cares act - worker

Protecting Your Business with the CARES Act

It’s no question that America is suffering greatly from the effects of COVID-19. Infection and economical impacts are at large. Until a vaccine is created, America is likely to continue a health and financial impact. Fortunately, the CARES Act was created to offer relief to Americans including businesses. If your business has been impacted, we’ve summarized how the CARES Act can help protect your investment. Read more below and contact Ash CPA for further guidance.

What is the CARES Act?

The CARES Act stands for Coronavirus Aid, Relief, Economic Security. In brief, it is a $2 trillion dollar aid to help individuals and businesses that have been affected by the coronavirus. The aid is designed to stimulate the economy by relieving some of the financial hardship that many Americans are experiencing. More information is found below.

Individuals and Families

In this package, individuals making $75,000 or less are eligible to receive a stimulus payment up to $1200. Those with children can also receive an additional $500 per child. However, those who make more than $75,000 will receive less and those who make $99,000 will not receive the payment. In addition, married couples making $198,000 or more are also not eligible.

Federal student loans are also included in the relief package. From now until the end of September 2020, federal student loans are suspended. This includes garnishments. Borrowers can still make payments. However, interest will not accrue during this period.

CARES act - warehouse worker

Unemployment Benefits

Unemployment is also included in the CARES Act. Individuals who are eligible for regular unemployment benefits can earn an additional $600 per week and extend the payments up to 13 weeks. Also, independent contractors, gig workers, and freelancers are eligible for unemployment benefits. Ultimately, the amounts and total weeks will vary between states.

Business Protection with SBA Loans

Businesses can apply for payroll tax relief. This option helps keep businesses operating and pay their employees. Essentially, the relief offers tax credits and defers payroll taxes until the end of the year. It is important to note that businesses that apply for SBA loans will not qualify for the payroll tax relief. Also, business owners will have to repay the payroll taxes over the next two years.

Another option for businesses are Small Business Association (SBA) loans. SBA loans can assist businesses with 500 or less employees. They are meant to prevent layoffs and pay working employees. In summary, the loan will cover up to 6 weeks of payroll. This includes a weekly maximum of $1540 per employee. The total amount of the loan is calculated using last year’s total payroll cost and then multiplying that number by 2.5. Businesses that were not established in 2019, will need to represent 2020’s total payroll cost for January and February.

The SBA will require verification of payroll before and after receiving the loan. Specific details regarding the application and loan terms vary between applicants. Therefore, we highly recommend assuring that your financial documents are up to date to avoid delay. 

Owners can also apply for an SBA loan to cover other business expenses. This includes rent, equipment, utilities, etc. In addition, the loan can be fully or partially forgiven if the owner only uses it for business purposes and at least ¾ is used for payroll. For businesses that have laid off workers, you may still be eligible as long as the employees are rehired by June 30th. More information regarding criteria can be found here.

Learn More

Protect your business by learning more about the CARES Act and SBA loans. At Ash CPA, we can guide you through the SBA application process and make sure your financial records are up to date and accurate. Our team has over 20 years of experience providing accounting and bookkeeping services. Call (617) 462-6651 or book a consultation online. New clients are always welcome.

 

virtual accounting

Virtual Accounting and Bookkeeping Services

We are all living in uncertain times. While many businesses have closed their doors, others are still operating to stay afloat. Fortunately, the CARES Act offers a chance for America to push through this economical hardship. Even if business is slow, be sure your financial records are up to date. At Ash CPA, we offer virtual accounting and bookkeeping services for individuals and businesses. Learn more below and contact our firm today.

What is Virtual Accounting?

Virtual accounting offers financial guidance for individuals and businesses. Communication is done via phone or with video conferencing. In general, your meetings are geared to your success. We’ll discuss your current financial health and create a plan to meet your short and long term goals. In addition, we offer tax planning to assure you take advantage of tax-saving opportunities. Likewise, we can even help resolve state and IRS tax issues virtually with our tax audit representation service.

