CFO Accountability LLC

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BNI Wayland

Posted on December 9, 2015 at 11:20 AM Comments comments (0)

I am just excited for getting accepted in Commerce Connection - otherwise knows as Wayland BNI.  People were very friendly and very welcoming.  I am looking forward to making all these connections and building a network of referrals. 

Pre-Dinner Chat Room Seminar: Improved Job Costing Using Quickbooks

Posted on December 1, 2015 at 11:25 AM Comments comments (0)

Pre-Dinner Chat Room Seminar: Improved Job Costing Using Quickbooks

12/02/2015 04:30 PM - 05:30 PM ET

The Crowne Plaza

1360 Worcester Rd, Rte 9

Natick, MA 01760

 

Admission:

Free I am registering for dinner and will pay for the seminar by selecting BUNDLE when I register for that event.

$10.00 Seminar Only - I will pay now.

Learn how you can use Quickbooks to improve your estimating, reporting and profitability with Irma Dishnica, CFO Accountability. (1 CEU Credit for your CSL Renewal)

Click here to register online

 

 

 

 

Improved Job Costing Using Quickbooks

 

(1 CEU for CSL Renewal Approved)

 

Learn how you can use Quickbooks to improve your estimating, reporting and profitability with Irma Dishnica, CFO Accountability.

 

IRS releases proposed regulations on same-sex marriage reflecting Obergefell

Posted on November 10, 2015 at 10:40 AM Comments comments (0)

IRS releases proposed regulations on same-sex marriage reflecting Obergefell

 

The IRS has issued proposed regulations to implement the Supreme Court's decision in Obergefell, 2015-1 USTC ¶50,357, which extended same-sex marriage nationwide. The proposed regulations reflect and clarify earlier guidance that treated same-sex married couples the same as opposite-sex married couples for federal tax purposes. The IRS also reiterated that domestic partners are not married for federal tax purposes.

 

In Obergefell, the Supreme Court held that the Fourteenth Amendment requires a state to license a marriage between two people of the same sex and to recognize a marriage between two people of the same sex when their marriage was lawfully licensed and performed out-of-state. State laws are invalid to the extent they exclude same-sex couples from civil marriage on the same terms and conditions as opposite-sex couples.

 

The proposed regulations provide that, for federal tax purposes, marriages of couples of the same-sex are treated the same as marriages of couples of the opposite-sex. The proposed regulations amend current regulations under Code Sec. 7701 to provide that, for federal tax purposes, the terms "spouse," "husband," and "wife" mean an individual lawfully married to another individual, and the term "husband and wife" means two individuals lawfully married to each other. These definitions, the IRS explained, apply regardless of sex.

 

The proposed regulations further provide that a marriage of two individuals will be recognized for federal tax purposes if that marriage would be recognized by any state, possession, or territory of the United States. The IRS explained that whether a marriage conducted in a foreign jurisdiction will be recognized for federal tax purposes depends on whether that marriage would be recognized in at least one state, possession, or territory of the U.S.

 

For federal tax purposes, the term "marriage" does not include registered domestic partnerships, civil unions, or other similar relationships recognized under state law that are not denominated as a marriage under that state's law, and the terms "spouse," "husband and wife," "husband," and "wife" do not include individuals who have entered into such a relationship.

 

Effective date

 

The proposed regulations would obsolete Rev. Proc. 2013-17. However, taxpayers may continue to rely on guidance applying Rev. Proc. 2013-17 to employee benefit plans. The proposed regulations would be applicable when finalized.

 

 

Interesting American Express Open Forum

Posted on July 20, 2015 at 6:30 PM Comments comments (0)

A new report entitled, The State of Women-Owned Businesses, 2014, commissioned by American Express Open includes some interesting data. Women-owned businesses continue to form at an amazing rate – 1,200 new businesses per DAY compared to 740 in the prior year. Maryland, Virginia, and DC are all in the Top 10 States for women-owned businesses.


