The Help Center
All You Need To Know
What are the differences between an Accountant, a CPA and a Bookkeeper?
A bookkeeper is mainly focused on the correct classification of business transactions. An accountant is able to analyze the transactions of a business and help management to make informed business decisions. A CPA is a step above the previous two. A CPA is well versed in many areas of business and is able to act as a trusted business advisor, tax professional, and offer some level of financial advice
What are the benefits of using a CPA for a small business?
CPA's are well versed in many different areas of business and accounting. CPA’s are heavily tested in areas of Financial accounting, taxes, business formation, and auditing. Giving us a good understanding of many different areas of business. CPA’s must keep this knowledge current using continuing education. This means CPA’s are made aware of any major changes in accounting quickly and can relay that information to clients as it affects them
CPA’s are also trusted business advisors. It is strongly recommended that you consult a CPA before making any business decisions. CPA’s can help owners to weigh benefits and costs of a business decision and make the best choice.
How long should I keep my tax records for?
Personal tax records should be kept for a minimum of 3 years from the tax filing year
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Business tax records should be kept for a minimum of 7 years from the tax filing year
What are your service fees?
Pricing can vary depending on the level of services needed. Schedule your consultation to get a free estimate.
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What is an S-Corp and what are the Benefits
An S-Corp election is an election made by small businesses that change how the entity is taxed. Under this election, owners are employees of the business and pay themselves a "Reasonable" annual salary for the services they provide. The main benefit of an S-Corp election is that you avoid paying Self Employment taxes on the Net Income of the business.
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Because of this benefit, S-Corp owner salaries are highly scrutinized by the IRS to make sure they are paying themselves what their position would cost in an open market
When should I get a Bookkeeper/CPA?
The earlier the better with hiring a bookkeeper/CPA. A CPA can help with everything from business formation to properly setting up the accounting and chart of accounts.
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Bookkeepers/CPA's can advise you on what things you can and can't deduct as business expenses. If you do not have one identified when you begin business, we recommend having one lined up within the first 3 months
How Do I Pay Myself as a Business Owner?
How you pay yourself as a small business owner depends on the business type.
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LLC, Sole Proprietor, or Partnership:
Under these entity types, you pay yourself through what is called an "Owners Draw". This is simply transferring money from your business account to your personal account. Owners Draw's can be taken as often or infrequent as needed, but you should consider income taxes and upcoming business expenses before transferring.
*Note: This is not a deductible business expense. The amount transferred is still considered taxable income.
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S-Corp:
As an owner of an S-Corp, you're seen as an employee of the business. Under this business type, owners get paid a "Reasonable Salary" through payroll like a regular W-2 employee would. These wages are subject to normal payroll taxes. Most S-Corp Owners utilize a payroll provider for these services.
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S-Corp Owners should be sure to pay themselves a "Reasonable Salary" that would be paid to an external employee for the work you do
What are Estimated Taxes and Do I Need to Pay Them?
Estimated Tax Payments are payments made to the IRS and State agencies on income that is not subject to normal payroll withholding. These payments are typically made quarterly and are intended to cover the taxes due on income earned outside of normal W-2 employment (Self Employed, Investment income, Gambling, etc.)
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Who Has to Pay?
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Individuals who anticipate that they will owe more than $1,000 in taxes should pay Estimated Tax Payments. Generally, if you make a substantial amount of income outside of your W-2, you may want to consider making estimated tax payments. Failure to do so can result in penalties and interest.
How do I know if an expense is deductible for my business?
To be considered a deductible business expense, an expense must be:
Ordinary for Your Business - The Expense is common and accepted in the industry
Necessary for Your Business - The Expense is required for the operation for the business
Reasonable for Your Business - The amount of the expenses is not extravagant and is reasonable compared to the value of the business
For Use By Your Business - The expense should be primarily used by your business and directly related to your business's pursuit of income