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The Importance Of Professional Tax Services In Yonkers

Reasons Why You Need A Diligent Yonkers Tax Preparer

Whether you earn $50,000 a year or 50 million dollars, taxes are a big expense. This is one of the reasons why many individuals hire the services of a tax expert to help them prepare their returns. Furthermore, a tax professional can advise about the best way to structure certain financial transactions over the course of the year to help reduce your tax bill. This is what is known as tax planning. In the majority of cases, unless you happen to have a background in accounting, knowing the most effective methods for reducing taxes is very difficult.

CPAs (Certified Public Accountants) attend school and complete tough exams to ensure they know all there is to know about tax law. While it may take you several hours to identify one tax credit, a CPA is likely to already know about all the tax credits applicable to your situation. It is for this reason that more than 60% of taxpayers hire a professional when tax time approaches.

If you’re still not sure, read through the following 6 triggering events to discover more about why hiring a tax professional is likely to be in your best interests:

1. You’re Running Short On Time

The tax filing process should never be rushed. If you wait until the last minute to start completing your taxes, there’s a good chance you’ll find yourself short of time. Tax season can be the busiest time of year for many businesses and rushing the tax filing process restricts your ability to avail of all possible tax deductions or tax credits.

Effective tax preparation requires a lot of research. If you are looking to pay the least possible amount (who isn’t?), you need to know your way around IRS forms and tax law. If you aren’t a CPA, it’s very unlikely that you will be acquainted with all the ways you can reduce your bill. The same rings true for those who own businesses. Time for business owners is particularly limited as the tax filing deadline approaches. From managing your customers, employees, and business operations, time is precious. While tax time happens at the same time each year, it always seems to be inconvenient.

2. You’re One Of The Millions Of 1099 Contractors

Do you get 1099-MISC forms from the IRS at the close of each tax year? Do you run your own business? If so, you require a tax preparation service. Compared to a typically W-2 employee, 1099 contractors have more going on. There are multiple expenses surrounding your business. And, if you don’t keep track of those expenses, you will miss out on thousands, if not tens of thousands, of dollars in tax savings. Are some of your customers spending more than $600 with your business each year? Depending on the sector, all of your business’s customers could be paying you dramatically more than that. In many cases, those customers should be issuing 1099-MISCs to you at the start of each year.

The 1099-MISC form reports the total income they paid you during the previous tax year. 1099-MISC is required for all contractors to file taxes. The income on your tax return is calculated from the figures on all the 1099s you receive.

3. You Have Outstanding IRS Issues

The feared letter. Sent from the dreaded IRS. The IRS will never call you or email you demanding immediate payment. They will, however, send you a letter in the mail. Contained in the letter is typically a date, relevant tax years, reference number, your personal details, and all the penalties, taxes and interest fees you owe. No one wants to get such a letter, but things can happen. Often due to an omission, error, or suspected fraud on your previous year’s tax return. It doesn’t matter if you file your taxes through a tax firm, you are ultimately responsible for all information submitted on your return. However, a CPA or tax firm can represent your case to the IRS. For instance, you might not agree with the amount the IRS states that you owe. In such a case, a CPA can represent you as you face the IRS. A licensed CPA will build a case advocating in your favor that is most likely to be received in good faith by the IRS.

CPAs along with other tax services are there to help you avoid an IRS dispute going to court. CPAs know how to get penalties reduced or eliminated from your account. They often have decades of experience communicating with the IRS in a way that doesn’t incriminate their clients and helps them to get back on the good side of the IRS. The reality is that you can go to jail over IRS tax issues. Do you want to find yourself facing the IRS in court without legal representation? Of course not! It would be foolish to try to fight the IRS alone.

4. You Have Fallen Behind On Your Taxes

If you have fallen behind on your taxes and have not received a letter from the IRS, you should not assume the storm has passed. The IRS has up to 7 years to challenge you on your taxes for any specific year. And, if you haven’t yet received a letter from them, you better believe it will arrive soon, especially if you owe the IRS taxes. It will be much better for everyone if you file for any missed years instead of waiting for a dreaded IRS letter. To make sure everything is completed correctly, you should hire an accountant to file taxes from prior years on your behalf.