What is Virtual Bookkeeping?

Maintaining up to date financial records is essential. Especially with applying for SBA loans, you want to be sure your reports are current and accurate. This helps prevent delays and application denials. Ash CPA can help organize your bookkeeping and generate the necessary documents needed to prove cash flow and payroll expenses. Our bookkeeping service is virtual. We’ll communicate with you via phone and video conferencing. Additionally, receipts can be uploaded through our QuickBooks software for added convenience.

virtual accounting

Virtual Tax Preparation and Filing

With the tax deadline extending until July 15th, many have postponed filing their taxes. There is no need to post-pone with our virtual tax preparation and filing service. Our team can accurately prepare and file your business and individual tax returns virtually. Simply contact us to learn what documents to submit. You can easily email or fax them to our office. Similarly to our accounting and bookkeeping services, we’ll communicate with you via phone, email, and video conference to discuss your tax returns. 

Virtual Financial Consultations

Everyone has unique financial goals. At Ash CPA, we offer guidance for individuals and business owners. Our team can set up a plan that meets your goals and identify solutions to overcome financial hurdles. Whether it be early retirement or expanding your business, our team is experienced and available to assist. Our consultations include tax-saving techniques, tax planning, wealth management, business incorporating, business purchasing and more. 

Learn More

Until the pandemic is over, virtual services is the best and safe way to manage many aspects of personal and work life. Learn more about our virtual accounting and bookkeeping services with a consultation. Ash CPA has well over 20 years of experience assisting individuals and businesses. Call Ash Wasilidas, CPA at (617) 462-6651 or book a consultation online. Our office is located at 945 Concord Street Suite 100 Framingham, MA 01701. New clients are always welcome. We look forward to assisting you.

 

finances image

How to Get Your Finances in Order

Getting your finances in order can be a complex subject, everyone is different with unique circumstances. What we’ll teach you here is how to look at the most troublesome snafus that most folks experience. Remember that there’s no judgment on your current or future financial health and kudos to you for seeking guidance.

Learn more below and schedule a complimentary consultation today. Ash CPA offers a variety of financial services to assist individuals and businesses in meeting their short and long term goals.

Know Yourself

Most of what makes people unsuccessful with personal finances is the lack of self-knowledge and their relationship to money.  You can read many lists on the internet about what to do, but most people won’t stick to things like a budget or savings for those reasons. Before you attempt to do anything about your finances, take a reticent look at your outlook. 

Know your Goals

If you have goals, then organizing your financial life gets easier. Make a list of goals. Is it going back to school? Opening a business or expanding the one you have? Money is needed for many goals. Consider the following questions to help you navigate.

 

  • What’s my ideal lifestyle?
  • What is your ideal business model?
  • Am I a more materialistic person or a minimalist?
  • Who else has a say in my finances and how? 
  • How can I compromise with them?
  • Are there goals I have separate from my business partner or family?
  • How can I design a financial plan for myself and collective goals?

Create a Budget

Make sure you include daily living such as food, clothing, shelter, transportation, and entertainment. For business goals, consider minimizing your expenses and expanding sales goals.

  • Take that budget and place it on one column on a sheet of paper. Then write out your goals on the other side. 
  • Find out where you need to sacrifice to meet your goals without it affecting your personal and/or business obligations.

Have an Emergency Fund

Though the ideal amount would be 6 months worth of expenses including rent or mortgage. We recommend saving as much as possible. Be sure to include this in your financial goal planning. 

Set-Up Auto Transfers

Look into automation. Lots of banks have apps or programs that allow you to transfer money into a savings account. Some will round up the amount you spend on a debit card and transfer it in your savings. For instance, if you spent $1.55,  the bank will transfer $0.45 into your savings. 

Pay Off Debt

Make sure you have a plan on your goals list of paying off any outstanding debt. Start with the highest interest card. Make a plan for student loans or any large and long-standing debt. It may take a while, just make sure you schedule it. This is how we falter. Don’t start with a large amount. Consider the smallest amount you can that works in tandem with your monthly expenses. 

