Accounting News and Notes

Atlanta CPA on Using QuickBooks as an Accounting Package

Evaluating a client’s financial statement a CPA can gain much guidance and information about a particular taxpayer. However there is no substitute for a CPA being keenly aware of all information that they receive from a client. For whatever type of attestation services, if any, a CPA is offered, they should bring to bear their full insight and wisdom. Therefore it is widely suggested that you work with a CPA who: 

Is a leader in the Business Community 

Is a Christian 

Graduated at the Top of Their Class 

Is Award Winning 

Gives Back to Those Less Fortunate

When helping a client critique their internal books, the below is a sample letter that we might share with a client to ensure that all of the information for their QuickBooks/Internal Financial Statements to ensure that a timely and correct return is prepared thereby ensuring that only the lowest legal possible tax is paid: 

In getting started on your 2010 Corporate Data I noticed that: 

Your Legal & Professional Fees, Cost of Goods Sold and Advertising Expenses fell dramatically from the 2009 amounts. Please review/advise. 

Your Travel Expenses this year was zero while last year was $2.0K. Please be sure that you have listed all business expenses that you company has legally incurred. 

Please forward to me  a copy of the W-2’s the company issued along with the W-3. 

In looking at your August Internal Books the numbers do not add up which means that our starting point inadvertently changed. Please be reminded that after you close your internal books are closed that you should not make any postings to any current periods. 

To help you with tracking of this in the future I have added a schedule so that you can roll forward the year to date profit from month to month reflecting the cumulative balance on the Profit and Loss and the B/S. If you will go back and correct your internal books at July to agree to the YTD net income of $10,000 and then re-send the B/S, P/L’s, new recap schedule attached showing how it reconciles, the G/L and Journal. 

This will confirm you advice that: 

You confirmed that all of the Travel Costs in August was predominantly for prior periods and that there were no prepaid expenses. 

That you will review the coding of the larger items in the Travel Costs in the future to ensure that you accrue for any un-billed, but earned, Travel Costs. 

“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, Back Taxes, Business Acquisitions/Sales, Forensic Accounting, Business Valuations and Bookkeeping.

How to Avoid an Audit from the IRS

What You Don’t Know & Report Can Hurt You: Avoid Unnecessary Fines & Penalties

Much confusion exists over which records and documentation should be saved and for how long to support a tax return you prepare and file. Generally speaking you should save records so that if ever asked, you will be able to:

Show Income Sources

This may include your W-2, business income, copies of checks received, invoices, interest and dividend statements, social security, alimony, and K-1’s received from business interest. Documentation should be maintained such that all income and its source and type are readily available by reviewing the source document. If not readily ascertainable it would be advantageous to also save substantive collaborating information.

Keeping  Copies of Receipts, Expenses & Itemizations

You will want to be able to prove all items taken on your return if ever asked. For most taxpayers this would include items such as mortgage interest, real estate and personal property taxes paid, medical and dental expenses, casualty losses, moving expenses, state and other taxes, charitable contributions, alimony, employee business expenses, IRA’s, dependent care expenses, tuition, closing statements, invoices, bank statements, student interest, etc.

This is a partial list and only a sampling of the types of items you would want to save. The totality of what you would need to save would be best served by a review of the prepared return, then ensuring that you have copies of all of the deductions claimed and proof of all dependents. Proof of payment should include the payee, amount, transaction date, check, bank statement, etc. Care should be taken to maintain documentation as prescribed by IRS statues for that year’s taxes in all of the above categories and indeed all deductions on your return. A detailed understanding of what substantiates a valid tax deduction is a critical part of this process as documentation standards, based upon type, vary substantially. 

By critiquing a client’s prior tax return a CPA can gain much guidance and information about a particular taxpayer. However there is no substitute for a CPA being keenly aware of all information that they receive from a client. The below is a sample letter that we might send to a client to ensure that all of the information is received to ensure that a timely and correct return is prepared thereby ensuring that only the lowest legal possible tax is paid:

For your 2010 Personal Return I do not yet have: 

Property taxes paid on your personal vehicles. 

Mortgage Interest & the Real Estate Taxes on Your Home. 

Last year you had $4,000 of charitable contributions, so far this year you have forwarded $200. Please review and advise. 

This will confirm your advice that: 

-You have not paid any federal or state estimated payments for 2010. 

-You have not yet retained a payroll service for your company and that I suggest you do so ASAP. 

-That you are a C Corporation for all tax years prior to 12/31/10 and that you are an S Corporation effective 1-1-11.                                                      

This is to confirm that you are handling all payroll and 1099 issues, your county property tax report, sales tax reports, your annual corporate registration, and your business license. 

