Tag Archives: bookkeeping

The 3 Most Effective Tax Planning Strategies for Small and Medium Scale Businesses

The prime focus of tax planning is to arrange one’s financial activities for the year in such a way so that the lowest possible amount for tax payment is incurred. Undoubtedly, the most difficult time for small and medium enterprise owners is the tax season in which they have to pay a taxable amount on all the income they’ve earned during the previous financial year.

Most business owners end up paying more than they should because they are not well aware of the legal tricks they can use to minimize their tax burden. But now, you can save up on taxes by following the three awesome tax burden reduction strategies mentioned in this blog.

Reduce Your Income

One of the key determining factors in figuring out the taxable amount is adjusted gross income also called AGI in short. Your tax rate and different tax credits also rely on AGI. Since the AGI play a vital role in the entire journey of determining and making tax payments accordingly, it is best to pick the adjusted gross income as the starting point of your tax planning process. If you are not sure what AGI exactly is, it is actually the entire income collected from all resources minus the adjustments made to the aggregate income.

Ideally, if your total income is high, your AGI will also follow the higher trend and if you make less income, your AGI for the year will decrease automatically. Therefore, the most effective method to minimize the tax load is to slash down your income. But how exactly can you reduce your income? The answer is pretty simple. Just set aside a large chunk of your income for your retirement plan by following the conventional IRA plan or 401k at work plan.

Boosting Your Tax Deductions

You can also smooth out your tax situation over all by focusing on your taxable income. Now the taxable income actually is the left over amount that is calculated once all the deductions and exemptions are cut off from AGI. Itemized deductions is what you should aim for in various categories such as interest on mortgage, charity, health care, tax planning and preparation expenses, local as well as state taxes and expenses linked to investments.

The best way to do this is to record all your itemized expenses incurred throughout the year in an excel spreadsheet and review it from time to time. By recording all these expenditures, you can easily compare your standard deduction with the itemized expenses incurred within the one year time frame. Remember to always consider the higher of your standard deduction or itemized deduction. When itemizing your expenses, make sure you pay more attention to three main categories; donations to charity, state taxes and interest on mortgage.

Using Tax Credits To Your Advantage

Once you have adjusted your taxable income to reduce your tax burden, the next step is to take full advantage of the tax credits. Some tax credits that can help in minimizing the taxable amount considerably are going to college, adopting a child or setting aside money for retirement.

SK Financial CPA is where you should get help from when filing for taxes by letting professional CPAs and CFAs give you advice on how to present your accounting statements for the year.

Top Abilities That Should Be Present In Every Human Resource Manager

A Human Resource manager tackles numerous management and leadership facets within an organization. Therefore, it is very difficult to pinpoint the number of areas that a human resource manager should work on. However, there are some qualities, which are important in every manager in order to be successful at their job.

The biggest challenge in management success is the fact that a manager should be the kind of an individual everyone must love to follow and admire. Every action taken by a manager decides whether other people would like to follow him/her or not.

Following are some of the traits of successful Human Resource managers:

1- Ability to build interpersonal relationships

An effective manager should always be able to build responsive and effective interpersonal relationships with people in a business organization. Therefore, a manager in the true essence is the “people’s person”. Giving respect to executives, colleagues, and staff members is a quintessential in building interpersonal relationships.

Apart from that, a good manager also cares about people and tries to offer them support and assistance whenever required. Attentiveness is a key quality of a good manager as he tries to collaborate with the staff members, enabling them to reach their true potential.

2- Ability to communicate

Let it be in person, email or print, a good Human Resource manager knows how to communicate well and effectively with everyone present in a business organization. Ability to listen to people is also an important characteristic of good communication and must be practiced in a well-settled organization.

 A manager will not be able to get his message across or motivate his team until he listens to their problems and then effectively communicates the solutions to them.

3- Team building

The ability to build a team, motivate it, and lead it are all prime characteristics of a successful Human Resource manager. Under such a manager, the staff tends to be more productive, creative, and effective at their work. Inducing motivation in the staff is the fundamental job of the manager as this is the only thing that can work towards increasing their productivity levels.

4- Financial management

Financial management is an important aspect of a HR manager’s job and hence he/she is responsible to measure and set financial goals for a business organization. Analyzing and documenting the success and progress of the employees is also extremely important in human resource management.

5- Positivity

It is absolutely normal for business organization to sometimes fall into the pits of negativity and hence the role of a successful human resource manager is to foster recognition and positive morale in employees to keep them motivated so that an organization can reach its desired goals. If the workforce is recognized for their hard work, it will automatically be motivated to perform better for the business.

6- Promoting growth

An effective human resource manager is more interested in polishing out skills and natural talents present in the employees rather than giving them strict commands.

Sticking To Principles from One Accounting Body Can Help Your Business Flourish in Global Markets

All businesses work on some principles to drive their organization on a pre-planned track that will deem effective in the end. Whether we talk about human resource, management, taxation, finance, accounting or any other function of the business, working with some principles provides for a clear direction and support in achieving the business goals.

