The last thing most people think about when starting a business is doing taxes. But proper planning will make doing your taxes much easier - and keep the IRS happy! Here are 3 simple tips for keeping proper records: 1. Whenever you buy anything for your business, keep the receipt! Not only will this make record keeping a lot simpler, but if you are ever audited (having your tax return reviewed in detail by the IRS), you can prove your expenses, and save yourself money. 2. Write down all your expenses and income as they happen. As your business grows, you'll have more and more activities to keep you busy. The last thing you'll want to do each April 15 is to organize your records for the year. So, it's a good idea to write down all your financial activities as they happen. You'll find preparing your taxes will take much less time if you are organized. 3. Learn how to save money on your taxes. As you learn about taxes, you'll find that there are many deductions (expenses that reduce your income, and therefore your taxes) you can take that are not obvious. When using your home office, you may be able to deduct (at least partially) repairs you make around the house, utilities, your home's value at the time you start your business, and more. The more you know about taxes, and the more organized you are in keeping records, the more time and money you'll save at the end of every year! What happens if you don't keep proper records? Individuals with small businesses are the most likely to have their tax returns audited by the IRS. If you don't have a receipt, you will likely lose the deduction and owe the IRS money. And while an audit does not have to be feared, you should be prepared - the more organized your records, the easier it will be to prove your case. If you don't have one, get a file box and some folders at your local office supply store (these supplies are deductible, so keep your receipts!) and create a filing system for your business. Put all your receipts in the proper folders, and put them in a safe place. Another way to save yourself time is to record all of your business transactions - expenses and income - on a spreadsheet on your computer. Keep a column for income, advertising, supplies, etc. You don't need to be a computer expert. But keeping accurate, organized records will help you save time when you fill out your taxes at the end of the year. And it can help you plan, by giving you a snapshot or your financial progress whenever you need it. Which may come in handy when you need to place ads, borrow money - or take a much needed and well-deserved vacation!
You don't want to mess with the Internal Revenue Service. One small mix-up when handling your finances can cost you big. For example, in recent years the IRS has increased its filing of levies, liens and wage garnishments. In fact, in 2004 alone, approximately 2.5 million levies were filed. The experts at JK Harris & Co., one of the nation's largest tax resolution firms, offer this list of common ways people get into trouble with the IRS. 1. Filing too many exemptions. An exemption gives you a major tax deduction, and some taxpayers can't resist the temptation to report more exemptions than they're entitled. You can only claim exemptions for yourself, a spouse and for all "dependents." Dependents have to meet specific criteria, however, so make sure you follow the IRS guidelines so that you don't mistakenly file an extra exemption. 2. Being unaware of taxes levied for early withdrawal from certain retirement plans. If you withdraw from a retirement fund such as a 401(k) or IRA before you're 59 1/2, you may face a 10 percent federal penalty on your investments, as well as a state penalty and an income tax on the money withdrawn. 3. Not paying enough taxes when self-employed. Many people who own their own businesses don't know how much they have to pay in taxes. The tax structure for a self-employed person - what to pay, how to pay and what can be deducted - is decidedly complex, so it's easy to become confused. 4. Not paying taxes on winnings. It is necessary to report all gambling winnings, including winnings from lotteries, casinos and horse races, as income. For people who are in trouble with the IRS, there are various programs available that can provide debt relief if a taxpayer qualifies. JK Harris helps its clients determine if they meet the requirements for one of these IRS programs. Its staff includes former IRS agents, certified public accountants, attorneys, enrolled agents and other experts that offer tax services, financial planning, small business services and other assistance.
