NEWS AND INFORMATION

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IRS TO HANDLE UNEMPLOYMENT RETURNS, DON'T AMEND

03/20/2021

Returns filed with unemployment benefits prior to the $10,200 exclusion should not be amended. The IRS has indicated it will refigure taxes on these returns and adjust the taxpayer's account accordingly. The IRS will then send any refund amount directly to the taxpayer.

The IRS has not yet communicated a timeline for making adjustments and sending refunds.

Look for an official news release in the coming days: 
https://www.irs.gov/newsroom

If you file state returns in states that conform to the federal unemployment exclusion, you may still need to file amended state returns for your affected clients.

WHAT BOOKKEEPING ITEMS SHOULD YOU MANAGE IN YOUR BUSINESS?

 July 21, 2017 by sbsadmin

To make effective business decisions, you need to know where your cash is coming from, and where it’s going. Details of sales and expenses are critical, as well as an understanding of accounting principles that apply to your business, including any tax implications.

This knowledge – or lack of – can impact your business in many ways:

1. Tracking Expenses

It’s easy to lose track of where your capital goes, with business meetings, purchasing supplies, labor expenses, and so many other day-to-day activities. Bookkeeping processes accumulate all such expenses not only to get an accurate audit of where the money goes, but to keep a record for tax purposes, as well.

2. Missed Opportunities

There are times when it may be advantageous for your business to purchase larger volumes of supplies or invest in new product development. Without an accurate picture of your cash flow and account balances, you may not know whether you can leverage your funds to benefit from such opportunities.

3. Overpayments

Recording and filing invoices from your suppliers is essential to ensure payments are made accurately, and only once. Duplicate payments cost you money. Getting reimbursed for overpayments negatively impacts cash flow, and results in lost time for you or your employees.

4. Late Fees and Missed Discounts

When you don’t pay invoices on time, late fees can offset your profits and damage vendor relationships. Paying promptly in many cases can be rewarded with discounts from your suppliers. Accurate bookkeeping ensures on-time payments and the ability to capitalize on available discounts.

5. Bank Account Reconciliation

As a small business owner, you certainly have bank accounts both for depositing receipts and making payments to vendors or generating payroll for your employees. Bookkeeping activities include reconciling bank account balances to your financial ledger, to make sure all financial activities are accounted for accurately, with any discrepancies being resolved in a timely manner.

6. Financial Strategy

As your small business grows, you may need a more complex financial strategy to make business decisions such as approaching new business markets, investing in equipment or larger facilities, and long-term goals.

7. Tax Preparation and Reporting

Like it or not, you will need to pay taxes as part of owning your small business. Without accurate records, tax preparation will be difficult, time-consuming, and expensive. Good bookkeeping practices will ensure you get all the tax benefits you’re entitled to, and file accurate tax returns.

BOOKKEEPING SOLUTIONS

 July 21, 2017 by sbsadmin

Performing bookkeeping tasks requires an understanding of what needs to be accounted for and how to categorize financial activities such as accounts payable, accounts receivable, and business expenses.
You may start out with a do-it-yourself approach, incorporating the use of a general-use software package such as QuickBooks, to facilitate your accounting and reporting needs. Even taking that route should include some level of training, to get the most from the use of the software.
Another alternative is to outsource or hire an accountant or bookkeeper, who can manage the books for you.  Many small business owners feel they need to hire an employee, but consider outsourcing before you truly realize the amount of time it takes to do your bookkeeping.  Outsourcing has many benefits and is typically a good “bridge” before hiring staff.

GETTING THE RIGHT HELP WITH YOUR BOOKKEEPING

 July 21, 2017 by sbsadmin

As a small business owner, you may have great confidence in your products or services, and certainly your entrepreneurship, but you may not have the background and expertise in bookkeeping needed to establish a good accounting system or financial foundation.

You may simply determine as a small business owner that bookkeeping is not the most effective use of your time and existing personnel resources. When that’s the case, you have an alternative solution.

Outsourcing your bookkeeping needs to competent, professional bookkeeping services can actually save your business money in several ways:

  • Improved cash flow

  • Avoiding duplicate or late payments

  • Taking advantage of any potential tax benefits

  • Making informed, strategic financial decisions

  • Reduced labor expenses and missed time off

  • Minimal, if any, training

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