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How to Level Up Your Construction Business With Bookkeeping Services

 

 

Detailed accounting and tax preparation are essential to managing a construction business. These services can help you save, increase your profits, and be more efficient. However, trying to maintain these tasks can be a burden on you and your employees’ time and energy. Outsourcing these services can help you build a solid financial foundation and free up your time running your business. Below are a few ways bookkeeping can help your construction business grow. 

 

 

bookkeeping can help your construction business

Make the Most of Your Tax Filing

Bookkeepers will not only accurately track your income and expenses, but they will also help you prepare your taxes. A crucal part of this process is allowing you to identify eligible tax credits and avoid tax liabilities to help you get more out of your refunds. Additionally, your bookkeeper will represent you in front of the IRS if you ever face an audit. File your taxes with confidence as you grow your business. 

 

Build the Foundation to Increase Your Workforce 

To take on more work and projects, you will need more help. But hiring additional employees comes with added responsibility and management. In addition to the hiring and training processes, there is a significant amount of paperwork and extra workers to process in your payroll administration. There is a way to take some of this added work off your plate. Professional bookkeepers can manage your business’ payroll, including processing timesheets, following up with employees regarding missing information, tracking sick and vacation leave, and filing the appropriate related tax information. Make sure that your employees receive accurate and timely pay without adding more work to your plate. With this infrastructure in place, you can grow your team as needed.  

 

Develop a Financially Sound Business Plan 

One essential way that bookkeeping services can help your business grow is by working with you to develop a financially sound business plan for your current and future needs. Your bookkeepers can serve as your accountants and help you identify cash flow needs, ways to save money, consolidate, and increase profits. They can also help you with financial forecasting and identifying the best practices for your company to grow. 

 

Increase Your Efficiency 

Efficiency is crucial to the success of your business and your personal well-being. Not only does efficiency help to save money and make things easier, but it also allows you to work smarter, not harder. As a business owner, you are likely juggling many jobs. Between business operations, construction labor, managing employees, promoting your company, and overseeing your facility maintenance, the last thing you need is to worry about all of the financial back-ends. If you are spread too thin, certain areas of your company can suffer as a result. By trying to wear too many hats, you may not be able to put in the thought needed for each area of work, keeping things from reaching their full potential. Outsourcing time-consuming yet essential bookkeeping services is a great way to focus your time and energy. In turn, you will have the capability to grow other areas of your business. 

 

Professional bookkeepers like PL Bookkeeping Plus offer various customizable services to help your construction business grow and moving like a well-oiled machine. Consider booking an appointment to learn about ways in which we might be able to help you and your business by calling 410.764.3731, emailing us at info@plcfo.com, or filling out a form on our website.

 

3 Reasons Why Bookkeeping is Important to Your Business

Who keeps track of all of the numbers in your organization? Is the work split between multiple people? Do you have to squeeze time into your schedule to record sales and process payroll each week between filling orders? Accurately recording your financial information and keeping track of paperwork deserve more detailed attention than many small business owners can give.

 

Bookkeeping is about more than just helping you to stay organized. This service can help your business reach its full potential. By analyzing your data and helping to identify efficiencies and ways to save or increase profit, it is even likely to save you money in the end. Below are a few examples of why bookkeeping is important to your business.

 

Bookkeeping is Important to Your Business

 

Keep track of your financial transactions. 

Keeping an accurate record of all of your financial transactions is essential to maintaining your business. How much did you earn on your last project? How much did you spend on office supplies the previous month?

 

It can be highly time-consuming to record all transactions. From purchasing business cards, business lunches, or documenting the latest check you deposited, transactions are a daily occurrence. Having detailed records will help you ensure that you don’t have any unexpected expenses and receive all of your payments on time. These records will also make tax preparation time much more manageable. Hiring a professional bookkeeper will save you time and give you the peace of mind to know that your information is in order. Additionally, professionals can help you identify places where you spend too much money, places you can save, and even opportunities to earn extra income. 

 

Improve your cash flow

Your financial well-being has to do with so much more than the amount your company earns each quarter. Cash flow is one of the greatest struggles for small and medium-sized business owners. Bookkeeping can help you navigate this by paying close attention to what cash you have coming in and what cash you have going out. A bookkeeper will keep a schedule of these accounts and work with you to make sure you have enough money on hand for all expenses. This knowledge will also allow you to adjust a planned purchase or take action in other ways if needed. Make financial decisions with the confidence of knowing you will not default on a payment. 

