why small businesses should outsource their tax return services, some of which are mentioned below:

1. To begin with, the number of CPAs in the United States is hardly sufficient to cater to the high soaring volume of accounting jobs. Also, with the dynamic and ever-changing government rules for tax returns and accounting, finding an experienced CPA is like finding a needle in a haystack. Hence outsourcing tax return services is the most practical and plausible solution for small businesses.

2. Medium and large businesses outsource mainly to reduce operational cost and boost productivity. This should also be the reason why small businesses should outsource too. The fruits of outsourcing can be reaped in a very short span of time, and this can further encourage outsourcing. Once the fixed costs can be transformed into variable ones the business can redirect its funds for better productivity.

3. Professional tax service providers are well aware of the significance of meeting a deadline and ensuring that the business meets the tax returns deadlines on time. With outsourcing service providers well equipped with high tech web management systems that can help keep track of the status of tax returns at any given time.

4. Another known fact is that outsourcing tax preparation would undoubtedly reduce the amount of paperwork involved as all the documents would be stored electronically.

5. Outsourcing companies can also take advantage of the time difference in the time zones and make the most of the turnaround time. Sometimes the turnaround time can be as low as 3 to 6 hours. Because of the time difference between the US and UK with countries like India, a tax return that you send in the morning can be completed in time to be downloaded in the morning by your small business situated in the US or UK.

 

Topics: Tax Preparation , Taxation