(301) 365-­1974 info@cpa-maryland.com

speak with a cpa

Category Archives: Accounting and Bookkeeping

Accounting and Bookkeeping, Tax Advice

Tax Preparation 2020: No Time Like Now to Make next Year’s Returns Easier

Leave a comment

Tax Season 2019 is over.

Yay!! Taxes are filed! Time to party and enjoy life until next April, right?

Wrong.

Well, yes, you could procrastinate doing your tax preparation like millions of other Americans. Out of sight, out of mind. That works for some folks, but not for others. Often, that means delaying the inevitable. You hope that the mistakes you made on your returns will not be repeated next year.

tax returns AK Burton

There is a better way. Here at A.K. Burton, PC, we specialize in helping our clients tax plan. Even if it seems overwhelming and you don’t know where to start, we are here to help you. We can help prepare now, this year, to get your tax plan in order and get ahead of the game. Here are several ways you can prepare for next year’s tax return now:

  1. Plan your tax write-offs: You have old equipment (mowers, tractors, espresso-makers, computers, cars, etc.) that needs to be replaced. Now is the time to plan on purchasing that equipment to use in your business. However, before you purchase the new equipment that is high-dollar, check with your financial adviser on the tax benefits of the items.
  2. Set up estimated tax payments: When you filed your 2018 taxes this year, your accountant may have advised you to begin paying your estimated tax bill for 2019, now. Depending on your 2019 projected income and withholdings, your accountant may give you estimates for federal, state, and local taxes. Pay attention to your payment options.  For a federal estimated payment, you can register and pay online at www.EFTPS.gov or you may have the option of sending payments by direct mail. You may be advised to pay monthly or quarterly. Paying ahead and lessening your burden (or erasing it altogether) by April 15, 2020, is a guaranteed way to get ahead. If you need to generate estimated payments for 2019, AK Burton PC provides this service.
  3. Make changes to your withholding: If you had a child, got married, got divorced, adopted a child, purchased a home, or made other life changes, you may need to adjust your withholdings from your pay. If so, file a new W-4 with your employer. Many of our clients seek our advice on this topic. Choosing the wrong number of allowances can lead to an unwanted surprise when filing your taxes.
  4. Give more to your 401k: You may not be working all your life. You may have plans to retire one day. If so, then put more money into your company or private 401k account. You can contribute up to $19,000 each year now, excluding catch-up contributions. If you’re interested in maximizing your retirement and minimizing your tax liability, A.K. Burton, PC is here to help you.
  5. Re-examine your business structure: “Business as usual” is not always a smart strategy. Becoming an LLC, S or C Corporation may be an upgrade that you need. Check with your tax adviser for the designations which may benefit your tax strategy. At AK Burton, PC we take the time to understand our small business clients and maximize tax strategies such as restructuring.
  6. Stop procrastinating! Whether your business has just begun or has been around for several years, there are evolving tax strategies to consider. Stop procrastinating and make the changes now. It takes time, and you may have to make some adjustments. But in the long term, it will be worth it for you, your business, your clients, and your family.

Here at A.K. Burton, PC we specialize in tax planning and strategies. We provide the services that our clients need in an ever-evolving work and regulatory environment. It is our mission to use our expertise to help our clients achieve the best results possible for their unique circumstances.  Today is the day to begin that strategy. Contact one of our tax advisers at (301) 365-1974 or email us at info@cpa-maryland.com. We serve the Bethesda, MD and the Washington, D.C. area.

Accounting and Bookkeeping, Small Business Accounting

How to Prepare for a Small Business Audit

Leave a comment

Audits are one of the many reasons we, as accountants, exist. They are extremely stressful for our clients and can make for an extremely difficult situation, even for the most ethical and detail-oriented small business.

Before we go on, let’s start with what an “audit” actually means: accounting-audit AK Burton PCAccording to www.businessdictionary.com it is a “Systematic examination and verification of a firm’s books of account, transaction records, other relevant documents, and physical inspection of inventory by qualified accountants (called auditors). Quality control: Periodic (usually every six months) onsite-verification (by a certification authority) to ascertain whether or not a documented quality system is being effectively implemented.

In other words, it’s a detailed examination by auditors of a small business’s ledgers, statements and any other accounting records that the business uses. It may take days or months to complete, depending on the depth and volume of records.

