Accounting nightmares can be a frustrating waste of both time and money. Forgetting to turn in tax paperwork
can result in various fees and penalties, and failure to pay bills on time can be costly as well as embarrassing for your company. It is imperative that all companies hire reputable accountants to ensure that all of their records are up to date and any outstanding bills are paid on time.
Business taxes are usually paid quarterly, and failure to pay these taxes may result in large penalties and could make your business a target for auditing. It is especially important that businesses with employees stay on top of their payroll taxes because the employee is dependent on the company’s accountant to figure their paychecks and withhold the proper amount of taxes from their pay. Many accounting nightmares have occurred for both businesses and employees when payroll taxes are not properly withheld and paid.
Not paying the company’s bills on time can damage your company’s reputation, even if you have plenty of income to pay the bills. It is very important that each company has a system in place for receiving bills and paying them before their due dates. The company should have an accountant that enters bills into an electronic system that keeps track of when the bills are due and the amount owed. Bills should be marked paid and filed neatly so that there is no question whether or not the bill was paid and the accountant can easily prove that the payment was made. The expenses should also be placed in categories so that expenses can easily be entered as deductions on tax forms each quarter or year.
It is equally important that accountants keep track of all monies that are owed to the business and ensure that the business collects the full amount of money they are owed. Many accounting nightmares have occurred because employees have failed to properly track the money that the business is owed and had no way to prove the debts. Good communication between people who handle accounts payable and accounts receivable for each company is essential to ensure that every item is properly entered into the computer system and filed efficiently.
The best way to avoid accounting nightmares is careful planning. It is essential that each company start a filing and accounting system as soon as it is founded so that paperwork doesn’t fall through the cracks and nightmares don’t have a chance to start. Most businesses either choose a computerized accounting program to handle their income, expenses, payroll, taxes, and other accounting needs or decide to outsource their business accounting to a local firm that can handle all of the paperwork and file reports and forms as needed. These are both great options for handling business finances.
Communication is key to streamlining business accounting and other paperwork and avoiding the hassles and nightmares that come from poor planning and shoddy accounting practices. Whether a business owner chooses an accounting firm or computer software, they should always keep an eye on the finances and make sure that they are aware of every dollar that comes in or goes out of their business.
John Smith is a now retired CMA with twenty years experience in the Canadian financial industry. John has moved into the human resources function, and now helps accountants find work, as well as helping businesses screen candidates. There is plenty of additional information on the qualities of top accountants, and there are services like accountingresume.ca that can assist in getting hired in this competitive industry.
Looking For an Ohio CPA?
When looking for a CPA in Ohio there are many things that you will want to consider before making your final decision.
The first thing to consider in your CPA is word of mouth advertising. If there is a CPA that someone you know is currently recommending you will want to discuss what type of work that they had done and how satisfied they were with the work that the CPA did for them. That way, you can be confident that will do a good job for you too.
Also, you should check the Ohio AICPA to be sure they have current registration and really are a CPA.
If you have no friends, co-workers or family that has used a CPA in the past you may turn to the telephone book to see what one of the ads looks like for one there.
Once you have found a couple ads that look appealing in the phone book you will want to make a call to the CPA office and have a chat with them over the phone. Some questions that you may want to ask include the following:
1. What they offer?
2. How busy are they, is it going to take a long time to get an appointment there?
3. How much they will be charging you for their service?
4. What kind of tax returns
do they do?
5. How long have they been in business?
Overall the process shouldn’t take long to find a qualified CPA
that will assist you with your Federal and State tax returns
. There are many quality CPA’s in Ohio that will be able to do your return. From Cleveland to Cincinnati, if you do proper research you should not have to pay an arm and a leg for a good accountant that will do a great job.
The prevailing fiscal climate has put most small business on the brink of closure. This has been as a result of a myriad of reasons ranging from intense competition from stiff competition from big corporations to a rigid tax regime that is not friendly on small operators at all. It is important for owners of small businesses to actually learn how to reign in the tax cost so that their businesses stay afloat. There are several tax tips that these small business owners ought to incorporate into their operations if they are to have a chance of surviving the prevailing economic conditions. These tips will ensure that they are in good books with the IRS.
The first tip has to do with procrastination as concerns filing of taxes. You gain nothing by delaying tax filing. If anything, you are creating problems for yourself as well as your business. The year or prevailing conditions might be really bad, but the tax collector has to get his dues despite the tough conditions. Instead of dilly dallying and risking some serious fines or a closure, just sort everything out, compile them in an orderly way and then file the tax returns in time. Those who are prone to panic attacks should ensure that they do their filling in good time to avoid return attacks just because of something that could have been avoided altogether.
Avoid thinking too much about the tough economic situation and forge on. This can serve as a serious detractor which will only get you into trouble. Despite the tough times, you will still owe some money in form of taxes. Maximize on net refunds which are as a result of the net operating losses. You might be wondering, when will my tax refund be mailed? Get down to a qualified tax accountant as these refunds tend to be quite substantial and they can help you bridge the tax gap without much hustle. Consult with a qualified accountant as he is the one who is best placed to deal with these refunds. Start appreciating depreciation and identify things that you can take away from your business without hurting the business.
Section 179 of the federal law has provisions for depreciation deductions. There is fast depreciation costs which can be used to save dollars that otherwise would have gone to the taxman. The saved monies can be used for other activities within the business which will end up cushioning the business from further ravages by the economic storms out there.