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Monthly Archives: October 2014

Year End Bookkeeping Services

Year End Bookkeeping Services

As you approach the end of the year, you are also approaching the final stage of any tax planning. And you will want to avoid over taxation on your business as best as you can. Therefore it will be necessary to get your bookkeeping in order. And this can help you prevent overpaying taxes. Efficient year end bookkeeping services becomes the starting point for your tax control systems. And Business & Financial Solutions’ professional bookkeepers can assist small businesses in properly preparing end-of-the-year books. Our CPAs, accountants and tax professionals can handle your accounting, bookkeeping, and tax preparation, all under one roof.

Business & Financial Solutions provides the following.

We reconcile business bank and credit card accounts.

BFS will record any outstanding checks.

Our company can assess any bad debts and write them off as deductions to income.

Loans will be recorded reflect accurate balances, while recording interest expense.

BFS will record any business expenses paid out of personal funds.

We will evaluate personal expenses made with business funds for accurate recording.

We will actually organize your files.

BFS will cleanup any income or expenses reported to the wrong account and reclassify transactions.

1099s will be issued to any vendors, contractors, or subcontractors as required by IRS code.

And your books will be closed out for the year.

Accordingly, our tax preparers will prepare your calendar year or fiscal year tax returns.

Afterward there will be other items for consideration may be standard mileage versus actual automotive expense, and home office deductions. In fact, we will provide adjusting journal entries for depreciation, amortization, and corrections and record them to your books. And we help with the cleanup of any unresolved issues after taxes are prepared. Additionally, we will meet with you to discuss them and a plan of action and improvement. And we will determine the best strategies for minimizing future taxes, while allowing the best financial stability for your company.

BFS has office locations in the Maryland, Washington DC and Greater Northern Virginia areas. We offer financial accounting solutions nationwide.

Help With Year End Bookkeeping

Please contact us at info@bfswebsite.com. Or call us at (855) 557-2222.

We will show you how we can help with the success of your company. And we have a full staff of CPAs, consultants, accountants and tax preparers. Moreover, we are eager to assist you and your company with a recipe for success. Additional information can be found about our firm by searching through our website. And you can use the search function of the site to locate specific information. See how you services can be of value to you And see how we can help with your bookkeeping, accounting, and tax preparation needs.

Services provided nationwide, including Washington DC, Arlington and Alexandria VA.

Offices located in Rockville, Frederick, Vienna.

Starting a Non-profit

Business & Financial Solutions

If you are interested in starting a non-profit you should consider the advantages and disadvantages! Non-profits are federally tax-exempt organizations, setup under Section 501(c) (3) of the IRS code. And this is why many times such organizations are simply referred to as a 501(c) (3). 501(c) (3) recognition is granted after meeting the criteria set forth by the IRS. But this criterion requires that a non-profit be formed for purposes other than generating a profit. And the tax returns for these organizations are not filed on a traditional business tax form. Rather, non-profit organization file a form 990 tax return.

NPOs are frequently begun by like-minded people coming together for the support of a cause. And the cause, at least potentially, has major social implications. Also, they can be formed for private causes, if they fulfill slightly different criteria under applicable laws. Therefore, planning is important.

NPOs may not be subject to income tax. But they may be required to file the form 990 tax return. Tax preparation of these organizations, depending upon the revenue and assets for the organization, may be more detailed. And this is one of the major differences, opposed to the preparation of a standard business tax return. Before setting up a new organization consider the advantages and disadvantages. Consult with tax professionals or accountants for more information on form 1023. Needless to say, you will want to speak with one that has experience working with non-profits.

Advantages:

Besides serving a social purpose and providing employment, one advantage of forming a NPO is its tax-exempt status. Not-for-profit organizations are eligible by their status to receive federal, state, and foundation funding grant monies. Foundations are required by law to donate a certain percentage of their funds to non-profit organizations. Otherwise they may possibly endanger their own tax-exempt status. Further, non-profits may benefit from goods and services provided to them. Because the giver is allowed to receive a tax benefit from the donation.

