Accounting News and Notes

Christian CPA:  Understanding & Applying Tax Law to Properly File Your Income Tax Returns 

As Believers we are called to do our very best in all that we do. I believe that this applies to our responsibilities in our families, work, church and friendships. I have found that when dealing with tough and complex issues that often the fewer words the better. However I have also found there is no substitute to a consistent message and by the written word. Just as God gave us His written word, the Bible, to live by, so should we seek to help and guide others with written correspondence when and where appropriate. For whether you are dealing with sensitive IRS Representation Issues, Back Taxes, an Offer in Compromise, Incorporating Your Business, Serving as a Virtual Chief Financial Officer, there is no substitute for clean concise written words. The below is an example of correspondence we might send a tax client to ensure all substantive details and issues are well coordinated and addressed: 

Enclosed please find your 2010 Corporate & Personal Income Tax Returns, IRS S Election requesting effective date of 1/1/10 and your  payroll reports.  

This is to confirm that: 

You call me so we can go over the enclosed paperwork. 

You file your S Corporation election ASAP. 

You file your S Corporation return ASAP. 

You wait to file your personal return until we can file all of your un-filed personal tax returns ASAP. We need to get all of them done ASAP as final date to file 2010 returns is 10/15/11. 

Please be sure to attach copy of your personal return extension to your return prior to filing. 

I suggest you retain a payroll service ASAP for your company. 

I suggest you have at least as much federal and state taxes paid in via payroll withholding by year end, using your 2010 personal return as a guide. 

Please have the payroll service ASAP file to get your company a GA withholding number and to register with the GA Department of Labor.

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 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.

Atlanta Christian CPA Provides Tax Checklist to Pull Your Personal & Corporate Tax Information Together

Preparing Tax Returns for Atlanta Taxpayer for Decades

The first step of being sure you pay your lowest legal possible tax is being sure  you have the base building blocks in line. Therefore it is essential that you do not miss any legal deductions and to report all of your income. Having your prior filed return readily available and a checklist will do much to ensure that you pay only the legal tax that you owe. The below checklist is one that you will want to refer back to again and again.

To complete your monthly financials, please forward:

• Your year to date Balance sheet, Profit & loss
• Year end Bank Statements and Bank reconciliations
• A schedule reconciling your bank deposits (recapping items that are not transfers) to the revenue as detailed on the Standard Profit and Loss for the month.
• Year to Date Payroll Records by Employee
• Notes Receivable and Payable Balances Reconciled
• Copies of new Notes
• Detailed general ledger and Journal Entries for the Month

• You advise of any fixed assets that have been acquired or disposed of during the period.
• That ALL of the balance sheet and profit and loss accounts are correct.
• That you have only one retained earnings account and that the retained earnings account on your internal books equals or is reconcilable to the retained earnings to the last corporate tax return filed.
• That as of January 1st of the prior year that you closed the shareholder distributions account to retained earnings.  

Please be sure to keep by month a hard copy of in your office, under lock and key:

• A detailed general ledger for the month.
• A list of all journal entries posted for the month.
• A copy of all bank statements and reconciliations.
• The standard balance sheet and profit and loss for the month. 

Please be sure each month that you are ensuring that the daily backups on all of the corporate data are being made and taken off site (to another physical location) daily. 

This is to confirm that you are aware are handling all of your payroll and independent contractor/1099 needs, of the need to have a business license, to pay the annual registration fee, to have your annual Board of Directors and Shareholders Meeting, and to file the county property tax report (please be sure to claim the Freeport Exemption on your inventory if you qualify as this can substantially reduce the amount owed).  Please note that if you have not yet set up a retirement plan or have a formal financial plan, that  I suggest that we sit down together soon to get the right plans in place to help ensure your long-term financial success!

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 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.

Be Sure Your Corporate Income Tax Returns are Correct Before They Are Filed

When running your business it should be clear from an independent observer that all business deductions were incurred for the furtherance of the business.  This includes advertising, administrative duties, overhead and other expenses incurred to produce or provide the product or service to be delivered.  Direct expenses (typically called Cost of Goods Sold) incurred in those efforts will be most obvious, as the absence of this occurrence will result in a product not being delivered. 