Does Tax Season get you down? Here are 4 simple steps that any small business owner can take to lower your tax bill this year. STEP #1: Understand How Serious Your Tax Problem Is Are you aware of just how much in taxes you are paying? Here's how much the average family spends on various consumer categories -- as a percentage of income. You must realize that it's not how much you spend on taxes that is important, it's how much you spend on taxes as compared to all other major categories of spending. Consumer Spending: How Do You Spend Your Hard-Earned Dollars? Taxes ---------------------- 32.0% Housing -------------------- 16.7% Medical Care --------------- 11.5% Food ----------------------- 8.2% Transportation ------------- 7.9% Recreation ----------------- 5.7% Clothing ------------------- 4.1% Savings -------------------- 1.4% Other Miscellaneous -------- 12.5% TOTAL --------------------- 100.0% So, if you think you are being "nailed" by the government, you are absolutely right. You spend more on taxes than any other category of consumer spending. In fact, you spend more on taxes than on food, clothing, and housing combined. And it's not just federal income taxes we're talking about here. There's also state and local income tax, payroll tax (Social Security and Medicare), sales tax, excise tax and property tax. Maybe you already knew "intuitively" that your tax bill is outrageously high. If not, the picture I've just painted should thoroughly convince you that you pay too much tax, period. STEP #2: Get The Right Attitude About Your Taxes What do I mean by this? Well, you simply must have a certain "mental attitude" toward this whole idea of paying taxes. I'll get right to the point -- you must have an attitude about taxes that says, "Enough is enough. I'm paying way too much tax and I don't like it. And it's about time I did something about it -- TODAY!" After reading those numbers above, how do you feel? Doesn't that just make you furious? If so, great, then you are on your way to solving this problem. The old cliche is true: "You can't solve a problem until you admit you have one.") If you saw those numbers above and said, "Big deal. So I pay 32% in taxes. So what? So does everybody else in this country" -- well, I'm sorry, but you might as well just stop reading this article right now. You will continue to pay too much tax because you really don't care about it. To reduce your taxes, you must be committed to the idea of paying less taxes. Before today is over, go get last year's personal income tax return (Form 1040) and look at how much tax you paid. When you have Form 1040 in front of you, do you realize where the most important number is on this form? No, it's not Line 71 -- the refund amount. No, it's not Line 74 -- the balance due amount. The most important number on Form 1040 is Line 62. It says: This is your TOTAL TAX. That is how much federal income tax you paid for all of last year. When it comes to reducing your taxes, it doesn't matter whether you got a refund or whether you had a balance due. What matters most is: What was your total tax liability for the year. That's the "magic number" that should just make your blood boil and your heart beat so fast that you can hardly stand it. Now that I've got you all "riled up" about paying so much tax, let's move on to Step #3. STEP #3: Realize That Reducing Taxes Is The Easiest Path Possible To Creating Wealth Consider this simple fact: Reducing your taxes by just $4,000 per year is the easiest way possible to becoming a millionaire. Let me elaborate. Let's say you implement some new tax-saving strategies that reduce your taxes by $4,000 each year. Now, if you take that $4,000 per year in tax savings and invest it over the next 30 years, assuming you earn 11.5% on your investment, you end up with $1,048,745.98 at the end of the 30 years. And here's the best part about this scenario: Where did you get the $4,000/year to invest? Well, you got it from money that would have gone to Uncle Sam. It's money that you used to spend on taxes, part of the 32% of your income that goes to taxes each year. In effect, it's free money. It's money that was always there -- you just didn't realize it. Is this a good deal or what? By simply reducing your taxes, the government will finance your million-dollar retirement. And let's say your tax situation is such that you save $2,000/year instead of $4,000/year. Same assumptions: you invest the $2,000 each year at 11.5% for 30 years. End result: $524,372.99. Not too shabby, eh? So all you have to do is come up with the tax-saving strategies that will put $2,000 or $4,000 in your pocket each and every year. Which brings us to Step #4. STEP #4: Get Hold Of The Tax-Saving Strategies That Will Make You A Millionaire You know, it doesn't really take much information to save a bundle in taxes. It is true: just a little bit of tax knowledge goes a very long way. Useful tax information is freely available. On the Internet, at your local library, and through your local tax professional. The question is: Are you willing to spend some time this year learning about effective tax strategies that can save you literally thousands of dollars? Here's a simple goal to set for yourself: Over the next 10 weeks, set aside just an hour a week to read up on tax-reduction strategies. That's all, just 10 hours. Chances are you'll find 2 or 3 strategies that reduce your tax bill by $1,000 this year. So you spend 10 hours and, in effect, pay yourself an extra $1,000 for your time. Not a bad hourly rate, eh? Many times, that's all it takes to pay less tax.