Please be reminded that you are required to keep a by day log to support business miles and that I suggest you get to me fixed assets by year, item, and amount purchased so that we can prepare a detailed fixed asset list. 

We encourage you to look at adding a retirement plan so that you can both attract & retain employees and to start planning for your retirement. 

Please forward the data ASAP and the signed power of attorney being forwarded so that I can respond to the IRS 3-1-11 request for documentation. I will mail copy as a reminder ASAP. 

“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.

Gwinnett CPA Advises Atlanta Entrepreneurs on Preparing Financial Statements & Bookkeeping Issues 

When reviewing your company’s financial, it is usually best to review your profit and loss being sure to show the current period under review as well as the year to date totals. This will have the added advantage of reviewing specifically the most current operations for any significant variances or trends as well as contemplation of where you stand vs. your annual and year to date goals. Your financials are best reviewed and presented when you also add a column which calculates items as a percentage of sales which allows the reviewer to have a good grasp/rule of thumb of which to measure operational results. The below is a sample of what we might send to a client to assist them with the tracking and recording of your monthly operating results: 

In critiquing your internal books for October I noted: 

I did not get in my package the Profit and Loss for the current month. By your critiquing of both your Year to Date Profit and Loss and the Current Month Profit and Loss you will be able to better evaluate, understand and utilize your internal financial statements. 

Please add to the Both of Profits and Loss Statements you are preparing for this month and in the future the percent of each item of your total revenue. This will allow you to better gage and evaluate your internal costs vs. established standards/pricing standards. 

Please be reminded that you will want to begin using the previously forwarded management report so that you might gain needed/essential financial information for reflection in your internal financial statements. 

Please review the large debt payment of $4K against your long term debt vs. the lower year to date net income of $6K. I suggest that you do not make any larger debt principal payments until the below large variances in your net income are eliminated. Please be sure to prepare a twelve month cash flow analysis/forecast before making any additional debt service payments to avoid the business running out of cash. 

Per your last two months internal financial statements the company has a $11K loss. Please review/advise ASAP to eliminate/preclude further losses. 

Please advise as to what the $3K item is in Fixed Assets was for. 

Please review the charges to the Legal & Professional Fees account and advise as to what they are for and if they are classified correctly. Please be reminded that any costs incurred on behalf of client should be coded to Cost of Goods Sold. 

Please allocate the Credit Card to the Correct accounts as required (i.e., based upon the type of business expenditure required). 

Please note that on your bank account that you have sufficient balances in the bank to cover  open and outstanding checks but no monies in the account. Please advise/correct ASAP so that no NSF charges are incurred. 

“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 & Beyond.

Please be reminded that the IRS/GA offers no extensions beyond the above dates and that after that they both will add late filing penalties to already potentially due late payment penalties and interest. 

“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 (A Gwinnett 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 & Beyond

Atlanta CPA Advises on Keeping Your Tax Bill as Low as Legally Possible  

Hello John, I hope you are well. I got your message about. I just need to figure out my estimated taxes. Also I am trying to mail out my returns. I have a copy, and another that says Georgia form 500. I cannot find another to send to Federal that does not say Copy. Do I need to make a copy and sign the one that says copy and send that one in? Please let me know. Thanks. 

Below is my response: 

I mailed a copy for you to file with the IRS. 

If you cannot now locate it please just make a copy and file. 

IRS tax law requires estimated payments based upon your current net profit from your business. 

Please do a recap of your proprietorship results from the beginning of the year and send it to me along with an estimate of what you expect your current year corporate profit to be and I will be happy to advise accordingly.

Atlanta CPA: Teaches Atlanta Entrepreneurs on Understanding an Engagement Letter from your CPA 

Working with a CPA should not be difficult. Though much of the work a CPA might do is very difficult and technically challenging, engaging a CPA to work with you should not be. Whether you retain a CPA to critique your internal financial statements, preparation of corporate income taxes, IRS representation or an Offer in Compromise be sure to work with a CPA who is willing to provide you with an engagement letter so that you will understand your rights and responsibilities. The below is a sample of an engagement letter that would be shared with a corporate taxpayer for whom which a corporate income tax return is being prepared: 

Date______________________ 

To:______________________________________                                                

     ______________________________________

     ______________________________________

     ______________________________________

 Enclosed you will find the federal and state income tax returns for the company for the year ended 2009. Enclosed I have included instructions with respect to the filing of these tax returns.                                           

This letter is to confirm our understanding of the terms and objectives of our engagement and the nature and limitations of the services I have provided in connection with these compiled financial statements. 

