If you’ve ever attempted a quick Google search for CPAs in your area, you’ve probably learned there’s no such thing as a quick search for an accountant. Accounting is all about the details, and when you’re trying to find someone to handle your finances, it pays to be thorough. Your money is at stake, and you should only choose someone who has your best interests in mind. A small amount of accountants have questionable (to say the least) practices, and knowing the warning signs makes a big difference:
Outdated CPA Certificate
There’s a reason many people prefer to work with a CPA rather than a general financial planner: the title requires a higher level of expertise. In addition to years of schooling, CPAs complete exams to ensure a high-level understanding of auditing, business concepts, financial rules and reporting. It’s worth asking for credentials to ensure your accountant has retained their license. (more…)
When you start a new business, you have to make a decision regarding how you will approach your financial management. Two basic methods are available to you: cash basis or accrual basis. Although the two methods clash, there are also see some similarities.
Cash basis is an accounting method that counts income only after cash or a check is received and expenses are not counted until they have been paid. This method is the most popular accounting method among entrepreneurs and small businesses.
Accrual basis is an accounting method that counts income when orders are placed or services are requested, regardless of payment being received. Expenses are counted when your request for good or services is fulfilled.
Prepare to file your taxes in 2021 with these in mind!
Many businesses and families went through unexpected changes in 2020. The effects of the pandemic upended financial plans, forecasts, family plans, business goals and much more. This undoubtedly will have an impact when filing your 2020 taxes due to changes in the tax code for 2021. With COVID-19 came stimulus checks, programs like the Paycheck Protection Program (PPP), Pandemic Unemployment Assistance (PUA) and more depending on your business or personal need. We’ve been assisting businesses and families with their accounting and tax needs through the pandemic and will provide you with some tips to prepare you for filing your taxes this year.
Organize Records and Documents
For many, the main hurdle is getting documentation together. It’s important to have all your documentation in order to have a seamless filing experience. Keep all the tax documents that start coming in the mail early January in a folder and do not throw out any tax document that may look irrelevant. Many tax documents can also be downloaded online depending on the provider of the documents in case you can’t locate them. For example, many financial institutions provide tax documentation that can be viewed and downloaded when you access your account.
Review and Itemize Transactions for your Business
Whether you are self-employed, have a side business or own a home, you’ll need to ensure your transactions are correctly documented to claim certain deductions. The pandemic led to many working from home and you may be entitled to write-offs as a result. If you use a software like QuickBooks or use a spreadsheet for your records, take the time to review the transactions and put them in their respective categories. This will help your tax preparation process greatly. The benefits of having an accountant who assists with monthly bookkeeping is advantageous, as the monthly management of your books throughout the year keeps your transactions correctly labeled. This prepares you better for tax season and makes things easier for you and whoever is assisting with filing your taxes.
Note Life-Changing Events
Many life-changing events happen year over year, but have been commonly happening since the beginning of the pandemic. Changes like getting married, getting a divorce, a death in the family or retirement may qualify you for tax breaks. Your accountant or tax preparer should be aware of any life-changing event so they can help determine which tax breaks you qualify for based on how your circumstances changed in 2020.
Here are a few things to consider to help prepare for filing your 2020 taxes. Having an experienced tax preparation service can be helpful due to the changes in the tax code. Finding the right tax forms or knowing what to fill out due to the changes caused by the pandemic can be confusing. It’s advisable in these uncertain times to consult with an experienced accountant or CPA to ensure you are getting the most out of your taxes, while being compliant under the current laws.
Motl Accounting can handle the most complex returns providing you the peace of mind you would want through the experience. If you are looking to prepare your taxes, you can talk to a tax professional at our West Dundee location to get your questions answered and your taxes filed properly. Contact us at 847-426-2100 or send us message via our Facebook Page to get started today.
Growing as a business is certainly of importance to most business owners. After all, you will want your company to flourish and continue to experience growth for many years to come. However, in order for your business to head in a positive direction, it helps to utilize proper financial planning and analyzing…that’s where an accountant comes into play!
Are you aware of how accountants can benefit your own business? Many might believe an accountant just helps with the crunching of numbers, but you’ll be surprised that great accounting practices actually help businesses grow and generate more profits in the process.
We understand just how beneficial an accountant can be for a business! We have helped several businesses in the Chicagoland area and provided them with great information that’s helped their businesses. That’s why we have gathered five ways in which accountants can help a business grow by working with an accountant like Motl Accounting in Dundee, Illinois. If you would like to discover what these ways are, be sure to continue reading:
- Creates Budgets & Forecasts Reporting. It’s important that every business has a plan for their future. Therefore, you will want to set up goals to achieve over the next year, as well as create charts and graphs to keep yourself on track and complete them. By working with an accountant, you can have reports created which will showcase how your fixed and variable costs compare with your sales volume throughout the year, providing you with knowledge of the market conditions that you will need for profitable growth.
- Discovers Key Performance Indicators. Every business has key performance indicators. If you are in retail, you might use inventory turnover for construction or it might be job costing. Your accountant should assist you with discovering yours, as well as advise on methods to set up reports, allowing you to see how they perform over time so that you can make the best decisions for your business for its future growth.
