Friday, July 30, 2010
Attempted Repeal Of Small Business Tax Reporting Requirements Fails In House
For more information, contact Elite Bookkeeping & Tax Services at (800) 416-3820 or (775) 884-6188 Address: 123 West Nye Lane, Suite 103, Carson City, NV 89706. Visit our website at www.elitebookkeeping.biz
Thursday, July 29, 2010
Nevada - New Tax Benefits Aid Employers
Two new tax benefits are now available to employers hiring workers who were previously unemployed or only working part time. The provisions are part of the Hiring Incentives to Restore Employment Act (HIRE). Employers who hire unemployed workers between Feb. 3 of this year and Jan. 1, 2011 may qualify for a 6.2 percent payroll tax incentive. Additionally, for each worker retained for at least a year, businesses may claim an additional general business tax credit of up to $1,000 per worker when they file their 2011 income tax.
Wednesday, July 28, 2010
Tuesday, July 27, 2010
Five Tax Scams to Avoid this Summer
IRS Summertime Tax Tip 2010-08
The Internal Revenue Service issues a list of the top 12 tax scams each year – known as the Dirty Dozen. The scams are illegal and can lead to problems for taxpayers including significant penalties, interest and possible criminal prosecution. These scams don’t just happen during the tax filing season, they can happen anytime during the year. Here are five scams from the 2010 Dirty Dozen list every taxpayer should be aware of this summer.
- Phishing Phishing is a tactic used by scam artists to trick unsuspecting victims into revealing personal or financial information in an electronic communication. Scams can take the form of e-mails, tweets or phony websites and they try to mislead consumers by telling them they are entitled to a tax refund from the IRS and they must reveal personal information to claim it. Regardless of how official this e-mail may look and sound, the IRS never initiates unsolicited e-mail contact with taxpayers about their tax issues. Phishers use the personal information obtained to steal the victim’s identity, access bank accounts, run up credit card charges or apply for loans in the victim’s name. If you receive an e-mail that you suspect is a phishing attempt or directs you to an imitation IRS website, please forward it to the IRS at phishing@irs.gov. You can also visit IRS.gov and enter the keyword phishing for additional information.
- Return Preparer Fraud Dishonest tax return preparers can cause trouble for taxpayers who fall victim to their ploys. Such preparers are skimming a portion of their clients’ refunds, charging inflated fees for tax preparation or are attracting new clients by promising refunds that are too good to be true. To increase confidence in the tax system, the IRS is requiring all paid return preparers to register with the IRS, pass competency tests and attend continuing education.
- Hiding Income Offshore Taxpayers have tried to avoid or evade U.S. income tax by hiding income in offshore banks and brokerage accounts. IRS agents continue to develop their investigations of these offshore tax avoidance transactions using information gained from more than 14,700 voluntary disclosures received last year. Taxpayers also evade taxes by using offshore debit cards, credit cards, wire transfers, foreign trusts, employee-leasing schemes, private annuities or life insurance plans.
- Abuse of Charitable Organizations and Deductions The IRS continues to observe the misuse of tax-exempt organizations. This includes arrangements to improperly shield income or assets from taxation and attempts by donors to maintain control over donated assets. The IRS also continues to investigate various schemes where donations are highly overvalued or the organization receiving the donation promises that the donor can purchase the items back at a later date at a price the donor sets.
- Frivolous Arguments Promoters of frivolous schemes encourage people to make unreasonable and outlandish claims to avoid paying the taxes they owe. If a scheme seems too good to be true, it probably is. The IRS has a list of frivolous legal positions that taxpayers should avoid on IRS.gov. These arguments are false and have been thrown out of court.
For the full list of 2010 Dirty Dozen tax scams or to find out how to report suspected tax fraud, visit IRS.gov.
Monday, July 26, 2010
Levin's Tax Proposals Rebuked, by Mike Godfrey, Tax-News.com, Washington
The Center for Freedom and Prosperity's (CF&P) President, Andrew Quinlan has in a statement denounced US Senator Carl Levin's stated plan to use the amendment process on the small business lending bill to attack so-called ‘tax havens’.