Are you a booming business? But you are not clear about the accounting body you want to follow when preparing your financial statements? Then this article will be your guideline towards making an informed choice.

Two major accounting standards are followed in the United States.

US GAAP

The accounting standards used commonly in the US are known as US GAAP (Generally Accepted Accounting Principles) formulated by the FASB (Financial Accounting Standards Board) for governing of the financial reports of non-governmental organizations. There is also the AICPA (American Institute of Certified Public Accountants) who is responsible for developing the standards used in auditing private company’s financial statements.

US GAAP outlines the principles for maintaining the records of inventory valuation, short and long-term investments, taxation and every other component of financial reporting. The guidelines issued by GAAP educate on how to record accounting information properly, in a consistent and fair manner.

Although no company is required to follow these guidelines but large companies, do follow these to provide consistency when comparing organizational statements. Even investors look for proper financial statements that will give them the fair picture of the organization that can be trusted upon, is consistent, reliable, comparable, and relevant in disclosing the right information.

IFRS

This abbreviation refers to International Financial Reporting Standards by the IASB (International Accounting Standards Board). Previously these standards were also known as the IAS (International Accounting Standards) issued by the IASC (International Accounting Standards Committee). People still know the standards as IAS rather than IFRS but the principles are same.

IFRS’s are designed for the goal of communicating with the world through a common language of accounts in business that is comprehensible and comparable. IFRS’s have greatly benefited the international trade and overseas shareholding practices. These accounting standards are making progress across boundaries and becoming increasingly successful in replacing the national accounting standards.

Some general features of IFRS are:

  • Fair Presentation & Compliance

This refers to the faithful representation of transactions considering several events, conditions and respective definitions of components of financial statements.

  • Going Concern

Financial statements should be prepared to show the organization is in operation and should not be produced if management intends to liquidate.

  • Accrual Basis of Accounting

Assets, expenses, income, liabilities and equity should satisfy recognition criteria present in the IFRS framework.

  • Materiality & Aggregation

Every distinct item should be read separately unless immaterial. Similar items should be shown as one.

  • Offsetting

Although forbidden, some standards require this when explicit conditions are fulfilled.

Frequency of Reporting

IFRS guides to prepare financial statements at least annually although listed companies are required to publish provisional financial statements.

  • Comparative Information

As IFRS’s are globally adopted, information should be relevant, narrative, descriptive and comparable with the preceding periods.

  • Consistency of Presentation

Classification of financial statement items should be consistent from one period to next, to make it understandable and easily reviewable.

SK Financial is a Tampa based company that can help you with preparing your financial statements by adopting the accounting principles you reckon necessary for your business.

Ten steps on how we save you money

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Ten steps on how we save you money:

1. We save you money by automating your accounting department. By doing so, you save on direct/indirect payroll, overhead costs as well as technology costs. Your data is saved on our dedicated secure server in an SAS70 certified data center. You will have absolutely no computer or software costs. We also eliminate your hiring and training headaches. Our skilled, experienced professionals handle your daily accounting and bookkeeping. We will help you develop standardized and consistent policies and procedures to streamline the accounting process for you.

2. We save you money by implementing numerous tax strategies. You save on taxes with our proactive accounting and tax advice and guidance. We have more than 100 tax planning strategies, which we will gradually implement as we monitor the progress of your business. You will be amazed to see how the implementation of just one, sound tax strategy can help you save way more money than our fees for the entire year.

3. We save you money by not allowing you to pay any penalties to the IRS or state authorities. You are guaranteed never to pay any penalties due to our strict adherence to deadlines. We will handle all your required filings in the most efficient and timely manner. If we don’t file any forms or make a tax deposit on time, then we will pay any tax penalties on your behalf.

4. We save you money by valuing your time. Your phone calls and emails will be returned within 24 hours. We will finish any tasks requested by you within 48 hours. We are easily accessible through phone, email, chat, Skype and other social media. We will complete your bookkeeping by the end of every month, or you will not be charged for that month.

5. We save you money with our audit protection plan. If you get audited or receive a notice from the IRS, all you have to do is just forward it to us, and we will take care of the rest. We will represent you and correspond with the IRS on your behalf. You will not have to pay any fees for our additional work.

6. You save money by automating your payroll and HR process. We process your payroll online with direct deposit, make tax payments electronically, prepare quarterly payroll tax returns, 1099s and sales tax returns and submit them electronically. We will also automate your time sheets, vacation benefits, expense reimbursements and HR functions through our Human Resource Information System (HRIS).

7. You save money by having a CPA firm by your side throughout the year. We provide unlimited consultation regarding accounting, tax, marketing and business matters throughout the year.  You also have access to our resource library and your own online portal.

8. You save money with our marketing consultation. We meet with hundreds of entrepreneurs throughout the year, and will share with you the many outstanding marketing strategies that are being implemented by other successful businesses.