Learn More

Achieving your financial goals requires a customized approach. Learn more with a consultation today. Ash CPA offers a variety of accounting and bookkeeping services to help individuals and businesses. Call (617) 462-6651 or book a consultation online. New clients are always welcome.

tax issues being resolved with owner

Resolving IRS and State Tax Issues

It’s not uncommon for a business to do their own bookkeeping, and tax issues are why it’s never recommended. Even a small business can get caught up in many tax issues. Fortunately, resolving IRS and state tax issues is possible with an accountant. Learn more below and contact us today.

Tax Notice

The tax notice is not like a credit card bill that you can ignore. If you don’t acknowledge the tax notice, you’ll be audited. Once it’s gotten that far, you can expect that almost certainly. The next action is worse, and that’s the tax levy. This can leave you with a closing business and frozen bank accounts. 

The IRS and state governments can continue their attempt to resolve a tax notice. This includes seizing property and other assets. Avoid this with an accountant that can assure your taxes are filed and prepared correctly.

Your Tax Bill Is Probably Inaccurate

Double-check your tax bill with an accountant before paying it. If you find proof that you owe less or nothing at all, your accountant can assist with resolving the matter.

Payment

If you know how much you should owe and pay it, you’ll have a better chance of resolving the tax issue. Keep in mind that resolution can only happen when it’s based on probable cause. If there were any illegal movements, then the resolution may not happen.

Payment Plans

Many business owners are unaware that they can pay in installments. This causes a sigh of relief when they are told this is an option. We want to tip you off to something important. Since you know they may offer this, it’s prudent that you secure a tax professional. They can help lower the monthly payments to something that you can afford. They do this by working with the laws that can protect you and your family from financial hardship. 

Use the Offer In Compromise

This is the last negotiation tool, but there are strict stipulations.  If the IRS offers you a settlement, and it exceeds your ability to pay, then they will use calculation tool 433-B to resolve the issue. The ability to pay is not by your word but must verify within a set formula. 

Learn More

As a business owner, it’s not only a prudent move to secure a tax accountant but it is cost-efficient. How? Because most people don’t understand what the IRS and state can do.

There’s a two-fold effect that is in your favor when you retain an accountant. First, you can avoid the tax issues in the first place and second: You can negotiate better terms with the agency when something unforeseen comes along. Be honest with your accountant and form a relationship so you won’t have to worry about the unforeseen because they will see it and address it for you. Business owners can call Ash Wasilidas, CPA. He has well over 20 years of experience assisting companies of various sizes. Call  (617) 462-6651 or book a consultation online.

accounting team

Most Common Accounting Terms Explained

When dealing with your finances at some point, you may come in contact with an accountant. You don’t have to be wealthy to use one. Accountants and CPAs work at a variety of levels in the financial arena. To the layperson, accounting terms can be confusing. We believe we should acquaint everyone with at least the topmost common. This way, you can better understand how to plan financially.

Trial Balance 

This is the balance for a particular account. It records all the debits and credits for that account and must balance between the two columns. 

Trade Discount

For example, you have a business and order bulk goods. A trade discount is a percentage of the total amount of said order. You would receive a larger discount on big orders and a lesser discount on smaller orders. The percentage is at the discretion of the agreement between the vendor and the business.  

Revenue

It’s important not to get revenue confused with receipts because we can collect revenue in any form such as cash, credit, a check or electronic transfer. Revenue is any payment collected at a specific time such as a point of sale. We also reference it as income. These two words are interchangeable. 

Receipts

Receipts are for cash payments collected at the time that goods deliver. This does not include any other forms of income taken in for one business day.

Gross Margin

The Gross Margin is your profit margin. Profit means your total sales less the costs of selling that product or service such as material or supplies. 