Frequently some expenses however, do not have the direct correlation to the business on the outside looking in.  Thus, on many issues it is necessary to look at the intent or the reason why an expense was incurred.  For example, the sponsoring of a marketing event is done by business to further its advertising efforts.  By raising awareness of its participants and attendees, business’s often underwrite and support such events to raise name recognition, gain market share and to increase brand loyalty. Often times an experienced CPA can do much to ensure that your past returns are correct and to that end it is prudent to work with a CPA who will review, as a part of their initial startup) you past returns; the below is a sample letter that might be used to ensure that past returns are correct as filed:

In getting started on your returns I had the below questions…. 

You had advised that the 2010 Corporate Income Tax Return has not yet been done but yet on schedule E of your personal return it indicates that the corporate return has been done. Please review/advise. 

I recommend that all of my corporate business be done in the name of the company, yet the below items were listed on your personal return as having been earned personally. You had advised that all business monies earned were done in the corporate name and deposited into the corporate name but yet you had listed on the below personal returns on your Schedule C the below monies.

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/CPA) 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 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.

Success in IRS Negotiations: Tax Advocacy

A successful audit experience depends on your ability to stay focused on the truth, the process, and to steadfastly stay on course. We have helped many through the successful completion of the audit and its ultimate disposition. Contact HIS CPA PC (A Christian CPA Firm) today.

It us usually most advantageous for the CPA alone to meet with the IRS so as to remove any emotional issues, which might otherwise surface and dampen the ability to successfully and quickly resolve the process. Taxpayers that strive to handle their own audit by themselves they fail to sense and adequately address the issues the IRS request; thereby causing themselves unnecessary hardships and economic loss. A CPA, who is familiar with you, your business and tax law is far more apt to successfully close an audit with no changes. Often during the audit process, yours as well as your CPA’s, expertise, will, and judgment will be challenged causing you to want to negotiate just to make the issue go way. However, this is not the best direction to choose as settling on any issue at all, when you are right, is not a prudent business decision especially in an audit environment. Of course this assumes that you can prove that your return has been truthfully prepared while using judicious and sound judgment and tax law accurately to reflect your true and just tax. The below is a sample letter that might be used to help ensure that all parties are actively involved in the IRS representation process and to ensure that a taxpayers rights and responsibilities are keeping all informed:

Dear Sir/Madam, 

I am following up on our conversation about the above referenced taxpayers and to request that you have placed a sixty collection hold on the account. 

I have went over the rules of an OIC (Offer in Compromise) and they appear to be an ideal candidate. Accordingly please cease all of your collection efforts while I work with the client to file their Forms 433A, Form 433B and Form 656 to Submit  an Offer in Compromise. Taxpayers have committed that they will be getting this information to me ASAP. Accordingly please suspend and cease all collection efforts for sixty days while this information is being pulled together, the corporate and personal income tax returns filed, and the paperwork for a Offer in Compromise submitted. 

Please do not pursue any further collection efforts while the taxpayers’ OIC  is being processed as it could both dramatically impair their ability to both fund the offer and to meet normal monthly living expenses. 

I look forward to working with you to address their open tax monies ASAP. 

Please cease and suspend all collection efforts for sixty days while this Offer is being submitted.  

Sincerely,  John C. Dillard, CPA, PC,  Partner in Charge

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 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.

Christian CPA Firm Offers Bookkeeping & Accounting Advice to Atlanta Business 

Providing Financial Statements and Bookkeeping to Atlanta Business Owners for Decades

A CPA who has some very specific advice as to a direction for your company will share the information in the first meeting not waiting to be sure to have retained a client, desiring the best for a client rather than solely the service of their own needs and desires. Though often CPA’s have shared insightful advice that clients have in turn taken back to their present CPA for compliance. Although this is certainly desirous in most all respects as we strive to serve, it fails to contemplate the reasons why advice was not forthcoming originally.

As Believers we are exhorted to excellence in all things and it is to that end a hiring manager looking for a trusted CPA should spend adequate time and effort reviewing a CPA’s resume, credentials, and references. Having Served as a Virtual Controller/Chief Financial Officer to Atlanta Business Owners for decades, I have learned that getting the data/internal financial statements correct and usable is essential to prudent business management.

A balance sheet in good form will break out the assets and liabilities separating the long-term from the short-term items as well as a separate section for equity. Items that are anticipated to be utilized/spent/collected/paid within the next twelve-month period. Long-term assets/liabilities are those whose ultimate disposition is to be addressed beyond the following year and not within it.

