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Close Out the Year Powerfully
| Posted on December 28, 2022 at 5:25 PM |
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It's Time to Close Out the Year Powerfully. Here is Wishing all our Fans, Clients and Business Associates a Merry Christmas, Happy Holidays and a Successful Year 2023.
Remember to Gather your Documents and Ensure that all your Expenses are recorded according to the Correct Tax Deduction Categories.
Tax Season is Almost HERE and the Rush Season will soon Commence. It's important to start keep your Records now and avoid an Overwhelming Tax Season.
It may seem like a Daunting Task. However, Rosyan Bookkeeping Services , We can help you organize your Accounts and manage your Books Effectively.
Call, DM or Visit our Website for more Information.
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RENEW YOUR ITINS.
| Posted on August 17, 2018 at 5:36 PM |
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 More than 2 Million Individual Tax Payer Identification Numbers( ITINs) are set to expire at the end of 2018. * Tax Payers whose ITIN is expiring and needs to file a Tax Return in 2019 must submit a Renewal Application. * ITINs that are affected are the ones with the middle digits 73,74,75, 76, 77, 81 or 82. ( For Example: 9NN-73-NNNN) needs to be renewed even if the Tax Payer has used it in the last 3 Years. *ITINS with middle digits of 70,71,72,78,79 or 80 have previously expired. Tax Payers with these ITINs can still renew at anytime. * Acting Now to renew ITIN Numbers will help Taxpayers avoid delays, that could affect their Tax Filing and Refunds in 2019. * As a Reminder, the IRS no longer accepts passports that do not have a Date of Entry into the US as a Stand Alone Identification Document for dependents from a country other than Canada, Mexico or dependents of US Military Personnel Overseas. * The Dependents passports must have a Date of Entry Stamp, otherwise Additional Documents to prove US Residency will be required. Read on and Be Enlightened. Feel Free to Share. |
Filing Season Starts Monday, January 23rd 2017.
| Posted on January 15, 2017 at 11:43 PM |
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 The IRS will begin accepting 2016 Returns and processing Paper Ones on January 23,2017. The Closer you are to the front of the line, the safer your refund will be. So What Do you Need to Do?*Start collecting your Tax information- Your W-2s, Mortgage Interest Statements and 1099s as soon as it begins arriving in the Mail. * Pull Together Receipts and Other Information on your itemized deductions as soon as possible. * Once you have everything you need, Schedule Time with your Accountant, Bookkeeper, Enrolled Agent or Tax Preparer. Need Extra Incentive? Not Only will filing as soon as possible protect you from fraud, but you will also get your money back quickly. With the New IRS W-2 Filing Rule, Tax Payers claiming certain Tax Credits are expected to wait longer for their refunds. Remember: Tax Returns are Due April 18th of this Year. Let the Tax Season Begin and Enjoy a Good Tax Filing Season. |
NEW W-2 DEADLINE IN 2017; Business Owners & Employers Take Note.
| Posted on December 5, 2016 at 12:10 AM |
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If you're
a Business Owner, Be sure to Draw a Big Red Circle around the date January
31, 2017, on your Calendar; This is the new Due Date for filing Forms W-2 with
the Tax Authorities. In an effort to combat Fraud, The Protecting Americans from Tax Hikes (PATH) Act of 2015 was passed by Congress and signed last December. With this New Act, Employers and Small Businesses have January 31st Filing Deadline to submit Forms W-2 and W-3 to the Social Security Administration (Whether you file using Paper Forms or electronically). This New Date also applies to certain Forms 1099-MISC reporting Non-Employee Compensation such as Payments to Independent Contractors. Note: The January 31st Deadline for Employers to furnish Copies of Tax Forms to Employees remains Unchanged. The New Law changes the Rules for extending time to file Forms W-2. Moving Forward, Only One 30 -Day Extension to file a W-2 is available and this extension is NOT AUTOMATIC. If you, as an Employer need an extension, you must file Form 8809, Application for Extension of Time to File Information Returns (Downloads as a PDF). This Form should be completed as soon as you know that an Extension is necessary, BUT NO Later than January 31. Due to the PATH Act Change, the New Law requires the IRS to delay Refunds for any return claiming either the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC) until February 15. By Law, the IRS must hold the entire Refund, Not just the Portion related to the EITC or ACTC. The New Deadline, which has long been on the wish list for the IRS will make it easier to verify the legitimacy of Tax Returns and properly issue Refunds to Tax Payers. Many States have adopted this Federal Change for the New Deadline of January 31. The Only States NOT affected are Arizona, Arkansas, Kansas, Maine, Massachusetts, Michigan, Minnesota, Missouri, Montana, New Jersey, New Mexico, Oklahoma and West Virginia. WHAT ABOUT 1099-MISC? The New January 31st Deadline also applies to Forms 1099-MISC Reporting Non- Employee Compensation such as Payments to