Property taxes are decided collectively by school boards, town boards, legislators, and councils. The tax rate is set by collating the amount of funds an area needs. This is then divided that by the “total taxable” assessed value of the area. The tax an individual pays is computed by multiplying the tax rate by the assessed value of your property and then deducting any applicable exceptions. Property taxes are at an all time high. Studies indicate that they have increased more than 35% in five years. Property is assessed by determining property costs in any given area. Property is valued by studying: the current sale price of properties in the area, costs to be incurred to replace the property, potential realization of property if it is rented, sold, or gifted, and the historical value of a property. There are a few ways in which you could save on taxes: 1. Check if the state you reside in is offering any rebates. For example, a money back rebate, energy rebate, capping of taxes, or home owners rebate where under certain conditions you may be eligible to claim a rebate. 2. Ensure that the property is assessed right. This will ensure that you do not have to pay excess taxes. Assert your right to check you assessment report ensure that there are no miscalculations, mistakes, or assumptions. If in any doubt, do put in an appeal. According to statistics almost 50% of the cases win some relief. 3. Check all exemptions allowed according to the law. 4. Buy property jointly with a partner or family member. This way both owners become eligible for tax rebates. 5. Check if your assessment is in according to other properties in your neighborhood. Check with the assessment office or with your neighbors themselves. It helps to know applicable laws. Use the help of a real estate professional to put together a file of properties similar to yours that have a lower assessment. Or, use the bank’s appraisal to support your case. Be sure that the case you gather together is water tight. 6. Use a property consultant to help you save taxes. Some charge a flat fee while others just a percentage of what you save. A professional will check how assessment is done and also if there are any loop holes you can use. 7. There is strength in numbers. Get together with other owners who are also checking or fighting assessments. Check on the National Taxpayers Union Web site ntu. org for your rights. 8. Ask you home loan provider whether you are eligible for refund of property taxes paid. Some agreements have a provision for this. Many mortgages have automatic escrow of taxes. 9. Even before you buy a home find out what the property taxes are in the area and what have been the increases in tax rates. 10. Be sure to read through assessment and tax manuals published by your local authorities. These will give a clear idea of what are the parameters used and what you must do to reduce or pay the correct property taxes. In order to be money smart you need to get the help of an efficient and dedicated accountant, plan your tax liabilities well, known thoroughly all aspects of Property Tax. If you are prudent, you can benefit by using ways and means to cut your tax burden and liabilities.
‘In this world’, said the great Benjamin Franklin, ‘nothing is certain but death and taxes’. While modern medicine continues to work on a cure for mortality, 1031 exchanges offer a valuable mechanism against the foibles of the taxman. Allowing the exchange of one property for another, this property market trend can help you hold on to money that might otherwise end up with the IRS. How do you know whether you are eligible to take advantage of this great property trend? The first stipulation is that the two properties involved in the swap be in use for ‘trade or productive purposes’, that is that they are moneymaking concerns of some kind, such as a rental property or holiday home. The property intended for swapping must also reside in the US, though it can be located at any point within. 1031 exchanges necessitate the involvement of what are known as Qualified Intermediaries, who deal with the paperwork involved in the switch, and assume a role akin to a property purchaser. The property to be exchanged is handed over to this intermediary, until the property owner locates a new property, at which point the switch can be made. This type of property exchange operates under strict guidelines and an exacting timetable. Once the original property is sold, a list of possible replacements must be supplied to the intermediary with forty-five days, while the exchange itself must be completed within one hundred and eighty. The title to both properties must remain intact throughout the entire process, so this is not the time to dissolve any business partnerships that might be involved. Any deviance from these strictures can threaten the entire exchange process. The properties to be exchanged must also be what is described as ‘like-kind’, meaning that they are roughly comparable. This does not mean that the two properties must echo one another entirely, it simply refers to the fact that the property relinquished and the one to be taken up must both be suitable for use in a similar business or investment related way. 1031 exchanges are not for use on residential homes, and so, for many people, are of little value. But if you own a business property and would like to move premises without losing a sum of money to the taxman, then a 1031 exchange might just be the right choice for you.
