Accounting News and Notes

Gwinnett CPA Guides Atlanta Business Owners on Setting up Initial Meeting with a CPA for the First Time

His CPA PC…Offering Free Initial CPA Consultations with Business Owners

Initial meetings with a CPA you are hiring should not only be a time for you to interview the proposed professional but also for you to check on his past accomplishments, overall demeanor, core competency, and overall game plan for addressing your CPA needs. A CPA who has a core program is most apt to be more about serving their needs than that of your own. A good professional should be able to easily adapt to your needs and the changes in those needs while also being sensitive to your own core competencies.

CPA firms who have your best interests at heart are most apt to also refer other outside services such as a payroll company, which is most always a much faster and more economical option than either the CPA or the client preparing them. Also items such as preparing sales tax reports can easily be taught to client personnel saving potential tens of thousands of dollars over a ten-year period.

Often 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. Frequently 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.

HIS CPA, P.C. is committed to you and your business’s success. Put our years of experience, business accomplishments and bottom line philosophy to work for you today. Find a CPA who has your best interests at heart. We have learned that throughout the years that working with clients who have their own internal financial statements, such as QuickBooks is essential to keeping your own company’s internal financial statements current as well as to keep their CPA fees to only required minimum levels. The below is a sample letter we might send to a client confirming critiques to their internal financial statements:

It looks like you made some changes to prior months after those months were closed. 

Please be reminded that we do not want to make changes to prior months after those months were closed as it changes your starting point, changes your history and precludes your ability to accurately track profits and losses as they are recorded. 

Please go back and undo all prior changes to prior months and then ensure that the internal books equals the ones that were previously approved. 

Then make any required changes to August and resend the B/S, P/L and detailed year to date transaction search for the Salaries account. 

“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

Over the River and Through the Woods…Directions to His CPA PC

Find Out What Hundreds of Gwinnett/Atlanta Business Owners Already Know

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

            From 285 & 85

• Go 85 North of 285 approximately seven exits to the Sugarloaf Parkway exit. Go west approximately three miles on Sugarloaf Parkway until Sugarloaf Parkway dead ends, take a right on Peachtree Industrial Blvd.
• In approximately one-half a mile on the left is entrance to River Plantation Subdivision (Noblin Ridge Drive). Please note there is a Kids R Kids School on the right, as you are turning left into the subdivision.
• After enter subdivision, take the 1st left onto Noblin Woods Trail.
• Take 2nd left onto Woods River Lane.
• Home is 5th residence on the left, 1940 Woods River Lane.

From Fulton County near State Bridge

• Take State Bridge straight over Medlock Bridge Rd. and go over the river into Gwinnett County and at the first main intersection take a left onto Peachtree Industrial.
• Go approximately 1 mile and you’ll go straight over Hwy. 120 and continue approximately 3 more miles.
• In approximately two miles, past Hwy. 120, on the left is entrance to River Plantation Subdivision (Noblin Ridge Drive). Please note there is a Kids R Kids School on the right, as you are turning left into the subdivision.
• After enter subdivision, take the 1st left onto Noblin Woods Trail.
• Take 2nd left onto Woods River Lane.
• Home is 5th residence on the left, 1940 Woods River Lane

            From Fulton County at McGinnis Ferry Road

• Come over the river and through the woods into Gwinnett County and take a right on Peachtree Industrial. Go to approximately the fifth subdivision on the right which is River Plantation Subdivision.
• Take the 1st left onto Noblin Woods Trail.
• Take 2nd left onto Woods River Lane.
• Home is 5th residence on the left, 1940 Woods River Lane

John Dillard, CPA of His CPA, PC (A Duluth 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.

His CPA PC Says….QuickBooks is a Good Financial Package for Atlanta Small Business Owners

Bookkeeping for Business Owners

A CPA who is looking out for your best interests are most apt to also refer other outside services such as a payroll company, which is most always a much faster and more economical option than either the CPA or the client preparing them. Also items such as preparing sales tax reports can easily be taught to client personnel saving potential tens of thousands of dollars over a ten-year period.