Loss

Profit and loss are integral parts of a business. We’ve explained profit as the money you make for a product or service less what it takes to create it. Loss is when you have to sell a product or service for less than what it costs to create it. Or, if we have a product, that has cost us more than what we can make from it.

accounting paperwork

Account or On Credit

This means that the financial instrument used to sell a product is credit. It tells us we are not receiving immediately available funds for this product and there is interest associated with it. 

Assets

This is everything that the business or you own. The requirements are that the asset can’t have a lien on it, nor can you owe money on it. Your car is an asset if it is paid off. It’s not an asset if you have a car payment.

Accounts Receivable 

Accounts Receivable is the money owed by your debtors. This is the ledger that people have the most issue keeping track of yet it’s one of the most important. You’ll lose money fast if you don’t know who owes you and they’re unlikely to remind you.

Accounts Payable

Accounts Payable are payments you owe to your creditors. These are the most important ledgers and need to be in pristine condition. Most times they’re not and that’s what you need to avail yourself of an accountant for. 

Learn More

Being acquainted with the aforementioned accounting terms is an important step in having a seamless experience with your accountant. A good accountancy firm will take the time to enlighten you on the strengths and weaknesses of your financial life and how to affect solutions. 

Learn more with Ash CPA. We offer an array of accounting solutions to meet everyone’s needs. Call (617) 462-6651 to book a consultation online

Everything You Need to Know for a Successful Tax Day

Tax Day

Tax day is an inevitable task that everyone must acknowledge, and it will bring a bit of angst along with it. This is normal. And as experts, we’ll tell you it can be seamless and bring with it a sense of accomplishment. The hidden fear behind tax day is that it’s difficult to master because some people make mistakes on their tax forms.

At Ash CPA, we are happy to share everything you need to know for a successful tax day. Print or save this guide for reference. As always, contact the professionals at Ash CPA with any questions and concerns. 

woman on Tax Day

Step One

Tax Filing Status

Revise your tax filing status. It’s simple. Have you undergone any life changes that would alter your tax status? Some of the most common examples are found below.

 

  • Marriage
  • Widowhood and qualified widower with a dependent child or children
  • Childbirth
  • Adoption
  • Taking care of an elderly parent
  • Any other people that are dependent?
  • Inheritance
  • Charitable Contributions

The filing statuses are:

For the more in-depth explanation of each status go to Understanding Taxes on the IRS website.

  • Single
  • Married filing single or jointly
  • Head of household
  • Widow with a dependent child or children

 

Step Two

Revise Your Tax Withholdings

This is a delicate balance that you should review only with the human resources department at the workplace. Be aware of the associated penalties if there’s an imbalance. 

The concept is simple. If you want access to more of your check, then withhold less. Just make sure the change does not create a tax bill in April. Also, consult a tax professional like Ash CPA. Tax experts can best advise you on how to manage your tax withholdings and other tax-saving strategies. 

Step Three

Organize

Have an organizational system in place and hold on to receipts for deductible items. You can find a list of acceptable deductible items on the IRS website

An organizational system for all your tax forms, spreadsheets, receipts, and other pertinent paperwork is a must. Don’t paper hunt on tax day. If you have deductible items, save them according to date in case there is any question. You don’t want to trigger an audit.

Step Four

What Are Your Charitable Deductions?

You can’t claim a round number of charitable contributions. Instead,  itemize them using receipts separate from the other deductible items. 

Step Five

Estimated Tax

Are you on an estimated tax plan? Are you self-employed and paying quarterly? Consult a tax professional for a tax health checkup. Tax laws catch many people off guard when they owe an estimated tax because they paid too low or not at all. For instance, many self-employed professionals experience this issue each year.

The aforementioned steps are beyond your basic gathering of forms and income information. They are the elements that most will overlook or be unaware of. However, familiarizing those four areas can save time and avoid issues.

Learn More

The next and last most important step is to seek professional guidance from a tax expert. Remember, tax laws are always changing. It’s best to stay ahead of your tax obligations with a professional like Ash Wasilidas, CPA from Ash CPA. New and existing clients should call (617) 462-6651 to book a consultation online. Our firm offers a variety of accounting solutions to assist individuals and business owners.

business woman reviewing business tax changes

What Are the 2019 Business Tax Changes?

