Taxation

Why Should Your Business Outsource Tax Return Service

Posted on 01/02/2022

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 them across to the tax preparation services for 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 experienced tax preparation services for 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 costs 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: Taxation


Important Tax Changes for Small Businesses

Posted on 29/01/2022

Tax laws have been constantly changing over the years. However, it is safe to say that it’s been over 30 years since there has been any significant change. Tax Changes Small business and Job Reforms Bill that recently passed is certain to impact everyone from individual taxpayers to business owners. In line with the previous sweeping tax reforms, this new tax act is likely to foster a great deal of business for accountants. The ideal way for accountants to take advantage of this potential boon is to demonstrate an intimate awareness of all the different ways the TCJA affects the majority of small businesses.

Important Tax Changes for Small Businesses

1. 20% Income deduction for most Small Businesses

Congress didn’t want small businesses to miss out on the party either, but they simply couldn’t lower the tax rate either. So, in order to give tax Changes Small business a tax cut, Congress brought around a new tax deduction; the 20% Qualified Business Income Deduction. If the taxable income is less than $157,500 (for individuals) or $315,000 (for married) taxpayers filing jointly, then the deductions are generally 20% of the net income of the business. If the taxable income is higher than these threshold amounts, then a deduction can still be availed but the limitations and exceptions will apply based on the occupation and wages.

2. 100% Bonus Depreciation

Depreciation is a tax deduction that facilitates the writing off of the gradual wear, tear, and obsolescence of certain properties. Depreciation rules can be complicated, with varying types and degrees of deprecation on different schedules. For instance, many types of properties take as much as 39 years to reap the benefits of depreciation. Fortunately, Congress introduced Bonus depreciation to speed up the process to muster tax savings faster. Then in 2015, Congress shot up the Bonus depreciation deduction to 50% in the first year. Now, the new tax reforms bill bumps the deduction all the way up to 100%. It is likely to stay this way until 2023.

3. Retroactive Refunds

One chief tax benefit for business owners is retroactive tax refunds. Having paid taxes in 2017, 2016, 2015 — or possibly even 2014 — can earn a 3-year review of tax returns for missed tax savings. And making a cut in the 93% of business owners who have paid too much in taxes, one can qualify for a retroactive tax refund. Fortunately, this law was not changed in the tax reform bill.

4. Mortgage Interest Deductions

Mortgage interest deductions will continue to exist. But only a few people will be claiming the deduction on their tax returns. Deductions can either be itemized individually or can take the Standard Deduction. Whichever method renders larger deduction is what would be considered for return. However, there was one key change to the mortgage interest deduction. The deductions have now been limited to new mortgages of $750,000 or less – down from $1 million in 2017. The mortgages originating before 2018 of $1 million or less are grandfathered in and keep their mortgage interest deduction.

Why VelanTax Changes Small business?

We at Velan are equipped with skilled tax preparers possessing over a minimum of 7 years of experience in the domain of Taxation CPA Services. 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: 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: Taxation


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


How Ready Are You For The Tax Ready?

Posted on 25/02/2017

Have you started your tax prep for your small business yet? It’s about time you started prepping and it’s not very late to hire a tax preparer to help you out with it. There can be umpteen questions to start like who can be your my preparer? Am I choosing the right person? Can I still prepare taxes on time? So on and so forth. Before you think through all these, if you think that you can’t file your returns on time, do not have inhibitions in applying for an extension using Form 4868. For all you know, an accountant at this point in time may not have time to accommodate you on board; so it is good to know the list of papers you will need for your tax preparation.

Tax time

Use the simple guide below to start prepping for your tax returns, and if you have started already using the guide to check if you have everything intact:

  1. Completed check book statements, bank account details, savings account details, cash on hand, credit details, and any other banking details
  2. Credit record should include the business loan that is outstanding, credit card statements, any vendor credits.
  3. List your receivables- you will need to have an e-list of the account receivables. Reports can be generated easily if you are using software like QuickBooks. If you find it hard to organize this, you can bring together all your physical invoices, cash drawer receipts, other receipts, and any other paper bills you have and have an accountant organize things for you.
  4. Include the entire inventory such an inventory amount in the beginning, total at the end of the year, and inventory which includes personal use, damage, and spoilage.
  5. Expenses- Again, expenses have to be e-listed. Fret not if you do have your e-list. It is perfectly okay to have a box of papers and receipts and you are not the only one to carry all your expenses physically. Hire an accountant who can help you organize everything for you.
  6. Keep track of the paid employee wages, such as forms W-2, W-3, MISC-1099 and 940.
  7. Insurance- your business insurance costs, fringe benefits, and let’s not forget the health insurance costs everything should be included. Ensure that you have calculated the premium dollars that is if you are paying your and your employees health insurance costs.

Should you have any questions or need assistance with tax preparation, contact @ +1-860-215-4997 and free yourself.

Topics: Taxation