Quinlan said the move demonstrated that Levin is "tone deaf when it comes to the problems facing average Americans." Levin wants to use a bill his colleagues claim is aimed at creating jobs and helping small businesses to place new burdens on investors that will end up destroying jobs, he said.
"This is nothing new from Carl Levin," said Quinlan. "He's been trying for years to place Americans at a competitive disadvantage when it comes to foreign investment. That he now seeks to do so through a bill ostensibly aimed at fixing our unemployment problem is a perverse irony. Nothing he is proposing will help a single out-of-work American."
Although Levin has yet to release the language for his amendment, he launched his most recent campaign, Business and Investors Against Tax Haven Abuse, on the back of a report by three left-wing, non-profit groups, Business for Shared Prosperity, Wealth for the Common Good and the American Sustainable Business Council. The CF&P argued that proposals detailed in the report call ‘for higher taxes on American companies that compete in the global market, onerous new reporting requirements, increased IRS enforcement powers, and provisions that would increase the cost of federal contracts.
Commenting on the report, Quinlan added: "All of these recommendations supported by Levin and his statist front groups would place US corporations at a competitive disadvantage in the international marketplace. None of them will benefit small businesses or jobless Americans."
Concluding, Quinlan stated: "At a time when capital is increasingly mobile, and in order to remain internationally competitive, the US should reject expanding the tentacles of the IRS and instead adhere to the common-sense principle of territorial taxation. Only income earned within the territory of the United States should be subject to US tax law,” he argued.
Friday, July 23, 2010
Nevada Department of Taxation - Taxation Publications
Here's a handy link to the Nevada Department of Taxation. There are several helpful PDFs available for download. Click here to view the files and publications.
Thursday, July 22, 2010
Republicans Fail To Kill US Death Tax
The latest attempt by Republicans in the US Congress to permanently repeal estate tax has stalled in the Senate.
Offered as an amendment to the small business jobs bills, Senator Jim DeMin's proposal was thrown out after failing to secure the necessary 60 votes for it to proceed. While two Democrats voted in support of DeMint's amendment, three Republicans joined the majority of Democrats who voted against, and the proposal only garnered 39 votes.
Under tax legislation enacted in 2001, the estate tax rate has been gradually declining while the exemption thresholds have been increasing until, for 2010, the tax has been repealed altogether. However, the tax is scheduled to bounce back at pre-2001 levels - a rate of 55% with an exemption threshold of USD1m for individuals and USD2m for couples - in 2011 if legislation is not passed to permanently repeal it or reduce its scope.
Sen. DeMint argues that the tax, if reintroduced at these levels, would affect thousands of small businesses and lead to higher levels of unemployment.
“The death tax kills jobs, hurts small businesses, destroys family farms and President Obama’s plan to hike it from zero percent to 55% next year is unconscionable,” he said.
“The death tax is an unfair, immoral double tax on property and assets that folks have already paid taxes on throughout their lives. If President Obama and Democrats get their way, Washington could get over half of family estates, farms and small businesses, a greater inheritance than the children of the deceased," he added.
According to DeMint, analysis by the former director of the Congressional Budget Office, Douglas Holtz-Eakin, and the president of Research on the Economics of Taxation, Stephen Entin, found that permanently repealing the death tax, as outlined by the DeMint Amendment, could create 1.5 million jobs.
While many Democrats do support reducing or permanently repealing the estate tax, particularly those from agricultural states, previous attempts to curtail the levy have also failed. Last December, a proposal by US Congressman Earl Pomeroy, a South Dakota Democrat, to make permanent the 2009 estate tax exemption level of USD3.5m for an individual (USD7m for a married couple) and the maximum tax rate of 45%, was approved by the House of Representatives. However, the provision was never voted on in the Senate.