1. 1.      I have performed the following services: I have compiled from information you provided the annual financial statements of the company for the above year-end. A compilation is limited to presenting in the form of financial statements information that is the representation of management.  I did not review or audit the financial statements and accordingly, do not express an opinion or any other form of assurance on them. The financial statements will not be accompanied by a report.

 Based upon our discussions with you, these financial statements have been designed to meet your needs in managing your business. Accordingly, these statements are for management’s use only and are not intended for third-party use.

Material departures from Generally Accepted Accounting Principles (GAAP) exist and the effects of those departures, if any, on the financial statements are not disclosed. In addition, substantially all disclosures and the statement of cash flows required by GAAP have been omitted. Notwithstanding these limitations, you represent that you have knowledge about the nature of the procedures applied and the basis of accounting and assumptions used in the preparation of the financial statements that allows you to place the financial information in the proper context. Further, you represent and agree that the use of the financial statements will be limited to members of management with similar knowledge.  

The financial statements are intended solely for the information and use of management and are not intended to be and should not be used by any other party. Should you require financial statements for third party use, we would be pleased to discuss with you the requested level of service. Such engagement would be considered separate and not deemed to be part of the services described in this engagement letter.

 This will confirm that you are solely responsible to establish and maintain internal controls, including monitoring ongoing financial activities related to the services.  Our engagement cannot be relied upon to disclose errors, fraud, or illegal acts that may exist. However, I will inform the appropriate level of management of any material errors that come to our attention and any fraud or illegal acts that come to our attention, unless clearly inconsequential. In addition, I will report to you any evidence or information that comes to my attention during the performance of our procedures regarding illegal acts that may have occurred, unless they are clearly inconsequential.  No such fraudulent or illegal acts came to our attention during the engagement. 

In the event of a dispute over our engagement, we mutually agree that any dispute that may arise in connection with our engagement will be submitted to mediation by selecting a third party to help us reach an agreement.  We acknowledge that the results of this mediation will not be binding upon either of us.  The costs of the mediation will be shared equally by both of us.  If I incur legal fees as a result of our reliance on any false representation by you, you agree to reimburse us for all of our legal fees and related costs of defense.  In view of the limitations described above, you agree not to take, or assist in, any action seeking to hold us liable for damages due to any deficiency in the financial statements I prepare and you agree to hold us harmless from any liability and related legal costs arising from any third-party use of the financial statements in contravention of the terms of this agreement. 

This will confirm that all of my work will be done at our standard hourly rate of $195 per hour, that invoices are due upon receipt, that finance charges at the rate of two percent per month and collection costs are due on all unpaid monies, and that you personally guarantee payment of all invoices, and that you acknowledge that both you and your business/corporation are both jointly and severally liable for all billings.   If the foregoing is not in accordance with your understanding, please notify me in writing within five days of this letter. 

Sincerely, John C. Dillard, C.P.A.,  President 

“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

Duluth CPA on Incorporating Your New Georgia Business

Now that you  have started a new business and now need tax advice to take your business to the next level and to ensure that you set up as the correct/best legal entity type for your new Georgia business. Choosing to incorporate your business as a corporation will do much to protect your personal assets from legal liability issues while potentially shrinking your overall year-end tax obligation while also providing benefits for yourself, as well as your employees. We are here to serve you as you make this important decision. Over the decades we have helped thousands pursue the dream of owning their own business and helping them understand and utilize the entity choice that is best-suited for their business.

Accordingly, Incorporating in Georgia requires that you file for the company Articles of Incorporation with the Georgia Secretary of State’s Office. Corporations should also be sure to prepare a legal posting/announcement for the legally authorized newspaper in the county’s paper, establishing bylaws, election a Board of Directors, Officers and the issuance of stock.

Though there is never  a good substitute for a good attorney to help you address legal issues, we look to help business owners with many of the varied nuances of the incorporation process to ensure that your new business is duly incorporated and following applicable state law to stay in compliance. The below is a sample letter that might be sent to work with your attorney to address and correct open issues. As always you will want to be reminded to have a valid business license, pay to the Secretary of State your firms annual registration fee, and to have your Annual Board of Directors, Officers and Shareholders Minutes meeting. If you opt to become an S Election you will file IRS Tax Form 1120S when filing your company’s corporate income tax return.

In critiquing the paperwork for your incorporation that you forwarded: 

 I did not see the Required Notice/Legal Posting of Your New Business’s Incorporation, which is required when you incorporate to make a legal posting in the officially recognized newspaper in the county that your business was incorporated.

Stock was authorized as 5000  shares and it appears as if 5500 shares were issued. Please review/advise as you cannot issue more shares than authorized in the initial Incorporating Papers absent a stock split or change the existing authorized shares.

