The Weekly Ledger

Posted May 2

If you are at, or nearing, retirement age, and considering when to start drawing your social security benefits, consider that usually it’s best to wait until “full” retirement age, which is typically between 65 and 67, depending on your birth date, rather than beginning to draw your benefits early, which is typically between 62 and 65 years of age – read more.  There are a couple of reasons to hold off on receiving your benefits, but the primary reason is that you will likely end up receiving more in total benefits, if you wait until full retirement age, since you are paid considerably more per month under this scenario.  Additionally, due to the fact that any earned income that you currently receive, from wages or a self employment activity may restrict the amount of social security benefits you are eligible to receive, prior to full retirement age.  Finally, since social security may be taxable income to you, depending on your overall taxable income, you may have less of an associated tax burden if you wait until later in life to receive your benefits, considering that most taxpayers receive less overall income later in life.  Of course the good news, if you are at or near retirement age, is that you will be receiving your social security benefits, however in order to optimize your benefits, and minimize the associated tax cost, please contact us to discuss your specific circumstances!
 

Posted Apr 17

As a CPA firm, providing accounting services to small to mid-sized companies in varying fields, we offer everything from one time consulting engagements, in support of our client’s accountant or bookkeeper, to full charge accounting services, where we maintain our client’s accounting, prepare payroll, as well as all of the required excise and payroll tax reports.  But why hire a CPA firm like ours, when a company owner is doing his/her best to manage limited funds?  It’s because our firm can give an owner confidence that the accounting and compliance aspects of their company are in good order, by either acting in a consulting role to assist the company’s accountant or bookkeeper, or by actually providing the accounting, payroll, and reporting services for the company, so that the owner can focus on the business operations of the company, instead of worrying about whether the company is in compliance with the myriad of reporting responsibilities, which can bog a company down, or worse, if not done properly.  Additionally, when we review a company’s accounting, we make sure that the company’s accounting system is adjusted properly, so it reflects the company’s current financial position and operations.  With access to the company’s fully adjusted and current financial information, the owner can adequately evaluate the company’s performance, and it can also be accessed by a potential third party user, such as a bank, for loan qualification.  Please refer to our client’s testimonials to review what some of our business clients are saying about us.

Posted Apr 4

We often have the opportunity to explain to potential clients what it means to hire a CPA firm like ours, versus hiring a bookkeeping or a tax preparation only office, especially since our fees can be higher on average, relative to these other services.  Probably the most significant benefit of hiring a firm like ours is the education and experience levels that we can offer you and your company, inherent in the services we provide.  Whereas anyone can put out their “shingle” advertising bookkeeping and/or income tax preparation services, CPA firms are held to a much higher standard of education, knowledge and ethics.  As a CPA, I am required to have a college degree in accounting, and I’m also required to update my education, for a minimum of 40 hours of continuing education on an annual basis, in the fields of accounting, tax law, business and personal financial planning, and other related studies. Unfortunately the nationally syndicated companies advertise their income tax preparation services, as offered by “professionals”, when in reality the returns are prepared by individuals with minimal training and experience, in a mass production type of atmosphere, without requiring these same standards or ethics, and potentially at your peril.  Please contact us if we can assist you, and/or your company with accounting, business start up, income or business tax preparation, or any of the other services we provide.

Posted Mar 28

With the month of March winding down, and the individual tax filing deadline of 4/17/12 rapidly approaching, it may be time for you to consider an extension request, to allow you some additional time to file your individual income tax return.  The request for additional time is made with a Form 4868 filing, Application for Automatic Extension of Time, which must be completed and remitted to the IRS by the initial filing deadline of 4/17/12.  The process is fairly straightforward, and will allow you up to 6 months of additional time to file your individual tax return, up to 10/15/12.  The most important step in preparing an extension request is to make sure you won’t owe any income taxes when you do file your return later on.  However, if you are projecting that you will likely owe taxes when you file, you can make an extension payment, either by check, which should be mailed along with your extension request, or by direct debit from your bank account, if you provide the IRS with your banking information and the amount you would like to be paid in on 4/17/12.  Not only will the extension request provide you with additional time to complete and remit your tax return, it will allow you peace of mind, so you aren’t later subjected to a late filing penalty.  Please contact our office if we can help you with an extension request.