With the booming property prices of recent years, more and more people are finding themselves facing a large tax bill when they come to sell their investment properties. However, did you realize that there is a perfectly legal way of deferring payment of such taxes by utilizing the advantageous 1031 tax code that was introduced by the IRS in the early 1990s? A 1031 exchange is a way of deferring payment of capital gains tax on certain types of real estate. Normally when an investment or business property is sold, capital gains tax has to be paid. However, with 1031 exchanges, by replacing the old property with a like-kind property, within set time limits, payment of capital gains tax can be avoided. Under the 1031 exchange real estate rules, a seller must have held a property for at least one year and a day for it to qualify. Another requirement is that both old (relinquished) and new (replacement) 1031 exchange properties must be of a like-kind - either rental properties, vacant land, trade, business or investment properties. 1031 exchanges must be completed within strict time limits. There is a 45 day Identification Period from the transfer of the old property, in which a replacement property must be identified. The 1031 exchange rules stipulate that the exchange must be completed within the 180 day Exchange Period. The 1031 exchange real estate issues are complex, so it is imperative to seek professional advice from a tax advisor or qualified intermediary who can assess your specific circumstances and explain other issues such as the reverse 1031 exchange or TiC rules. With careful financial planning, you can reinvest your capital gains in future real estate investments, thereby allowing you to leverage your money more efficiently and to reap greater financial benefits.
As we begin 2005, you’re probably not thinking about taxes at all. This is a mistake as deadlines are approaching for issuing and filing 1099s to independent contractors. What is a 1099 MISC? Generally speaking, the IRS requires you to report certain payments you made during the year to independent contractors. The 1099-MISC form is a single page on which you report to total amount you paid to the independent contractor during 2005. The 1099-MISC forms must be issued to any person you paid at least $600 in rents, services or other income payments. For example, if you hired a contractor to renovate a room in your home and paid them $5,000, a 1099-MISC filing would be required. As with practically any IRS filing, there are additional situations that require a 1099 filing. Any payments to attorneys must be reported regardless of the amount. Royalties totaling over $10 also must be reported. Generally, you are not required to report payments to a corporation. When and What Must Be Filed? The 1099-MISC form is a multi-layered carbon form, so make sure the information you provide appears clearly on all of the copies. Once you fill out the form, provide Copy B to the person you are reporting to the IRS by January 31, 2005. Copy A of the 1099-MISC form is intended for the IRS. You must file it by February 28, 2005 if you are sending the form by mail. If you prefer to file electronically, you have until March 31, 2005. The IRS has made a major effort to cut down on red tape, but you’ll still find it with 1099-MISC filings. In addition to filing the 1099 with the IRS, you must also file a 1096 form. The 1096 form is the “Annual Summary and Transmittal of U. S. Information Returns” form. It is one page and extremely easy to fill out. Although the IRS has an excellent web site, you can’t download 1099 forms off of it. The official forms are still multi-layered carbon paper, which means you need to get a physical copy. The IRS should send you the forms in the mail. If they don’t, you can order them off the IRS site or call the IRS to have them sent to you. If all else fails, you can usually find the forms at major post office and public library locations. If you fail to file 1099s, the IRS will penalize you $50 per 1099. More than a few people have grumbled about filling out 1099s so early in the year, but doing so has indirect benefits. You are forced to start organizing your records for 2005.