I would have marked S Election request to be in accordance with IRS Rev. Proc. to qualify for being filed more than 75 days after your incorporation date.  If you do not receive any acceptance by 10-25-10, let me know that I will re-file the election marking it accordingly, being sure to properly compete IRS Form 2553:  Election by a Small Business Corporation 

Please be sure to draw up a lease between the two companies to document the rental agreement between the two companies. I would suggest you consider a triple net lease. 

“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 (A Duluth GA 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/

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.

Duluth CPA Helps Georgia Businesses with Corporate Income Taxes

One of the first surprises many business owners face when incorporating their business is discovering a listing of the individual due dates associated with the filing of their incorporated entities and the requisite attendant returns. Although the IRS does allow for the proper extension of returns, there is little “wiggle room” for the prompt payment of all taxes. For nearly a century the IRS and states have been a pay as you go system requiring all legally incorporated entities and their respective members/owners/shareholders to pay their appropriate taxes thereon. Depending on your entity type as detailed below you will have listed the appropriate responsibilities thereon.

As there are many details to consider we have found it imperative to communicate in writing to ensure that all of the financial bases are covered to ensure that each and every taxpayer pays their lowest legal possible tax. The below is a sample letter we might use to ensure that all substantive tax issues are adequately addressed and correctly handled:

For your personal return please get to me how many months each child lived with you in your home. 

Let me know how much of the 2010 and prior years state tax liability (not counting penalties and interest) were paid in 2010 so that I might itemize on your personal return the appropriate amount of state tax payments made.

In getting your data ready to prepare your corporate return please be sure to forward; 

The year-end bank reconciliations showing what the checkbook balance is as tax law requires to reflect checks and deposits made/incurred by year end rather than solely those that have just cleared (which is reflected/is the bank statement balance). 

Please be reminded I will need the amount of medical/dental insurance premiums paid on behalf of all of the company’s shareholders.

Below please find critiques to your July Internal Books 

Please get to me just the General Ledger Pages for the general ledger  accounts I referred to in my last e-mail so that I might review the changes. 

Please post a Journal Entry to Debit Depreciation Expense on the Profit and Loss and Credit Fixed Assets – Accumulated Depreciation for $10,000 to record depreciation expense on the new items recently purchased.

 Please take a look at the Journal Entry you did for wages as the Gross Wages does not agree to the year to date Payroll Report. 

The Deposit to Sales Reconciliation Report does not fully tie (please be sure to list all deposits as I did when I prepared the prior report) to the total deposits, one of the bank accounts is not listed, and the account has $1000 as income when it appears per the bank statement that it is not. Please review/advise.  

When convenient please send me a copy of the fully executed/signed issued stock certificate for my files and the S Corporation acceptance when it is received. 

Please advise ASAP as I have not received copies of the Offer Submission after our last meeting of 7-10-10. I had understood when we walked away from the meeting that you would have forwarded a full set of the submitted Offer in Compromise to both the IRS and to me within a very few days of our meeting. 

It is the recap sheet (see link below) being sure that your Beginning cash balance is per your prior return, That data by category is mathematically correct and that Ending cash balance is per your checkbook. To print out the form for your record and use visit http://www.hiscpa.com/recap.pdf 

John Dillard, CPA of His CPA, PC (An Atlanta 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/

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

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.

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!”

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/

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. 

Gwinnett CPA on Addressing IRS Tax Audits 

Be Sure You Pay Only Your Lowest Legal Possible Tax 

The below is a sample of what we might receive from a taxpayers seeking a CPA to help them with their Taxpayer Advocacy Issues.

I just received notice from the Internal Revenue Service, that I am to be audited.  Can you help me or do you know of a Christian CPA that I could contact?  Thanks so much for your time. 

The below is my response:

Thanks for visiting www.HisCPA.com

 I would be happy to help you with your audit. 

I would need a copy of  the returns being audited and the tax notices received. 

Would need you to sign an power of attorney. 

Would need to go over with you what documentation you have to substantiate the items in question being audited. 

This will confirm our advice that:

Please sign and return the enclosed power of attorney and retainer ASAP.

Please be sure that both you and your wife sign/date the power of attorney.

That I suggested you look to be an S Corporation ASAP for legal liability protection.

That you are pulling together the information for the audit and that we will talk approximately 9-1-10.

That you are calling the IRS  tax agent today and advise that you are signing a power of attorney ASAP and that I will contact them the week of 9-1-10. 

Feel free to give me a call and we can discuss. 

John Dillard, CPA of His CPA, PC (An Atlanta 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/

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

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.