Accounting News and Notes » Atlanta/Gwinnett CPA

Duluth CPA: Getting Your Bookkeeping Correct Pays Dividends for Gwinnett Business Owners

John Dillard — Fri, 30 Jul 2010 13:57:46 +0000

Duluth CPA: Getting Your Bookkeeping Correct Pays Dividends for Gwinnett Business Owners

For a new business or any who are going to have short or long term financing needs, it is critical for an entrepreneur to consistently stay in touch with their company’s internal financial statements. An owner needs to stay in touch with their CPA first and then develop a relationship and to adequately understand all of the many nuances of bookkeeping and the preparation of financial statements. This is critical to a business owner’s success. Many times I have personally witnessed a business owner rushing into a bank’s office seeking cash to cover the next day’s or week’s payroll, because of their failure to contemplate the longer term implications of their financial decisions. Although this is an extremely valid need, as all would agree, the act of responding on an ad-hoc or emergency basis sends a negative message to all concerned.

Upcoming cash needs should not be a surprise as the key managers and owners should be well versed in upcoming cash needs. The best way to avoid this is to start with the building blocks of prudent bookkeeping and preparation of reliable internal financial statements. When you are meeting the needs of a rapidly growing company, you are often faced with the cash needs to finance new receivables, an expanding inventory and the increased needs of personnel cost all concurrently. Thus, it is critical to constantly stay abreast of current financial operations and their intersection of financing needs and specifically how they impact the company’s cash balances. To this end I might send the below as a sample critique to a company who needs to address several issues in the preparation of their financial statements:

In critiquing your internal financial statements I noted:

One of your back accounts is reconciled as a negative balance. Please review this ASAP to ensure that no overdrafts occur.

It appears as if you have capitalized several items in the fixed asset accounts that are below $1,000 each. I suggest that all items below this threshold should be expensed. You had one item over $1,000 in the fixed asset accounts. Please advise as to what this is so that I might track accordingly or that you might expense as needed.

I suggest you re-class all of the monies in your smaller miscellaneous accounts to Office Supplies and then to mark these accounts as Inactive so that no further postings to this account can be done.

Please review the charges to the Legal & Professional fees account and advise as to what they are and consider a re-class as needed.

Please get a statement from the bank confirming the Note Payable balance as of month end to ensure that the balance listed is correct and then to do a detailed transaction search for the year on the account to ensure correct, based upon items paid/incurred.

Please record $1,000 of Depreciation Expense for the Month and for when you do future months.

Please review your bank account as you had several checks dated 7-1-10 to ensure that these are still valid open and outstanding checks. Also please review the deposits to ensure that they were all correctly classified as income and were not loans to the business.

For the credit card charges in Office Supplies. Please re-class these items to the correct accounts and please charge future credit card charges accordingly to the correct categories.

Please do not hesitate to call should you need any help in addressing any of the above issues.

“Dare to Attempt Something so Great for the Kingdom of God, that it is Doomed to Failure Lest God be in it!”

John Dillard, CPA of His CPA, PC (An Atlanta Christian CPA firm) 1940 Woods River Lane, Duluth, GA 30097 Phone 770-814-9304 http://www.hiscpa.com/ (All Rights Reserved) To retain John Dillard CPA (An Atlanta Christian Speaker/Author) for your business group or church congregation, you can contact him today at 770.814.9304. To discover John Dillard’s Published Books and their vision visit http://www.john-dillard.com/

We advise clients on: IRS representation, Offer in Compromise, Tax Problems, Incorporation in Georgia, Corporate and Personal Income Tax Returns, Part-time CFO, Virtual Controller, Business Planning, Offer in Compromise, Back Taxes, Business Acquisitions/Sales, Forensic Accounting, Business Valuations and Bookkeeping.

