Tax Preparation

Tax Preparation Services for Small Business | Tips 2022

Posted on 02/02/2022

Tax Preparation services 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 the 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 a few guidelines to start preparing for the upcoming 2018 filing season and gain an advantageous head start.

Preparing for 2022 Tax Filings
tax preparation

1. Review your filing status:

Filing status can impact 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 one 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 option.

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 been 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 for 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 contributions 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 one’s 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 has 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 Tax Preparation Services 2022. Available round the clock at your disposal, we cater to services with the utmost sensitivity and sensibility that the work demands. With encomiums and testimonials speaking for themselves, one needn’t think twice before calling us. Our prices 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


Excellent Small Business Tax Preparation services

Posted on 19/01/2022

Small business owners go through a great ordeal during tax preparations. Finding a way to strike a balance between operations to the 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. Over time these accounts add up to a seemingly insurmountable task that 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 the 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
  • CPA 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


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