Every year, the IRS issues a list of tax scams. The goal is to alert taxpayers to the lack of merit of certain strategies as well as letting everyone know the IRS will not accept them. 2006 Scams The IRS has kicked out its annual list of highly dubious tax scams for 2006. Promoters often make these strategies sound credible, but they simply aren’t. If a taxpayer attempts to use one of the scams, the IRS will audit and aggressively attack the taxpayer as well as try to identify the promoter for prosecution. The 2006 list of scams contains most of the traditional claims. There are, however, three new areas being targeted by the IRS. They and a few others are highlighted in the following list. Two new schemes have worked their way onto the list in 2006. In recent months IRS personnel have noted the emergence of the two scams––“zero wages” and “Form 843 tax abatement”–– in which filers use IRS forms to claim that their tax bills have been wrongly inflated. Also high on the list in 2006 is “phishing,” a favorite ploy of identity thieves. Over the past few years, the IRS has observed criminals working through the Internet, posing even as representatives of the IRS itself, with the goal of tricking unsuspecting taxpayers into revealing private information that can be used to steal from their financial accounts. 1. Zero Wages – A new addition to the list, the zero wages scam is designed to create a log jam in the system. A taxpayer is supposed to file a tax return with no wages claimed and notice of challenges to any W-2 or 1099 wage reports. In essence, the idea is to not pay taxes while the IRS tries to figure out what is going on. Ultimately, the goal is to get the IRS to accept a zero income tax return, which of course requires no payment of taxes. 2. Form 843 Tax Abatement – The tax abatement strategy is very creative. It is typically used for taxpayers who have failed to file taxes for a few years. In such a situation, the IRS will often assess taxes to the individual based on a variety of factors. The strategy is to abate this assessment and pay not tax by challenging the assessed amount as being calculated incorrectly. The IRS says it doesn’t fly, but it is a very creative strategy. 3. Identity Theft/Phishing. This isn’t so much a tax reduction scam as a nightmare wherein identity thieves try to obtain information from taxpayers by acting as IRS agents. Often they send out email as though they are from the IRS. The IRS never sends emails to taxpayers, so don’t respond to these emails. If you’re not sure, call the IRS and ask them if there is a problem. You can reach the IRS at 800-829-1040. 4 Credit Repair Companies – You see these companies everywhere. Some are legitimate while others are not. The ones that are not charge high fees and do almost nothing other than putting taxpayers on some kind of a payment plan. The IRS is currently revoking the tax-exempt status of many credit repair companies. 5. Offshore Strategies – A traditional area of angst for the IRS, offshore strategies continue to be closely watched. The IRS is hyper sensitive to such strategies and tries to shut them down. In 2005, 68 individuals were charged and convicted for promotion offshore tax scams and thousands of taxpayers were audited with nightmarish results. If you want to go offshore, make sure you get qualified advice from a tax professional and attorney. Don’t buy something off a web site. There is a fine line between tax evasion and tax avoidance. Tax avoidance is legal while tax evasion is criminal. If you wish to pursue advanced tax planning, make sure you do so with the advice of a tax professional that is going to defend the strategy to the IRS.
If you're not sure whether you have a simple tax return you can do yourself or you wonder about missing significant tax advantages or are concerned that you might be making mistakes, use the checklist below from the American Institute of Certified Public Accountants to help you decide whether you should hire a certified public accountant to help you prepare your tax return. You may want to consult with a CPA if you: • Bought or sold a home. You'll want to take all allowable deductions and make certain you qualify for the personal residence exclusion. • Got married, divorced or your spouse died. Only a competent tax professional can guide you through the complex tax rules that pertain to assets passing through estates. • Had a baby or adopted a child. A CPA can explain in plain English the sometimes dumbfounding array of investment options for saving for a child's college education, as well as details about the child credit, child care credit and earned income credit. • Have a retirement plan, such as an IRA, 401(k), Keogh plan, a pension or an annuity. • Recently bought or started a business, own a business or work from home. A CPA can advise you on whether you should operate as a corporation, partnership or sole proprietorship. • Acquired rental property or have rental income. A CPA understands the complex tax rules that apply. • Have needs for estate planning and need to understand all the ramifications of property taxes. Like your doctor, your tax preparer knows a lot about your personal situation, so continuity of service is also an important factor. That's why, for many individuals, choosing a CPA is the right choice. CPAs are college-educated, licensed professionals certified by the states in which they practice. They have passed a rigorous licensing exam and are required to adhere to strict ethics standards, as well as to stay current with evolving tax laws and regulations. They are not part-timers who took a crash course in a few basic tax rules, operating out of a storefront. Finally, if a dispute arises about your tax return, only CPAs, attorneys or enrolled agents are authorized to represent you before the IRS.