 

Protect Your Business in the case of an IRS audit 

When it comes time to file your taxes, you will already be in a good position if you’ve hired a bookkeeper. They will have kept track of your transactions and helped you prepare your filing. If you owe past due money, are receiving confusing correspondence from the IRS, or if your return is selected for an audit, a bookkeeper will be able to assist you before the IRS for the Franchise Tax Board. Bookkeepers specialize in Collection and Appeals representation and will protect your business during an audit. Bookkeepers specialize in Collection and Appeals representation and will protect your business during an audit.  

 

Above are just a few reasons why bookkeeping is important to your business. Take the burden of all of the paperwork off of your plate and know that you are fiscally sound. Consider booking an appointment to learn about ways in which we might be able to help you and your business by calling 410.764.3731, emailing us at info@plcfo.com, or filling out a form on our website

 

Are Bookkeeping Fees Tax Deductible?

As a business owner, expenses can add up. From ads to employee salaries and storefront improvements, companies are always in need of finding ways to save anywhere they can. On the surface, it might seem that an excellent way to save money would be to take on every task on your own. Contracting out services that your business needs costs money, and avoiding that cost seems like an obvious choice. But at the end of the day, bookkeeping services can help you save in the long run, and not only that, but the expenses can be tax-deductible. So, are bookkeeping fees tax deductible? Below are a few examples of Bookkeeping services that may qualify for tax credits. 

 

Are Bookkeeping Fees Tax Deductible

 

Tax Preparation

Most businesses can write off fees they pay for tax preparation. These fees are seen as “ordinary and necessary” and can save you and your company a substantial amount of money. Hiring a professional to complete your business tax preparations is essential to your success. An expert can make sure you file every document correctly and don’t miss any deductibles. This knowledge could significantly reduce the amount of money you owe or substantially increase the refund owed to you. Additionally, professionals can make sure that you don’t make any errors when filing to avoid any issues with the IRS. If you are audited, your bookkeeper will be your representative and help you through the process. 

 

Payroll Services 

Many professional expenses are deductible for businesses. Hiring someone to manage your payroll services will save you a headache. Knowing that your staff is getting their paychecks on time and for the correct amount each cycle will give everyone involved peace of mind. Getting a deduction for hiring bookkeepers to manage your payroll isn’t the only benefit of this arrangement. There are complicated payroll taxes that your business needs to pay. Your bookkeeper will make sure that the appropriate amount is withheld each pay cycle. This level of detail could save you from a costly mistake and help you plan your budget accordingly. 

 

Bookkeeping

Like tax preparation and payroll services, bookkeeping can also be considered an “ordinary and necessary” service for your business and, therefore, eligible for a write-off. Bookkeeping is the backbone of any company that keeps the gears running smoothly. Hiring professionals is a great way to make sure that you are organized and efficient. Bookkeeping services include keeping track of your cash flow, managing invoices, and keeping track of accounts receivable. Services also include creating and managing Excel spreadsheets to track things like inventory and budgets. 

 

All in all, the services provided by a place like PL Bookkeeping Plus can help your company reach the next level, take a tremendous amount of work off of your plate, and can save you money. Knowing that these services can be tax deductible can help give you the room in your budget to outsource these tasks. Consider booking an appointment to learn about ways in which we might be able to help you and your business by calling 410.764.3731, emailing us at info@plcfo.com, or filling out a form on our website.

 

When To Outsource Bookkeeping

 

As a business owner, there is a good chance you wear many hats. Customer service, front of house, inventory fulfillment, payroll, human resources, manager, and marketer are likely just some of the many roles you play.

 

As your business grows, the more involved each of these job titles becomes. The more employees you have, the longer payroll takes, the more orders you receive, the more labor inventory fulfillment requires. The truth is, while you may be a superhero, one person can not be a million things at all times. There may be times where one task needs your attention, and it can be hard to keep all the balls in the air. It would be a shame if your marketing efforts were to suffer because you needed to spend too much time invoicing. This imbalance is when to outsource your bookkeeping. Below are some signs that might show you ready to hire specific tasks out:

 

When To Outsource Bookkeeping

 

You want your business to grow but can’t keep up with the workload. 

Chances are, you would like your business to continue growing. To grow your business, you will need more hands-on deck. Trying to be a Jack or Jill of all trades will be unsustainable as demand for your product or service is rising. As a business, your reputation and word of mouth are everything. Suppose the quality of your management skills or customer service were to suffer as a result. That could cost you and be hard to recover from. 

