by Blair Butters | Aug 5, 2024 | Tax Planning
At the beginning of 2024, the U.S. Government started requiring U.S. companies and many small businesses to file Beneficial Ownership Information (BOI). In this blog post, we detail the following BOI information, so you know where you and your company stand: What is Beneficial Ownership Information (BOI)? Who needs to file? When are the filing deadlines? Recent Legal Changes How to file a BOI As always, contact your Accounting and/or Legal counsel for information specific to your company. What is Beneficial Ownership Information (BOI)? Beneficial Ownership Information refers to data that identifies the individuals who ultimately own or control a legal entity (think corporations, LLCs, and other similar entities). The purpose of collecting this information is to prevent and combat money laundering, terrorist financing, and other illegal activities that can be facilitated through anonymity in corporate structures. The Corporate Transparency Act (CTA), enacted as part of the broader Anti-Money Laundering Act of 2020, introduced new reporting requirements aimed at enhancing transparency and curbing illicit financial activities. A key component of the CTA is the Beneficial Ownership Information (BOI) filing requirement, which affects a significant number of small business entities in the United States. Who Needs to File? The CTA requires many companies doing business in the United States, particularly small businesses and entities that are not publicly traded, to report their beneficial ownership information. This includes corporations, limited liability companies (LLCs), and other similar entities formed or registered to do business in the U.S. Entities that qualify for an exemption, such as certain trusts, are not required to file. When are the Filing Deadlines? Companies that were created or...
by Blair Butters | Feb 2, 2024 | Accounting, Bookkeeping
As a small business, one of the biggest challenges you face is maintaining the essence of who you are, and how you serve your community, while also staying competitive as an employer and keeping up on the endless stream of bookkeeping, accounting and tax related needs. Most small businesses on American land are in this middle squeeze spot where you have several employees and accounting and bookkeeping related needs, such as ensuring that those people get paid accurately and on time every week! But your needs don’t justify having a full-time in-house team member. So, what is a small business to do? This is where an outsourced or contracted accounting partner can be a great fit! Outsourced bookkeeping, also called on-site bookkeeping, is one of the fastest growing trends in the bookkeeping and accounting world. It gives you the flexibility to have someone on the inside of your operations and your bookwork, but without you having to take them on as a full-time team member when it’s not necessary! Here are 4 signs that it’s time for you to get the help of an on-site bookkeeper: You’re falling behind or making mistakes: If you find yourself getting overwhelmed with a too-long-to-do list or making mistakes in areas like managing profit and loss statements, expenses, and payroll, this is a sign it’s time to consider getting an on-site bookkeeper. Your staff is growing. Have you recently expanded your team and the number of employees supporting your business? This is a good indicator to bring in someone from the outside to support your team and business so that you can keep...
by Blair Butters | Oct 27, 2023 | Accounting, General Tax and Accounting Information, Tax Planning
Do you ever feel like life is passing you by before you even realize it? Somehow, we’ve already made it to the last quarter of the year. Fall colors are in full bloom, temperatures are beginning to change (albeit slowly for some of us!), friends and family are starting to think about the holidays, and most business owners we know… well, they are hustling to hit goals before year-end! We know you have many items to attend to and that adding another area to dive into could cause overwhelm. Don’t fret! We’re here to help you to make the most of these final months and prepare for the coming year with some tips and guidance to help you prep-ahead for tax time. How to Prepare for the Last Tax Quarter of the Year The last quarter of the year is an important time for any business owner, especially when it comes to taxes. It’s a good time to dot your ‘I-s’ and cross your ‘T-s’, by making sure you are maximizing deductions, minimizing your liabilities, and planning ahead for the next year. This is also where having an established relationship with your tax professional will serve you most. Rather than waiting until tax time, be proactive and create an end of year plan together. Review your income and expenses. The first step is to review your income and expenses for the year so far and estimate what they will be for the rest of the year. Pro Tip: gather your financial statements, review your profit and loss statements and balance sheets so you can gain a better understanding of...
by Blair Butters | Jul 24, 2023 | Auditing, Auditing, IRS, Tax Planning
Why Did the IRS Reject My Tax Return? The IRS may reject your tax return for many reasons, and while it can be a scary situation, it is often something that can be easily resolved. Today we will cover a few of the major reasons why your return may be rejected, how you will be notified, what you should do, and steps to prevent this situation from happening in the future. Why Your Return May Have Been Rejected If the IRS rejects your tax return, it is likely due to an error other than a simple math mistake. The IRS will typically correct math errors without rejecting a return. Outside of math errors, the IRS can reject your tax return for a number of reasons. Here are a few of the common ones: Inaccurate or Missing Information. Your name, date of birth, and/or Social Security number do not match what the IRS has on file. For example, if you changed your name after marriage, you need to update your name with the Social Security Administration for the IRS to know about your name change. Dependents Claimed on Multiple Returns. If you attempt to claim a dependent that has already been claimed on another return, yours will be rejected. For example, you and your ex-spouse both claimed the same child as a dependent on your returns. Your Return Was Already Accepted. Another return with your Social Security number and information was previously filed and accepted for that tax year. If this is the case, it could be a sign of fraud or identity theft. Incorrect PIN or Prior Year AGI....
by Blair Butters | Apr 11, 2023 | General Tax and Accounting Information, Tax Planning
Invoicing, paying bills, bank reconciliations, credit card reconciliations…bookkeeping. This data takes time to collect, process, and balance each month—time that could be spent on projects and tasks that move the needle in your business. Many may choose to keep bookkeeping in-house, taking money that could be spent on employees that would ultimately further the company’s mission. By outsourcing bookkeeping to a firm like DMA Tax and Accounting, businesses gain peace of mind, and much more. Here are five reasons to consider outsourcing your bookkeeping: It helps you save money. Outsourcing a bookkeeper who is knowledgeable and efficient will cost less than hiring a full-time in-house bookkeeper and gives your company the opportunity to allocate additional funds to hiring or growing your operations. Outsourcing saves time. By hiring out, you can shift the time spent in the books to more important, money-generating tasks. Outsourced bookkeepers are more efficient and are more likely to have in-depth knowledge of the latest bookkeeping programs and software. They can assist business owners with the systems already in place to obtain the most complete financial information or review your current system and provide suggestions to make it easier for you and save additional time. Reduce errors and maximize accuracy for tax filings. Having an expert in your back pocket to pay bills, perform bank and credit card reconciliations, invoice, and perform all other bookkeeping functions of your business will ensure your filings are up-to-date, accurate, and meet current standards. Our bookkeepers at DMA provide onsite bookkeeping for added convenience, are experts in QuickBooks, and are supported by our two CPAs on staff if you have...
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