Accounting and Tax Tips for New BusinessesPosted on June 11th, 2018
Starting a business is a daunting task that comes with numerous considerations, from purchasing necessary materials to hiring the right staff. At Frazier, Sandzimier & Company, we provide comprehensive tax and accounting support for new and established businesses.
We have created this guide to highlight some of the most important considerations to be made when starting a new business.
Keep Thorough and Accurate Records
Detailed bookkeeping can easily be lost in the shuffle while attempting to balance the long-term and immediate operations of your new business. However, while it may seem tedious, keeping records of expenditures and incoming cash flow are necessary to the health of your business. Keep physical or digitized records on-hand so that you can be sure of how your money is being spent. Accurate bookkeeping will also help for planning growth by making cash flow projections based on existing records.
Separate Personal and Professional Accounts
Many first-time business owners or owners of boutique businesses will attempt to maintain their business’ finances from a personal bank account. While this may seem like a convenient way to limit the number of accounts to balance, it often leads to the confusion of funds. New business owners should ensure that they establish accounts that are only used for business’ expenditures, preventing the mixture of personal funds or the accidental use of business funds for personal needs.
Know the Tax Obligations of Your Business
Depending on the structure of a business, new business owners may not be aware that their tax liability varies. If you have not yet chosen a business structure, be sure to research what type of business will best suit your needs. Business owners who have already selected their structure should be sure that they are paying all the tax they are responsible for, and to plan for any future changes in structure.
Work with Experienced Professionals
While many new company owners see small business ownership as a solo activity, effective ownership operates in concert with trained professionals. Allowing your business’ accounting and tax needs to be met by an accounting professional opens up more time for the regular operations of your venture, and helps to establish a solid foundation of financial accuracy.
To learn more about how a tax and accounting professional can enhance your business owning experience, contact our Uniontown business accounting firm today.
2018 Tax Changes for Small BusinessesPosted on February 21st, 2018
There is no time like the present to start planning for tax season, especially if you are self-employed or own a small business. 2018 promises to be a year of changes for small business taxation since new regulations were signed into law later last year. Here are some changes you can expect on your 2018 tax return.
Flat Tax Rate for Corporations
Instead of a gradual tax rate structure, corporations will now pay a flat rate of 21%. While this will reduce the tax liability for many C-corporations, a lower percentage of small businesses will see a tax increase.
Section 179 Deductions
Effective on January 1, 2018, small businesses will be able to deduct up to $1 million for qualified capital purchases, with a limit of $2.5 million. These deductions can be taken in the first year, and aren’t depreciated over time.
First-Year Bonus Depreciation Deductions
After the section 179 spending cap is reached, businesses can take advantage of a first-year bonus depreciation. Bonus depreciation allows small businesses to take a first-year deduction on the purchase of business property. From September 1, 2017, until January 1, 2023, the bonus depreciation will increase 100% for qualified purchases. After that, it will gradually phase out. Qualified purchases will include automobiles, computers and software, and some improvements to a building’s interior. The laws regarding depreciation are always changing. If you think you may be eligible for bonus depreciation deduction, discuss your options with your tax professional.
The new tax law will create a 20% deduction on income for pass-through entities, subject to some limitations. Pass-through entities include partnerships, S corporations, LLCs, and sole proprietorships. The new regulations are a boon for most businesses that don’t normally pay a corporate income tax.
New Tax Policies? No Problem When You Work with Us
While the new tax regulations were created to streamline complicated tax regulations, the many complexities remain. At Frazier Sandzimier & Company, CPAs & Consultants, we can help your business make the most of all tax opportunities and focus on profit-increasing strategies. Give us a call today to learn more.
Tips for Medical Professionals to Reduce Tax Payments – Frazier, Sandzimier & Company – Uniontown, PAPosted on June 26th, 2017
While medical practitioners often make higher-than-average incomes, they also owe more taxes as a result. Doctors in many fields can protect their earnings by claiming a number of deductions, and by investing wisely. The tax and financial professionals at Frazier, Sandzimier & Company are here to help you protect your bottom line, maintain a profitable practice, and secure a stable financial future. If you’re a medical practitioner, the following tips can help you reduce taxes owed.
Some doctors operate as self-employed individuals, which opens the door to potential deductions unobtainable to those operating under a corporate entity. With the self-employed designation, you can deduct a higher percentage of your expenses used to support your business. From airfare to office supplies, the tax code is tailored to help independent doctors save more. Setting up your home as an office will expand your deductions as well.
Self-employed doctors who hire their own children can deduct taxes from their wages. This must be fully-documented in order to legally claim these deductions, but it’s possible to save thousands from each child’s paycheck. They must be paid according to their age and ability, as dictated by child labor laws.