A CPA who serves God and practices the Golden Rule, 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. Frequently 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.

Hire a Christian CPA as they will be committed to you and your business’s success. The below is a sample of a letter we might send along to a client seeking to help critique their internal financial statements and to guide them in proper financial reporting:

To get down the road to get your bookkeeping for your internal data finalized I went ahead and forwarded you the attached. 

Please get to me today copies of where the checks were deposited into your payroll account which you said were written off of your operating account, and that you identified as transfers. Please forward me the pages on the operating account circling these transfers showing me how they reconcile to the deposits listed in your payroll account. 

Please close on the General Ledger the Money Market account, as per your advice it is closed. 

Please when printing both the year to date and the current month P/L reports before printing click in the Top Left Corner modify Report and then % on Income. This will allow you/the management to evaluate costs in relation to their percentage of total revenue. This will help you highlight variances for evaluation, critique and to take corrective management action to bring costs into control. 

That to update your tax planning I need what you anticipate you will net in the business before any salaries or shareholder distributions to yourself. 

I still need a copy of where the IRS accepted your S Election. 

Please review your P/L accounts to see if you purchased any fixed assets in the business that you need to re-class as Fixed Assets on the Balance Sheet. I suggest capitalizing all items over $1000.

Bookkeeping for Atlanta Small Business
Unleash the power of information by learning the ABC’s of accounting for the business and financial operations of your business. To learn the nuances of Small Business Bookkeeping http://www.hiscpa.com/keeping-books.html

Preparing and Reviewing Financial Statements for Atlanta Business Owners
As your financial results of your business are like a doctors chart of their patient, this will help enable you to understand financials and their use. To learn more visit http://www.hiscpa.com/financial-statements.html

John Dillard, CPA of His CPA, PC (A Duluth 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.

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.

Atlanta CPA Teaches Bookkeeping for Atlanta Business Owners

Preparing Tax Returns and Financial Statements for Atlanta Business Owners & Entreprenuers for Decades

We have learned that throughout the years that working with clients who have their own internal financial statements, such as Quickbooks is essential to keeping your own company’s internal financial statements current as well as to keep their CPA fees to only required minimum levels. One of the best ways to ensure good bookkeeping is to not make changes to a period after a month is closed. Below is  sample letter that we might send to a client to help them both understand their internal bookkeeping and to properly compile their internal financial statements:

It looks like you made some changes to prior months after those months were closed.

Starting with this month when you send to me the data for a month please also send a P/L just for the current month. Please go ahead and send me one for August at your earliest convenience. 

It appears so far from looking at your data that you internal YTD profit at 8-31-10 of $100K fell to $20K at 9-30-10 as a result of the substantial loss in September. 

To be sure that your internal books still equal the August  internal data please send me a copy of the August P/L showing the $100,000 of YTD internal profit as you reported. 

Perhaps sometime next week you can spend a bit of time with Quickbooks to see if you can automatically print one report that shows both the current and the year to date column so that you will not have to show separate reports so that you will be able to analyze, critique and understand financial operating results from period to period.

“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,

Christian CPA Encourages Business Owners to Seek Excellence by Retaining Wise Counsel 

“Only You Can Prevent an Undue Tax Burden” 

Resting on our laurels while enjoying the fruit of both of efforts and God’s blessings are indeed good things. However it is when we stop growing and believe that we are well prepared for what lies ahead that Satan is most apt to challenge us and to derail both our efforts and our lives. For as the Apostle Paul said we are to put the breastplate of righteousness and to believe in our faith as our protector and not we ourselves. 

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. 

Just as a wise man is to build his life on the steadfastness and security of the rock of his faith so are we to ensure that we surround ourselves with wise counsel. Though the Internet has done much to put a world of information at our fingertips, I would most assuredly die if I were to try to address/fix my own medical condition, rather than seek out the advice and guidance of a good physician. Similarly as a doctor provides a framework and roadmap to the successful running of our body, we need to look to the talents of others to ensure that we do not fail, when success was otherwise at hand. We are to seek insight to ensure that all problems are mitigated and that substantial issues are wisely, efficiently and quickly addressed. 