Accounting is the measuring, and disclosure or provision of assurance about information that helps managers and other decision makers make resource allocation decisions. How to become an Accountant. Accountants in the US are called Certified Public Accountants and in the UK and Canada are called Chartered Accountants. Chartered Accountants in Canada are expected to know all US CPA knowledge as well as a Canadian Accounting body of knowledge. In order to become an Accountant an undergraduate degree is required and then a period of articling is required which can take as long as 5 years with gruelling exams and an exhausting series of finals. In her notes compiled in 1979, Professor Linda Plunkett of the College of Charleston S. C., calls accounting the "oldest profession"; in fact, since prehistoric times families had to account for food and clothing to face the cold seasons. Later, as man began to trade, they established the concept of value and developed a monetary system. Evidence of accounting records can be found in the Babylonian Empire (4500 B. C.), in pharaohs' Egypt and in the Code of Hammurabi (2250 B. C.). Eventually, with the advent of taxation, record keeping became a necessity for governments to sustain social orders. Perhaps the most significant benefits to contemporary accounting has been the introduction of computer programs to assist in the accounting function. Computer programs were introduced in business and government organizations in the 1950s, and the most important applications of computers have been in the areas of record keeping, balancing , and transaction recording. Accounting uses various bases of measurement, mainly the cash basis, the accrual basis (or historical cost) and variations of these; all of these functions are greatly assisted by the use of various accounting software programs. Accounting is tied to the invention and dissemination of the double entry bookkeeping process. Different Accounting Software Solutions available today: ACCPAC web-based accounting, launched the ACCPAC Online web site in 1999 which allows end users to run ACCPAC from a simple browser for a small monthly rental fee. Intuit's QuickBooks for the Web represents a new product from scratch. Microsoft Small Business Manager is a new player on the block which is a scaled down version of Great Plains Accounting Software. Netledger centralized net computing renamed Oracle Small Business Manager Peachtree. This product was the older Peachtree Office Accounting product and is also a web-based solution. In 2000, Peachtree added a web-based module to its' flagship Peachtree Complete Accounting product called Peachtree Web Accounting. SAP mySAP - web-based accounting featuring a limited number of SAP modules. So it appears that there are 2 different types of Accounting Software: Web Based Accounting: which is one application on a Web Server running everybody's application. There are of course advantages and disadvantages to this type of application, immediately coming to mind is confidentiality and the security of the Servers being used as well as possible breakdowns. Advantages are of course in being able to use unlimited Server Resources. And then there is PC Based accounting which everybody has tried and is Bill Gates favorite. Advantages; In-house control of everything but subject to limited resources.
When starting a business, you have to determine the method you are going to use for accounting and paying taxes. The two choices are the cash method and the accrual method. Cash Method If you are looking for simplicity, the cash method is probably your best accounting choice. Generally, income and deductions can be claimed when payment is actually received or made. This is best shown with an example. I open a small business and have to order business cards and stationary. I receive the products and pay the invoice on November 18, 2005. Under the cash method, I can deduct the cost on my 2005 tax return. Some businesses are restricted from using the cash method. C corporations may only use the cash method if they have less than $5 million in gross revenues for a particular year. Professional Service Corporations can use the cash method without limit, while farming corporations can due so if gross revenues are less than $25 million. Tax shelters are prohibited from using the cash method. Accrual Method The Accrual Method of accounting is a bit more complex. Under this method, the focus in on the date the expense is incurred, not paid. Although this may seem a small difference, it can play havoc with your books and piece of mind. Using our previous example, assume I order business cards and stationary on the December 18, 2005. I receive the products on December 30th, but don’t pay the invoice until January 20, 2006. When can the expense be claimed? It depends on when economic performance occurred. Generally, economic performance occurs when goods or services are provided to you. In the above example, economic performance would arguably occur when the business cards and stationary were delivered with the invoice on December 30th. Thus, I would be able to deduct the expense for the 2005 tax year. In Closing As you can see, the cash method is the easier of the two accounting methods. To determine the best method for your business, speak with a tax professional.