5. Big Life Changes

If you are experiencing a major life event, such as a death in the family, a divorce, a life-threatening medical diagnosis, etc., outsourcing your taxes is a good idea. Whether you’re getting divorced, buying a new home, having a child or getting married, the way your taxes are completed will change. If you got married, for example, during the year, there will now be more options open to you when it comes to tax credits and tax deductibles. You and your spouse could file jointly or separately. Each option offers different credit eligibility and deduction thresholds. In some situations, it can be more advantageous to file separately rather than jointly. An accountant can outline the differences for you and help you choose the best option.

6. Not Just A Tax Nerd

A CPA can help you with a lot more than just filing your taxes. Generally, a licensed accountant can act more like a financial strategist for you. That can provide you with expert financial advice regarding business expansion, retirements, or investments. Accountants have clients from all types of industries and their widespread knowledge can provide you with valuable insight beyond your tax return.

Give us a call or contact us today for professional help with your income tax preparation.

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Why Accounting & Bookkeeping Services Are Important In Yonkers?

Knowing The Importance Of A Yonkers Accounting & Bookkeeping Services

It doesn’t matter if you’re in charge of an established business or running a small startup, monitoring your financial accounts is vital for ensuring you make informed decisions about your business. That’s what professional accounting and bookkeeping services are for.

Accounting involves tracking all income and expenses. In addition to monitoring a business’s financial situation, accountants are also trained to offer strategic financial advice.

Bookkeeping involves keeping financial transaction records and preparing statements, including income statements and balance sheets. During day-to-day business operations, bookkeepers are responsible for handling payroll and ensuring employees fill out invoices and expenses accurately.

During this lesson, we’ll give a detailed overview of professional bookkeeping and accounting services, so you can make an informed decision about whether to outsource your business’s financial accounts.

Yonkers Tax PreparerProfessional Services

Bookkeepers are official financial transaction record-keepers for businesses. Meanwhile, an accountant is a financial strategist, responsible for helping with tax planning, preparing for audits and offering expert financial analysis.

In many cases, bookkeeping and accounting services are handled by the same individual, but before deciding which professional or professionals to hire, learn more about what each service involves.

Bookkeeping

Clear business records are essential. They help you to know exactly how much money you owe and how much is owed to you. They prevent you from making any costly – and potentially illegal – errors. Bookkeeping also helps your business to monitor and identify multiple income sources.

Here are some of the key records you need to keep up-to-date:

  • Payroll and employment taxes
  • Expenses
  • Sales and purchases
  • Profit and loss statements
  • Bank statements
  • Cash flow analysis

Two further important records to maintain are accounts payable and accounts receivable. Account receivables are claims from uncollected amounts, typically from a credit sale. For example, a sale agreed to by the buyer who has not yet handed over any cash.

Accounts payable are the amount owed to a lender or credit for completed service or goods transactions. For example, a business might take out short-term loans with a bank and the repayments would be classified as accounts payable.

You can learn more about recordkeeping on the IRS’s official website.

Tax Planning

Tax planning and filing your tax returns are never fun activities, but they are essential for ensuring everything is conducted legally. Besides preventing avoidable audits and reducing filing errors, a professional accountant can also save you money. This is because their job is to keep up to date with all regulations and tax codes and advise you as to how much your business should put aside to avoid any nasty surprises.

Audit

Before you start panicking – an audit is rarely as bad as you imagine! The almost universally dreaded “IRS audit” typically only occurs if a business is not accurately filing their taxes. That said, an audit is standard practice if a business is looking to obtain cash from banks or investors, as those entities need to know a business’s financial position to calculate the risk before investing any capital.

If you need to prepare for an audit, an accountant can become your best friend, as they can help you to save a lot of time.

Here are some key tips to help your business avoid getting audited:

  • File your taxes ahead of time.
  • Pay your taxes ahead of time.
  • Don’t inaccurately file business receipts and sales.
  • Maintain accurate business records.
  • Never record personal spending as business expenses.
  • Be in the know about tax reporting obligations specific to your business.

Hiring Vs DIY

After getting an overview of basic bookkeeping and accounting services, you might be considering whether you can handle the tasks yourself – or whether you need to hire a professional. When it comes to making the right decision, one of the things you need to think about is the frequency and volume of various financial tasks for your business. For example, do you need to prepare weekly, monthly, quarterly and/or yearly financial reports?