Independent Contractors. If you are filing Form 1099-MISC and Reporting Amounts in Box 7: Nonemployee Compensation, then you will need to meet the New Filing Deadline of January 31st. Note: You must also furnish Copy B and Any Other Applicable Copies of Information Returns to your Contractors by January 31st. IMPACT ON EMPLOYERS: It is important that Employers become adequately prepared to complete the Year End Tasks. This Means: * Verifying Accuracy of Employee Information. * Reporting/Submitting Any Year- End Adjustments as soon as possible. * Reviewing Year- End Totals for any Discrepancies. PENALTIES There are Penalties for Failure to File these Returns or Furnish Correct Statements and these Penalties are not Palatable. The Penalties range from: $50/Return - If Not More than 30 Days from New Date. $100/Return - If After 31 Days Late - 6 Months. $260/Return - If After 6 Months - Not Filing At All. However, If you need to make Corrections after sending your File to the Social Security Administration, you can do so by filing Form W-2C, Corrected Wage and Tax Statement. Finally, The IRS urges Tax Payers to still plan to file their returns as they normally would do, but prepare to exercise some patience. With these changes, you're bound to see some delays. The Refund Delay is an added way to help the IRS combat Tax Fraud by beefing up it's effort to authenticate Tax Payer Filings. To keep disruptions to a minimum, the IRS wants us to get the word out about these Changes NOW. As Tax Season approaches, the IRS wants to be sure Employers, especially Smaller Businesses, are aware of these New Deadlines. At Rosyan Bookkeeping Services, We are committed to helping you with your W-2s, W-3s and 1099 Filings, as well as furnishing you with helpful information regarding your Tax Filings. Call Us on 202.422.4586 and We would Gladly Assist You. |
How to Avoid Online Fraud.
| Posted on May 18, 2015 at 11:32 AM |
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The Warmer
Weather has finally arrived; soon it will be summer. Most Business Owners let
down their guard, let go on Vacations and have Fun. Coincidentally, it's
also a time that Online Scammers and Hackers get active and keep their
eyes looking for Accounts to hack and tamper the unfortunate company Account
Holders. Our Discussion today focuses on an area that is passionate to my heart. As a matter of fact, I look forward to a day, that every company will be devoid of fraud. Technology has given fraudsters an edge in recent years, and we see a lot of fraudulent activities and online attacks on most Business Account. There are majority of fraudsters out there that are using the basic scams to de-fraud merchants, because there are too many Businesses that are not doing anything to stop them. The Purpose of this Write-up is to provide information on the various types of Account Frauds that exist and how to prevent these online fraudulent attacks on your Business. The Online Frauds are as follows: 1) Morphing Fraud (Repeat Offenders): This is common in online customer sales businesses. The Fraudster hits a Single Merchant, multiple times using slightly different data points each time; A Multiple Purchase is made from your Business site within a short time frame with a number of different credit cards. In this Case, All of the Goods will be going to the same location, but all of the other data may change between purchases. 2) Skimming:This is where the Debit/Credit Card Numbers are being accessed in common places like Restaurants, Bars, Hotels, ATMs and Airports. The Fraudsters place fake devices in these locations or sites, where an accomplice or entire staff unknowingly swipes each credit card that is entered. Afterwards, these Numbers are collected and sold. 3) Debit Card Fraud: This occurs when a criminal gains access to your debit card number, to make unauthorized purchases and/or withdraws from your Account. When your Debit Card is used fraudulently, the money is missing from your account instantly. Recently, We had a case of client, whose Company Account was continuously charged an unauthorized amount for 6 months, and the Client innocently thought the charges were for services, he had signed up for, until his account was reviewed and he found out that they were fraudulent online transactions. 4) Identity Fraud: A Case of Identity Theft is being reported every 19 Seconds since the Year 2001; It occurs when someone's personal information is stolen and a credit card account is opened in the victim's name, without their permission , and charges are made to these account. It is worthy to note that identity fraud does not necessarily occur, when a credit card is simply stolen. Having looked at the most common types of Online Fraud, We have listed below the steps to prevent your account from being attacked. Avoiding Online Fraud:
Finally, it is
worthy to note that the most effective way to prevent fraud is to be proactive
in the design of your strategy. It is really scary to consider the
damages. What Strategy have you put in Place to prevent your Personal and Business Account from being attacked? Think about this and Act Immediately. If you need help with setting up a Fraud Resistance Accounting and Bookkeeping Strategy, we are just a Call away. We would love to hear from you. |
Have you Filed your Taxes Yet?