Are you dreading about clearing the accounting and bookkeeping work which has piled up in your desk in view of the approaching tax season? Simply opt for accounting outsourcing to deal with the issue with ease and perfection. This is the simplest way for accounting firms and CPAs to deal with heavy workload to meet customer demand during the peak tax season. Simply undertaking accounting outsourcing will not serve your purpose, until you have proper knowledge about all the aspects of outsourcing. Imagine you are going to give out your entire business process to be handled by another organization. I am sure you will want to know all you can about this particular aspect. You will surely not want to be caught unaware; if goes wrong with the entire process. Research and more research is the answer for you to meet such eventualities. Choose the right outsourcing company to do your accounting outsourcing work. Numerous outsourcing come up with attractive and lucrative offers to do the work for accounting firms like yours. Find out carefully as many things as you can about the company before you actually let them do your work. The internet is a storehouse of information and utilizing it in the best possible manner is in your hands. Check out the services provided by the various companies. Also try to get testimonials from firms who have already done accounting outsourcing from the particular outsourcing company. Check out the various security measures put in place by the company to protect your company and customer data. This is an important aspect of with which you must take special care. In this internet age, people have become increasingly skeptical about giving out information about their financial details online. Security measures must be stringent enough to deal with this issue and to also bring back the faith of customers to the entire process of accounting outsourcing. Your work will be done very quickly and you will be able to meet customer deadlines with plenty of time to spare. Highly qualified professionals are always hired for doing outsourcing work. So this means that you serve your customer’s with the best possible service that you can afford with in your budget. Accounting outsourcing work is done faultlessly by the professionals. Monetary wise accounting outsourcing works out just perfectly for your accounting firm. You do not need to undertake any additional financial investment for the process. In fact you can earn through accounting outsourcing. Imagine you do not spend an extra cent and yet end up earning profits. This is just incredible; you must not waste time pondering over pros and cons of accounting outsourcing. Check to see if the outsourcing firm provides any offers for free trails. You can actually take up this opportunity to see for yourself the quality of the work done by the firm. Based on this work done, you can decide whether you actually want to work any further with the company for accounting outsourcing work or not. Accounting outsourcing can turn out to be beneficial to you in many ways. All of these benefits are subject to your working with the right accounting outsourcing company. So try outsourcing your accounting and experience a faster and more efficient way of doing business today!
I know you still have about three months until you have to file your U. S. tax forms, but now is a good time to think about taxes. Many adults with ADD would rather scrub the floor with a toothbrush then work on preparing their taxes. Here are some tips to help make taxes less taxing: (pardon the pun) 1. Set up a folder ( green, black, or red are good colors) or a box where you will put all of the tax forms that you are receiving now and put it with all of your other important documents. 2. Get Help - Hiring an accountant to help you prepare you taxes can save you from unnecessary financial anxiety, plus you don't have to worry about missing potential tax breaks. There are also many computer programs (both on-line and on CD-Rom) that will help you step by step to prepare you own taxes. With these programs you should be able to file your taxes on-line, saving you a couple of steps of having to put the tax forms in a envelope, put a stamp on the envelope, and dropping it in the mailbox. 3. Get a tax buddy - I am not saying that you want to share all of your tax information with your friends, but if you view preparing your taxes as a social event you will be more likely to start and finish the task. 4. Many tax preparers are willing to offer you tax refund loans, where you can get most of your rebate immediately. Basically these refund loans are a rip-off that takes advantage of the impulsive nature of adults with ADD. With fees ranging from around $ 70 to $ 130 you are paying a steep price to get your money a week or two faster. If you need the money that quickly you probably need financial counseling to get your finances back on track.
