Marybeth CPA

The Power of Experience.

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We encourage you to periodically visit our blog  to receive important updates and information that we feel is beneficial to you and your business.  

By marybethcpa2130706, Dec 26 2015 12:18AM


The fifth week's nugget refers to Filing Annual Business Report with Sunbiz.


Filing Annual Business Report with Sunbiz


If your business is a corporation, limited liability company, or a limited partnership, it must be registered with the Florida Department of State, Division of Corporations each year after January 1st by submitting an online form and paying to renew your Florida annual business report.


This must be completed by May 1, 2015 or else there is a late fee of $400 added to the cost of the report. In regards last week's notice, business entity or ownership changes will need to be updated along with any address changes during this renewal process.


You can complete this process by going to www.sunbiz.org. Click on the "E-Filing Services" tab at the top, scroll down to "Annual Report Filing", and enter your 12 digit Document Number.


If you do not know, you can complete a document search by clicking the document searches tab at the top, click on "Corporation/Trademark/LLC/LP", then "Inquire by Entity Name". Enter your business name and click search. You will see the document # listed once you pull up your profile.


Once you enter your document number into the search screen when you are back in the "Annual Report Filing", you follow the onscreen prompts, pay your annual fees, and click submit. Then you are done for another year.



By marybethcpa2130706, Dec 18 2015 03:29PM

The fourth week's nugget refers to Tax Planning & Business Entity or Ownership Changes.



Tax Planning

Tax planning can seem tedious, but it can actually save you quite a bit of money. We feel that you should really review your annual tax situation at the end of a tax year to see if you are on track with the tax your projected to owe.


We believe it is best if you either get a small refund or owe a small amount of tax from the filing of your tax return and the best way to plan this is to do tax planning.


It is very simple to do and only takes a little bit of time to complete. We strongly suggest that you contact us for an appointment with Marybeth to go over your 2015 tax situation to find out what your taxes are projected to be.


It is not too late in the year to make adjustments that can help your tax liability come tax time. If you are interested in getting an idea of what your taxes are going to be this year and to do some tax planning, please contact us to set up an appointment with Marybeth to accomplish this.



Business Entity or Ownership Changes

If you started any new businesses or changed any part of the structure of your existing business , please let us know.


Changes to the structure of your business include any changes in ownership, changes in shareholder percentages, name changes, etc.


Write down whatever changes may have taken place in 2015 and place it into a tax folder for our review.

These are very important because they do affect the way a business tax return is completed.



By marybethcpa2130706, Dec 11 2015 05:20PM

The third week's nugget refers to List of Capital Asset Activity & Summary of Home-Office Expenses.

List of Fixed Asset Activity - If you bought, sold, or disposed any fixed assets in the company during 2015, you must account for it in your company's books and it must be reflected on your 2015 business tax return. If we worked on your books in a prior year, we have your previous year's Fixed Asset Schedule on file and have included a copy for your review.

Once you receive this schedule, indicate on the schedule any assets you sold or disposed of by placing a "s" next to it in the left margin. Also include the date the sale or disposal took place, along with any funds you may have received in this transaction, if applicable.

Then, list any new assets acquired in 2015, including what was purchased, the date it was acquired, and the cost of the product(s) on the back of this paper. With this information, we can add these items to your set of books and ensure it makes its way onto your 2015 business tax return.

In addition, if you had any major purchases or assets that were financed, please provide us with a bill of sale, sales contract, or HUD for our review.

Summary of Home-Office Expenses - If your home office is your sole place of business, you do all of your paperwork there, or if you regularly meet clients and customers there, you can generally claim home office expense deduction on your personal tax return. This includes a percentage of your utilities, repairs & maintenance, home insurance, property taxes, rent, and mortgage interest.

We will come up with a home office square foot to entire home square foot ratio by dividing the square footage of your office space by the livable square footage of your house or by dividing the number of rooms in your home-office by the number of rooms in your house. If you would like for us to determine this information for you, please provide the square footage of your office area and the total livable square footage of your home in addition to the annual cost of home expenses, listed above.

Please contact us if you require additional information.

By marybethcpa2130706, Dec 4 2015 04:31PM

The second week's nugget refers to Financial Statements & FL DOR Payroll Audits.


Financial Statements

We need a basic set of 2 financial statements; typically a statement of income & expenses and a statement of assets, liabilities, & equity prepared in order to complete an accurate return. If you would like for us to prepare these documents for you, please send us your QuickBooks data file or QB Accountant's Copy File as soon as possible so we can get started on this process. If you are unsure how to do this, feel free to contact us and we can guide you through it.