Serving Atlanta, Duluth, Gwinnett, Barrow, Bartow, Carroll, Cherokee, Clayton, Coweta, Douglas, Fayette, Forsyth, Fulton, Gwinnett, Henry, Newton, Paulding, Pickens, Rockdale, Walton, Barrow, Bartow, Carroll, Henry, Newton, Bartow, Walton, Rockdale, Barrow, Spalding, Coweta, Dawson, Douglas, Fayette, Newton, Paulding, Spalding, Walton, Henry, Paulding, Douglas, Coweta, Canton, Covington, Douglasville, Druid Hills, East Point, Forest Park, Griffin, Lithonia, Mableton, McDonough, Milton, Mountain Park, Newnan, Powder Springs, Stockbridge, Union City, Villa Rica, Winder, Woodstock, Smyrna, Sandy Springs, Marietta, East Point, Gainesville, Snellville, Buckhead, Buford, Peachtree City, Dunwoody, Kennesaw, Decatur, Conyers, Stone Mountain, North Fulton County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Atlanta, Alpharetta, Johns Creek, Lawrenceville, Milton, Norcross, Snellville, Roswell, Buford, Cumming, Grayson, Lake Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, Dunwoody, Gainesville, Decatur, Atlanta GA, Gwinnett County, North Fulton County, Cherokee County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Atlanta, Alpharetta, Johns Creek, Lawrenceville, Marietta, Milton, Norcross, Snellville, Roswell, Buford, Smyrna, Marietta, Cumming, Grayson, Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, East Point, Gainesville, Snellville, Buckhead, Buford, Peachtree City, Dunwoody, Kennesaw, Decatur, Conyers, Stone Mountain, Decatur. Sandy Springs, Peachtree City, Douglasville, Newnan, Griffin, Woodstock, Carrollton, Forest Park, Canton, College Park, Cartersville, McDonough, Riverdale, Fayetteville, Covington, Stockbridge, Conyers, Clarkston, Barrow, Bartow, Butts, Carroll, Cherokee, Clayton, Coweta, Dawson, and Douglas

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Duluth GA Christian CPA Firm Teaches Gwinnett Business Owners

John Dillard — Fri, 23 Jul 2010 14:07:58 +0000

Duluth GA Christian CPA Firm Teaches Gwinnett Business Owners

A large part of our practice centers around helping our clients get to where they want to go. Much of that has to do with putting ourselves in the place of our clients and indeed serving them the way we would want to be served. The below is a sample letter we might send a client to assist with and properly guide them through the tax preparation process:

Got your corporate data today…to complete return I need ASAP:

What the face amount of the Life Insurance as tax law will not allow us to deduct more than the equivalent of a 50K face Life Insurance policy.

Please be reminded that tax law will not allow us to deduct the $6,000 of Medical Insurance Premiums paid on behalf of owners of an S Corporation unless they also have an W-2 at least equal to this full amount.

Please be reminded that:

Tax Law requires all active employee owners to take a fair and reasonable salary given position and profit. The best indication of what this amount would be what an owner would have to pay an independent party to perform their official duties.

Please be reminded that I still need the data for the personal return.

“Dare to Attempt Something so Great for the Kingdom of God, that it is Doomed to Failure Lest God be in it!”

John Dillard, CPA of His CPA, PC (An Atlanta Christian CPA firm) 1940 Woods River Lane, Duluth, GA 30097 Phone 770-814-9304 http://www.hiscpa.com/ http://www.john-dillard.com/ (All Rights Reserved) To retain John Dillard CPA (An Atlanta Christian Speaker/Author) for your business group or church congregation, you can contact him today at 770.814.9304. To discover John Dillard’s Published Books and their vision visit http://www.john-dillard.com/

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Duluth GA CPA: Be Sure that you Gwinnett County Business Pays Its Lowest Legal Possible Property Taxes on its Personal Property

John Dillard — Tue, 20 Jul 2010 16:18:06 +0000

Duluth GA CPA: Be Sure that you Gwinnett County Business Pays Its Lowest Legal Possible Property Taxes on its Personal Property

Understanding the Freeport Exemption: Gwinnett County voters elected to exempt the following classes of commercial and industrial inventory:

• Class 1 – Raw materials & goods in process of manufacture – 100% exemption

• Class 2 – Finished goods produced in Georgia within last 12 months – 100% exemption

• Class 3 – Finished goods kept/stored in Georgia within the last 12 months and destined for shipment out-of-state – 100% exemption

The Cities of Buford, Duluth, Grayson, Sugar Hill, and Suwanee have also elected to exempt 100% of all qualified inventory.