| Posted on April 4, 2015 at 5:17 PM |
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It's the month of April and We're counting down to the final days of Tax Time. Have you filed your Taxes yet? Do you know that you have a few days left, to file your Taxes? Here are some quick ideas, to help you organize and get your documents ready for Tax Filing:
Here is a list of the common Tax Records, that we all need to have, for an effective Tax Filing: 1. Informational Tax Forms( W-2, 1099, 1098, 1095-A, Plus Others) that disclose Wages, Interest Income, Dividends and Capital Gain/Loss Activity. 2. Other Forms, that disclose Possible Income ( Jury Duty, Unemployment, IRA Distributions and Similar Items). 3. Business K-1 Forms 4. Bank and Investment Statements 5. Mortgage Interest Statements. 6. Business Expenses. 7. Property Tax Statements. 8. Mileage Logs for Business, Moving, Medical and Charitable Giving. 9. Medical, Dental and Vision Expenses. 10. Tuition Paid Statements. 11. Records of Any Asset Purchases and Sales. 12. Health Insurance Records( Including Medicare and Medicaid). 13. Charitable Receipts and Documentation. 14. Social Security Records. 15. Credit Card Statements. 16. Records of Any Out of State Purchases, that may require Sales Tax. 17. Records of Any Estimated Tax Payments. 18. Contribution Records 19. Educational Expenses( Including Student Loan Interest Expenses). 20. Casualty and Theft Loss Documentation. 21. Moving Expenses. 22. Home Sales Records. If you are not sure whether any of your Documents are important for Tax Purposes, Retain the Documentation. It is better to save unnecessary documentation , than regret that you did not present the document to support your Tax Deductions. If you need assistance in organizing your Documents and getting them ready for Tax Purposes, as well as setting up your record keeping system, so that you don't miss any Tax Deductions, Feel Free to call us on 202.422.4586 to help you out. You will be glad you did. |
5 Strategies Of Turning your Profits into "Cash"
| Posted on December 8, 2014 at 2:29 PM |
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The Holidays are here and it's time to ensure that we have some cash tucked
somewhere for the Holiday Shopping, Gifts, Christmas Parties, as well as
Year-end Savings.
In our last Newsletter, we uncovered the myth of profits, and learnt that,
understanding how transactions occur in our business and its effect on our
financial statement is key to managing our profits. Please feel free to
refer to our last newsletter for the full details. This Month, We will be
looking at 5 strategies of turning our Profits
into "Cash": 1 ) Cash is King: Every company experiences an increase or decrease in
Cash availability at any given period; the basic key to turning your profit
into "Cash" is what you do, when you have made a Great Sale and
received Payments from a Business Windfall. This should be the period
to have a Savings or Cash reserve Account, whereby you can set aside a certain
percentage of this revenue and discipline yourself, not to meddle with the
account. This is called effective Cash Management, and it takes a lot of
discipline, but if taken seriously, you will achieve great results. 2) Plug your Cash Leaks: A lot of Business Owners are surprised about
the waste, inefficiency and unchecked spending of precious Cash that should
have remained in their Bank Account, if they have been managed
effectively. As a Business Owner, it's possible to have been a culprit of
any of these acts:
It's time to take a forensic trip down your Profit & Loss
Statement and try to justify every expense line item, I assure ,you there
will be a 5 % more profit ,just waiting to find its way to your bottom
line. 3) Take Ownership of your Business Account: A lot of Business owners
tend to mingle their personal expenses with their Business Account. Once you
indulge in this practice, your financial reports are contaminated and become
pretty worthless, especially when it comes to decision making. It's better
to take ownership of your Business Account and maintain it, as a separate
"entity" from your personal account. This will help you manage
your cash flow better, and hence you will able to pay yourself
appropriately. After all, this is the reward of being a savvy
business owner. 4) Avoid taking on too much Debt: Too much debt sucks the financial life
out of a company. In our last Newsletter, we learnt how Principal Loan payments
occur on the Balance Sheet and are funded by your profit; Imagine what happens
when your company is overburdened with debt, Chances are that you will use your
Cash flow to continually offset the debts, and this causes your company to be
cash starved.