- Maintains Cash Flow Projections. If there is one thing you want to understand as a business, it’s your cash flow! After all, without cash your business wouldn’t be able to operate at the level you’d want it to. An accountant will create financial reports right out of your accounting software which will assist you with planning your key performance indicators and properly maintaining your cash flow. It’s important to know how to expand your product lines, increase direct costs and add employees in a way that keeps your cash flowing just as it should.
- Determines Your Businesses Value. It’s important that you know the value of your business so that you can plan for your future. Seeing as opportunities or life events can present themselves at any time, you will want to know how much your business is worth, given the current market conditions. An accountant can assist you with getting to determine your businesses value, so that you can maximize it and your tax liability. We have professionals we partner with at Molt Accounting that help our clients with business valuations.
- Creates Advisory Boards. For your business to remain fiscally strong and healthy, you will want to be advised and know what to expect for the years to come. An accountant will work with you to develop a system so that you can forecast budgets, cash flow management and an overall financial analysis for your business. This way you can monitor your goals and business growth through a dashboard and ensure that it is always headed in a positive direction.
These are just a few ways in which an accountant like us can assist your own business with growing.
Are you ready to work with an accountant in the Northwest Suburbs of Chicago to grow your own business and provide your peace of mind in the process? If so, please get in touch with us one of our accounting therapists at Motl Accounting, as we would be pleased with the opportunity to assist you with doing so!
Hiring an accountant is beneficial for any business! Your company will experience different stages of growth and great accountants assist you with staying on track as your business evolves. From creating business plans to handling tax audits, an accountant will be able to guide you through each experience.
Some business owners however avoid outsourcing accounting services, thinking that it will save them money. However, accounting services can actually offer great returns on investments.
If you are curious as to when you should hire your own accountant, you are in luck! Here at Motl Accounting, we have comprised some great insights for you. If you would like to learn more, be sure to continue reading:
- Are You Ready to Boost Your Income? If you are ready to increase your income, it’s time to hire an accountant. All businesses rely on a steady cash flow and by hiring an accountant, you can help your business optimize and regularize a revenue stream. They will oversee your accounts receivable, improve debt collection and advise on wise investments. In addition, an accountant can also review market rates for your products or services, so that your prices are adjusted accordingly, allowing you to maximize your income.
- Are You Ready to Save Time? As a business professional, you are busy! If you are ready to save some time, turn your accounting needs over to an accountant. You have enough on your plate and shouldn’t have to worry about taxes, compliance, bookkeeping or payroll. By hiring an accountant, all of this weight will be taken off your shoulders and will be handled by the professionals.
- Are You Ready to Prepare Your Taxes? Taxes are a daunting subject for any business. If you are aren’t ready to handle yours, it’s time to seek the services of an accountant. From quarterly payments to annual filings, your accountant should ensure that your business taxes are handled properly, giving you peace of mind. After all, you wouldn’t want to put yourself at risk of an audit.
- Are You Ready to Create Forecasts? As a business owner, you want to make sure that your finances stay on track as your business grows. It may be time for you to sit down with an accountant to create the right plans for your business. Whether you are preparing to impress an investor or needing to hire more staff, your accountant can create models and projections to assist you with making the right decisions for the upcoming months and years.
As you can see, an accountant is a wonderful asset to a business! We have helped many businesses with all these insights and more. These are just a few things that you should keep in mind if you are considering hiring your own accountant.
If you are all set to begin working with your own accountant, contact us here at Motl Accounting. Our goal is to ensure that our clients have peace of mind, when it comes to their accounting. We would be honored to work with you and assist you with our accounting services in Dundee, Illinois.
The Professional Association of Small Business Accountants Holds 12th Annual Awards Ceremony and Honors Six Members
Sunny Isles Beach, FL, May 9, 2018 — The Professional Association of Small Business Accountants held its 12th annual awards ceremony at the 2018 Spring Marketing Conference in Sunny Isles Beach this week. Six well-deserving members were honored with awards during the conference dinner party, located at Trump International Beach Resort. The winners were chosen in four award categories, including PASBA Accounting Firm of the Year.
The Motl Family were chosen as the 2018 large practice recipient of the Association’s Accounting Firm of the Year for their firm, Motl Accounting. The Motl’s were nominated by the members of the association to receive this outstanding award that honors a member who has consistently demonstrated the beliefs of the association’s motto, Teach~Share~Learn. The Motl’s have been members of the Professional Association of Small Business Accountants for 18 years and have served on the Board of Directors, Website Committee, National Conference Planning Committee, Payroll University, Future of PASBA Committee and presented at multiple conferences.
The Professional Association of Small Business Accountants represents Certified Public Accountants, Public Accountants, and Enrolled Agents who provide accounting services to small businesses throughout the United States. Members of the Association have built a nationwide network of accountants to benefit small business clients across the country. Using the collective resources of this network, Association members offer their clients a level of service and expertise that individual practices are unable to rival.
For more information, visit www.smallbizaccountants.com.
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