The deadline for filing an application for Freeport Exemption with the Board of Tax Assessors is March 1 to receive the full exemption. Click the link below for more information on homestead exemptions: http://www.etax.dor.ga.gov/ptd/adm/taxguide/exempt/homestead.aspx

Please review the categories above and confirm what type of inventory/assets your company has relative to the three Classes Above. It was my understanding that when the property tax report was filed that you did the Freeport Exemption was not applicable. Please review advise. Below is a link to the Gwinnett County website where you can learn more about the Exemption:

http://www.gwinnettcounty.com/portal/gwinnett/Departments/FinancialServices/TaxAssessorsOffice/PersonalPropertyAppraisal/Exemptions Please be reminded that the Freeport Exemption has to be applied for by using the “Application For Freeport Exemption on Inventory” form (Georgia Department of Revenue Form PT-50PF) which can be also obtained at https://etax.dor.ga.gov/ptd/adm/forms/pt50pf/index.aspx

As rules vary from City, to County to State please be sure to read and correctly apply the law where your business is located.

John Dillard, CPA of His CPA, PC (An Atlanta Christian CPA firm) 1940 Woods River Lane, Duluth, GA 30097 Phone 770-814-9304 http://www.hiscpa.com/ http://www.john-dillard.com/ To retain John Dillard CPA (An Atlanta Christian Speaker/Author) for your business group or church congregation, you can contact him today at 770.814.9304

Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!

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Duluth GA CPA on Working With CPA’s & Business Professionals

John Dillard — Tue, 20 Jul 2010 13:21:24 +0000

Duluth GA CPA on Working With CPA’s & Business Professionals

Though life may sometimes get us down, be sure that you work with those who will always encourage and support you in all that you do. The below is a sample excerpt from a letter that we might receive from a client who is seeking guidance and encouragement:

John. Sent in the payment for the changing of our S Corporation. Thank you for getting in touch with me. I know I was behind on that and I needed to be reminded of my responsibility. The last month and a half has been extremely difficult on my family for numerous reasons and I got behind on a lot of things. I was almost at a point of ending the business. I am going to proceed with my S Corporation but on a part-time basis while working another job. Some unforeseen personal and business issues came about and I will have to do some soul searching and re-examining. You have been upfront with me and prudent in your business, thank you for all you have done. Forgive me for my absence in calling or discussing matters, I guess I was depressed at the things encountered.

One good thing from all this is that my wife and I are expecting our fourth child. One of the many reasons I will be scaling back on the business. I hope we can continue to do business but if you feel we can’t I understand and will compensate you for your time. Thank you again for everything.

The Below is my response:

I am most sorry things have been a bit tough lately but always keep in mind that God has a greater plan for you and your life. Keep the faith, seek God in all that you do and He will honor, guide and bless your obedience.

Congratulations on having your fourth child, as children are one of the best gifts ever from above. Remember to train them up in the way that they should go and when they are old they will not depart from it.

I will most definitely be honored to continue to serve as your CPA for this and for many years to come.

In the Matchless Name of Christ.

“Dare to Attempt Something so Great for the Kingdom of God, that it is Doomed to Failure Lest God be in it!”