In order to complete the financial statements, all company bank and credit card statements need to be reconciled through the end of 2015. If you typically have us complete these tasks for you, please gather all of your bank and credit card statements and send them to us as soon as you can. If you normally reconcile your own bank and credit card statements prior to giving us a set of your books, a good time to start this process is Right Now!


FL DOR Payroll Audits

The Internal Revenue service is deputizing the Florida Department of Revenue to take a closer look at Florida's businesses payroll to make sure these businesses are paying their officers what they determine is an appropriate salary based upon U.S. Department of Labor's statistics. If they think an Officer is not being paid a reasonable salary, they are taking action of reclassifying distributions and dividends as a salary in which the Officers will be expected to pay additional payroll and unemployment taxes, amend payroll and unemployment tax returns and of course, pay penalties and interest on any amount not paid in to the bureaucracy.


For more information on the Department of Labor's statistics, and to get an idea of what they believe you should be taking as a salary, click the link here Department of Labor, Bureau of Labor Statistics, By Occupation. Look at the major groups, find the group that closely resembles your occupation field, and click the link. Scroll down to find a more detailed description of your occupation, and click the link. Find the table that says "Percentile" in the top left cell. The Department of Revenue looks to this table, under the 50% Median Annual Wage, and is suggesting this is what you should earn in wages.


In addition to the FL DOR looking into Officer wages, they are also taking a look at 1099 payments to vendors. To classify as a 1099 vendor, they say the person or business needs to have a business license and insurance. They also look for you to have a contract/agreement with the vendor to do the work. A question to ask yourself is "does the business have the authority to direct as to how, when, where, and with what to do the job? If you said yes, then the worker should probably be paid as a W-2 employee.


The distinction between a W-2 employee and a Subcontractor is not always clear. If you are unsure, you can click this QuickBooks - 1099 & W-2 Wizard, in order to run through a quick wizard to determine the status of your worker.



By marybethcpa2130706, Nov 12 2015 03:36PM

In years past, we have sent out a detailed business guide to make you aware of certain tax documentation that may be needed in the preparation of your business tax returns. It hasn't had the positive impact on our clients in the way that we projected it would, whether that is because it was too much information to gather and prepare for us at one time or simply, our clients are just too busy to take advantage of the streamlined process to guide you through the assembling of your business tax documentation.


This year, we are taking a pro-active approach to simplify this process so that you can take a small amount of time each week to gather important documentation for your tax return(s). We think if you take advantage of this approach, you won't feel so overwhelmed, because you can prepare a little information at a time instead of trying to put it together all at once. We will send you 1 email a week, each Friday, that will have 1 to 2 Tax Preparation Nuggets in a 6-week series to focus on gathering and placing everything in a tax folder for us. If you give us this small amount of time each week, we believe strongly that these nuggets may help to put some "gold" back into your pockets.


The first week's nuggets refer to 1099s & Vehicle Mileage Logs.


1099s


If you paid any individual or company (other than a corporation) over $600 in parts & labor in 2015, you are required to issue them a 1099 for the work they performed. If you do not have their personal information (Full Name or Business name (including Inc., LLC, etc.), Tax ID #, Complete Address, and Business Entity Type), you will need them to fill out a W-9, which is included as an attachment to this email.


It is very important that you have all of the required information when you pay vendors. A good habit to get into is to have each vendor fill out a W-9 before you issue them a check for business services. We have had several clients in the past few years who have been fined several thousands of dollars by the Internal Revenue Service for not adhering to these rules. 2015's penalties for non-compliance have been almost double from those of 2014.



Vehicle Mileage Log


If you use your personal vehicle for business purposes, you can claim a portion of the car's operating expenses as a tax deduction against your business income. The IRS allows you to calculate this one of two ways:


A) By adding up all of your vehicle operating expenses (loan interest, lease costs, gas, repairs,

maintenance, and insurance) and taking a proportional rate of those expenses computed by

dividing the total business miles driven throughout the year by the total miles driven on the

car (business & personal) in 2014.


B) By determining the total business miles driven throughout the year and multiplying it by an

IRS mandated mileage rate for that specific year.


Please remember, for both methods, you are required to keep track of your business mileage in a vehicle log. This can be as simple as listing the dates the personal vehicle was used for business, descriptions of where you traveled, and total miles driven in a blank notebook.


Or you can opt to have an easier method, a phone app, which we find to be extremely easy to operate. We suggest the app (it comes in both Android & Apple) that is called TripLog - Mileage Tracker. The price ranges from a free version to a business version that costs $25 annually and alleviates any stress from trying to recreate all of your business mile records. All you have to do is search for TripLog in the Apple or Android stores.



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