Accounting and Tax Tips and Information

written by Lauren Bakken, owner of Bakken CPA PC and co-author of the book, One-Income Household

Bakken CPA PC is dedicated to providing timely, professional, personalized service to businesses and individuals.

Why You Should Outsource Your Company’s Payroll

A common question accountants get is “am I handling my payroll correctly?” How can you be sure you are withholding the required amount? Are you paying your unemployment taxes? Are you filing payroll returns on time?

If you cannot answer these questions confidently, you may not be doing it right! Not paying the correct amounts at the right time can have some serious consequences, including fines and penalties.

An easy solution to these challenging questions is to outsource your payroll.

Some things the third party service providers do:

  • Prepare the paychecks for your employees
  • Prepare and File Forms 940 and 941 for your business
  • Make federal tax deposits and federal tax payments, and submit this information for the taxes reported on the Forms 940 and 941
  • Prepare Forms W-2 for your employees

There are many payroll companies out there, and you must be diligent in finding a reliable one. Simply hiring another company to do this work for you, does not make you exempt from being held responsible for any problems that may arise.

  • You, as the employer, are the one held liable for all taxes, penalties and interest due, even if it is due to the payroll provider filing something late on your behalf.
  • You should confirm the payroll service provider is using EFTPS (Electronic Federal Tax Payment System) so you can verify that payments are being made on your behalf, by logging into your account periodically.
  • Any notices regarding issues with your account from the IRS will be sent to you, the employer. The IRS suggests not changing your address of record to the payroll service provider because it will limit your ability to be informed of tax matters involving your business.

By choosing a reliable payroll service provider, you can streamline your business operations, save yourself time and be confident your payroll is properly managed. Contact your accountant to get a referral to a great payroll service provider today!

Need Some Help Learning QuickBooks?

I’m offering a series of QuickBooks training sessions through the Plymouth Chamber of Commerce starting Thursday, June 23rd. It’s a series of four half-day trainings where I’ll provide you with guidance on understanding the basics of QuickBooks and how this tool can help you in your business.

The first series will show attendees how to get started including setting up QuickBooks, working with lists and company bank accounts. The second session will focus on entering sales information, receiving payments, making deposits and entering and paying bills. In the third session, you’ll learn how to analyze financial data, set up inventory, track and pay sales tax and do payroll using QuickBooks. The last session will focus on estimating and progress invoicing, tracking time, customizing forms and writing QuickBooks letters and working for multiple currencies.

Why Use a Certified Expert for QuickBooks Help?
Many QuickBooks customers say their experience with QuickBooks is better when they work closely with a QuickBooks expert. As a Certified QuickBooks ProAdvisors are typically CPAs, accountants, small business advisors or consultants who have been tested and certified on QuickBooks. As a QuickBooks Pro Advisor and CPA, I can help your business customize QuickBooks for your unique needs and help you get the most out of the software. I can also serves as a great resource if you run into trouble with QuickBooks or just need general QuickBooks help. My fees are reasonable and many businesses feel the investment is valuable.

All the sessions will be held at the Plymouth Area Chamber of Commerce, 134 Court Street, Plymouth. The schedule of trainings is as follows:
Session One
Wednesday June 22, 2011
8a.m.-12p.m.

Session Two
Thursday, June 23, 2011
8a.m.-12p.m.

Session Three
Wednesday June 29, 2011
8 a.m.-12p.m.

Session Four
Thursday June 30, 2011
8a.m.-12p.m.

The cost is $50 per class or $200 for all four sessions. You can register through the Plymouth Chamber of Commerce. Please visit their website at www.plymouthchamber.com

Need Help Organizing Your Financial Records?

If finding important financial statements and other documents sends you searching through shoeboxes and overstuffed drawers, you are in need of a “financial organizing” makeover. Time spent gaining control of your financial records will pay off in the long run. Good recordkeeping can:
• Make tax preparation easier and remind you of deductions you might otherwise overlook
• Back up documentation may save you taxes, interest charges and penalties if the Internal Revenue Service (IRS) ever questions your return
• Give you a better handle on your overall financial position and help your CPA identify financial and tax planning opportunities
• Provide loved ones with a roadmap to your financial affairs if you die or become incapacitated

For more information on how to better organize your financial records, give us a call today!