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His CPA Offers a Wide Range of Tax, Financial and Consulting Services

John Dillard — Wed, 14 Apr 2010 20:44:55 +0000

His CPA Offers a Wide Range of Tax, Financial and Consulting Services

His CPA offers a wide range of tax, financial and consulting services especially tailored towards helping you achieve your goals and an ultimate level of success. Have you ever wanted to work with someone whom you felt really cared about you, your business, your retirement, and planning for your family? I have a heartfelt conviction that I really want to “serve” my fellow Business Owners and to give advice that hopefully you will feel are beyond the scope of CPA services you ever experienced.

Do you want that ole’ time feeling of being served by someone sensitive to you? I welcome meeting with you FOR FREE to discuss you and your business’s plans. I work exclusively with business owners who are striving to maximize their profit and potential. I bring to the table 31 plus years of experience as a CPA and 21 years of managing my own successful practice. I strive to anticipate bumps in the road so that you might be able to focus on the business of running your business. I would welcome meeting with you for an initial consultation. Below you will find just a few of our services. Below is a sample letter we might send a client to ensure that we have all of the required data to properly prepare income tax returns:

In getting started on your returns:

We will need to do both corporate returns prior to finishing your personal.

If you are presently not using one of the companies and do not plan to do so in the future, I suggest we mark this return FINAL and that you notify the Secretary of State and close all accounts, etc. Please advise as to how you would like for me to proceed.

Please confirm if you will be claiming your three children this year and your mother, as you were able to/did last year.

Please forward the property taxes on the car.

Please forward any cash or property contributions to charity, being sure to also forward copies of your year-end tithing statements.

Tax law does not allow us to deduct tuition for private school, but will allow, if you qualify a credit for Child Care Expenses. Please review/advise.

If you can get to me this a.m. documentation of the Estimated Tax Payments for 2009 for IRS/GA then I will most likely be able to get personal return done by 15th.

Please keep in mind that if you have more than one employer or also pay self employment tax that the 2009 limit on the payment of FICA taxes is based upon $106,800 of Earned Income. If you had more than one employer during the year and had combined wages over this limit, you will want to ensure that you claim as a credit against your overall tax bill any excess FICA taxes withheld.

ASAP after I get data for returns I will get them completed and out your way.

1 Peter 1:25 but the word of the Lord stands forever.” And this is the word that was preached to you.

John Dillard, CPA of His CPA, PC (An Atlanta Christian CPA firm) 1940 Woods River Lane, Duluth, GA 30097 Phone 770-814-9304 http://www.hiscpa.com/ http://www.john-dillard.com/ To retain John Dillard CPA (An Atlanta Christian Speaker/Author) for your business group or church congregation, you can contact him today at 770.814.9304

His CPA PC…A Christian Atlanta CPA Firm: Never Underestimate the Long-Term Benefits. Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!

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Gwinnett/North Fulton Atlanta CPA on Helping Atlanta Business Owners on Business Startup Issues. Incorporating and Entity Selection

John Dillard — Mon, 12 Apr 2010 13:13:09 +0000

Gwinnett/North Fulton Atlanta CPA on Helping Atlanta Business Owners on Business Startup Issues. Incorporating and Entity Selection

As a Believer and a CPA, we are all called to do as Jesus did and look to serve others. As we lean not on our own understanding but that of God’s we should seek out ways and opportunities to be the very hands and feet of Jesus Christ in a lost and fallen world. Below is sample letter we might receive and our response:

I am a Christian going through many transitions in life. I need an accountant to help me learn to take care of my personal finances once that takes place.

Also, I am daring to believe, as you say, that God can do something mighty in helping me to do something I have never attempted before, that is start my own business. This is doubly difficult for me as I have been a 20 year stay-at-home mom. I want to parlay my skills in computer programming and organization into a business that is Christ honoring and serving the average man on the street as well as to some who have little to nothing. I have a degree in Computer Science from Georgia State University.

I think I need the services of someone like yourself, but don’t know what your fees are. I need direction all around to get my business up and running. Do you have a time when I could come in and talk to you? Thank you, P.S. I found you on the Internet under Christian Accountants, and also read the article about your challenge to Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!