Source: American Express Open Forum, TAB

Newsletter Volume III / Tax Updates

Posted on October 21, 2014 at 1:20 AM Comments comments (0)

Newsletter Volume III:

* Expired/ expiring tax provisions unlikely to be extended until late in the year. While the House passed extensions of many provisions, including higher $179 limits, and plans to pass most of the others soon, Senate leadership says that it will not aloe votes on the provisions until after November ‘s elections. Unless Republicans agree not to seek amendments unrelated to the provisions. A deal might be worked out before November, but recent comments from both sides indicated this is not likely. And even if both houses pass extensions, they need to mediate the House’s.

* Keeping an eye on the 941. The IRS has a new web page devoted to Form 941, which includes links to form, instructions, appropriate prior year forms, FAQS and new developments. To stay up to date, regularly visit www.irs.gov, search Form 941, click on first item, “Form 941, Employer’s Federal Tex Return.[Rev.2014-26;2014-27 IRB 26]

* IRS eyes S corps’ “independent contractors,” The IRS will audit more S corps with a special focus on workers classified as ICs V. employees. Recent IRS audits reveal many misclassified workers, especially ‘’ owner/employees.’’ The IRS says that corporate officers, full- or part-time, always are employee. Board members might be ICS or employees, depending on all the facts and circumstances.[Tax Notes Today]

*Maximum health coverage waiting period. As of Aug.25.2014 the maximum wait for employer-provided health insurance is 90 days, according to IRS final regs. These regs, which adopt the proposed regs, apply to group health insurance and to group health plans for plans for plan years beginning after Dec.31,2014.[79 FR .35942-35948]

*Credit card sales matching put on hold, For the last few years, credit card payment processors have been filing Form 1099-K showing gross sales processed for each merchant, Via payment cards. The IRS wanted to match the 1099k amounts to the merchant ‘s income tax return. When the 1099-k and the tax return differed, the merchant received a letter asking for an explanation, or else they might be audited.

The IRS says that it does not have the budget to continue the program, for now.

Although card processors will still file 1099-ks, the IRS program to match these

*Are electronic accounting records adequate? If the IRS questions your company or personal tax return, supplying only records form electronic accounting software may be insufficient. IRS guidelines and audit procedures assume that the electronic journal entries are supported by paper records and documentation because JKa made on software can be changed, making them less reliable, in the IRS’s view.

 

Rates Due Dates & IRS Limits

 

Prime rate and CPI-U

Prime rate: 3.25% (effective Dec.16,2008)

Not available at press time

June 2014 CUI-U *

* Covers all goods /services purchase by urban consumers.

July-2014 CPI-U Available Aug.19,2014

For the latest CPI-U and general information 202-691-6994

For other CPI indices and more details 202-691-7000

200% GDS nonfarm MACRS property rates

5-year property* 7-year property**

Year 1 20.00% 14.29%

Year 2 32.00 24.49

Year 3 19.20 17.49

Year 4 11.52 12.49

Year 5 11.52 8.93

Year 6 5.76 8.92

Year 7 8.93

Year 8 4.46

*Auto, trucks, computers/peripherals, typewriters, Calculators, etc.

**Furniture and fixtures, desks, files etc.

IRS depreciation limits for vehicles placed in service in 2014

Autos(cars) Light SUVs pickup/vans*

1st Year $3,160 $3,460

2nd Year 5,100 5,500

3rd Year 3,050 3,350

4th Yr. and after 1,875 1,975

*6,000 lbs. or less, built on truck chassis, and not specially modified.

Latest changes in federal per diems within the U.S.

www.irs.gov/publications/p 1542/ar01.html#d0e22

Payroll rates and bases 2014

Employee SS and Medicare 6.20% / 1.45%

Employer SS and Medicare 6.20% /1.45%

Social Security wage limit $117,000

Medicare wage limit * Unlimited

FUTA-taxable wage base $7,000

FUTA rate 6.0%

FUTA maximum credit 5.4%

Minimum FUTA deposit rate (most employee) 0.6%

*Withhold added Medicare tax of .9% on wage over $200,000.