 

Additionally, burnout is real. By working around the clock and putting too much pressure on yourself and your existing employees, you could do real damage and even push away good people. It’s also important to remember to take care of yourself for your health, family, and the long-term success of your company. If you have plans to grow or are starting to feel a strain keeping up with your tasks, it may be a sign that it’s time to outsource your bookkeeping. Don’t wait until things start slipping through the cracks to get help. Build your infrastructure before things get out of hand when possible to make sure your growth is sustainable and prosperous. 

 

You want to spend more time focusing on your product or service.

Do you feel like you are spending so much time chasing after invoices and filing paperwork that you don’t have time to spend on the actual business side of things? Getting tied up with the minutiae is a clear sign that it might be time to outsource your bookkeeping. Let the professionals take over your payroll, tax prep, and accounts payable so that you can focus on the reason you started your own business in the first place.  

 

You would like to be more financially efficient but don’t know-how. 

One of the best things about outsourcing your bookkeeping to professionals is that they are financial experts. Bookkeepers take a tremendous amount of work off your plate and find ways to help your company save money by identifying efficiencies and ensuring you receive all of the tax credits you are eligible for. Additionally, bookkeepers can take charge of your accounts receivable to make sure you never miss another invoice payment again. They can also help you strategize about the best way to increase profit and grow your business from the book’s side. 

 

These are just a few signs that let you know when to outsource bookkeeping may be suitable for your and your company. Consider booking an appointment with PL Bookkeeping Plus to learn about ways in which we might be able to help you and your business by calling 410.764.3731, emailing us at info@plcfo.com, or filling out a form on our website. 

 

The Benefits of Working With PL Bookkeeping Plus 

Running your own business is a gratifying endeavor, but it also comes with many responsibilities. Having the ability to multi-task is critical because your staff needs to wear many hats. From sales and product management to marketing, there is a lot to keep track of at all times. As a result, many businesses look to several third-party companies to help them manage tasks like bookkeeping, accounting, and business forecasting. The great news about working with PL Consulting is that we are an all-in-one firm that can handle your small to midsize business’ payroll, financial planning, accounting, bookkeeping, and more— all in one place. Below is a list outlining the many ways PL Consulting can help support your business.  

Payroll Services

How much time do you spend each month processing and organizing payroll? This part of the job can be an incredibly time-consuming process and can eat up an entire day’s worth of work. Our Payroll services include tracking vacation and sick leave, issuing checks and direct deposits, generating the appropriate tax-related information, and creating a system where your employees can check their payment information online. Wouldn’t it be great to take all of this off your plate so that you can focus on your business? 

Tax and Accounting Services

Keeping track of all of your financials and filling out taxes as a business can be a very overwhelming task. Not only is it a great deal of work, but it can be challenging to understand how to fill out your tax information accurately. Plus, you want to make sure you are correctly writing off your business expenses. Hiring an accountant can put your mind at ease and make sure you get the most out of your tax filing each year. PL Bookkeeping Plus offers a wide variety of tax and accounting services that include tax planning to help you be strategic about minimizing expenses, tax return preparation, and representation before the IRS when needed. Get peace of mind knowing seasoned specialized professionals are handling this aspect of your business for you. 

Clean-Up Process

PL Bookkeeping Plus can work with your business to develop a long-term strategy, discover ways to increase revenue, and get organized. First, we conduct a thorough assessment and identify what needs to happen. Then we provide you with a plan recommendation and the timeline for each step that our team will work around the clock to help you execute. This service can help you feel confident in growing your business, knowing that there is a plan in place and that you have all the right tools. 

Accounts Payable and Receivable

Leave the paperwork to us. From generating invoices and processing credit information and collections, let this be one less thing you have to worry about. Make sure you never miss a payment from a client again.

Bookkeeping Services 

Bookkeeping is the glue that holds it all together. We can help you ensure that your business can maintain the proper cash flow throughout the month, document and record all expenses and revenue, and use Quickbooks as a powerful tool to help determine valuable insights for your business, to name a few. 

Deciding to outsource your business’s heavy and complex administrative workload can be a huge relief. We’d venture to guess that the reason you wanted to start your own business was not to process invoices all day. Hiring multiple firms and companies to help you with these tasks could be complicated and time-consuming in its own right. PL Bookkeeping Plus offers the unique benefit of being an all-inclusive company, so you can rely on one place to take care of all of your accounting and bookkeeping needs. We believe in customizing your experience with specialized and professional services while also offering future planning and productivity support. Consider booking an appointment to learn about ways in which we might be able to help you and your business by calling 410.764.3731, emailing us at info@plcfo.com, or filling out a form on our website. 