Pension and Retirement Deductions
When you set up a pension plan as a shareholder or owner of your practice, contributions to these accounts can defer income tax to a later date. Depending on your age and size of deductions, the taxable percentage of your contributions change. For yourself and employees through your practice, this reduces taxes owed in the long-term. If you do not have a pension or retirement plan established for yourself or your practice, consider working with Frazier, Sandzimier & Company to build one that fits your needs.
The following opportunities offer more ways to save income and to reduce taxes owed:
• Charitable Donations
• Expensive Equipment
• Improvements to Practice
• Work Opportunity Tax Credit
Contact Frazier, Sandzimier & Company
Your expert CPA’s in Uniontown understand tax policy intimately. With a meticulous work ethic and personal attention, we aid medical professionals and their practices in becoming more financially stable. Contact us for a consultation, today!
Benefits of QuickBooks to Small Businesses – Uniontown, PAPosted on June 2nd, 2017
Small business owners shoulder numerous responsibilities and juggle many roles to keep their business going. Important tasks such as accounting, bookkeeping, and payroll are key to daily success, but it’s tough to accurately manage these on top of other needs.
QuickBooks was designed to be a comprehensive solution for small business owners, reducing the time and attention needed when balancing books or keeping track of estimated taxes. The software can benefit your business exponentially, and here’s how:
Automated and Fully Digital
QuickBooks and its various software iterations are up to current standards of business needs. From real-time account updates to automated services such as report generation, owners can keep detailed track of cash flow at any hour. Online versions of the software even permit remote access, helping mobile small businesses or designated employees to keep track of important records.
Additionally, these services aid in managing clients and customers. Automated emails alert them to updates in their purchases and keep them in the loop about new products. If your business has a large client base or requires inventory updates, QuickBooks automatically cycles through records to ensure accurate data. By improving the timeliness of all records, your business can grow and flourish. Customers or clients will see they can rely on your small business to be precise and efficient, which supports a better reputation.
Customized to You
Small business owners don’t have to worry about receiving services or features they do not want or need. QuickBooks is customizable to your exact industry and business size, and allows owners to decide the features they want. Construction businesses may wish to have more recordkeeping capabilities to ensure proper contract bidding. QuickBooks allows for information to be shared among company members easily with integrated Microsoft Word and Excel.
QuickBooks generates monthly tax estimates for routine reporting and compliance. Whether you operate as a sole proprietor, or manage multiple contract workers, it’s easy to make QuickBooks operate to your best advantage.
How can I see QuickBooks in Action?
Contact Frazier, Sandzimier & Company for a QuickBooks consultation. We have served Uniontown since 1985, helping small businesses find success. With QuickBooks, small businesses can protect their bottom line with accurate accounting and bookkeeping, and also timely tax payments. We are here to help you succeed!
Why Tax Planning is Important – Frazier & Sandzimier – Uniontown, PAPosted on May 15th, 2017
Everyone knows CPA’s prepare your tax filing, but they also provide tax planning, which supports long-term tax success. This service enables taxpayers to have year-round support for their tax needs, especially sole proprietors and businesses that are required to estimate taxes monthly. Not only does tax planning help you stay compliant with stringent tax laws, but also enables professionals to look out for deductibles and opportunities to save. Consider the following benefits to your enterprise through expert tax planning:
Establish Tax Goals for your Venture
Do you have a tax strategy for your finances? Tax planning enables you to be tax compliant and offers your business another set of eyes that protect your bottom line. Whether your goal is to limit liability in the next year, or to make your company’s tax payments precise, CPA’s will make the process easy. With tax professionals in your corner, your tax situation will be appropriately handled. They will look to improve your tax standing with the most current knowledge of tax law, helping your business attain new deductions.
This help isn’t just for businesses either, individuals can benefit if:
• They have small businesses
• Rental properties
• Oil and Gas Leases
• Investment Portfolios
CPA’s are not limited in industry or trade when it comes to tax planning, and will help your business find tax success in any vertical.
Keep Cash in Your Pocket
Tax planning is all about saving you from paying more than you owe, or filing improperly and receiving an audit. Year-round support ensures that someone is always reviewing payroll and tax estimates to prevent errors and improper reporting. When you have complicated tax situations, large portfolios, or assets distributed across state lines, it’s crucial to have expert assistance.
Contact Frazier, Sandzimier & Company for Professional Tax Planning
To receive the expert tax planning your business or finances deserve, get in touch with us today. Our Uniontown firm is experienced in helping individuals and small businesses achieve short and long-term tax success.