Stander mileage raters 2014

Business* 56/mi

Relocation 23.5.mi

Medical 23.5/mi

Charitable rate 14/mi

*For owned /leased passenger autos, vans, pickups or panel trucks and up to 4 taxis used for hire on which no $$179 depreciation was taken.

Qualified retirement plan Limits 2014

Pretax contributions for 401(K)and SEP plans and 403(b) annuities $17,500

Workers aged 50 or over (catch-up) $5,500

Sec.451(b)(1)(A) defined benefit plan annual benefit ceiling $210,000

Combined employer/employee pay-in limits for all defined contrib. plans $52,000

Annual compensation limit under Sec.401(a)(17) and Sec.404(1) $260,000

Sec.408(k)(3)(C) IRA,SEP or SIMPLE plan limit $260,000

SIMPLE pretax contribution limit $12,000

Workers aged 50 or over (catch-up) $2,500

Key phone numbers

IRS forms and publications 800-829-3676

Applicable Federal Rates(AR) for July 2014

Under IRC $$ 1274, if your firm extends a loan due more than 6 months after a customer purchased or exchanged an item and there is no stated interest rate, the IRS imputes one. The IRS –impute interest rates for July are as follows:

Annual Semiannual Quarterly Monthly

Short-term: 3 years or less 0.31% 0.31% 0.31% 0.31%

Mid-term: Over 3 but not more than 9 years 1.82% 1.81% 1.80% 1.80%

Long-term: Over 9 years 3.06% 3.04% 3.03% 3.02%

Tax Calendar

Due

Date Day of week Deposit FICA and FITW for wages paid for the period from Due date Day of week Deposit FICA and FITW for wage paid for the period from

Aug. 15 Fri. Monthly due date for July liabilities Sept. 4 Thurs Aug. 27-29 Fri

Aug.15 Fri Aug. 9-12 Tues Sept. 5 Fri Aug.30-Sept.2 Tues

Aug.20 Wed Aug.13-15 Fri Sept. 10 Wed. Sept. 3-5 Fri

Aug.22 Fri. Aug.16-19 Tues Sept.10 Wed. Form 4070 due from tipped employees

Aug.27 Wed. Aug.20-22 Fri Sep.12 Fri Sept. 6-9 Tues

Aug.29 Fri. Aug.23-26 Tues.

1. The only acceptable reason for delaying deposit of payroll taxes due is a legal federal holiday.

2. Deposits of $100,000 or more must be made within one business day of the day the tax liability is incurred.

Newsletter Volume II / Bookkeeping Mistakes business owners make

Posted on October 21, 2014 at 1:20 AM Comments comments (0)

Newsletter Volume II:

Bookkeeping is not an afterthought and it is not to be attempted with your left-hand while you try to manage the business with your right. It is the critical foundation for managing and growing the business. Doing it all yourself if you do not have a full understanding, is not only time consuming, but you may make costly mistakes leading to penalties for late or incorrect entries of returns or for exceeding your overdraft limit. Here are 10 common bookkeeping mistakes made by small businesses:

 

1. Not keeping your books current

The first few years of any business can be a mad rush, but if you neglect to keep your books current it will only worsen the situation. Errors tend to continue until they are caught at year-end. Books that are set up correctly in the beginning can be a strong tool for measurement and growth. If you are unable to keep proper records, it is a clear indication that you need to hire an accountant. An experienced professional can catch costly errors right at the beginning, and help the business operations run more smoothly and efficiently.

2. Choosing the wrong type of software

In most cases people are not using the accounting system best suited to their business. The accounting systems available today are powerful and sophisticated and while they may appear to be user-friendly, there will be many features you won’t be using or may not be using correctly. Let a professional bookkeeper evaluate, recommend and install the right software for your business, or let them ensure that the software you have is used to its full extent. If you are using technology for productivity, with mobile devices, “cloud computing”, remote access and the like, you can be kept informed in real-time, transact remotely and rapidly, and provide leading-edge service to customers.