The only way to eliminate debt is to put yourself and your company on
a "strict debt reduction diet". If
possible, Stop adding further debt to your company; otherwise have a
strategy on how to pay off the debt, if you MUST take on further debts. 5) Have a Budget: A Budget is a blue print of an
estimation of revenues and expenses for a given period in the future. A Budget
gives financial direction. A Budget keeps you on track and helps you
to manage your cash flow. Preparing a Budget makes you disciplined and faithful
to keeping your profits. This is the best time to prepare
a Budget for your Business towards the upcoming year.
As we approach the New Year, Why don't you try out these practices and
watch your Cash flow grow. You will be surprised at how a few dollars will
add up in your Bank Account.
Do you need help with creating your Budget for the upcoming year? Are you
experiencing problems with recognizing your expense line items and
don't understand how your Cash flow operates? Why don't you give us a
Call, We will be glad to help you out.
Happy Holidays. |
Where did my Profit go?
| Posted on November 5, 2014 at 1:44 AM |
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-Understanding the Myth of Profits. As a Business Owner, Have you ever wondered why you cannot seem to get hold of your profit? Most Business Owners ask the question....." I see that I made a Net Profit of $XXX, but where is it? ".We have been looking at the topic of profit making, and this topic is a great mystery in Businesses. We agree that making Profit is a good thing and a negative profit (Loss) is not a good one; however, the mind game begins when there is profit, but no money in the Checking account. Do you also wonder why you don't go out of Business, when your Profit & Loss Statement keeps showing a negative profit (Loss)? The Answer is simple: PROFIT IS NOT CASH. The most important fact to remember about Profit is that, Profit has no connection to how much Cash is in the bank. A Profit and Loss Statement shows the movement of transactions, which occur in your Business for any given period (monthly), and the total net effect of these transactions constitute the balance that you see on your reports. An Example is when you enter a Business transaction, and an invoice amount of $3,000 is created in your Books, your Profit and Loss Statement shows the Sale and Resulting Net Profit, but there is NO CASH, until the invoice is paid; this money remains in your Account, only for a period of time, because when you pay your vendors or make your Bill Payments/Loan Payments, the money is being used up. Let's take a Loan Payment as another example; Most Business Owners forget that only the interest portion of a Loan Payment appears on a Profit & Loss Statement, while the Principal portion of the transaction occurs on the Balance Sheet. In this case, another portion of profit has been used to pay the principal. In conclusion, It's not Magic...........It's just having a basic understanding of how transactions occur in your Business and its effect on your Profit & Loss Statement, as well as your Balance Sheet. The Ultimate Goal is to make better financial decisions. However, take Note, You can be profitable and still be broke (Did I hear someone scream?). Turning Profit into Cash is the secret to managing your Net Profit Balances. Our Next Newsletter will feature, how you can turn your Profits into Cash; if you need help with understanding your financial reports, why don't you give us a call? We would be glad to help you. |
Setting up the Right Accounting System for your Business.