When preparing 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 gains 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. Financials that 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 letter we might send a client to help them ensure proper recording keeping/tax return preparation:

Please ASAP get to me any proof that you can that the $6000 from ABC Company was done in the business name and deposited into the corporate account. Great proof would include copies of checks they wrote, work orders and copies of deposit slips where the monies were deposited in the corporate account.  

Please note the power of attorney that you and your wife just signed needs to be updated to reflect this return so I can talk to the IRS about it. I will fax you over a new one, please have both of your sign it and return to me ASAP. Please forward to me all the birth-dates of the family members listed on your 2009Personal Return.  

This is to confirm that you are handling all payroll and 1099 issues, your county property tax report, and your business license. Please be reminded that for the business to deduct medical insurance premiums paid on behalf of you that you have to have a W-2 of the same amount or more. Also please be reminded that in the event you are able to claim disability that you will have to report the disability payments as taxable income as your corporation has been deducting the payments. 

You are aware of the need to have annual Board of Directors, Officers, and Shareholder’s Minutes meetings and that each year you should pay the annual fee with the Secretary of State’s Office to renew your corporations annual registration. 

Tax law requires you 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. I suggest you add a retirement plan so that you can both attract & retain employees and to start planning for your retirement.                                

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

Serving Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming, New York, Los Angeles, Chicago, Houston, Philadelphia, Phoenix, San Antonio, San Diego, Dallas, San Jose, Detroit, Indianapolis, Jacksonville, San Francisco, Columbus, Austin, Memphis, Baltimore, Fort Worth, Charlotte, El Paso, Milwaukee, Seattle, Boston, Denver, Louisville, Washington D.C., Nashville, Las Vegas, Portland, Oklahoma, Tucson, Albuquerque, Long Beach, Atlanta, Fresno, Sacramento, New Orleans, Cleveland, Kansas City, Mesa, Virginia, Omaha, Oakland, Miami, Tulsa, Honolulu, Minneapolis, Colorado Springs, Arlington, and Beyond.

Duluth/Alpharetta/Roswell/Atlanta CPA Guides Taxpayer in Fixing Prior Tax Mistakes 

What You Don’t Know Can Hurt You: Avoid Unnecessary Financial Setbacks 

How to Avoid the Top Five Tax Mistakes  

God challenges all to do all we do as if doing it for the very glory of God. I believe that this relates to our church, home and work life alike. Though none of us will ever be perfect, work, for many of us, is an environment that has fairly consistent and predictable results. Accordingly, it is one area of our lives especially that Believers are afforded an opportunity for excellence at all levels. Though clearly there will be environments and situations where we will not be able to predict or even influence the intended outcome, we should always strive to do our very best. 

Mark 12:33 To love him [Jesus] with all your heart, with all your understanding and with all your strength, and to love your neighbor as yourself is more important than all burnt offerings and sacrifices.” 

It is widely recommended that all Atlanta Business Owners and Entrepreneurs should use the services of a Certified Public Accountant. For it is when I most often see miscues, and missteps are when the services of a well qualified CPA are not utilized. Some of the most frequently repeated errors that we review and correct include the below. Just as we are reminded in the Bible that “plans fail for the lack of [good] counsel, so are business owners called to be good stewards of their business, employees and their clients. 