So, now that you have an idea of what an audit means, let’s talk about Five Ways your Small Business Can Prepare for an Audit:

  1. Communicate with the accounting firm directly: The accounting firm doing the audit is not your enemy. They are only there to do the audit and submit a report. They are an objective reporter, not out to “get” your business. So, setting the tone with the firm and asking them for an itemized list of all records and documents needed will benefit you and them. Have them send a checklist which your company can use as an inventory list. Lastly, assign someone from your company as dedicated point of contact. Your staff person should have access to all the documents needed and be a friendly and helpful resource for the auditors.
  2. Provide a General Ledger: This is usually your Quickbooks account. You can export it to Excel and then send it to the auditor. This ledger will clarify for your auditor what documents they need to audit.
  3. Provide a Trial Balance: This can also be found in your Quickbooks account. Most auditors depend a lot on this information as all the numbers in your balance are traced back to the trial balance. It should also be on an Excel document.
  4. Copies of Loans, Contracts and Leases (if any): This one is truly a matter of accuracy. Your auditors need to see long- and short-term contracts with vendors to see if they contract match up with statements (Includes buy-sell agreements, too.) Loans mean any bank-related or other types of loans which were used by your business. Leases, if any, are important as they require the minimum monthly lease payments.
  5. Board Minutes: This one is often-forgotten but may be a crucial element in the accuracy of the audit report. These board meeting notes contain details on hiring, terminations, acquisitions, sales, statements and other pertinent information from that auditing year up to the present date. All notes including budget and administrative reports need to be included. These documents is one of the easiest to collect, too.

There are more steps to take but this is a good start. We will publish a sequel blog to this one with more details on what to do in the near future.

If you’d like more details on how our company can do your small business audit or assist you with it, contact us at A. K. Burton, PC. We can provide all of your private and business accounting needs. Call us at (301) 365-1974 for more information.

 

Accounting and Bookkeeping, Marketing, Small Business Marketing

How to Market Your Accounting Firm

Leave a comment

Accounting. Crunching numbers. Balancing expense accounts. Filing tax records.

Blah. Blah.

It seems so boring to many people (though we love it!) Or, perhaps it seems quite routine for others who come to us on a regular basis to file their tax returns or offer estate planning. accounting marketing A K Burton

Whatever the case, accounting, to us accountants who have been in the business since word processor days, does not seem all that interesting in this fast-paced, always-changing digital world. That is what many of us accountants think.

Oh, how wrong that is!

In fact, accounting and bookkeeping can be quite interesting and people do pay attention. (As of this writing a feature film, “The Accountant”, starring Ben Affleck, has been released and is popular in the box office.) It’s really all in how we market it.

And, marketing is what we need to focus on if we want people to purchase our services and build relationships with us.  But, they can’t do that if we market incorrectly or in the wrong venues.

So, here are Five Ways your Accounting Firm can Market its Services to the general public:

  1. Develop and Maintain a Strong Business Website: If they can’t find you, they can’t purchase your services. Every accounting firm needs a website with a detailed list of its services, its staff and its location. Your website should also have well-written copy, updated photos, strong search engine optimization and a contact page. It should also be mobile-ready and can be seen on all devices. Your website is the center of your online marketing.
  2. Create and Manage a Business Facebook Page: Facebook has surpassed 1.7 billion users. It is, by far, the most popular and most used social media channel in the world. It is still free and easy to use. Your firm can utilize Facebook its advantage. By posting quality content every weekday, you are building your brand, engaging your audience, educating your customers and promoting your services. Plus, your Facebook page is a reference point for people wanting to learn your location, hours, services and contact information. Lastly, it can send visitors to your accounting website, too. Facebook is a must for your marketing strategy.
  3. Write a monthly accounting blog: Blogs are perfect (and low-cost) ways to provide permanent and educational content for the public. In your blog (500-1,500 words), you can discuss any accounting topic you want (like ours!). It gives you a channel, similar to social media, in which you can educate, engage and sell to your audience. Just be sure to choose accounting topics and not use them as a way to advertise your services. Once you’ve written it is also easily transferable to all types of channels: blog page on your website, post on your social media, and send in your newsletter and email blasts.
  4. Social Media Ads: There was a time when advertising was expensive and you were never really sure who saw or heard your ads. Well those days are over. You can now advertise on Facebook, Twitter or LinkedIn for very little and still reach hundreds of thousands of potential clients. You set up the campaign dates, create a budget and write the copy. Social media is a bargain and may bring you potential clients who may not hear about you otherwise.
  5. Utilize Online Reviews: Did you know that the more reviews you have on Yelp, the more that the search engines (read “Google”) consider your accounting firm as having a “positive customer experience” with quality content? That’s correct. Yelp.com, the leading customer review website in the world, exists to showcase your business and publish reviews from your clients. If you have at least five reviews, Google may move you up higher in the search engines. Bottom line: Have your clients go there and let people know how well you did (as well as LinkedIn, Angie’s List and others.)

There are many more marketing activities you can do to publicize your accounting services but we will cover them in future blogs. Marketing takes time and money, but done well with a strategy, it can be done.

If your business needs accounting services from tax planning, to payroll to LLC and many other services, A. K. Burton, PC, can meet all your private and business accounting needs. Call us at (301) 365-1974.