Disadvantages:

The main disadvantage of filing form 1023 for a 501(c) (3) organization is the increased paperwork that is required. Articles of incorporation must be filed with the state. And by-laws have to be prepared. And meeting minutes must be kept. If a non-profit hires an employee then there are additional forms to complete. Also, the organizations does not have stakeholders or owners. Instead, it is owned by the general public, per say. Note: Employer tax filing requirements for tax-exempt organizations are the same as those for for-profit businesses.

If you have questions about tax-exempt organizations you may contact our professionals using the information below. Or go to our our Contact Page and send a request for information. We have multiple locations. And have clients in other jurisdictions, such as Urbana, Frederick, Hagerstown, Rosemont, Walkersville, Baltimore,  and Woodsboro MD. We register organizations with any state. And we prepare the form form 1023. Additionally we take all the hassle out of setting up the organization including the writing of the bylaws. And we write any required resolutions and provide any required attachments. Also, Business and Financial Solutions is available to you for consultation, program accounting and preparation of form 990 tax returns for exempt organization.

Starting a Non-profit

Call our non-profit tax professionals and accountants for more details. Our offices are located in Virginia and Maryland.

501(c)(3) Application | 990 Preparers | Tax Services Alexandria | Arlington Form 1023

We have office locations in Rockville, Frederick MD and Vienna VA.

Call (855) 557-2222. Or email info@bfswebsite.com.

Young Adults and Contractor Tax Issues

Young Adults & Taxes

“Sometimes teens go out and work as technical employees, but are paid as contractors,” says Sharon Lechter. Sharon is a CPA in Paradise Valley, Arizona. And she is a former member of the inaugural President’s Advisory Council on Financial Literacy. “So make sure the employer classifies you correctly.” Hopefully, you will see how an incorrect classification could cause some contractor tax issues. And this is particularly true for young adults, just starting out in the work world. Sometimes it is necessary to seek the advice of a professional tax accounting firm.

Do not file the income for your child if he or she receives a 1099 MISC. Your child needs to file his or her own tax return. The young adult will report the income from the 1099 MISC on Schedule C Business Profit or Loss. Your young adult is an independent contractor, or subcontractor. And the IRS sees this young adult as a business owner. He or she may not owe federal income taxes. But the individual will owe self-employment tax at 13.3% of the net income, if the income is greater profit is greater than 400.00.

Contractor Tax Issues

Often a company that does not want to involve themselves with payroll tax withholdings will mislabel workers. Or perhaps they want to avoid potential employee benefits. Therefore, they hire workers under an incorrect categorization. And this practice happens far-too-often.

Young adults look at this as a deal because they want the takeaway to be as much as they can get. Often they should be wage employees. However, they are categorized as subcontractors. This designation as a contractor or subcontractor means that even if the teen does not earn enough to owe federal income taxes, he or she could owe the IRS self-employment taxes. This 15.3 percent tax on earnings is the self-employed equivalent to Social Security and Medicare payroll taxes withheld from employees’ checks. And this is usually referred to as FICA on pay stubs. In fact that tax is required when any self-employed worker’s net earnings exceed $400.00. And if the child has a profit of $400.00 or more, he or she will have to pay that self-employment tax.

Tax Accounting Firm

Business & Financial Solutions is a community oriented tax accounting firm. Education is as much important to us as the efficient preparation of your tax returns. Our advisors would rather that clients understand the tax ramification to their actions, prior to the actions becoming problems. Our services include tax planning and consultation, as well as preparation of returns.

Clients in Frederick and Rockville MD, and those in Washington DC and Northern Virginia have found our services to be useful and enlightening. BFS operates nationally. We have clients throughout the Washington DC Metro area as well as surrounding territories, including Germantown MD, Baltimore, Bethesda, Potomac, Montgomery Village, Chevy Chase, Silver Spring. Out client base, encompass 28 states. If you feel that we can be useful in meeting your tax accounting needs, please contact us at 240.297.1055, or email info@bfswebsite.com. Use the SEARCH function of our website to find out more about Business & Financial Solutions. We can help with a variety of tax issues.

Office locations in Rockville, Frederick and Vienna.