A recent Center on Budget and Policy Priorities analysis suggested that only 100 small business and farm estates would owe any estate tax in 2010 if the 2009 rules were extended.
Wednesday, July 21, 2010
Levin To Add Anti-Tax Evasion Offsets To Jobs Bill
by Mike Godfrey, Tax-News.com, Washington
Last updated 14 hours ago | Wednesday, July 21, 2010
Last updated 14 hours ago | Wednesday, July 21, 2010
US Senator Carl Levin is attempting to add an amendment to a small business jobs bill currently pending in the Senate that will close loopholes he says are being abused by multinational corporations to reduce their US taxes.
Levin, a long-time campaigner against offshore tax avoidance, announced his initiative as he launched a new coalition of small businesses set up to highlight the issue of international tax planning strategies by large corporations, known as 'Business and Investors Against Tax Haven Abuse.'
Levin's amendments would attempt to raise billions of dollars in revenue to help fund a lending facility for small businesses which are struggling to obtain credit from banks, as proposed in the Small Business Jobs Act unveiled by Senate Finance Committee Chairman Max Baucus (D-Mont.) and Senate Committee on Small Business and Entrepreneurship Chair Mary Landrieu (D-La.) last month.
One of these offset provisions would give the US Treasury Department the authority to block transactions with foreign banks which are found to be "impeding US tax enforcement." The coalition is also seeking a number of other policy changes which it says would level the playing field between domestic businesses and US multinationals, including prohibiting firms from transferring intellectual property offshore to avoid US taxes, and banning "phony offshore corporations" which report income offshore but which have their central place of management in the US.
The coalition also wants disincentives to discourage government contractors from using offshore jurisdictions, including tougher penalties.
Sen. Levin was the major architect of the Stop Tax Haven Abuse bill which failed to gain Senate support for a second time after its reintroduction last year. However, some of the language of this bill was incorporated in the the Foreign Account Tax Compliance Act of 2009 (HR 3933, S 1934), which became law as part of the Hiring Incentives to Restore Employment (HIRE) Act, changing the system of withholding on payments made to non-US persons.
Tuesday, July 20, 2010
Small Business Expenses and Tax Deductions
Guidance for the Self-Employed and Sole Proprietors
There are two basic tax concepts new business owners need to add to their vocabulary: business expenses and capital expenses.
Business expenses are the cost of conducting a trade or business. These expenses are common costs of doing business, and are usually tax deductible if your business is for profit. For example, costs of renting a storefront, business travel, and paying employees are all deductible business expenses.
Capital expenses are the costs of purchasing specific assets, such as property or equipment, that usually have a life of a year or more and increase the quality and quantity of products and services. For example, if you own a landscaping business and you purchase mowers and excavating equipment, these costs are capital expenses and do not qualify as deductible business expenses. However, you can recover the money you spent on capital expenses through depreciation, amortization, or depletion. These recovery methods allow you to deduct part of your cost each year. In this way, you are able to recover your capital expenses over time.
For more information, contact Elite Bookkeeping & Tax Services at (800) 416-3820 or (775) 884-6188 Address: 123 West Nye Lane, Suite 103, Carson City, NV 89706. Visit our website at www.elitebookkeeping.biz
Monday, July 19, 2010
Expats Turn Backs On US Taxes, by Mike Godfrey, Tax-News.com, Washington
Last updated 15 hours ago | Monday, July 19, 2010
Increasing numbers of Americans are taking the dramatic step of renouncing their citizenship in order to escape Uncle Sam's all-encompassing tax net.
US citizens are in a uniquely horrible position as expatriates, wherever they reside, since the US is just about the only major nation which taxes its citizens regardless of their residential status, and legislation in recent years has done nothing to improve the situation. And with the Obama administration determined to pass ever-more draconian tax and reporting laws on wealthy individuals and companies stationed offshore in an effort to narrow the federal deficit, estimated at USD1 trillion this year, it seems that many otherwise patriotic Americans are taking the hard-nosed financial choice to escape the clutches of the man from the IRS.
