There may be no hope for major companies like Lehman Brothers, Circuit City, Bed Bath and Beyond, but many struggling small to medium sized businesses could still survive the recession - all they need is some good business sense and top quality bookkeeping.
Althought that might be the case, sometimes small to medium sized businesses still get in trouble with the IRS which can be a terrible experience for everyone. The IRS imposes harsh penalties on people that are not in compliance with tax code. Using an experienced tax professional can eliminate tricky IRS tactics and will likely save you money and stress. Using a tax professional will eliminate the intimidation factor the IRS relies on when going after individuals. Many people believe that if they work with a tax professional, this will make it look like they are trying to hide something from the IRS. Believe it or not, the IRS would much rather work with a tax professional that is aware of tax laws than dealing with individual tax payers because it makes their job much easier. With that being said, what should you look for in a tax professional if you are having tax problems?
1) Locate a few tax relief companies that say they can help with your tax problem. It is important to talk with a couple companies because each one will likely have a different approach. Most of these companies will offer you a free consultation where you will get your likely outcome and a quote for the service. Talking with a few companies will also help ensure yourself that you are getting a decent deal for the price and you don't get taken advantage of by a tax company that is trying to charge much more than their service is worth.
2) Check out the company rating with the BBB. This will give you a general sense of its past business relationships. If their rating is satisfactory then you know they can likely be trusted. Be very careful with the service if it is listed as unsatisfactory.
3) Watch out for companies that are promising an outcome that is highly unlikely. Some companies will promote pennies on the dollar settlement on tax debt. This is actually extremely rare to receive and if they tell you that it is likely you will settle for pennies on the dollar before completely analyzing your financial situation, this is a big red flag.
4) Be careful of companies that charge a retainer fee. A company that has retainer fees is normally not a service based company and is more interested in collecting money from individuals than actually helping them. It is best to hire a company that plans on getting paid based on results and the service they provide and they realize that they shouldn't be paid until that service has been completed. A company that charges a retainer will likely charge you much more overall than a company that doesn't.
Once you talk to several tax professionals you will be able to make an educated decision about which one to hire based on quote, tax resolution, and your overall financial benefit you would receive. It is very important to be extremely honest about your financial situation with the tax professionals so they can give you an honest and likely outcome. The IRS has many different methods for individuals to resolve their tax problems and it is completely dependent upon an individual's financial situation.
BackTaxesHelp.com provides trusted tax solutions to people with a large variety of financial problems. We pride ourselves on having a diverse tax team that can help with a variety of IRS and state tax problems. If you need IRS back taxes relief, consider us and let us tell you your options.
Tuesday, April 21, 2009
Monday, April 13, 2009
Accounting Philosophically: "Food for Thought"
A friend of mine, who is a lifelong Professor of Accounting and Finance, and lives a comfortable, but hardly extravagant lifestyle, recently, shared a joking observation on our current economic situation with me. It was, "I didn't realize how bad things had gotten until Fortune magazine called me to let me know that I was #27 on the Fortune 500 list." Obviously, this was not so, but his point was made - and if you haven't heard it enough already, TIMES ARE TOUGH!
Hopefully, the old economic concept of demand and supply will soon come into play. Simply put, if we can't demand - and the suppliers want to supply - something will have to give. Ideally, it will be prices - and they will come down. But, I'm willing to bet that you, like me, are wondering exactly what the stimulus will stimulate. After all, if money is provided to buy things, then prices will not need to come down - and we may wind up buying at the same price, but with our own tax dollars.
So, let's see here. It looks like we're paying taxes so we can get a stimulus check from those taxes - to pay the same price we were paying before - that helped create the need for the stimulus in the first place.... Confusing, isn't it? Let me know what your thoughts: Email me at william.vasquez@taxtalkonline.com
Accounting Philosophically is strictly a tongue-in-cheek observation and is not intended to reflect any political affiliation, lobbying cause, or other similar position.
Hopefully, the old economic concept of demand and supply will soon come into play. Simply put, if we can't demand - and the suppliers want to supply - something will have to give. Ideally, it will be prices - and they will come down. But, I'm willing to bet that you, like me, are wondering exactly what the stimulus will stimulate. After all, if money is provided to buy things, then prices will not need to come down - and we may wind up buying at the same price, but with our own tax dollars.
So, let's see here. It looks like we're paying taxes so we can get a stimulus check from those taxes - to pay the same price we were paying before - that helped create the need for the stimulus in the first place.... Confusing, isn't it? Let me know what your thoughts: Email me at william.vasquez@taxtalkonline.com
Accounting Philosophically is strictly a tongue-in-cheek observation and is not intended to reflect any political affiliation, lobbying cause, or other similar position.