Below is my response:

Evaluating what type of entity your business should be, we strive to balance the legal protection issues vs. the tax savings. Over the years, we have developed the mindset that there is no perfect election but there are ones that are better than others.

The information below and the assumptions we make are based upon the fact that my clients tell me that they want to pay as few tax dollars as legally possible. Below are some very specific rules, as well as some generalities. If you are considering incorporating in Georgia, we suggest that you sit down with a tax professional to see how these guidelines relate to you. These articles will do much to encourage and support you in making wise and prudent decisions for your new Georgia Business.

Tax Effects of Incorporating Your New Georgia Business
We can help you navigate through the myriad of tax law letting you make the best strategic and tax decisions in incorporating your business. See http://www.hiscpa.com/article6.html

New Corporation Forms and Registrations Checklist for your New GA Businesst
Whether you are just incorporating or have been in business for years. This summary will enable you to quickly locate the forms and guidance you need to ensure your business maintains tax compliance. See http://www.hiscpa.com/incorporating-articles.html

Tracking Marketing Stats for New Atlanta Business Owners
When you are first starting your new business it is a critical time to stay positive emotionally. One of the best ways to validate the success of your efforts is to track your marketing efforts measuring your results and efforts against your business plan model. Learn invaluable information as to how you can increase your likelihood for immediate feedback on your efforts thereby increasing your likelihood of success. Visit http://www.hiscpa.com/marketing-efforts.html

Matthew 7:24 ”Therefore everyone who hears these words of mine and puts them into practice is like a wise man who built his house on the rock.

John Dillard, CPA of His CPA, PC (An Atlanta Christian CPA firm) 1940 Woods River Lane, Duluth, GA 30097 Phone 770-814-9304 http://www.hiscpa.com/ http://www.john-dillard.com/ To retain John Dillard CPA (An Atlanta Christian Speaker/Author) for your business group or church congregation, you can contact him today at 770.814.9304

His CPA PC…A Christian Atlanta CPA Firm: Never Underestimate the Long-Term Benefits

Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!

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Atlanta CPA Advises on New Criteria to Evaluate Top 25 Atlanta CPA Firms

John Dillard — Mon, 08 Mar 2010 20:11:54 +0000

Atlanta CPA Advises on New Criteria to Evaluate Top 25 Atlanta CPA Firms

When evaluating Atlanta CPA Firms from which to use for your Atlanta Business, there is much to consider and evaluate. I believe this list will do much to serve as a checklist for Atlanta Business Owners when hiring a CPA Firm:

1. Experience: Be a CPA for Thirty Years, Serve on a Mission Trip & Be a Christian.
2. Business Activities: Be a Member of the Gwinnett Chamber Board of Directors.
3. Practical Work Experience: Serve as a Chief Financial Officer/Controller/Chief Operating Officer.
4. Published: Have Written and Published Several Books.
5. Skilled: Discuss Nuances of Setting up a Qualified Retirement Plan for Your Business.
6. Depth of Services: Help Your Procure and Negotiate Financing for Your Business.
7. Altruistic: Assist with Taking a Court Case to the Georgia Supreme Court to Protect the Rights of Georgia Workers.
8. Insightful: Discuss Business Tax Deductions Advising on Coding and Recording to Your Internal Books and Records and IRS Tax Substantiation Documentation Required.
9. Talented: Meet With You to Discus Buying or Selling a Business.
10. Diversified: Assist/Provide a Valuation for Your Closely Held Family Business.
11. Early Achiever: Pass the CPA Exam while still in college.
12. Academic Success: Go to College with a 3.8 GPA
13. Award Winning: Win the Accounting Advocate of the Year Award for the State of Georgia
14. Strategic Issues: Discuss Incorporating in Georgia and Entity Selection Issues.
15. Tax Advocate: Assist You With Back Taxes, IRS Representation or an Offer in Compromise.
16. Protective: Get a Law Passed in Georgia Making it a Better Place for Georgia Children to Live.
17. Wise: Rely on Decades of Work Experience to Ensure That You Pay Only Your Lowest Legal Possible Tax.
18. Insightful: Discuss Your Long Term Retirement Plan.
19. Decades of Experience: Serve as a Virtual CFO/Controller for You and Your Business.
20. Personable: Ask You How You Feel.