3. Waiting for a crisis to check on cash flow

Many small businesses do not monitor cash flow regularly and only check on it when there is already a problem. Bank accounts should be reconciled at least monthly, and money from customers should be receipted and deposited frequently. Having a professional bookkeeper do regular bank reconciliations and cash forecasts, will ensure that you know your day-today cash position and you can plan for contingencies. You will get your debtors’ statements out early so cash can come in faster, and you will be able to take advantage of supply discounts and minimize bank fees and charges.

4. Letting your bottom line be eaten up by runaway expenses

You should have a system to track receipts for expenses, and your business and personal expenses should be separate. Many people make the mistake of putting business expenses on their personal credit card, costing them money. In addition, many small businesses do not claim all the deductions to which they may be entitled. Incorrectly allocating expenses can cause you to miss out on valid tax deductions that should rightfully be claimed, and it can even incur penalties. If you ensure that a fully accredited and trained bookkeeper accurately enters transactions and prepares timely expense reports and income statements, you can spot and deal with problem expenses early. It also means you will know if your cost-of-sales and margins are in line with your business plan, and if you have worked with your bookkeeper to translate your business plans into a budget, then you will be able to monitor if you are on track, month-by-month.

5. Doing invoicing as an after-thought

You should issue invoices promptly and regularly, and as soon as work has been completed or goods delivered. However, many small businesses do not realize they can also invoice and collect for work-in-progress. Instead it sits on their desk, when it could be making the business money. In addition, many small businesses do not have a system in place to alert them if an invoice is overdue, or to review customer payment terms and check the credit of new customers. Without a system like this, bad debts can erode your bottom-line. Invoice revenue cash flow is simple yet often neglected. A professional bookkeeper can help you put the proper systems in place. Using the right technology, you will invoice promptly, and your bookkeeper will get statements out early and run reports that alert you to overdue debtors.

6. Working harder not smarter with your money

If you don’t manage each element that increases or reduces your available working capital, your solvency may be at risk. Without regular reports on cash, you may not realize if you have money tied up in slow moving items and without an order system in place, you can’t ensure that you don’t run out of fast-moving items or that you are buy in bulk to gain discounts. Having your bookkeeper provide regular dashboard reports-on cash and bank positions, projected inflows and commitments will put you in control. You will earn interest on idle cash, be able to switch cash promptly between accounts to take advantage of discounts and good interest rates. It’s important to keep your bank manager informed with regular financial and cash flow reports, which will engender his confidence in you and his willingness to assist over short-term hurdles that are foreseen in advance.

7. Failing to accurately report sales and payroll taxes

The IRS has little tolerance for error. If you misrepresent the amount of sales or payroll tax owed by your company, you can expect hefty fines. It’s best to leave this one to the professionals, and double- or triple-check your returns before dropping them in the mail.

8. Chasing sales not margin

Many businesses today are simply chasing turnover as they struggle to keep their heads above water. Most of the time, that turnover is achieved at minimal margin or gross profit, or in some cases, even at a loss. Without regular job-cost and profit & loss reports you’ll be running blind. Your professional bookkeeper will ensure your chart of accounts is structured so that fixed and variable costs can be identified. You will be able to identify your break-even and the margin you need to achieve for profitability. This will enable you to monitor margins and be alerted to job-cost overruns. The monthly profit and loss reports will highlight deviations from budget so you can evaluate the necessary remedial action.

9. Trying to deal with payroll complexities on your own

Often payroll is the most significant element in a business’s cost-structure. However, if you do not understand how to classify your employees, or do not understand all of the obligations toward your staff and legal requirements regarding payroll, you could find yourself in trouble. With the right payroll system, properly administered by your professional bookkeeper, you can be confident your staff is being paid correctly and on time, whilst being compliant of your statutory obligations.

10. Not planning for the future

Many small business owners are too preoccupied with current responsibilities to think about the future and retirement. However, your business needs to reflect and report the necessary revenue and profitability to justify the valuation you expect to realize. A professional bookkeeper can help you to understand the cost structure of your business and the drivers of revenue and profitability. This will enable you to create and implement the plan necessary to achieve your long-term goals.