Monday, March 23, 2009
Bookkeeping Software or Services?
Every business is required to keep bookkeeping records to produce at the end of the year (Calendar or Financial) a set of accounts to show the business expenses, sales income and the net profit for tax purposes. New businesses in particular, self employed businesses have a choice in how the financial accounts are prepared and produced. Many of these businesses for financial reasons tend to either keep a manual record of financial transactions or purchase an off the shelf software program from their local retailer and then on their own develop a charter of accounts and complete the data entry.
There are several advantages and disadvantages to whichever course of action a small business may take to produce the financial. But, at the end of the day, the condition of financial accounts and the financial control that are put in place will dictate how well or badly the business is performing compared to the success in the business environment. The underlying necessity is that if the business does not take a decision on its financial accounting then at the very least it must accumulate documents of prime significance such as sales invoices, purchase invoices and possibly bank records during the financial year and assemble these into some sort of order after the end of the financial year for tax purposes. Failing to keep financial records often results in a succession of administrative burdens and often also leads to financial penalties if taxation deadlines are not met.
If the small business owner chooses not to go down the route of using bookkeeping software or outsourcing the financial function to a bookkeeper or accountant then manual financial records must be kept. Producing an income and expenditure account for the business using the prime financial documents of business is not rocket science and most businessmen capable of running and managing a business have the skills required to producing the bookkeeping records. The major disadvantage of a small business keeping manual records is that documents get lost which may result in profits and taxes being over declared, fines and penalties through inaccuracies and often when accounting is produced in this way it is done at the end of the financial year purely for tax purposes rather than as an essential tool of the business and that reduces financial control within the business during the financial year to a minimum and often zero.
If a manual bookkeeping system is adopted then disciplined recording of the financial information on a regular basis should be enforced and regarded as an essential function and not an administrative burden. The main purpose of regular accounts being to both see and understand the financial position of the business and take positive action as required at the earliest opportunity to achieve a satisfactory financial result.
Other alternatives include utilizing bookkeeping software which is effectively often a manual system in itself but within definite parameters to produce the essential information. Using bookkeeping software has many advantages. First of all any small business that has purchased bookkeeping software is more likely to keep regular up to date accounts than one that has not. And secondly the bookkeeping software is likely to provide a fixed set of disciplines and produce the type of records a small business requires for both the preparation of regular financial statements and the end of year tax returns. Another major advantage of bookkeeping software is that records tend to be less likely to be lost or mislaid; the packages can be backed up as required but essential financial performance can be improved by greater financial control. All businesses work towards producing a satisfactory bottom line and only by producing regular financial statements can the business obtain the earliest information to achieve that satisfactory performance.
Bookkeeping software comes in many different formats from simple spreadsheets to more complex data based accounting software. For a small business the bookkeeping software of choice is often a simple system requiring limited accounting knowledge but must also be a package that produces the desired end result. The worst bookkeeping software is a complex program requiring prior accounting knowledge that the small business either does not fully understand, cannot be bothered or does not have the time to learn and having tried the system then abandons it. Such a process just causes frustration and time to start again with a different solution. Bookkeeping software in effect automates the manual keeping of financial records. To get the most benefit from a bookkeeping software package each small business should prepare regular financial records to enhance and improve financial control, take financial decisions and achieve the desired bottom line result.
Bookkeeping can be outsourced to an accountant or bookkeeper and there advantages in doing so. The financial records are generally maintained in good order and regular financial reports produced. If the small business has a volume of paperwork that becomes a burden to process and keep on top of then a bookkeeper is the best solution. Employing a bookkeeper becomes essential when the paperwork burden reaches a stage when it distracts the small business owners from getting on with the main task of operating the business. A bookkeeper has to be paid and that cost should be viewed as the cost not of producing the financial records but as the amount to be paid to release the time of the small business owner and also to produce the financial statements on which action can be taken to improve profitability.
In conclusion each small business should evaluate their options and time commitment. A manual bookkeeping system may suffice but the business may be better served using bookkeeping software & services to increase financial control and performance.
There are several advantages and disadvantages to whichever course of action a small business may take to produce the financial. But, at the end of the day, the condition of financial accounts and the financial control that are put in place will dictate how well or badly the business is performing compared to the success in the business environment. The underlying necessity is that if the business does not take a decision on its financial accounting then at the very least it must accumulate documents of prime significance such as sales invoices, purchase invoices and possibly bank records during the financial year and assemble these into some sort of order after the end of the financial year for tax purposes. Failing to keep financial records often results in a succession of administrative burdens and often also leads to financial penalties if taxation deadlines are not met.
