We can get your books up-to-date!
The tax return due date is fast approaching. If you have a small business, you will need to prepare your books for a tax return, whether it be a corporate return or business net income added to your personal return. CFO Choices can help you! We can take all of your manual records for 2010 and create a concise set of reports that your tax return preparer can use to prepare your tax return.
CFO Choices specializes in helping small business owners switch from manual accounting systems to computerized systems so that you can better track your income and expenses and forecast what’s coming ahead. Save yourself the time and headache of keeping your own manual records. We can make all of your entries into QuickBooks on a monthly or quarterly basis. With the time we save you, you can focus on your core competency of running your business. And you can make better decisions for your business using the financial reports we generate for you. Call us today!
Tax Time
The IRS opened the 2011 tax filing season by announcing that taxpayers have until April 18 to file their tax returns. Taxpayers will have until Monday, April 18 to file their 2010 tax returns and pay any tax due because Emancipation Day, a holiday observed in the District of Columbia, falls this year on Friday, April 15. By law, District of Columbia holidays impact tax deadlines in the same way that federal holidays do; therefore, all taxpayers will have three extra days to file this year. Taxpayers requesting an extension will have until Oct. 17 to file their 2010 tax returns. The IRS reminds taxpayers impacted by recent tax law changes that using e-file is the best way to ensure accurate tax returns and get faster refunds.
2011 Mileage Rates and Other News
The Internal Revenue Service has issued the 2011 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning on January 1, 2011, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
- 51 cents per mile for business miles driven
- 19 cents per mile driven for medical or moving purposes
- 14 cents per mile driven in service of charitable organizations
In other news, we at CFO Choices would like to welcome the Lupus Foundation of America, Indiana Chapter, Inc. to our family of clients. We look forward to serving you and all of our customers in 2011!!
Good Recordkeeping
Keeping good records is a very important part of the maintenance of your business. Good records will help you:
Monitor the progress of your business: You need good records to monitor the progress of your business. Records can shows whether your business is improving, which items are selling best or what changes your might need to make. This all increases the likelihood of business success.
Prepare your financial statements: You need good records to prepare accurate financial statements, including an income statement and a balance sheet. An income statement shows the business income and expenses for a given period. A balance sheet shows the assets, liabilities and your equity on a given date. You will need accurate financial statements when dealing with your bank.
Identify the source of your receipts and track deductible expenses: Good records will allow you to separate business income and expenses from personal income and expenses.
Prepare your tax return and support the items reported on your tax return: Your records must support the income, expenses and credits you report on your tax return. Generally, these are the same records you use to monitor your business and prepare you financial statements. Your records and all the documentation supporting those records must be available to the IRS for inspection.
So what’s the best way to keep records? Use any recordkeeping system that clearly and accurately reflects your income and expenses. Also have a filing system to keep all necessary documentation. For some businesses, a manual system will do. Other larger businesses should use a computerized system to track and monitor their transactions. CFO Choices can help you determine what is best and most cost-effective for you!
Latest News
Welcome Grant Family Chiropractic to the CFO Choices family! Grant Family Chiropractic is located in Noblesville, Indiana.
Also welcome to Gum Boyz Inc. and the non-profit group Bully Education and Prevention Inc. We at CFO Choices LLC look forward to serving you!
Looking for Accounting Help?
Of course we’d like for you to consider CFO Choices, LLC for your accounting, bookkeeping, payroll and QuickBooks needs! But small businesses should make informed decisions. Listed below are a few things to consider when outsourcing your accounting functions.
Who will take care of you: Your first meeting with a potential accountant will probably be with the owner of the company. He/she will likely have a high level of experience. But be sure to ask who will be working on your books. A larger firm may pass you on to a less experienced and less talented employee. You may think your pricing level is getting you a good deal, but not if your books are inaccurate and required government reports are not timely.
References: Anyone contractor providing any services to you must be able to provide you with references. Letters of recommendation are great to have from both current and former customers. If only names and phone numbers are provided, be sure to actually call and check on any prospective accounting firm.
Website: How professional is the company you are considering? Do they have a website? You may be able to see how serious a small business is based on if they have a website and the look of their website. Or are they a fly-by-night operation that won’t be around long?
QuickBooks: Many accounting companies use QuickBooks accounting software to make entries, track your income and expenses and prepare statements. Ask if the company you are considering is also willing to train you on how to use QuickBooks. QuickBooks is fairly user-friendly and some small business owners may be able to do most of their own accounting, such as paying bills and sending out invoices. A trustworthy accounting company will be willing to train you on QuickBooks, even if it means losing recurring monthly business. What is best for the customer should come first.
Flexibility: Ask what any potential accounting company is willing to do for you. Will they work around your needs and time frame? Will they “share” bookkeeping responsibilities with you if that’s what you want? Letting you do some day-to-day to save costs and having them perform only month-end and payroll duties for instance. Will they meet with you at your place of business or do you have to drive to them? Can you call or email for help and receive assistance that day?
The items listed above are a few things to consider. We at CFO Choices think we would be a good fit for any small business with accounting and bookkeeping needs. Please compare us with other small accounting businesses and then give us a try!