"I run into people like this quite often as part of my travels," observed Daniel J. Mitchell of the Washington-based think tank, the Cato Institute. "They are intensely patriotic to America as a nation, but they have lots of scorn for the federal government."
In the fourth quarter of 2009, 502 US expats renounced their citizenship. This may seem like a drop in the ocean relative to America's total population and the thousands of US expats spread across all quarters of the world, but it was double the number of expats who renounced citizenship in the same period a year earlier. US government figures also indicate that the total number of Americans handing back their passports in 2009 was three-times higher than in 2008, and these headline figures hide the fact that many more hundreds of applications are pending in various US embassies around the world. Indeed, it is said that there is a large backlog of applications pending at the US embassy in London, with some applicants not likely to have their cases dealt with until early next year.
"Even relatively high-tax nations such as the United Kingdom are attractive compared to the class-warfare system that Obama is creating in the United States," observes Mitchell in his blog.
While the Tax Increase Prevention and Reconciliation Act (TIPRA), signed by President Bush in May 2006 increased the amount that can be earned free from US taxes by an expatriate (currently USD91,400) income earned by expats above this threshold is now typically subject to higher tax rates. Furthermore, high housing costs, much of which previously could be excluded from the computation of US tax, are now treated as a taxable benefit, making many individuals worse off, or leaving the employer to pick up the extra bill. A substantial number of US expats were said to have decided to return home as a result.
But more recent legislation has been passed to make it even harder for expatriating Americans. The Heroes Earnings Assistance and Relief Tax Act of 2008 (The 'HEART Act'), which was primarily intended to offer tax breaks to military personnel working abroad, also introduced penal new rules applying to expatriates, as well as addressing some other perceived offshore abuses.
Under the HEART Act, individuals terminating their citizenship are treated as having disposed of all of their property at fair market value on the day before they expatriate or terminate their residence.
However, as Mitchell points out, ultimately, the tax exiles get the last laugh "since the bureaucrats and politicians now get zero percent of their foreign-source income."
Friday, July 16, 2010
Congress Approves US Financial Reform Bill, by Glen Shapiro, LawAndTax-News.com
Source: Glen Shapiro, LawAndTax-News.com
After a period of delay since its approval by the House of Representatives on June 30, the US financial reform bill was finally approved by the Senate on June 15 and sent to President Obama’s desk to be signed into law.
A committee from both the House of Representatives and the Senate had finalized the terms of the bill before the end of last month, prior to its re-presentation to both sides of Congress for their final approval. It had been hoped that the bill could be approved and sent to President Obama by July 4, but an appropriate amount of time has had to be allowed for review by those Republican senators whose support was necessary for its passage.
In the event, the only major change in the bill during its final review stage has been the removal of a USD19bn levy on the larger banks to fund the cost of the reforms. However, those institutions will still meet part of those costs through increased premium rates paid to the Federal Deposit Insurance Corporation to insure bank deposits.
The bill makes considerable and widespread changes to the regulation of the US financial system. Apart from the section of the bill providing increased consumer financial protection, the bill provides for the orderly dissolution of failing firms, ending “too big to fail”, and tough restrictions are to be imposed on government assistance to banks in times of crisis, so as to eliminate bailouts.
It will create a new body to monitor the market to identify potential threats to the stability of the financial system. Financial firms judged as posing a threat to financial stability will be subject to much stricter standards and regulation, including higher capital requirements, leverage limits, and limits on concentrations of risk. The bill also fills a hole that allows hedge funds and their advisers to escape regulation.
Banks will be required to retain a portion of the risk they generate, in order to provide market discipline for underwriting decisions, and there will be, for the first time, a comprehensive system of regulation of the over-the-counter derivatives market. Restrictions will be placed on the banks' ability to trade derivatives and to take risks by trading on their own account.
