Forward Focus

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Sep 23

The 411 on Tax Extensions

Girl at Desk

The first time a client hears the suggestion or necessity to file a tax extension, they panic. With that said, if I need information from a client and they aren’t answering their phone, it seems all I need to do is say the word ‘extension’ in a voice mail message, and information magically appears.

Once a procrastinator realizes that filing for an extension gives them 6 additional months to file their tax return, the new deadline becomes much more manageable. The best part about filing an extension is that it is an extremely easy process. An extension is automatically accepted if the information pertaining to the company or individual matches the file information that the IRS has on file.

Here are some important tips in understanding Tax Extensions:

  • Filing for an extension is easy
  • You do not need to sign an extension form for your accountant to file one on your behalf
  • You get 6 additional months to file your return – this is only an extension of time, not payment
  • The most important thing to remember when you are unable to file your tax return on time, is that an extension must be filed by the original due date of the return
  • The taxes are still due on the original due date and an estimate of as much or more than what you’re expecting to pay is required. If you owe additional money on the tax return in October, then there will be penalties and interest charged.
  • The tax deadline for most Business returns (1065, 1120 and 1120S) is extended until 9/15, and the tax deadline for personal returns, including those with Schedule C businesses, is extended until 10/15
  • Many people think that getting an extension makes them more likely to get audited. There is no evidence to indicate that this is true.
  • The most common reasons that audits are performed are failure to file at all, or expenses and income that are out of line with the norm.
  • If you are currently on an extension and need a preparer, we can help you!
  • If you did not file the extension but have unfiled taxes, we can help you!

Call Forward Focus Accounting at 614-802-6950 and speak with one of our team members if you need help figuring out and filing your tax extension.

Mar 14

When Should You Hire an Accountant for your Small Business?

Portrait of smiling salesman at the ice cream parlor

Hiring an accountant for your small business is a huge decision. As a small business owner, its likely you try to get by without help whenever possible. To run a successful small business, you need to decide what to do on your own and when to pay a professional. However, a time it may not make sense to cut a corner is when deciding whether to hire an accountant. Similar to the way you offer your clients more than they could get alone, a small business accountant can often give you benefits far outweighing the cost.

When should I hire an accountant for my small business?

  1. You are not well-educated about business taxes. Most business owners are not trained in tax accounting. Can you answer questions like: What is CAT tax? Who is RITA? Where do I pay my taxes? What is nexus? I have a payroll service, I don’t need to worry about anything but my year end taxes, right?

If these questions aren’t easy for you to answer, you should consult an accountant. 

  • You aren’t familiar with accounting. What is deductible and what isn’t is complicated. Tax law doesn’t always make logical sense and changes from year to year. You could really be cheating yourself out of deductions which would be additional money in your pocket. In addition, there may be special incentive programs that your accountant is aware of that you aren’t. Hiring an accountant for your small business could really benefit you. Finally, in the event of an audit, its much better to have the peace of mind that everything has been done correctly and that you have a qualified professional to guide you along the way. And did you know that Cheri is licensed as an EA? That means if you do experience an audit, she can represent you in front of the IRA.
  • You don’t have time to do your own bookkeeping.  If you find yourself stressed every time you put your checkbook and information together for tax returns, you may be surprised to know bookkeeping services are affordable. The average fee for all monthly bookkeeping and payroll at our firm is $250 per month and that includes year-end tax returns. That is just about $8 per day for monthly financial statements, a real live accountant that can answer your questions, and prepare a business tax return for you. For bookkeeping services only, with no payroll, the average fee at Forward Focus Accounting is $150 – $175. Think of it this way – in the time you currently spend each month for bookkeeping, could you make an additional $250 for your business? Add in the stress of not knowing whether you are doing it correctly and the value becomes even greater.
  • Your business is growing quickly.  While rapid growth is exciting, it is also one of the leading causes of business failure. In a 2015 study of the annual Inc Magazine list of the 5000 fastest growing companies, two-thirds of these failed within 5 years.  Rapid growth requires good cash flow.  Do you know when it is time to get a line of credit?  Do you have a good foundation and practices and procedures in place to allow you to manage the rapid growth?  This is extremely important. Working with an accountant can help you plan and react appropriately.
  • Revenue is increasing but your profits aren’t.  Or your P & L says you are making money, you are paying out a lot in taxes, but can’t take your own payroll check.  An accountant can help you explain this and prepare you for your year-end taxes.

These are all reasons to hire an accountant for your small business According to the Small Business Administration, there are about 30 million small businesses in the United States. Most of the owners of these businesses are experts in something other than accounting. You owe it to yourself and the success of your company to consider contacting an accountant today. Find out more about our small business accounting services by clicking here. Cheri and her team look forward to meeting you.

Dec 11

Are you or your parents 70 1/2 or older?

If you are, remember to take your Required Minimum Distributions (RMD) from your retirement accounts such as your 401(k)s and IRAs. You will need to do this by the end of the year. If you don’t, you will face a heavy tax penalty of 50 percent of the required amount.

The IRS has allowed these investments to increase in value, tax-deferred for the life of the contribution. And, the IRS wants the tax revenue it is owed.

You should work with a professional to determine the right amount you will need to withdraw. RMDs are based on age and year-end values in eligible accounts. Talk with Cheri before the end of the year to help determine what is best for you.

Dec 01

Welcome to Forward Focus Accounting – Your Small Business Resource

Hi and welcome to Forward Focus Accounting!

When I created this business in 2017, it was the culmination of a series of career and life events. My goal was to use my 25+ years of small business accounting to help clients build the future they have always dreamed of.

We specialize in the customary accounting services such as bookkeeping, accounting, payroll, tax preparation, and IRS representation. In addition, we also offer tools and advice to our clients who have an interest in entrepreneurship. Running a small business can be very rewarding, but also takes a lot of work and knowledge. Did you know:

According to the Small Business Administration:

  • 20% of small businesses fail within their first year
  • 50% of small businesses fail by year 5
  • 70% of small business owners fail by year10

Businesses don’t fail because the owners don’t understand what they are selling, they fail because they don’t know how to run a business. We are here to provide the help you need to succeed and become part of the group that survive and thrive.

Using a concept called  Practice Forward, we provide you with many of the services a small business needs from a team of highly qualified professionals. The difference is that we are each small business owners ourselves. With strategic partnerships between small firms, we can provide you with accounting, finance, investments, legal, and marketing and brand strategy.

As a part of Practice Forward, we have found that many of our clients have fantastic ideas and products, but do not have the time or experience to realize their potential. From a health and beauty line to a construction industry app, to a nail salon, we have helped clients take the necessary steps to becoming the next small business success story. If you have an idea, product, or service that you want to launch, we can help you develop a strategy to win in the marketplace. Please feel free to contact us and set up a meeting.

As tax season is approaching, look to this blog for info and tips to help carry you through. In addition, we encourage feedback from our clients because we always view consulting as a two-way conversation.

Let’s keep moving forward together!