John Dillard, CPA of His CPA, PC (An Atlanta/Duluth GA Christian CPA firm) 1940 Woods River Lane, Duluth, GA 30097 Phone 770-814-9304 http://www.hiscpa.com/ http://www.john-dillard.com/

Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!

To retain John Dillard CPA (An Atlanta Christian Speaker/Author) for your business group or church congregation, you can contact him today at 770.814.9304

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Listen to Award Winning Duluth/Atlanta Georgia CPA on Atlanta Business RadioX

John Dillard — Wed, 03 Mar 2010 20:10:23 +0000

Listen to Award Winning Duluth/Atlanta Georgia CPA on Atlanta Business RadioX

Ever want to interview a CPA without having to go to their office. Ever want to hear what a Metro Atlanta CPA has to say without driving the their office. Well you can today. Atlanta Business RadioX brings his Keep it Simple/Plain Talking Style to Metro Atlanta Business. Listen to his Podcast today at http://familybusinessradio.businessradiox.com/116

http://www.hiscpa.com/article3.html Gwinnett/Duluth CPA Teaches Personnel Keys to Managing Business Growth
http://www.hiscpa.com/article6.html Alpharetta/Roswell CPA Teaches the Tax Effects of Entity Choice
http://www.hiscpa.com/marketing-efforts.html Norcross/Sandy Springs CPA on Tracking Marketing Statistics for Your Georgia Business

And this is only some of the information available on our web site. You also have at our blog a host of other varied and timely tax and business management issues you can use.

John Dillard, CPA of His CPA, PC (An Atlanta Christian CPA firm) 1940 Woods River Lane, Duluth, GA 30097 Phone 770-814-9304 http://www.hiscpa.com/ http://www.john-dillard.com/ To retain John Dillard CPA (An Atlanta Christian Speaker/Author) for your business group or church congregation, you can contact him today at 770.814.9304

His CPA PC…A Christian Atlanta CPA Firm: Never Underestimate the Long-Term Benefits

Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!

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Duluth GA CPA Offers Guidance in Preparing Corporate & Personal Income Taxes for Atlanta Taxpayers: Addressing Back Taxes for Atlanta Taxpayers for Decades

John Dillard — Tue, 23 Feb 2010 20:43:20 +0000

Duluth GA CPA Offers Guidance in Preparing Corporate & Personal Income Taxes for Atlanta Taxpayers: Addressing Back Taxes for Atlanta Taxpayers for Decades

Below is a sample letter that might be used to send to a client who is behind on the filing of their income taxes. With all clients it is essential to keep taxpayers informed of their rights, responsibilities, tax payment and filing deadlines. It is even more so important when working with a taxpayer when addressing back taxes so as to avoid and hopefully stave off IRS collection issues, tax problems and unnecessary penalties and interest:

Your 2008 corporate return is complete and will go out in the mail ASAP.

Please use the checklist on the contact page of my web site to pull all of your 2008 personal information together.

Please forward any estimated payments against paid against your 2008 IRS or GA Taxes as the IRS is a pay as you go system and will add penalties and interest for late payment and late filing.

I suggest ASAP after you get 2008 data to me that you get 2009 to me as well.