| Posted on September 5, 2014 at 12:50 AM |
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Setting up the Right Accounting System for your Business. Every
Business needs a good Business Accounting System to increase their
Business' chance for success. When Starting a Business, the first focus should
be on building systems and processes, that allow us to accurately capture
as much data as possible, from the setup process; It is important to remember
that this process helps us to learn about our businesses and enhances our
decision making, as well as giving us a better idea, of what is going on in our
Business. This Month, we will be looking at the processes of setting up the right business accounting system for our Organization. Below are some points to consider, when setting up your Business Accounting System:
You need to spend time in setting up the
right Accounting system for your Business, if you want your Business,
to be successful. We know that it is easy to get caught up in all the
administrative tasks and will suggest that you ask for help Do you have the right Accounting System for your Business? It's not too late to set up a good system for you, why don't you give us a Call to help you out. Remember: You are increasing your Business chance for Success, when you make your Account Setup, a priority. |
Tips for Managing Your Business Cash Flow.
| Posted on August 5, 2014 at 2:49 AM |
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It's already
the eighth month of the Year, We are gradually getting to the end of the year,
and soon it will be time for Year End Reports. In our last Newsletter, We
discussed the concept of Cash Flow and how it affects our Business Operations;
this month, we will be looking at tips to manage our Business Cash Flow. Being in Business for yourself is like being an Air traffic controller, especially in the area of cash flow management ; You can imagine trying to control 100 Airplanes landing simultaneously on two runways; this can be an upheaval task, but we regularly see clients line up their monthly bills, their projected income, business projects and business expenses and try to combine all these activities, at the same time, trying to ensure a steady cash flow into the business; you can imagine, the projected outcome, if all these activities are not properly coordinated. Cash Flow is the heartbeat of every Business, and if a Business does not have the cash on hand to pay their vendors, they will definitely run into problems. The main Cash Flow Problem, that Business Owners face is as a result of Lack of Creative Cash Management. Below are some Tips to overcome the Ups and Downs of Cash Flow Problems in your Businesses: 1) Always Schedule All Payments: Most Business Owners line up their monthly bills, compile them, sit down and issue all the checks and set up Bill Payments at once; but the trick is to have a " Holding Pattern". It is advisable to schedule each payment, in order to get to your vendors in a timely landing, without affecting other Cash Flow activities. Every Business has Three (3) tiers of Checks Disbursements Groupings: a) Must Pay Group- These are payments that can hurt you, either in cost or ability to operate your business, if they are not paid. These include items like Taxes, Rents, Payroll and Service Charges. b) Important to Pay Group - These are payments, that have a reasonable grace period, and if not paid, a financial penalty can be incurred, as a result of Nonpayment. These include Utility Bills , Credit Card Payments and Insurance Payments . c) Flexible Payment Plan Group - Suppliers, Vendors and Wholesalers, that supply most Small Businesses are the best sources of flexible credit financing. Most of them will continue to work with you, if you arrange a regular payment plan with them.
2) Make
Payments on your Revenue, not on uncollected Sales : I am sure, that none
of us will want to land a plane, hoping that the runway is beneath us in the
fog bank, as also Business owners, it is not advisable to make projected
payments on uncollected revenue. You may wander, what happens to Credit
Facilities, Guess What, Most Credit Facilities still have a timeline for
payment.
3) Do
not use Payroll Taxes to float your Business Operations: Studies
have shown that most Business Owners use the Tax liabilities, collected
during payroll, to float their businesses, rather than remitting the payments
to the appropriate Tax Authorities. They don't realize that they spend
more in potential penalties, fees , interests, time and aggravation, if they
engage in this act. Tax Liabilities grow, if they are not remitted at the
appropriate timing.
4)
Establish Relationships with your Credit Provider: It is very important
for every business owner to plan for a rainy day. Having a great relationship
with a vendor, that gives you a credit facility, avoids cash flow
storms, which might bring in a sense of desperation or lack of control.
5)
Invest in a Good Bookkeeping/ Accounting Service: It is important for
Business Owners to have a grasp of their cash flow and understand the
effect on their business growth. A Good Bookkeeping service is invaluable to
your business, particularly in preparing your monthly financial reports and
cash flow statements, which will help you, see how your Business is doing as
well as maintaining your Business Cash flow.
Please feel free to contact us on 202-422-4586, if you will need further help on how to manage your Business Cash flow and financial Reports. We will love to help you. Remember: The best time to take control of your Cash Flow is RIGHT NOW. |