In addition, all larger financial institutions will be required to disclose remuneration arrangements that include any incentive based elements. Federal regulators would be authorized to ban inappropriate or imprudently risky compensation practices.
After the bill’s approval by the Senate, the Treasury Secretary, Timothy Geithner, said that the bill is a “tough overhaul” of the US financial system. He added that “the message of this bill is clear: banks – not the taxpayers – will pay for future bank failures and consumers will be protected."
On hearing of the bill’s passage, President Obama also called it an “end to bailouts, a beginning for accountability”. First and foremost, he said that, “because of this reform, the American people will never again be asked to foot the bill for Wall Street’s mistakes.”
“There will be no more taxpayer-funded bailouts – period,” he continued. “If a large financial institution should ever fail, this reform gives us the ability to wind it down without endangering the broader economy. And there will be new rules to end the perception that any firm is ‘too big to fail’, so that we don’t have another Lehman Brothers or AIG.”
However, all parties also agree that the bill is only a beginning, and that it will take a considerable amount of work to put the financial reforms into effect. According to Geithner: “As soon as the President signs this bill into law, we will move forward to design and implement these new protections and to consolidate responsibility and authority.”
This was also recognized by the Commodity Futures Trading Commission (CFTC) chairman, Gary Gensler, whose view was that: “Even after the President signs the Wall Street reform bill, financial reform will be far from complete. The Securities and Exchange Commission, the Federal Reserve, the Federal Deposit Insurance Corporation, the Treasury Department and the CFTC, among others, will have a significant number of rules to write and implement to regulate the financial system.”
As the bill requires strong regulation of over-the-counter derivatives dealers for the first time, Gensler confirmed that, for example: “Just at the CFTC, we have organized around 30 areas where we believe rules will be necessary. Some of these areas will require only one rule, while others may require more. We will be required to complete these rules generally in 360 days, though we will be required to complete some of them in 90, 180 or 270 days.”
Geithner is also aware of the bill’s international implications, particularly with regard to the on-going discussions on financial regulation in the G20. “Recognizing that financial markets are truly global,” he confirmed that the US “will work hard to bring the rest of the world along with us as we raise the standards of financial protection in the US and reinforce the competitiveness of our country’s most innovative firms.”
Thursday, July 15, 2010
Baucus Examines US Tax Cut Options, by Mike Godfrey, Tax-News.com, Washington
Max Baucus, the Democratic head of the US Senate tax committee, has said that temporary tax cuts for middle class Americans should be extended as soon as possible, but with Congressional elections on the horizon, action to extend a series of temporary tax breaks for both individuals and businesses may be delayed until late in the year, causing further uncertainty for taxpayers as they plan their future tax and business affairs.
Following a hearing convened by Baucus to examine the issue of expiring tax cuts, the Senate Finance Committee chairman said that Congress should "do all we can to put more money back in the hands of workers, middle-class families and small businesses so our economy can grow,” given that many Americans are struggling to make ends meet.
“I support extending the middle-class tax cuts permanently, as soon as possible, so working families can keep more of their hard-earned money," Baucus stated.
However, Baucus also says that there is one giant "elephant in the room" in the form of the federal deficit, which is expected to reach USD1 trillion this year, and with that in mind, tough choices may have to be made. This means that some taxpayers will lose out if Congress allows certain tax breaks which are deemed unaffordable or unfair to expire at the end of the year.
"With today’s budget picture, it’s no longer clear that we can afford large tax cuts for the most well-to-do," Baucus noted in his hearing statement.
The two major pieces of tax legislation set to expire at the end of 2010 are the Economic Growth and Tax Relief Reconciliation Act of 2001 and the Jobs and Growth Tax Relief Reconciliation Act of 2003. These laws, passed under the administration of President George W. Bush, have been criticized for cutting the tax burden on the wealthiest segment of American society, for example by lowering the long-term capital gains tax rate and cutting the dividend tax rate, which have tended to benefit those receiving substantial investment income.