If the small business owner chooses not to go down the route of using bookkeeping software or outsourcing the financial function to a bookkeeper or accountant then manual financial records must be kept. Producing an income and expenditure account for the business using the prime financial documents of business is not rocket science and most businessmen capable of running and managing a business have the skills required to producing the bookkeeping records. The major disadvantage of a small business keeping manual records is that documents get lost which may result in profits and taxes being over declared, fines and penalties through inaccuracies and often when accounting is produced in this way it is done at the end of the financial year purely for tax purposes rather than as an essential tool of the business and that reduces financial control within the business during the financial year to a minimum and often zero.
If a manual bookkeeping system is adopted then disciplined recording of the financial information on a regular basis should be enforced and regarded as an essential function and not an administrative burden. The main purpose of regular accounts being to both see and understand the financial position of the business and take positive action as required at the earliest opportunity to achieve a satisfactory financial result.
Other alternatives include utilizing bookkeeping software which is effectively often a manual system in itself but within definite parameters to produce the essential information. Using bookkeeping software has many advantages. First of all any small business that has purchased bookkeeping software is more likely to keep regular up to date accounts than one that has not. And secondly the bookkeeping software is likely to provide a fixed set of disciplines and produce the type of records a small business requires for both the preparation of regular financial statements and the end of year tax returns. Another major advantage of bookkeeping software is that records tend to be less likely to be lost or mislaid; the packages can be backed up as required but essential financial performance can be improved by greater financial control. All businesses work towards producing a satisfactory bottom line and only by producing regular financial statements can the business obtain the earliest information to achieve that satisfactory performance.
Bookkeeping software comes in many different formats from simple spreadsheets to more complex data based accounting software. For a small business the bookkeeping software of choice is often a simple system requiring limited accounting knowledge but must also be a package that produces the desired end result. The worst bookkeeping software is a complex program requiring prior accounting knowledge that the small business either does not fully understand, cannot be bothered or does not have the time to learn and having tried the system then abandons it. Such a process just causes frustration and time to start again with a different solution. Bookkeeping software in effect automates the manual keeping of financial records. To get the most benefit from a bookkeeping software package each small business should prepare regular financial records to enhance and improve financial control, take financial decisions and achieve the desired bottom line result.
Bookkeeping can be outsourced to an accountant or bookkeeper and there advantages in doing so. The financial records are generally maintained in good order and regular financial reports produced. If the small business has a volume of paperwork that becomes a burden to process and keep on top of then a bookkeeper is the best solution. Employing a bookkeeper becomes essential when the paperwork burden reaches a stage when it distracts the small business owners from getting on with the main task of operating the business. A bookkeeper has to be paid and that cost should be viewed as the cost not of producing the financial records but as the amount to be paid to release the time of the small business owner and also to produce the financial statements on which action can be taken to improve profitability.
In conclusion each small business should evaluate their options and time commitment. A manual bookkeeping system may suffice but the business may be better served using bookkeeping software & services to increase financial control and performance.
Tuesday, March 3, 2009
Saving 30-50% on Accounting & Bookkeeping Services
In today's environment companies not matter what size need to watch there bottom lines and take aggressive measures to save money where they can. One of the best ways to do this is take any variable expenses and make them fixed. This takes both the guess work and surprises out of monthly bills.
One area that many companies don't explore is there bookkeeping and accounting functions. Usually these are done by either the principal, owner, or in-house staff. If by the principal or owner it is taking away from important marketing activities. If it's in-house staff it is costing more than it should because of salary, vacation, benefits and many other various additional fee's.
One solution to reduce these costs is to find a firm that specializes in bookkeeping and accounting services. The reason is that most firms only need between 2-15 hours worth of services a week and either doing it yourself or using in-house staff is an ineffective use of time, resources and money, let alone the fact that your probably not getting the guality or expertise.
So, during these recessionairy times look at your options and begin to reduce your expenses. TaxTalkOnline is an expert in bookkeeping and accounting and can save you 30-50% of what you are paying today.
One area that many companies don't explore is there bookkeeping and accounting functions. Usually these are done by either the principal, owner, or in-house staff. If by the principal or owner it is taking away from important marketing activities. If it's in-house staff it is costing more than it should because of salary, vacation, benefits and many other various additional fee's.
One solution to reduce these costs is to find a firm that specializes in bookkeeping and accounting services. The reason is that most firms only need between 2-15 hours worth of services a week and either doing it yourself or using in-house staff is an ineffective use of time, resources and money, let alone the fact that your probably not getting the guality or expertise.
So, during these recessionairy times look at your options and begin to reduce your expenses. TaxTalkOnline is an expert in bookkeeping and accounting and can save you 30-50% of what you are paying today.
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