The Basic Elements of Bookkeeping

Does your business need help staying organized, but you don’t know where to start? Bookkeeping is an essential component of any successful business. But what is bookkeeping exactly? It may seem like a broad term, but we’ve put together a helpful list to outline some of the basic elements of bookkeeping. 

basic elements of bookkeeping

Debits and Credits

One of the backbones of bookkeeping is debits and credits. Bookkeepers record what your business spends (debits) and what your company earns (credits) to help you keep track of your finances and cash flow. 

Accounts Receivable

While not the most glamorous of tasks, invoicing is crucial to getting paid. Suppose you fail to collect fees owed to you due to oversights in invoice collecting and tracking. In that case, you will be handing out products and services for free and losing money in the process. When you dreamed of opening a business, you probably didn’t picture yourself tracking down invoice payments from clients. This is why hiring a specialized bookkeeper may be an excellent option for you. Not only do professional bookkeepers make invoices are sent and tracked, but we have experience handling the collection of late payments and working with clients. 

Accounts Payable

The other end of the spectrum from accounts receivable is accounts payable—keeping track of the money you owe to others. Your business’s reputation depends on financial stability. Part of that is making sure you reliably make payments on time to local vendors, businesses, and contractors. Build trust in your company, which will keep your credit high and make others want to continue working with you. 

Payroll

Employees are the most valuable asset of any business. Whatever product or service you offer is no good without the people behind them. Not only do your employees interact with customers, but they keep things running smoothly. Once you find suitable employees, you will want to do everything you can to keep them. Turnover and staff training can be expensive and eat up valuable time. Paying employees correctly and on time each pay period is a great way to make sure they are happy. Whether it’s full-time employees or part-time employees, bookkeepers can make sure that all of your staff’s paperwork is in order. They will also organize and collect timesheets, process payments, and file the appropriate tax information.

Bank Reconciliation

Bookkeepers work hard to cross every “t” and dot every “i.” In any business, there is a lot of paperwork to keep track of. Your bookkeeper will make sure that your bank statements regularly match up with your bank accounts.  Having a bookkeeper will help you avoid mistakes, missed deposits, or incorrect funds. 

Tax Preparation 

Taxes can be a stressful ordeal for most businesses. First, there’s the question of whether or not you filed everything correctly. Secondly, there’s the matter of avoiding unnecessary fees and ensuring you get all the credits of which your business is eligible. Your bookkeeper will keep your tax-related documents organized throughout the year, prepare your files, help you plan, and represent you in front of the IRS. 

All in all, bookkeeping encompasses all the nuts and bolts that keep your company running smoothly. Paperwork and accounting are not areas where you want to cut corners. By hiring professionals, you can take a great deal of stress off your plate and give your customers, business partners, and staff complete confidence. Consider booking an appointment to learn about ways in which we might be able to help you and your business by calling 410.764.3731, emailing us at info@plcfo.com, or filling out a form on our website. 

How COVID-19 Has Changed the Future of Money

COVID-19 has spread across the world and closed down businesses everywhere. There have been changes to the world in ways that we never could have imagined. It will have a major impact on the way businesses and individuals handle money. 

hand holding 4 credit cards showing how covid-19 has changed the future of money

Consumer Spending

Spending is low in most industries because of lockdowns and limited locations being open. Some particularly low industries are travel and transportation, apparel, and services. Consumers are expecting lower household incomes for the upcoming months, so money spending is focused on necessities. The uncertainty causes irregular buying behaviors. These behaviors have businesses scaling back on production. 

Industries that have been thriving include grocery stores, house supplies, and at-home entertainment. This is caused by the increased amount of time people are spending indoors. Consumer spending drives economic growth. Although it is positive that these industries are still doing business, it is vital to the economy that other industries pick back up again. 

It is unknown if buying behaviors will go back to normal or not. Gyms may not completely recover because of the increase in at-home workout equipment and virtual fitness subscriptions. Restaurants have lost tons of money from canceled trips and lack of orders. Without a steady income, many of these businesses have had to permanently close their doors. 

Retirement Plans

The CARES Act made three changes to certain retirement accounts. These changes have increased the number of early withdrawals to people’s retirement plans.

  1. It doubled the amount a person can take out as a 401(k) loan. 
  2. It allowed people to take early hardship withdrawals of up to $100,000 from 401(k)s and IRAs in 2020 without paying a 10% penalty before the owner turns 59 1/2.
  3. It allowed retirees and those who have inherited IRAs to skip taking a required minimum distribution (RMD).

