Now is the Time! (Year End Accounting)

 Now is the time to start getting your year end tax work ready for the accountant.

Of course some materials will not arrive until January, and some information cannot be processed until after December 31st.

But now is the time to double check your bookkeeping procedures, schedule the work necessary to do year end payroll, payroll taxes and payroll forms, and to look for weaknesses in the accounting system or inadequacies in your staff.

If you have any questions about your relationship with your accountant - as regards accounting or tax, now is the time to clarify the relationship. Busy season is so named for a reason.

NOTE!

New rules apply to 1099 electronic filing, and these rules will impact many small businesses. Check with your accountant.

My Accountant Just Raised My Tax Return Fee

So your accountant just sent you a letter with a X% increase for your tax service.

What? Why?

Higher labor costs. There is a shortage of qualified accountants.

Higher technology costs. Needs more and better technology.

Higher insurance costs. More risk.

So that is why your accountant is raising fees.

Fired by Your Accountant?

 Accountants are having a tough time, especially in the tax work space.

More rules, more clients, sloppier bookkeeping, expensive technology, expensive staff, shortages of qualified staff, and the IRS which has been crippled over two decades by inadequate budgets.

And when clients take bad tax advice (especially from social media) guess who gets to clean up the mess?

Tax accountants are responding by firing clients - the hassle is not worth the fees on really difficult clients.

If you get fired, take it to heart. What is the problem with working with you?

And if you do not pay your bill promptly, expect to get fired at some point. And you may have to prepay your returns.

The Importance of Internal Controls

Everybody needs money. Some have enough, some have enough and want more, some do not have enough, some do not have enough and will take shortcut to get more.

Every organization have assets to utilize and protect.

Every organization has cash flow to use effectively and to protect.

All of these are reasons to design, implement and operate an effective set of internal controls.

Other assets need protection as well.

Experts estimate US annual losses to employee theft, including embezzlement,  at $400B, that is Billion.

 

Why Quality Bookkeeping is Important

 

Bookkeeping. Boring, right?

Right. 

Critical, right?

Yes it is.

Bookkeeping, the capture, recording and summation of transactions, is critical to the health of your business.

Critical to accurate financial statements.

Critical to useful analytics.

Critical to accurate tax returns.

Critical to keep accounting fees at a reasonable level.

Critical component of internal controls.

More discussion to follow. 

Cheap bookkeeping can be very expensive.

Learning From Experience

 October 15th is the final rush for business and personal tax filing.

Have we learned anything?

Giving your paperwork/schedules to your accountant close to the deadline is a very bad idea.

Giving your paperwork/schedules to your accountant in bunches and pieces is a bad idea.

If your bookkeeping is sloppy it will be costly to clean up the mess.

If your bookkeeping is sloppy it is difficult to produce meaningful analytics.

Do better in 2023 and do a lot better in 2024.

Aw C'mon

 

A small service business puts together attractive and informative door hangers, and hangs them through our neighborhood.

I need the service.

I call. And call again.

Answer the phone, or return the voicemails.

This makes no sense.