It is certainly possible to prepare your own accounting and taxes. However, frequent changes in rules and regulations and sheer volume of information can make this a daunting task…and misinterpretation of software or tax law can lead to costly mistakes. If in doubt, reach out – I have many stories showing an ounce of prevention is worth a pound of cure!

Krey CPA can help:

Assist in a complex year such as sale of investments, start or close of a business or other significant tax event

Supply tips for software or accounting efficiency and personal or business projections

Be a trusted ongoing resource for complex tax preparation and proactive planning

Let us crunch your numbers while you make money and enjoy life!

Call me! Don’t panic…or ignore it…or just pay it. Most IRS notices are computer-generated, and there could be an error. I’ll help you figure out next steps.

The P&L (profit and loss) is a statement of income and expense for a period of time, according to the accounting basis (cash or accrual) established for your business. If all accounting entries are correct, the bottom line shows your net income (or loss) per books for that period.

The Balance Sheet is a “snapshot” of your financial picture as of a particular date. It shows what you own (assets: cash and other property), what you owe (liabilities: loans and other payments due to others) and your net worth (equity: the difference between what you own and what you owe).

Why does it matter? ​Both of these statements are required for purposes such as bank loans and tax reporting…and business planning. If P&L items are on your balance sheet (or vice versa), your bottom line won’t be accurate. Regular periodic analysis of your financial reports is a helpful tool for measuring the pulse of your business.

Household employees, such as housekeepers, caregivers and gardeners, work in or around your private residence as your employee – meaning they are not a business or independent contractor. The IRS has increasingly defined caregivers as household employees, even if contracted through an agency.

Here are some requirements of you as a household employer:

• Obtain Form I-9 (Employment Eligibility Verification) from employee and maintain on file.

• Get an EIN (Employer Identification Number) from the IRS.

• Withhold social security and Medicare taxes (if you pay $2100 or more to any one employee).

• Pay federal unemployment tax (if you pay $1000 or more in any quarter to household employees combined), and possibly state unemployment tax.

• File Schedule H (with your 1040, or by itself if you aren’t required to file a federal income tax return) to report and remit payroll taxes to the IRS.

Here are some starters:

• Determine your entity type (sole proprietor, LLC, corporation, partnership, nonprofit).

• Obtain an EIN (Employer Identification Number) from the IRS, or complete Form SS4 to authorize a third-party designee to do so on your behalf.

• Register with your state(s) – the filing state (where your LLC or corporation is formed) and any states in which you will do business that rises to that state's reporting threshold

• Create or obtain any additional organizational documents – examples include articles or certificate of organization, partnership agreement, bylaws, operating agreement.

• If you intend to be taxed as an S-corporation, be sure the election is filed on your behalf. It’s unfortunately not uncommon for “everyone” to think “someone else” did this!

• Open a business bank account – best practice is to keep business and personal finances separate.

• Track income, expenses and mileage. Keep documentation and receipts.

More questions? Give us a call!

This isn't something we really like to think about or discuss - but life happens. Someone we know either has had or knows someone who experienced an accident, unexpected illness or death. If paperwork is in order, it makes things easier for loved ones during time of trauma or grief.

Here are some key items to consider:

• POA (power of attorney) - Financial, medical, general - for single transaction, or permanent (immediate or upon qualifying event) – have this in place before you need it!

• Estate planning (who will inherit your assets) – allows you to choose who gets what (from your bank account to family heirloom or even your pet), name guardians for children, plan for or reduce taxes, minimize family disagreements or legal processes.

• Trust (legal document allowing a third party [trustee] to hold or manage assets on behalf of beneficiary(ies), with benefits ranging from privacy and asset protection to potentially lengthy and costly probate). Make sure you fund it, and give a copy to trustee, CPA, attorney as applicable.

• Routine financial matters, such as paying bills – with so many of our transactions handled electronically, consider making a list of accounts and log-in information and having a trusted person aware of its location.

Your privacy and data security are a priority and are protected by an integrated system to ensure:

• File transfers are secure and encrypted

• Data files are stored on a secure server

• Daily systematic backups prevent data loss

• No confidential data is stored on laptops

PERSONAL. ACCURATE. SECURE.

OUR PROCESS

Each individual or business tax return or project is unique. The complexity of your tax or accounting project determines the quantity of forms and time required to prepare a completed tax return or project. Krey CPA strives to offer a quality service at a reasonable price.