While President Obama supports 'tax extenders' legislation, his administration has made it clear from early on that it will not support tax cuts which benefit families with annual incomes of USD250,000 or more, suggesting that the investment tax cuts will be allowed to lapse. Obama has also proposed that the top rate of personal income tax will be raised to 39.6% from 35% presently. The flip side to this coin however, is that many small business will be hurt since they are structured in a way that profits 'flow through' to their owners who pay tax at marginal income tax rates. Indeed, the threat of higher taxes was identified as a major concern in a survey of small business owners by the US Chamber of Commerce recently, along with chronically high budget deficits and bigger government. According to the Chamber's survey, one-quarter of small business owners said that higher taxes would be the biggest threat to job creation over the next few years.
But many lawmakers are uncomfortable with the idea of raising taxes with the US economy still in recovery mode, and with Congressmen having to face the voters in November's mid-term elections, it will be no surprise if this taxing decision is postponed until the last minute.
Wednesday, July 14, 2010
Teen Jobs and Tax Issues: What You Need to Know
FOXBusiness.com
A summer job is a classic rite of passage for teenagers. But teen jobs can be a source of aggravation for young workers and their parents who aren't prepared to deal with the potential taxes.
When it comes to income, the IRS generally wants its cut regardless of the earner's age. But some special tax rules apply to young workers, based not only on age, but also on amount of money earned and even the type of job.
First, the good news: The teen worker might not owe the IRS a dime.
A youngster who is a dependent of another taxpayer generally doesn't have to file an income tax return unless the youth makes more than the standard deduction amount for a single filer. For 2010 returns, that's $5,700. Read more!
Tuesday, July 13, 2010
How to Remain Hopeful During Economic Crisis | eHow.com
How to Remain Hopeful During Economic Crisis | eHow.com
For more information, contact Elite Bookkeeping & Tax Services at (800) 416-3820 or (775) 884-6188 Address: 123 West Nye Lane, Suite 103, Carson City, NV 89706. Visit our website at www.elitebookkeeping.biz
For more information, contact Elite Bookkeeping & Tax Services at (800) 416-3820 or (775) 884-6188 Address: 123 West Nye Lane, Suite 103, Carson City, NV 89706. Visit our website at www.elitebookkeeping.biz
Monday, July 12, 2010
Estimated Tax Penalty Waiver (IRS Video)
Friday, July 9, 2010
Why is Bookkeeping Vital in Every Business?
Here are some of the reasons why bookkeeping needs to be given top priority in business operation:
1.) A detailed and correct books of accounts are important when your resort to outside financing. This is the instrument for business to determine how much risk they are dealing with. They need this data before releasing the amount.
2.) An exact assessment of your income is necessary for the payment of annual taxes. Tax deductions needs to be supported with right receipts otherwise you get audited or you’ll be fined. Only proper and accurate bookkeeping will save you from this.
3.) Financial statements is a must for it shows where the business stands. An accountant manages this. He obtains his information and facts from the records organized and sent in by the bookkeeper. The accountant analyzes the records and from there, he arises with the financial statement.
4.) An exact book of accounts will help you see where your business is and where it’s going in the next several years. The financial report helps in keeping in line with the budget, analyzing the gross income, determining the health of the business and anticipating cash flow issues.
Thursday, July 8, 2010
Simple Tips on How to Budget Effectively
Budgeting is a method on how to spend money wisely. Sometimes budgeting is also called spending plan. It is planning how and where to spend your hard-earned money properly and effectively.
It involves controlling your expenses and buying products or things that you really need. It is a proven way to safeguard your finances against impulse buying, or buying products out of instant gratification without thinking that the product is not needed for your every day living.
In order to budget your money properly, you can do the following tips:
1. First, you need to plan ahead where to spend your money. Identify first, the things you need placing in the top the highest importance. For example, food, clothes, money to save, paying bills and others. Put 'wants' on the last priority such as new phone or mp3.