Hell hath no fury like a person who just found out the alternative minimum tax applies to them. The IRS has set up an online tool to figure out if you do. Alternative Minimum Tax The alternative minimum tax is a procedure that was set up to keep the richest of Americans from avoiding tax paying responsibilities. As is typical of the federal government, the failed to include any language adjusting for income growth and so on. As a result, the alternative minimum tax creams many taxpayers even though it was never intended to cover them. So, why don’t our beloved leaders just amend the relevant codes? Politicians giving up money they can spend on wars and favorite, but unnecessary, projects in their districts to keep voters happy? Surely, you aren’t that naпve anymore. Oh, they will talk about repealing or modifying it, but it just never seems to happen. Hmmmm… To determine if the alternative minimum tax applied to your situation, you have to take a very simple step. Fill out your taxes using both the regular 1040 forms and the alternative minimum tax forms. What a complete waste of time. Fortunately, the IRS seems to agree. Much like those handy online mortgage calculators, the IRS has taken the alternative minimum tax into the digital world. It has created a new online tool where you can enter the relevant information and find out if you are subject to the alternative minimum tax. One simply goes to the IRS web site, does a search for “AMT Assistant” and starts entering information. The process takes between five and 10 minutes if you have your financial number handy. If you don’t, add however much time it takes you to get your records together. Now, you might be a little nervous about entering financial information on the IRS site. What if they are tracking you? Don’t worry. It is anonymous. The information can’t be tracked back to you unless the IRS wanted to hunt IP numbers through hosting companies and computer systems. Given it takes 30 minutes just to get an IRS representative on the phone, it is highly unlikely this will occur. When you’ve got your courage up to full tilt, give it a try. Maybe, just maybe, you’ll find you aren’t subject to the alternative minimum tax.
While Monaco is a well known European tax haven, Andorra has remained little known outside of the financial community - despite enjoying the same tax advantages and arguably more private banking than her better known rival. In contrast to the similar financial benefits both Monaco and Andorra residents enjoy, the two small countries have quite different climates. Monaco has good all year round weather and is located next to the French Riveria, while Andorra is in the Pyrenees and between early December and late April attracts nearly ten million tourists for ski holidays. Monaco has year round tourists, peaking twice a year in May for the Grand Prix, and September for the Yacht Show. Neither Andorra or Monaco have their own airports – Nice airport has a helicopter link, a ten minute ride direct to Monaco, Andorra is not so fortunate and the nearest airport is Barcelona, a three hour drive away from the principality. Both countries have opted to stay out of the EU, preserving their ability to maintain a no income tax policy. The biggest difference is the entry price for becoming a resident – which entails buying or renting a house or apartment. One bedroom apartments in Monaco start at 800,000 Euros, but in Andorra the same size apartment starts at less than a third of the price at 250,000 Euros. And while a house in Monaco is a rarity, there is a good choice of houses for sale in Andorra, with prices starting at under a million Euros. Rising Prices Given Andorra’s property price advantage for would-be residents choosing between Europe’s primary tax havens, it has come as a surprise to many that the closing costs for buying a property in Andorra has not only been less than half that of Monaco, but also less than buying a property in many other mainland European countries at around four and a half per cent. But Andorra has just raised property closing costs by introducing a three and a half per cent sale of goods and services tax on property purchases from January 1, 2006 - bringing the tax haven more in line with neighbouring France and Spain. Demand for property in Andorra and Monaco is unlikely to be affected by the recent increases though, according to European tax haven specialists Tribune Properties. ‘Andorra and Monaco have historically seen an increase in property activity and residency applications when taxes are increasing elsewhere. The new German government has recently increased the top rate of income tax and the United Kingdom has seen an increase in the number of indirect taxes, making the zero per cent personal income tax both Andorra and Monaco offer an attractive preposition to high income earners. Andorra’s property inflation has been over ten per cent annually for the last three years, and when the 2005 figures are released we would expect it to be four years in a row, with no sign of a levelling off of demand for the year ahead. With Andorra and Monaco’s high speed cable and broadband internet access more and more company owners are moving their residence to low and no tax countries and running their companies from a distance geographically, while being able to share information with their head office in real time’. As well as buying a property in Andorra or Monaco, both countries require residency applicants to establish a local bank account and deposit around 50,000 Euros (Andorra) or 100,000 Euros (Monaco), take out private health insurance, and to live there for six months of the year.