So is it then that when starting a business in Atlanta one should first seek out the services of a good CPA to guide in decision making before issues become both problematic and entrenched. By leaning on the skills of others and by seeking wise counsel we are able to substantially ourselves by both strength in numbers, judicious wisdom and by leveraging our talents. 

CPA’s like doctors come in all shapes and sizes, talents and experiences, age and youth as well as wisdom and insight. Having a CPA who has not only the technical ability, but also the wisdom and the ability to articulate will do much to ensure that your business does not “stub its toe” financially. Seeking financial guidance at times of substantive change will do much to ensure that business transitions run more smoothly, are better rehearsed and therefore in the end, likely to be more profitable. 

For both Atlanta business owners getting started and for those who have been in business for decades, “what you don’t know will hurt you.” In these times of rapidly changing technology, changing economic climate, uncertainty in the markets and tax law changes your need for an experienced CPA will do much to help steer away from avoidable miscues and problems. 

To help you learn what you need to know when looking for a CPA, the below articles will do much to ensure that the CPA you hire will do much to help you both short and long term financially.  As an old boss of mine used to say, “a word to the wise is sufficient.” 

MARK TWAIN:
“GOOD JUDGMENT COMES FROM EXPERIENCE. AND WHERE DOES EXPERIENCE COME FROM? EXPERIENCE COMES FROM BAD JUDGMENT.”

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!”

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.

Alpharetta/Duluth/Atlanta CPA Advises Atlanta Business Owners on Tracking Your Internal Books & Records 

Staying away from common mistakes will greatly assist you in the proper preparation of your tax return, will help you avoid unnecessary IRS tax penalties and interest, and help you keep your tax bill as low as legally possible. Learn and discover how long and what types of records you should retain and for how long are often the point of consternation for many taxpayers. Know what you need to keep so that you are never unduly surprised if ever asked to reproduce documents. Below is a sample letter we might send to clients to help ensure that their internal books and records are complete and to thus ensure that a taxpayers lowest legal possible tax is paid. Good bookkeeping and accounting is the first step to ensure prudent and wise tax mitigation. 

In reviewing the data for your Corporate Return I had the below critiques: 

Your retained earnings does not equal the prior tax return. Please go back into your internal books at the end of the prior tax year and ensure that your balance sheet equals the balance sheet on page four of Form 1120S/the Corporate Income Tax Return. 

Please re-class all of your insurance accounts into the below categories:

Insurance – General

Insurance – Medical Premiums

Insurance – Disability

Insurance – Life 

Please be sure that you pay all out of pocket/deductibles out of your personal accounts. 

Please forward copies of your W-2’s the company issued.

You should not have a Retained Earnings account in Other Assets. 

Your note payable Office is showing as a debit. Please correct/re-class. 

ASAP after you make the changes please resend the balance sheet and profit and loss and I will complete the return.  

Attached is are time to date. If you might please go ahead today/tomorrow and release a check for the open monies.

James 1:17
Every good and perfect gift is from above, coming down from the Father of the heavenly lights, who does not change like shifting shadows.

Tax Effects Of Entity Choice
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
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

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!

Award Winning Duluth/Gwinnett/Atlanta CPA Advises Atlanta Business Owners on Understanding Nuances of Cash vs. Accrual Financial Statements

Using a computerized accounting package which has a balance sheet and profit and loss capability is a great start to being able to track your business transactions accurately and efficiently. Generally speaking for many small businesses QuickBooks is good system and often has much more capability than you will ever need. However this program is not a universal fit for everyone and you should take care to carefully evaluate your needs to ensure that you select a system which will work for you long term. Special consideration, for example, should be given if you need a POS/Point of Sale System, detailed inventory costing/tracking/and valuation, or if your business will require a multiple user system.