2. Track and monitor where you spend your money. In this way, you will have an idea where your money goes. You will have a data afterwards which you can use to control spending. It is advisable to use spreadsheet to monitor your spending.
3. When buying food, clothes and groceries, always compare the price of products you want to buy not compromising the quality. You can also buy products in bulk if you have enough money and the product has long expiration date such as shampoo, soap and toothpaste.
4. Limit eating out in restaurants or fast foods. Sometimes it is better to eat in your home, you are sure that the food is fresh and it is prepared clean and the way you like.
5. If possible, buy clothes and other products when it is on sale, so that you can avail discounts but be sure the product is still on its highest quality and good performance.
So in budgeting, it is good to remember that you do it not to deprive yourself but you do it so that your money will not be wasted on things you do not really need. In this way, you will be able to save money gradually, budgeting and saving goes together.
By Gil Tenorio
Wednesday, July 7, 2010
The Social Responsibility of Business
by Aaron Kelly, Esq.
The CEO of Ford Motor Co., William Ford Jr., once said "A good company delivers excellent products and services, and a great company does all that and strives to make the world a better place". As a business owner, I've taken that advice to heart. The actions of myself and my firm are emblematic of the desire to promote corporate social responsibility. By contributing, rather than simply donating, we become more involved in the outcome of our devotion to the practice of law. As an attorney, I am able to have a significant social impact by making specialized contributions to initiatives that promote justice. These contributions can come in the form of volunteering on committees for non-profit organizations, or even providing legal advice through volunteer lawyer programs. There are, however, limits to what we are able to do.
Whether your motivations are self-interest, philanthropic, or altruistic there are limitations to the commitments a business should make. It is important to maintain balance in business, as focusing too much on one area can cause problems in another. For instance, by spreading yourself too thin you run the risk of jeopardizing the relationships with your client base. Clients love to see that you and your company are philanthropic with your time and money, but not at the expense of theirs. Milton Friedman, one of the most heralded economists of our time, said that by spending someone else's money for a general social interest, the corporation is imposing taxes on one hand, and deciding how the tax proceeds shall be spend on the other...which is a governmental function. Thus, it is important to promote social responsibility, but not at the expense of your business.
The above being said, it is important to remember the overall strategy of your business. No matter what, a business operates to make money. Our cars do not run on good-will, and you cannot pay your rent with praise. By starting a business with initiatives that promote social responsibility and advance its financial objectives you will be one step ahead from those that do not. The challenge, however, is to maintain balance between your obligations to your paying clients and to the community as a whole.
Tuesday, July 6, 2010
Incorporate in Nevada
Just wanted to give some information about forming an entity in Nevada. There are several options available at affordable prices. Our team here at Elite Bookkeeping & Tax Services has the inside scoop about these types of entity formations in Nevada. We know how to prepare your company's books, whether it's a new business, small business; old business. Whether you're looking to form an LLC (Limited Liability Company), Limited Partnership, Sole Proprietorship, S Corporation or C Corporation, we're here for you!
Below is a link to one of our affiliate companies that handles incorporations in Nevada. It's worthwhile to check out their site. We'll be here to assist with your bookkeeping and accounting needs. Just contact us at any time.
Here's the link: American Corporate Enterprises, Inc.
For more information, contact Elite Bookkeeping & Tax Services at (800) 416-3820 or (775) 884-6188 Address: 123 West Nye Lane, Suite 103, Carson City, NV 89706. Visit our website at www.elitebookkeeping.biz
Monday, July 5, 2010
Happy Birthday America!
Good afternoon, all!
Hope you had a fantastic 4th of July weekend! Today is technically a holiday with most banks closed, post office closed; some businesses are closed. For me, I think of the 5th of July as a right-of-passage. It's almost like New Years Day and a birthday all in one here in America.
Wanted to share with you all some of the outstanding benefits Elite offers and ask a few questions about your current bookkeeping and tax needs for all the entrepreneurs and small businesses out there.