Bookkeeping is an integral part of managing your business. It’s not something to be taken lightly or only thought about at tax time. As a small business owner it is important to make sure you are using your time wisely. Take the time and spend the money to engage a professional bookkeeper to do the day-to-day data entry, bank reconciliations, cash forecasts, payroll, and provide you with timely financial statements. This will then enable you to use your time, skills, and expertise to manage and control your business with better information at your fingertips.

Newsletter Volume II / Company News

Posted on October 21, 2014 at 1:20 AM Comments comments (0)

Company News:

As we prepare for growth, we are in the process of hiring 2 new bookkeepers. An associate and a senior bookkeeper. Using the strategy of pleasing every client level, we will be able to offer a variety of bookkeeping packages, and different price levels. Please keep in mind that I will review every activity of your company, therefore, you will get the detail and expertise I have to offer.

Please contact us if you are interested in knowing more details about our packages and the new pricing.

Newsletter Volume I / Tax Updates

Posted on October 21, 2014 at 1:15 AM Comments comments (0)

Tax payments easier with new “Direct pay.” The IRS says its new Web-based payment system, IRS Direct pay, is off to a successful start. Taxpayers can pay bills or make estimated tax payments directly from their checking or savings accounts without fees or preregistration. Payments can be scheduled up to 30 days .

 

SSA expands online w-2 filing.

 

You can now file your w-2 copies and your w-35 with the social Security administration (SSA) online for the current year and up to 3 prior years. This extended service was available at year-end 2013, but very few employers know about it because the SSA did not publicize it. The SSA website has also added a “RECON ” check box on the online w-2 to let you make corrections efficiently. The expanded service also includes the online w-2 for Puerto Rico, [SSA/ IRS Reporter , Spring 2014; www.irs.gov, search pub.1693, then click on the first item.]

 

Tax Calendar

Due date Day of week Deposit FICA and FITW for wages paid for the period from Due date Day of week Deposit FICA and FITW for wages paid for the period

July 15 Tues. Monthly due date for June Liabilities Aug. 1 Fri. July 26-29 Tues.

July 16 Wed. July 9-12 Fri. Aug. 6 Wed. July 30-Aug.1 Fri.

July 18 Fri. July 12-15 Aug. 8 Fri. Aug. 2-5 Tues.

July 23 Wed. July 16-18 Fri. Aug. 11 Mon. Form 4070 due from tipped employees

July 25 Fri. Tues. Aug. 11 Mon. File 2nd q. 941 if all deposits were made in a timely manner and in full.

July 30 Wed. July 23-25 Fri. Aug. 13 Wed. Aug. 6-8 Fri.

July 31 Thurs. Deposit FUTA owed from April-June if over $500. File 2nd q. 941 if all deposits were not made in a timely manner and in full.

1. The only acceptable reason for delaying deposit of payroll taxes due is a legal federal holiday.

2. Deposits of $100,000 or more must be made within one business day of the day that the tax liability is incurred.

IRS depreciation limits for vehicles placed in service in 2014

Autos (cars) Light SUVs, pickups/vans*

1st year $3,160 $3,460

2nd year 5,100 5,500

3rd year 3,050 3,350

4th year and after 1,875 1,975

 

*6,000 Ibs. or less, built on truck chassis, and not specially modified.

 

Payroll rates and bases 2014

Employer SS and Medicare 6.20% / 1.45%

Social Security wage limit $117,000

Medicare wage limit Unlimited

FUTA –Taxable wage bade $7,000

FUTA rate 6.0%

FUTA maximum credit 5.4%

Minimum FUTA deposit rate (Most employers) 0.6%

 

*Withhold added Medicare tax of .9% on wages over 200,000.

Standard mileage rates 2014

Business* 56/mi.

Relocation 23.5/mi.

Medical 23.5/mi.

Charitable rate 14/mi.

 

*For owned / leased passenger autos, vans, pickups or panel trucks and up to 4 taxis used for hire on which on 179 or depreciation was taken


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