This may cause people to feel more comfortable taking out extra money when the CARES Act is not in place. There are rules and restrictions on that you can find here. 

Cash Payments

Many stores started to only take plastic cards and virtual payments like Apple and Samsung Pay. This is one way to reduce the spread of germs. There might be a shift in some of these places to only accept these payments over cash permanently. Some people have opted out on using cash on their own for the same reasons- to flatten the curve.

Other businesses have completely reduced contact with payments. Their solution to this is mobile payment applications. Venmo and Cash App are two increasingly popular examples of this. These apps are easy to download. After the pandemic, people will be more likely to use this form of payment after they feel more comfortable and trust that it works. 

Future of Money

Businesses need to adapt to the changing world. Changes in spending habits, retirement plans, and cash payments are some ways COVID-19 has affected money. We can help you navigate the future of your business’s money. Serving the Baltimore area for several years, we are dedicated to providing customized services to fit each one of our client’s unique needs. 

Please contact us at (410)-764-3731 or at https://www.plcfo.com/contact/ for questions or to book an appointment

What is a 1099 Vendor?

 

Companies contract 1099 vendors to complete services for them. It is typically for work they want to outsource to professionals in that specific field. For example, a company may outsource its books to a company that specializes in bookkeeping. Another example is when a company hires a freelancer to create a logo and redesign their website for them. They hire these people because they don’t have the expertise in-house.

 

Who qualifies as a 1099 vendor and what does that mean for your business? Keep reading for all the information on 1099 vendors.

 

1099 Vendor

 

Payments and Taxes

 

1099 vendors are not employees of a business. Do not include them in your company’s payroll. They send companies an invoice after performing the work for them. Since these vendors are not on your company’s payroll, do not withhold taxes from their payments. 

 

1099 vendors withhold taxes from their own income. Businesses need to accurately report their payments to the government. This is a way of verifying the income the vendor received and if they withheld the proper number taxes. 

 

When working with vendors, it is important to keep your accounts payable and receivable organized. Ensure that you don’t miss any payments to the contractors and possibly incur a late fee. As a vendor, make sure the businesses that hire you are paying you accurately and on time. Keep your taxes organized in a spreadsheet or with online accounting software.

 

1099 Forms vs. W-2

 

The main difference between these two is that a 1099 form is for a contractor, while a W2 is for an employee.

 

Salaried and hourly employees of a business receive W2’s during tax season. This summarizes their earnings and taxes paid throughout the year. Employers pay the government the employee’s taxes. 

 

You know that someone is an employee when your business controls when and how work will be done. Businesses provide equipment and materials that employees use to work. Another sign that they are an employee that receives a W-2 form is that your business provides benefits to the worker and pays business expenses of the worker. 

 

If you are contracted/hired to do specific jobs and are paid for over $600 of work, you will receive 1099 forms from each company during tax season. Independent contractors determine their payroll taxes, and then they have to pay the sum every quarter. 

 

You know that someone is an independent contractor if they service many different customers or clients who pay them directly for their services. This worker controls when and how the work is performed. 

 

How Many 1099v Forms are There?

 

There are many types of 1099 forms. These forms depend on the type of work done. Vendors used to receive 1099 MISC forms from clients when completing over $600 of work in a year. As of 2020, this form is now used to report miscellaneous income such as rent or payments to an attorney. 

 

The common form that 1099 vendors will now receive is the 1099-NEC. It is the same thing as what the 1099-MISC used to be. 

 

Tax Deductions as a 1099 V

 

If you are an independent contractor, you can deduct work-related expenses on your taxes. Some of the most common deductions include home office deduction, internet, travel, and business meals.

 

1099 Vendor Financials

 

If you work with vendors, our team will help you with bookkeeping and financial planning. If you are a vendor, we can help you maintain great accounts receivable and ensure that tax season runs smoothly for you.

 

Contact us today to work with our team at PL Consulting!

 

Basics of Double-Entry Bookkeeping

 

Double-entry bookkeeping is one of the most difficult areas of bookkeeping to understand.

 

Double-Entry Bookkeeping

 

Are you just starting with this concept? Keep reading to learn the basics.

 

What is Double-Entry Bookkeeping?

 

It is an accounting system where every transaction is recorded in two accounts: a debit to one account and a credit to another. The amount transferred is always an equal amount of money from one account (or group of accounts) to another account (or group of accounts).