Please do not hesitate to call might you have any questions.

http://www.hiscpa.com/article1.html Atlanta/Duluth CPA Illustrates Difference Between Planning & Historical Accounting by North Fulton CPA
http://www.hiscpa.com/article3.html Gwinnett/Duluth CPA Teaches Personnel Keys to Managing Business Growth
http://www.hiscpa.com/article6.html Alpharetta/Roswell/Duluth CPA Teaches the Tax Effects of Entity Choice
http://www.hiscpa.com/marketing-efforts.html Norcross/Sandy Springs/Duluth CPA on Tracking Marketing Statistics for Your Georgia Business

And this is only some of the information available on our web site. You also have at our blog a host of other varied and timely tax and business management issues you can use.

John Dillard, CPA of His CPA, PC (An Atlanta Christian CPA firm) 1940 Woods River Lane, Duluth, GA 30097 Phone 770-814-9304 http://www.hiscpa.com/ http://www.john-dillard.com/ To retain John Dillard CPA (An Atlanta Christian Speaker/Author) for your business group or church congregation, you can contact him today at 770.814.9304

Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!

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Forsyth/Gwinnett CPA Assist Taxpayers with Converting Atlanta Business Taxpayers to an S Corporation

John Dillard — Sun, 17 Jan 2010 20:10:32 +0000

Forsyth/Gwinnett CPA Assist Taxpayers with Converting Atlanta Business Taxpayers to an S Corporation

His CPA PC: Providing Bookkeeping & Accounting Services to Metro Atlanta

About S Corporations/What Entity is Best for Your Georgia Business

Subchapter S Corporations can have no more than one hundred shareholders and they all need to be U.S. citizens or resident aliens. This corporation type almost always has to have a calendar year as the fiscal year. S Corporation rules have been around since the 1950s and were set up to simplify the rules and regulations of being a business owner.

Liability Protection and Subchapter S Corporations

A subchapter S Corporation, like a C Corporation, affords the business owner personal liability protection from business risks. Some of the keys to maximizing that protection are to treat the corporation like one by doing all your business in the corporate name, signing all of your documents listing your corporate title, not co-mingling any personal issues/bills in the corporation, and by having your annual Board of Directors and Annual Shareholder Minutes Meeting.

Tax Advantages of S Corporations/Incorporating in Georgia

No income taxes are paid with the corporate return. The profits of the business are reported on the personal tax return of the S corporation’s shareholders. As long as you pay yourself a reasonable salary, you may also take shareholder distributions out of the business that are devoid of FICA/Medicaid taxes.

Another advantage of S Corporations is that if you have corporate losses, and you fund (you put the money in the business) those losses personally, then you can deduct those losses on your personal return. Any losses that are funded by the bank (a direct loan from the bank to the corporation) or by trade creditors are not deductible. Below is a sample letter one might send to the IRS to ensure that the S election has been properly received and timely processed by the IRS.

Taxpayer Advocate Office

Atlanta GA

Dear Sir/Madam,

I am writing to follow up on your IRS Letter dated 1-16-10 (copy enclosed). Please note I have enclosed a copy of the S Corporation election and the signed S Corporation return as requested. Please fix your records accordingly to show that the client was an S Corporation for the tax year in question.

Accordingly please refund any monies previously paid.

I appreciate your attention to this matter and please do not hesitate to contact me should you have any questions.

Very Sincerely Yours, John C. Dillard, CPA, President

John Dillard is an Christian Speaker/Author and Certified Public Accountant of His CPA PC (An Atlanta CPA Firm). To See how he takes Christ along with him to work visit http://www.hiscpa.com/ and for his latest book Overcoming Life’s 9/11’s: Job’s Journey visit http://www.john-dillard.com/ or call John Dillard CPA today at 770.814.9304

His CPA PC (An Atlanta CPA Firm)

Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!

His CPA PC: We advise clients on: IRS representation, Offer in Compromise, Tax Problems, Incorporation in Georgia, Corporate and Personal Income Tax Returns, Part-time CFO, Virtual Controller, Business Planning, Offer in Compromise, Back Taxes, Business Acquisitions/Sales, Forensic Accounting, Business Valuations and Bookkeeping.

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