Frequently Asked Questions

Why outsource my accounting department?

Let a professional do a professional's job. If you are like most business owners and CEOs, you take full pride in the services or products your company provides. You want to focus your time and energy on business strategy and goals. Outsourcing the accounting department to a dedicated, highly skilled professional services firm allows you to do exactly that. 

How can having an outsourced accounting department help me manage my business?

By outsourcing your accounting position(s), your company doesn't have to endure the hiring process and lose valuable time and money training bookkeepers, accountants or financial controllers. If you have been doing the bookkeeping yourself, you finally free up your time to focus on other aspects of growing your business. You'll be able to make informed decisions based on more than just your cash balance at the bank.

Won't I lose control if the books are done by an outside service?

No. You actually have more control since you'll have accurate, up-to-date financial statements at your fingertips. You'll have more time and money to plan instead of simply reacting to business events.

How do I know if my cpa is doing things correctly?

We are happy to provide a private internal audit. Our firm will audit your books for loopholes and potential liabilities. This helps to ensure your current CPA is managing your books appropriately. And the service is free to you if we don't find any errors.

We got a letter from the irs what do we do?

The first thing you should do is contact us. We will discuss a plan of action to make sure that your response is timely and accurate. Having a CPA serve as an intermediary will lessen the stress to the audited party, and will ensure proper communication and accuracy.   

When are my taxes due?

This depends on the type of tax you need to report. The federal income tax due date is  April 15. The federal business tax return due date is March 15. You can file an extension if you need more time to file, this will extend the due date six months. City and state filing dates are based on filing frequency (monthly, quarterly, or annually).

Do I have to file a federal income tax return for my business if I lost money?

Technically no, but you should do it anyway. Your loss could provide you with a tax benefit by reducing your other taxable income in that year or in past or future years. If you weren’t active in the business, but merely an investor, your ability to deduct a business loss is limited. If your business is incorporated, you must file an annual tax return whether or not you have any income. Plus, the loss rules for small corporate shareholders are more generous.

How long do I have to keep my business records?

At minimum three years from the date you file your tax return. This is the normal IRS statute of limitations on audits. However, some state tax agencies have longer periods to audit, and the IRS can go beyond three years for serious underreporting. For this reason, hold on to those files for at least six years.

Do I need any kind of prior IRS approval or registration before I start my business?

Not if you are starting off as a sole proprietor without employees. Just use your own Social Security number when corresponding or filing anything with the IRS. But if you form any kind of business entity (a corporation, a partnership, or an LLC ) or have one or more employees, you must get a federal employer identification number at the time you begin operations. Also, check with your state employment and tax authorities for their requirements. Or ask us, we'll do it for. you.

Should I choose a fiscal year or calendar tax year accounting period for my business?

For most small-time operators, the accounting period is rarely a big deal either way. The vast majority of small businesses use a calendar year (January 1 to December 31). To choose any other tax period, you must have a good reason and get permission from the IRS.

What does the term “depreciation” mean?

Depreciation refers to the annual tax deduction the IRS allows for a business asset that has a useful life of more than a year. The theory is that an asset loses value as it wears out over time, and you get a tax break reflecting that. The amount you may deduct per year, and the length of time over which you must take these deductions, depends on how the tax code classifies the property.