 

Both sides of the equation must be the same which means it is balanced. Remember, Assets = Liabilities + Equity.

 

Benefits of Double-Entry Bookkeeping

 

Double-entry bookkeeping generates many important financial reports like balance sheets and income statements. These financial statements tell businesses how profitable they are. This helps your company make better financial decisions.

 

If your liabilities and equity don’t equal assets on the balance sheet, then you know that something went wrong in your journal entries. This is a great way to keep your business accountable.

 

Investors, banks, buyers, and suppliers are more likely to work with you and give your business money if you use the double-entry system. The main reason is that the method allows them to get an accurate reading of the company’s health and offers transparency. 

 

What is the Difference Between Single and Double-Entry Bookkeeping?

 

In single-entry bookkeeping, income and expenses for every transaction are recorded once in a cash register or log. This process is much simpler than double-entry bookkeeping and does not require formal training. For this reason, many small businesses with a low volume of activity use this method. 

 

It is more accurate to use a double-entry system because it keeps track of your company’s financial situation. You also get information on how fast it’s growing. As your business ramps up, you may need to switch from the single entry system to double entry because of the lack of data on accounts receivable, accounts payable, and inventory. 

 

How to Use a Double Entry Bookkeeping System

 

When using this form of bookkeeping, it is easiest to use some type of bookkeeping/accounting software. This software can generate reports which makes tax season run much simpler and smoother. If you need to switch from single to double entry, most software has the capabilities and concepts built into it. Your financial statement complexity grows with your business, so it is best to use this method as soon as possible.

 

You can also hire a bookkeeper to do this work for you. Our team at PL Consulting and Bookkeeping Plus is highly trained and experienced in double-entry bookkeeping. We serve the Baltimore, Maryland area and beyond. We customize our services to each client to maintain good records and financial statements.

 

Questions about using a double-entry bookkeeping system? Call us at 410.764.3731 or contact us on our website to schedule an appointment with one of our bookkeeping professionals. Stay up-to-date with all things financial by following our LinkedIn.

 

 

How To Prepare Taxes for 2022 Tax Season

 

 

Now that tax season is officially over, it is time to prepare for next year. To have an efficient tax filing in 2022, you must stay organized year-round. 

2022 Tax Season
Check out the info below for professional advice about tax preparation for the 2022 Tax Season.

 

Benefits of Tax Planning

 

Tax planning is beneficial to you in the following ways:

 

  • Get your tax deductions and tax credits. Keep track of all your supplies purchased, depreciation, and mileage. Subtract these expenses from your taxable income. Tax credits also reduce the amount of taxes you owe by reducing your income tax dollar-for-dollar.

 

  • Help decide on using standard deductions or itemizing. Many taxpayers use standard deductions because it is much faster at a flat rate. Itemizing is a longer process, but typically ends up with more deductions. Itemizing takes your tax deductions one by one.

 

  • Determine your tax bracket and plan for tax time. Knowing which tax bracket you fall in is vital so you know your standing and gives you time to prepare. The higher your income is, the more money you may have to pay in taxes.

 

  • Keep a good track of your tax records to file on time. The most important part of tax planning is keeping records of past tax returns and current documents. If you work with a tax preparer, this helps them keep you on track.

 

How to Stay Organized

 

Reduce the amount of paperwork as much as possible. Digitize everything you can and stay orderly with a spreadsheet. You may find that software like Quickbooks works best for you. Take a photo of your receipts while you are on the go. Quickbooks tracks the date, vendor, amount, and payment method for you. This prevents a pileup of printed receipts in your office.

 

When making note of your expenses, accurately add the date, location, amount, and item. Keep food and office supplies separate. Add in the number of miles driven, location, and reason for driving there so that you have good representation for the IRS if needed. 

 

Monitoring and collecting this data also shows your business where it is spending the most amount of money. This helps you determine whether it is a good use of your budget.

 

Should I Hire a Tax Planner or Tax Preparer?

 

A tax planner structures transactions to minimize the legitimate amount of tax you pay. Tax preparers file taxes for individuals and businesses. They ensure you consider all your legal deductions, so you realize your full tax benefit. 

 

PL Consulting has comprehensive interview techniques. Our computerized tax return preparation process assures that your return is complete, correct, and presented to you promptly. We assist you in planning your tax obligations for the entire year, so there are not any surprises at tax time. We ensure you gain the full benefit of your deductions through our intensive education and training.

Questions about our tax preparation services? Call us at 410.764.3731 or contact us on our website. Stay up-to-date with PL Consulting on our LinkedIn.