Do you have a business and need to properly account for your
income and expenses? Do you have employees and are in doubt
as to how to file the State and Federal reports? What type
of business do you need, Sole Proprietorship, Partnership,
Corporation or S Corporation? Help is only a phone call away.
A major cause for new small businesses to fail is those
businesses do not have a proper accounting of their income
and expenses. Granted, the cost may seem excessive especially
since it does not produce a product to be sold. Let me give
you an actual instance. A tax preparation client brought his
work to me and I prepared his return. I called him to ask a
couple questions and he mentioned paying himself a wage.
I explained that a sole proprietorship owner does not pay
himself a salary. He is considered to have earned the net
profit of the business. He said that he incorporated in
the middle of the prior year and was not a sole proprietorship.
This was the first indication of a corporation as the same
checking account was used without any change what so ever.
This caused a recalculation of his tax return to determine
the profit for the pre-incorporation period and the post
incorporation period. This more than doubled his tax
preparation fees and increased his taxes from $1,000 to $7,500.
All of this because neither he nor his attorney took the tax
effect of his actions into consideration. The bookkeeping fees
for that period would have been much less than his actual costs.
We still have to do the proper accounting to determine the balance
sheet and profit and loss of the corporation, so he did not save
the bookkeeping fees after all. This was a very costly mistake.
The bottom line is that knowledge of your business’s financial
condition is an expense you can not afford to be without.
Call for a discussion of your personal requirements.
Hours of Operations are 8:30 AM to 5:30 PM
Monday to Friday - Central Time
For a Confidential Discussion of Your Specific Needs
CALL TIM
281-259-0008
EMAIL TIM
trcanady@taxhelp2000.com |
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