Another thing to take into consideration is your current financial knowledge. Do you already have an employee who is qualified in accounting and bookkeeping procedures? If not, hiring a professional accountant is likely to be the safest bet.

It is important to remember that you don’t have to hire an accountant on a full-time basis. Professional accountants are generally very flexible and can be hired by the hour. Furthermore, when you outsource your business’s accounting and bookkeeping services, you won’t have to worry about cover the cost of any employee benefits, such as medical insurance, sick pay, etc.

Here are some basic tips for hiring the best bookkeeper or accountant:

  • Check references.
  • Research their previous experience.
  • Ensure the professional has training in the latest accounting technology and software suites.
  • Ensure the professional is qualified in all accounting procedures and policies.
  • Check that the professional can communicate financial lingo clearly in a way that you understand.
  • Ensure the professional is sociable and not just a tax robot.

History Of Our Company

We started our journey locally in 1985 in Yonkers, NY. Over the years we gradually expanded digitally and across America, specializing in accounting and tax consulting.

We now offer complete business solutions, including audits, bookkeeping, debt settlements and consulting. We currently provide services to more than 700 companies from our headquarters in Yonkers and our branch office in the Dominican Republic.

Our primary focuses are audit assistance, tax consulting, income tax filing and corporate setups. Our network of expert staff located both aboard and in the USA provide a sophistication level much higher than our competitors.

Grow your business without stressing about your finances.

Call us today or contact us via our website if you require any professional help with accounting and bookkeeping tasks.

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Why Is Filing A Business Taxes So Important In Yonkers?

The Importance Of Filing A Yonkers Business Taxes

When you own a business, it is very important that you file taxes. Every business has to file taxes at both the federal and state (if applicable) levels.

The amount of taxes that each business pays is varies depending on many details such as the industry, the size, the locality, the nationality, etc. Because it takes so much thought and energy to run a business, taxes can be a part of the business that is often left ignored. Unfortunately, ignoring this one aspect of a business can potentially ruin it.

When a business fails to file and pay taxes on time, it can face steep penalties and fines. Because every business may be faced with different tax laws depending on its location, it is important that business owners under the different tax regulations and rules. These taxation laws apply to every type of business whether it is an online business or a home-based business. In simpler terms, if you do not want to face the consequences related to the tax rules and regulations in your area, you need to be aware of the tax regulations and rules that apply to your business.

There are some steps that you should take as soon as your business is up and operational.

  • Choose the best legal structure for your business ahead of time (i.e. sole proprietorship, LLC, etc.)
  • File your taxes before the deadline in order to avoid additional penalties and fees.
  • Keep accurate documentation of all of your business expenses for tax purposes.
  • Save some of your company’s income and apply it to business taxes.
  • Seek legal tax advice if you need business tax assistance.

The Consequences From Not Paying Taxes On Time In Yonkers

Your company’s tax obligation is one that you should never ignore. If you do not pay your company’s taxes on time, you will likely incur fees and penalties. Everyone is required by law to pay taxes whether they own a small business or not. This means that if you do not pay your taxes on time as required by law, you will face additional penalties and fees.

Failing To File Taxes

If you failed to file your company’s taxes on time, it is likely that you will face a penalty for failure-to-pay. Usually, this penalty is approximately five percent of the business tax that is not paid for every month in which the tax return was filed late.

Failing To Pay Taxes

If you are able to file your small business tax, but you are not able to pay the amount that is due, your business will be penalized .5 percent of the amount of the unpaid tax. This penalty will be in effect for each month that the tax payment is late. This means that you will be paying interest on the amount of money that is due.

Unfortunately, this can add up to a very sizeable tax bill that can financially devastate both you and your business. In fact, if you fail to pay your business taxes, the IRS can:

  • Claim your assets and property
  • Claim your business
  • Forfeit your refunds
  • Revoke personal identification such as passports
  • Garnish income

The effects of not filing your federal income taxes are serious, and the list of ways the IRS can penalize you is extensive. This is why it is important to make sure that you comply with all tax codes and file your company’s taxes on time.

It is not difficult to stay updated with the changes in business tax codes. Although it can be difficult to understand at first, as you become familiar with the tax codes, it will be a lot easier. Always keep in mind, a business will run more efficiently when the taxes are filed on time.

Contact us or call us today if you need a help with paying your income tax!

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