2019 Business Tax Changes

Owning a business can be a challenging undertaking especially with business tax changes. While you may be happy to no longer work for someone else, you now have a lot more on your plate as a business owner. You’re responsible for various aspects such as business taxes. If you’re not in compliance with your company’s tax payments and filings, then you could face legal trouble.

Now that 2020 is here, you may be concerned about new tax laws that will affect your business. As you start thinking about filing your 2019 tax return, here are some changes to keep in mind.

Lower Tax Rates

Here’s great news for small businesses concerned about business tax changes. In the past, the tax rate for pass-through entities such as sole proprietorships, partnerships, S-corporations and limited liability companies was the same as your individual tax rate. Now, you get a 20% tax deduction, as long as you’re an individual who earned less than $157,500. For joint filers, the maximum is $315,000. Service providers have to be careful, though. Doctors, lawyers, financial advisors, and others in the service field may not be able to take the deduction if their income is too high.

Higher Bonus Depreciation

For companies that buy large amounts of equipment, the bonus depreciation is a huge area for tax deductions. This area has changed regularly, and new tax reform has updated this once again for 2019. 

In the past, a company could take a huge percentage upfront, and then apply the rest in smaller percentages over the next several years. First-year bonus depreciation is now set at 100%, so if you want the entire deduction this year, then go for it. Just know you won’t receive anything for the same item next year

Under IRS law, equipment, machinery, appliances, computers, and furniture generally qualify for bonus depreciation. The item can be new or used, as long as it meets all the other requirements set forth in the law. 

CPA working on Business tax changes

No More Entertainment Expenses

Sadly, small business owners will no longer be able to deduct entertainment expenses. Sports tickets and golf outings have been removed for all business entities. While these are big-ticket items, even smaller things like meal expenses can no longer be claimed on tax returns. The law no longer allows deductions for membership dues to social or recreation clubs or tickets or admission to activities considered entertainment or recreation. This can be a huge setback to companies that rely a lot on entertaining clients to secure business deals. 

Learn More About Business Tax Changes

Laws are constantly changing. If you’re a business owner, make sure you understand what your business needs to do to stay in compliance. Ash Wasilidas, CPA Firm offers accounting and bookkeeping services to individuals as well as nonprofit and for-profit organizations. You can trust owner Ash Wasilidas to manage all of your CPA and accounting needs. To learn more about business tax changes, call (617) 462-6651 or fill out the online form.  New clients are always welcome.

What is Section 179?

Section 179

Tax time can be a huge headache for many people, and that problem only intensifies when you’re a business owner. Various laws apply, and they can differ depending on the type of business you own.

One confusing tax topic is Section 179. Many business owners find it complicated and choose to simply skip over this section. While it can be confusing, knowledge is power. By not taking the time to learn more about this tax deduction, you could be losing out on thousands of dollars in deductions every year. With tax season quickly approaching, here are some things you should know about Section 179 when you file your tax return for 2019. 

How Does Section 179 Work?

Essentially, Section 179 allows business owners to deduct high-ticket equipment and other items they purchased or financed during the tax year. For tax purposes, you will use IRS Form 4562. If you use TurboTax or some other tax software, it will walk you through the process.

The amount you receive is based on the depreciation of the item over time. Qualifying purchases include vehicles, machinery, and property. Large purchases such as computers, appliances, and furniture can also be deducted, as long as it is considered tangible, depreciable property that you used for business purposes. 

tax expert | section 179

If you own a construction company and you bought a tractor for company use, you would be able to deduct the entire cost through Section 179. If your gross income was $100,000 and the tractor cost $50,000, you would be able to deduct $50,000 from your income. The government allows you to do this because they want to encourage you to make purchases that will further your business.

Keep in mind that you must also use the property the same year you buy it. If you bought a computer in 2019 and it’s still sitting in the box in April 2020, you cannot claim it. 