IRS Offers Details on New Small Business Health Care Tax Credit
WASHINGTON — The Internal Revenue Service today issued new guidance to make it easier for small businesses to determine whether they are eligible for the new health care tax credit under the Affordable Care Act and how large a credit they will receive. The guidance makes clear that small businesses receiving state health care tax credits may still qualify for the full federal tax credit. Additionally, the guidance allows small businesses to receive the credit not only for regular health insurance but also for add-on dental and vision coverage.
Notice 2010-44 provides detailed guidelines, illustrated by more than a dozen examples, to help small employers determine whether they qualify for the credit and estimate the amount of the credit. The notice also requests public comment on issues that should be addressed in future guidance.
Included in the Affordable Care Act approved by Congress in March and signed into law by the President, the small business health care tax credit, which is in effect this year, is designed to encourage small employers to offer health insurance coverage for the first time or maintain coverage they already have.
In general, the credit is available to small employers that pay at least half the cost of single coverage for their employees in 2010. The credit is specifically targeted to help small businesses and tax-exempt organizations that primarily employ moderate- and lower-income workers.
For tax years 2010 to 2013, the maximum credit is 35 percent of premiums paid by eligible small business employers and 25 percent of premiums paid by eligible employers that are tax-exempt organizations. The maximum credit goes to smaller employers –– those with 10 or fewer full-time equivalent (FTE) employees –– paying annual average wages of $25,000 or less. The credit is completely phased out for employers that have 25 FTEs or more or that pay average wages of $50,000 per year or more. Because the eligibility rules are based in part on the number of FTEs, not the number of employees, businesses that use part-time help may qualify even if they employ more than 25 individuals.
Eligible small businesses can claim the credit as part of the general business credit starting with the 2010 income tax return they file in 2011. For tax-exempt organizations, the IRS will provide further information on how to claim the credit.
More information about the credit is available on the Affordable Care Act page.
Spring Time!
Since you likely filed your tax return yesterday, now is time to think about spring! Tax time can be stressful for many people and if you have filed your taxes, take a moment to relax. Enjoy the outdoors with a stress-relieving walk, a bike ride or work in your garden. Fire up the grill for the first time this season. The weather is getting better every day and many of you have children and grand-children starting spring sports. Games will be starting soon. Keeping active and being outside is great for everyone.
Even as a small-business owner, you can enjoy the weather, advertise your business and help your community at the same time. Consider sponsoring a youth sports team. This will advertise your business and you can attend games and cheer on your team! There are many youth baseball, softball, soccer and other leagues in your area that are looking for sponsors. It is a win-win for both your business and the kids in the league.
We here at CFO Choices are definitely enjoying our spring-time at home with friends and family, but are always keening focused on helping our customers with all of their accounting needs. Small-business accounting never stops and we are here to serve you. You can count on CFO Choices.
Let us know how you are enjoying your spring! Please comment on this post or email us at info@cfochoices.com .
News and Notes
Welcome: American Bulk Vending as a customer of CFO Choices! We will assist ABV with general accounting, reporting and database management. Hunger pangs? You’ll find bulk vending machines at many stores, colleges and businesses that you often visit. Looking for more cash flow as a small business? Consider placing bulk vending machines at your place of business. Check them out at AmericanBulkVending.com.
Reminder: Tax day is right around the corner. Start gathering your tax paperwork now so that you won’t be in a last minute rush. If you use a tax professional, give them all the needed documents soon so they can begin working on your tax return. Remember, tax returns are due April 15th – don’t wait until the last minute.
Tip: To ensure that your customers receive their invoice from you, begin emailing your invoices. This is a commonplace practice these days and many customers are accustomed to receiving invoices via email. Use all the tools available to you in this new virtual world. Save paper and postage, guarantee immediate delivery of your invoice and get paid faster.
The Entrepreneurial Spirit
Many in today’s world are finding their entrepreneurial spirit and starting their own small business. Some have been downsized and have decided to take the plunge, some are pursuing lifelong dreams and some are seizing the opportunity presented by the economy to fill a needed void. It can be a very exciting time when you go out on your own. Here are a few things to remember if you are considering becoming a small business operator.
Servicing Customers: Always remember to take care of your current customers as they are an important part of your business. You are in business for them as well as for yourself. Customers rely on you to provide them with services to keep their businesses running smoothly. Entrepreneurs know that they can count on other entrepreneurs because we all have that spirit and mindset to be in business for ourselves and to provide the best services possible.
Networking: Networking can play a vital role in finding new customers for your business. Join networking groups, attend networking events and ask friends and current customers to refer you to businesses that would benefit from your services.
Managing Your Books: Need more time to focus on your core business? Consider outsourcing your accounting and bookkeeping tasks and leave the hassle behind. Every small business can benefit from having a CFO-level consultant at their fingertips. CFO Choices LLC now makes that possible. And we can also handle your day-to-day accounting tasks and provide financial reports to assist in your business decision making. Leave your small business accounting to us so that you can focus on your business, concentrate on your strengths and serve your customers.