Top 5 Tax Mistakes  

1. Choosing the wrong entity. Before you dash off to either incorporate yourself or to the attorney’s office, be sure to stop by and see your CPA first, because “what you don’t know may cost you.”  As tax and legal business entities are typically available in a wide variety of circumstances choosing the right one will do much to ensure you both limit your tax bill as much as legally possible and to chose a legal entity type that is best suited for your business and both its operational and legal liability limitation issues. 
2. Recording of Depreciation. Tax law generally allows taxpayers to chose from a wide variety of tax methods. Choosing one that is both within the confines of tax law and to maximize you legally allowed deductions. Tax law allows on business tax returns for fixed assets, subject to prescribed limitations and your company’s profit, to write off the amount in full in the year of purchase. 
3. Poor Bookkeeping. Over the decades of experience as an Atlanta CPA, I have seen business after business fail as a result of the owner not seeking to consistently maintain current and adequate books and records that correctly depict the company’s operating results. Just as a ship at sea without a GPS and a rudder is doomed to disaster, so is a business that fails to keep their bookkeeping current and to make wise and judicious business decisions to correct and negative trends and to gain financial insight to making management decisions. 
4. IRS Audits. The adage I am most reminded of is “that the person who chooses to represent himself has a fool for a client.”  Frequently we are called in “after the war is fought so that we can help bayonet the wounded.” I will never forget the pearls of wisdom I heard some years back from a client who said “it is very difficult to do one thing well.” In our world of specialization and the  many myriads of tax law and their interpretation, hiring a CPA is your best first choice in addressing IRS Representation Issues. Back Taxes, Tax Advocacy and an Offer in Compromise. 
5. Going It Alone. There is no perhaps any greater exposure in life than we chose to go it alone. Just as we are all part of the Body of Christ and each part as a different function, so are we to seek out others who have strengths where we ourselves are weakest. Rather than seeing this a failing, you are most strong, prudent and wise when you are most able to seek guidance and wisdom thereby multiplying your strengths and abilities. 

CHARLES COTTON: “WE OWE ALMOST ALL OF OUR KNOWLEDGE NOT TO THOSE WHO HAVE AGREED BUT TO THOSE WHO HAVE DIFFERED.”

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 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

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! 

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/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!

Duluth/Roswell/Atlanta CPA On Keeping Your Corporate Income Tax Simple

If your business is an S Corporation, there are 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 sample letter we might receive from a client looking to do tax planning for 2010.

The envelope with my personal 1040 and 500 has a cover sheet that says the 1040ES and 500ES vouchers should be in there too, but I can’t seem to find them anywhere in that packet.  Do you have PDFs of those you can email me? 

Below is my response: 

I suggest to all S Corporation clients that we do not use Estimated Tax Payments. An owner should report the K-1 profit, which is based upon their share of the business and not the amount of their shareholder distributions. This is a common misnomer about S Corporations and often leads to confusion for the new business owner. To that end it is best to remember that you pay taxes on the profits when you make them and not when you take them. For example generally speaking if your business nets $100,000 and you are the sole owner, you will pay taxes on $100,0000 whether you take zero dollar of shareholder distributions, a $100,000 or any number in between. Thus if you were to have a $100,000 profit in any given year and take no distributions then you would be able, absent any other issues, to take shareholder distributions in subsequent years with no additional tax responsibility as these monies would have already been taxed. 

I suggest that you get to me an estimate of your 2010 profit before any salaries or distributions to you and then I can tax plan for accordingly and advise you as to what you should have withheld from your paycheck so that you do not also have to pay quarterly estimated payments.

Proverbs 3:5  Trust in the LORD with all your heart and lean not on your own understanding;

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!

Christian CPA for Corporate Income Taxes, Financial Statements, Bookkeeping

How His CPA, PC became a Christian CPA Firm 

IRS Representation, Offers in Compromise and Back Taxes

Top Ten Reasons to Hire a Christian CPA Firm

1. We care much more about you and your business than just your taxes. We believe our clients are much more than just customers.
2. We focus on how short-term issues impact long-term decisions.
3. We answer questions you did not even know you had/knew were important.
4. We are proactive in our tax planning and consistently think ”outside the box.”
5. We practice the “Golden Rule” focusing on serving your needs.
6. You want fast efficient turnaround in your work/returns.
7. You want accurate information.
8. You want your calls and correspondence responded to quickly.
9. You believe traditional business and moral principles are important.
10. You want to pay your lowest legal possible tax.

Contact HIS CPA PC (A Christian CPA Firm) today.

Serving as an Award Winning CPA for Decades

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 

Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ 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 Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin and Wyoming, Los Angeles, Chicago, Houston, Philadelphia, Phoenix, San Antonio, San Diego, Dallas, San Jose, Detroit, Indianapolis, Jacksonville, San Francisco, Columbus, Austin, Memphis, Baltimore, Fort Worth, Charlotte, El Paso, Milwaukee, Seattle, Boston, Denver, Louisville, Washington D.C., Nashville, Las Vegas, Portland, Oklahoma, Tucson, Albuquerque, Long Beach, Atlanta, Fresno, Sacramento, New Orleans, Cleveland, Kansas City, Mesa, Virginia, Omaha, Oakland, Miami, Tulsa, Honolulu, Minneapolis, Colorado Springs, Arlington, and Beyond.