Atlanta CPA....Getting Your Taxes Done Correctly
Getting Your Taxes Done Correctly Takes Time Energy and Effort on behalf of both the CPA and the client. At His CPA PC (as a Christian CPA Firm) we are committed to keeping your tax bill as low as legally possible. Accordingly when working with your company's bookkeeper we work hard to be sure your internal financial statements are correct before the return is started and that each and every legal tax deduction is reviewed to its fullest to be sure there are no surprises. The below is a sample letter we might send to a client to be sure that the data being compiled will result in their Corporate Income Taxes/IRS Form 1120S/LLC resulting in their lowest legal possible tax:
I will need the amount of medical insurance premiums pain on the owner's behalf.
Please move the Payroll Taxes to the Cost of Goods Sold Section of your Profit and Loss.
Please review the detail in the Payroll Taxes account as they represent 20% of Gross Wages and they should only be approximately 8%. Please review/advise.
Please move the Loan Payments if principal to the correct Balance Sheet account or to interest if indeed interest expense.
After you have made these changes please resend the Balance Sheet and Profit and Loss.
I did not see where the Depreciation Expense was listed on the Profit and Loss. Please correct.
Keeping your business legal in all states where your company transacts business is essential. There are several criteria to evaluate when considering where to originally incorporate/domicile your business. All the criteria should be looked at in aggregation to consider including where your business has its core business operations, employees and physical locations. To learn more read this article on our website.
If you business has an average salary of less than $50,000 (not counting owners, their family members and those not on your medical insurance plan), have less than 25 Full Time Equivalents (FTE's) and provide over 50% of the insurance for all employees you may qualify for the Small Business Health Care Tax Credit. If you think you might qualify please forward the amount of net medical insurance premiums paid by employee (after deducting the amounts an employee paid) along with whether their medical coverage is Single or Family. To read more about the credit, click here. It would be advantageous to record the medical insurance premiums for employees versus owners in a separate P/L account. Please let me know.
John Dillard, CPA of His CPA, PC, 1940 Woods River Lane, Duluth, GA 30097 Phone 770-814-9304 www.HisCPA.com A Christian Atlanta CPA Firm Serving Alpharetta/Suwaee/Duluth & Beyond