9.We save you money by automating your A/P and A/R departments. All you have to do is to scan, fax, or email your paperwork to us, your capable accountants, and your hassles are no more. For A/P (bills) we keep track of all your due dates, set an approval process and automatically pay on the scheduled date. For A/R (invoices), we email or post your invoices, so you have no more hassle with printing, postage and mailing.

10. Your savings will be significantly higher with our accounting packages than with any other accounting firm. You will know what your fees will be well in advance, so there will be no unpleasant surprises. On average, our fees are far less than our competitors’. So you receive superior quality of work for a low, fixed monthly fee.

Business Owner-Managers Benefit from a Tampa CPA

As a business owner-manager, there is no doubt that you have your hands full between trying to grow your business and maintain a satisfying personal life. One of the biggest ways in which many owner managers struggle is trying to balance their finances between their business and personal finances. Knowing how much to pay yourself, how to set up the corporate structure of your business, dealing with family ownership, and planning for retirement are all complex issues, and ones that combine aspects of your personal finances on top of your business finances. Many business owner-managers look to different financial experts to manage their finances – one for business and one for personal finances. This is often a big mistake because there is so much overlap between the two. If you are a business owner manager in the Tampa area, a good idea would be to find a CPA (certified public accountant) to help you manage both your business and personal finances.

Benefit from a Tampa CPAWhen you own and manage your own business, it not only becomes a source of income like any other job, but an opportunity to maximize your income and create a stable future for your family. The difference between earning an income as paid by another employer and earning an income through your own business is that as a business owner, you have the power to maximize your income by making wise choices in regards to your business’ finances. By maximizing the profits of your business, you are enabling yourself to draw a bigger income, and will be creating a future source of income for your family, as they are set to someday take over the business. A good Tampa CPA will be able to guide you in making the best financial decisions for your business.

One of the things that a Tampa CPA can do for you is to help you settle on the corporate structure of your business. This might include deciding to incorporate, going public, or naming your children as to various stakeholder positions in your company. Your Tampa CPA will guide you to choose a structure that will maximize the profits (often by reducing the taxes) of your business and provide you with the most ideal personal returns. A Tampa CPA will also help you to plan for events such as retirement and transitioning the business to other family members (or third-party buyers) in such a way that your wealth is maintained and the smallest amount possible is lost to taxes and other fees.

Once you become a business owner-manager, your personal and business finances will inevitably see a certain amount of overlap. The business decisions you make will directly affect your personal wealth and investments, and this is precisely why the advice and guidance of a financial professional is important. By employing the services of a Tampa CPA, your Tampa based business will thrive, as will your own personal finances. The result will be a secure financial future for both you and your family. At SK Financial, we can offer you that security and professional wisdom to make sure your finances grow.

Interview Strategy for Hiring an Accountant in Tampa

Finding the right accountant can be a complex process depending on one’s individual or business needs. Finding an accountant in Tampa considering the variety of quality CPAs, but one must find the right fit for one’s unique needs. An accountant can either provide limited services come tax time, or become an integral part of one’s business life, acting as a financial and business consultant.

When searching for a CPA in Tampa, it is important to go into process with a full awareness of what ones priorities are and what role they need the accountant to fill. Once one has decided which services they need the accountant to perform, and then the search can begin. An accountant is qualified to perform complex services outside of tax and auditing is not difficult to find, if one knows where to start looking. Generally it is a wise decision to consult ones friends, family and colleagues to see if there are any suggestions or recommendations that they might have. Most individuals and businesses have had to use a variety of financial services at one point or another, so it stands to reason that one’s inner circle will have both good and bad experiences.

Referrals from people that are trustworthy are a good way to begin ones search for a qualified and competent CPA. One must always keep in mind however, that simply because somebody has referred a qualified CPA, does not mean that this individual in particular is specialized or experienced enough in the areas that one requires. When one finds a qualified accountant in Tampa that fits ones expectation of the role they must fill, the interview is the next important step. When choosing accountants, the more questions asked the better; as the more information gathered, the better the relationship can be fostered. If one is a business owner, ask about previous businesses that the CPA has worked with, and what services they provided. The more detail the better, as to reflect the confidence that the CPA exudes when speaking on the subject.

Throughout the interview, if the CPA appears reluctant to share their previous experiences or provide references, then this might very well be a red flag. References should be readily given, and descriptions of previous employment given, in order to provide a picture of competence in the candidate. However, the candidate should not reveal confidential details about the financial affairs of any specific business they work for; one must be sure that the accountant in Tampa be trustworthy enough to handle ones private affairs with professionalism. Throughout the interviewing process, the client and the candidate should be able to develop a connection, whereby the subsequent working relationship could be amicable and fruitful.

Whether one is looking for a simple bookkeeper to manage ones affairs, or a full blown financial firm, like ours, for your business – the right CPA is out there. The interview process is vital to finding the right match for an individual or ones business. Be sure to ask for references and develop a connection with the accountant in Tampa before hiring them. This way, the best relationship can be developed, and might prove to be beneficial for a long time to come.