In the past, you could claim only 50% of the purchase price in the first year, and then claim smaller percentages in subsequent years. This is no longer the case. You can now take the full 100% deduction in the first year.

Many businesses once used this deduction to write off vehicle purchases, such as SUVs and sports cars. However, deduction amounts for these purchases have decreased in the past few years.

There are some limits to 2019. You can deduct up to 100% of the cost of the equipment. You can spend up to $2.5 million on equipment, but you can claim only $1 million, which should be more than enough for most small businesses. 

Contact Us

If you own a business, make sure you take advantage of all the tax deductions available to you. Section 179 is one of them. Don’t overlook this important tax deduction. Count on Ash Wasilidas, CPA Firm to get your tax returns done accurately. He has experience working with all sorts of clients, from businesses to individuals. To learn more, call (617) 462-6651 or fill out the online form

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Bookkeepers, Accountants, and CPAs: Defining the Role

CPAs Framingham MA

You will often hear of accountants, CPAs, and bookkeepers used interchangeably. However, that does not mean that they are the same, and their scope of work is quite different. Taking a closer look, you will learn that their licensing, professional status, and task performance from each are completely different. 

They all work with businesses and have almost similar functionalities in the business as they all handle financial data.  Some businesses, however, choose to employ the three people and give them different roles to monitor the company’s economic growth. However, there are those who are unsure of the difference hire either of the three professions and expect to receive particular services from the person. If you are unsure of what terms to use and what they mean, here is a brief overview of each word and its standing with internal revenue service.

woman working | cpas framingham ma

Bookkeepers

A bookkeeper is a person who puts financial books of an organization. The person can either be an employee or work as a contractor in the company. Bookkeepers are, however, responsible over recording organizational transactions, including inventory, accounts receivable, accounts payable, provide monthly, quarterly, and annual reports, and payroll. However, as a bookkeeper, you must ensure that all the information provided is accurate and precise. Most bookkeepers today use the same software like QuickBooks, which are often used in accounting.

With a bookkeeper, you are sure that you will not have to deal with any business payment. The bookkeeper guarantees to take care of any transactions, including keeping track of what you owe in your credit cards. You can also depend on the person when it comes to monitoring and tracking business growth as they can provide you with sales monthly reports. The bookkeeper can also be your person when it comes to paying sales taxes as well as filling form 1099s and 1096 every end of the year. However, unlike when working with an accountant, the bookkeeper will never share any tax advice or analyze any reports for you.

Accountants

On the other hand, accountants operate at a higher level compared to the bookkeepers. Accountants can perform the duties of bookkeepers, although they usually don’t do the same. However, they can perform audits on the books, especially in public companies, prepare financial statements, and can also prepare reports for tax purposes.

Accountants are often classified by the IRS as an unenrolled preparer. Therefore, they are not regally authorized to represent clients, during audits, singing tax returns, and other matters before IRS. This is a duty that is only left strictly for tax attorneys, CPA, and enrolled agents.

CPAs (Certified Public Accountants)

CPAs are basically an accountant that is licensed to operate at a particular state. They are often certified after going through a particular examination in the respective state and meet specified requirements for licensing in that state. This level of credibility is what makes CPAs different from regular accountants or bookkeepers. 

Their central role is to prepare and review financial statements ion an organization. However, on top of that, they also help in making tax returns for individuals and businesses, represent taxpayers before IRS, sign tax returns, and other matters. 

Which Professional Do You Need?

Whether you have a small business or your organization is significant, the need for a person to take care of your financial books is critical. You can choose to hire an employee or involve the services of a contractor to work as a bookkeeper. However, it is essential to ensure that the bookkeeper works for an accountant or a CPA. 

Additionally, you will need someone to help review your financial reports and make decisions on taxes and finances. Although I cannot advise you to get a CPA, it is essential to keep in mind that an accountant who is not certified or licensed to practice CPA cannot represent you in the presence of the IRS. This is an essential distinction to most businesses and the main reason as to why they invest in hiring a CPA to give tax advice and review financial books. They also help in preparing and submitting tax returns for both the company and individuals online, hence making it easy for the business owner. 