Okay, here goes:
- Is your current bookkeeper dedicated to your immediate organizational needs?
- Do they keep accurate records for your business?
- Do they give daily advice (like Elite's blog) on how you can improve your company's records to keep your books running smoothly?
- Do they have excellent communication skills?
- Are they quick to reply to your needs?
If you answer no to any of these, we'd like to talk to you!
We meet your accounting needs from basic bookkeeping to more complex financial reporting needs.
Elite Bookkeeping is a bookkeeping service dedicated to the needs of small businesses. Every business should keep accurate and organized financial records. Good bookkeeping can improve the performance and increase the profits of your business. Sloppy and disorganized bookkeeping can overestimate your profits or losses and leave you disoriented at the end of the year without knowing what direction to take for your business in the upcoming year.
Elite Bookkeeping will work with you to solve your past and current problems with your books. Whether you need us once a week, once a month or every quarter, our service will be available to you. We will be there for you to answer all your questions whenever you need us. Unlike most services that return your phone calls in two days, we will answer your question when you call. Our mission is your complete satisfaction with your financial records knowing they are accurate and organized.
Contact us today for a FREE consultation by calling toll free (800) 416-3820.
Friday, July 2, 2010
Top 10 Bookkeeping Mistakes Made by Small Business Owners
By AllBusiness.com July 2, 2010:
From one-person entities to major corporations, bookkeeping is a significant part of any business endeavor. While it is typically not one of the more glamorous jobs, bookkeeping is at the heart of a company's success, and errors can cost the company significantly. Below are 10 of the most common errors that you want to avoid.
- Not saving receipts of less than $75. While such receipts may not be required by the IRS, they provide backup documentation for the many deductions you may claim. It is very simple to have a folder for such receipts, which can prove valuable at tax time.
- Doing it yourself. No matter how much they hate it, many small business owners insist upon handling the books themselves. Having a competent bookkeeper coming in to handle the books can be extremely beneficial in that they have the skills to do the job quickly and efficiently and will provide a second pair of eyes to find errors and make suggestions.
- Forgetting to track reimbursable expenses. Small business owners often pay for expenses out of pocket or with their own personal credit card then make the mistakes of failing to track these expenses. They then fail to submit the expenses to the company for reimbursement.
- Not properly classifying employees. The proliferation of independent contractors, consultants, and freelancers has made it difficult to determine who is on staff and who is not. This results in misfiling when it comes to filing taxes since there are different rules and regulations for employees and non-employees.
- Lack of communication. Having someone handling bookkeeping is only effective if they are filled in and kept up to date on all financial transactions. A frequent mistake is paying someone a bonus and not reporting it or buying supplies and not providing the bookkeeper with the information or receipts.
- Not reconciling the books with the bank statement each month. One of the fundamental aspects of bookkeeping is reconciling the books and bank statements every month. Nonetheless, there are businesses that do not do this and others where errors are made by not doing it properly. Again, this is a good reason for hiring an experienced bookkeeper.
- No backup. The paperless office does not exist in the real world, where audits do still exist. A paper trail, documentation or verification in the form of backup documents should be available, especially if all files are on the computer system, which could be prone to technical problems.
- Not deducting sales tax. A common mistake in retail businesses is not deducting the sales tax from the total sales. This results in a higher total sales amount and does not lower the amount of taxes due.
- Petty cash nonchalance. A system should be set up whereby a set amount of money is in petty cash and each time money is taken out for any purpose, a petty cash slip is filled out. When the fund is exhausted, the slips will total the original amount and a check can be written to cash to set up the full amount again. Many offices are nonchalant about using the petty cash fund without keeping accurate records.
- Miscategorization or overcategorization. There are fairly standard categories for expenses. However, often expenses are entered into the wrong categories or too many categories are created. Use general bookkeeping guidelines for standard categorization and create as few new categories as possible. Try to follow generally accepted accounting practices.
Thursday, July 1, 2010
Elite FAQs
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