Conclusion

Matters regarding finances are critical for any business development. If you make the wrong decisions while hiring people who handle finances, your business growth will automatically get at risk. Therefore, it is essential for you to perform thorough research and evaluate the type of person you want in your organization. 

Also, once you hire a CPA, allow them to execute their services in your favor without restricting their performance. This will guarantee that they will work as hard to ensure you are on the right side with the IRS even when all odds are working against you.

Learn More

Ash CPA offers bookkeeping and accounting. Learn more about our services with a consultation today. Call Ash CPA at (617) 462-6651 or book an appointment online.

office CPA framingham ma

What is a CPA? (Certified Public Accountant)

CPA Framingham MA

Whether you own a small business or are just thinking about starting one, you may be thinking about getting a CPA, certified public accountant. You can do the day-to-day accounting on your own. But as you grow, you may want to use more advanced accounting software. 

This is when a CPA is beneficial. CPAs or certified public accountants are essential for growing businesses. Not only can they assist you with taxes, but they also offer in-depth financial knowledge for your particular industry. Learn more about CPAs below and contact Ash CPA today!

Education

A CPA must undergo several educational requirements. For instance, a student is required to complete 150 credits per semester in order to qualify to sit for the final examination. CPAs also need to maintain their knowledge with continuing education courses, staying current on tax laws and industry market trends.

You may not have to hire a full-time CPA professional, but you can still benefit from their knowledge. Here are four occasions when you need to hire a CPA professional.

CPA reading reports | CPA framingham ma

Before You Start the Business

When you are starting the business, you probably have a tight budget to stick to and do not like the idea of spending on CPA. It may sound extravagant, but it is a step worth taking. Plus, it is a deductible expense.  The professional can help you set up the business correctly and avoid any mistakes. You do not want to make any mistakes that will cost you in the long run. As a business owner, it is normal not to feel like you need anyone’s help with the decisions, but professional advice could never hurt. 

A professional can recommend the best business structure for your target demographic and business type. This means the partnership, sole proprietorship, and corporation. These are factors in your business that could affect reporting requirements, taxes, and liability. They may also be more difficult to change later on, which may mean reapplying for the license later. 

A professional will also make it easier for you to determine whether an accrual or cash accounting is perfect for you. When you start your company, you need to ensure that you know which accounting software is right for you. Most new businesses will need to determine which the best accounting type to use is. With the accrual method, you will have to record the expenses and income over a period of time rather than doing it immediately you receive the money. 

During The Tax Season

CPAs will prepare the tax documents, provide tax planning, and file tax returns that will allow you to get the advice you need to maximize your liability for the next year. They will also represent you to the IRS if there are questions about your returns or you are getting audited. Business taxes are not similar to personal taxes, so you may never be able to do them on your own. 

That is why you need a professional to help. If you sell your products to customers in different states, you can save time by letting a professional deal with the taxes for you. They are also in a better position to understand the deductions that you qualify for. The last thing you need is to trigger an audit. 

Expert Accounting Advice

Sometimes during the life of your business, there may be times when you require an expert. A great example if when you get a letter that you are getting audited. Then, you will need to hire a CPA expert who will represent you. These professionals have enough experience to help you respond appropriately and supply the information needed to resolve the problem painlessly. 

The professionals will also help you when you are thinking of taking a business loan. They will give you the chance to decide what fits your business. In addition, they will speak with you about the best type of business loan and help you figure out the perfect size loan that will allow your business to grow without the payments impacting your cash flow.

Learn More

Learn how a CPA can help grow your business today! Schedule a consultation with Ash CPA by calling  (617) 462-6651 or booking an appointment online. Our team has over 20 years of experience. Additionally, we offer a variety of services including accounting, bookkeeping, tax audit representation, and consultation.