Being an expert at running your business does not make you one at the responsibility of accounting for your business. By applying our decades of experience we are well suited to guide you to track the financial and operational affairs of your business. Understanding the differences in the usability of financial statements prepared on a cash versus and accrual basis will do much to help your Atlanta Business have up to date and useful financial information. Below is a sample inquiry we might receive from a client regarding their internal financial statements/tax returns, that were prepared on a cash basis.

Hi John: We are trying to secure a mortgage loan against our  building.  It’s more or less approved, but the loan officer wants to clear up a few things in case he is asked by his supervisor. 

Basically he is looking at our 2008 and 2009 tax returns.  He said we started 2009 with negative retained earnings and ended at negative $45K. His question is “what happened”?  Any help? 

Below is my response: 

Your tax returns are prepared on a cash basis, which means they reflect only the changes in the company’s cash balances and therefore does not reflect any open billings or accounts receivable. 

To give any kind of initial answer I would have to defer to the cash based tax returns themselves. If we want to give a more meaningful answer for those years we would need to compile financial statements for the last two years on an accrual basis. To do this I would need the open Accounts Receivable and Accounts Payable at the end of the last three tax years for the already prepared cash based tax returns. 

Though many business owners will spend substantive time evaluating their cash balance, this alone fails to contemplate other information available that might dramatically impact important operational and strategic issues. Consideration to long-term issues would include evaluation of the business’s current results versus its annual forecast, and a careful review of future sales and profit forecasts. It is also important to evaluate cash balances considering anticipated dates of collection of receivables, payment of ordinary debt, accounts payable, fixed asset purchases, and leases as all of these issues have substantive impact on what your future cash balances will be. The best way to ready yourself for successful evaluation of your financial statements is therefore to prepare your statements on an accrual, rather than on a cash basis. 

In light of this information, you are better able to make wise decisions that take into consideration future issues and your ability to satisfactorily balance the varying ebbs and flows that affect not only your present but future ongoing operations and the very viability of your business. Failure to consider each and all of these issues will result in a perpetual array of poor cash decisions, as they are not grounded in fact. Though running a business is indeed an art, it is based upon one’s ability to perceive and properly process and evaluate the facts available that are tantamount to ones success and an accrual statement is your best bet to have the required information to compile needed useful information for Atlanta Business Owners & Entrepreneurs. 

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.

Duluth GA CPA Advises on Tax Return Preparation for Atlanta Business Owners 

Keeping tax payers informed is one of the key tenants of assisting business owners with successfully addressing tax issues. Below are excerpts from a sample letter that might be used to ensure that the best CPA advice we can provide is made available to each and every business client: 

This is to confirm that ASAP I suggest: 

-You pay as an estimated tax payment against your 2009 income taxes at least $10K to the IRS and $3K to GA, using 2009 IRS Form 1040ES & GA Form 500ES respectively as these monies are already due and you to not meet the exceptions for paying these monies with the filing of your personal return on 4-15-10. Please be reminded that if we do extend the date to file your personal return that an extension to file is not an extension to pay.

-File and pay your 2009 taxes. Please be reminded that both the IRS/GA are a pay as you go system and that both will add penalties for late payment and late filing in addition to any interest income accrued and owing.

-That you consider and evaluate setting up an S Corporation to protect your personal assets from Corporate liability.

Understanding How Georgia S Corporations Pay Taxes

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.

Additional components 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.

Often you can set up a loan so that the bank lends to you personally and then you could do a personal loan to the company, which will result in you having contributed basis/the dollars to the business, thus making any losses that you fund deductible

http://www.hiscpa.com/budgeting.html Duluth GA CPA Helps Reduce Unnecessary Spending: Budgeting 101 by Roswell CPA
http://www.hiscpa.com/article1.html Atlanta/Gwinnett CPA Illustrates Difference Between Planning & Historical Accounting by North Fulton CPA
http://www.hiscpa.com/article3.html Gwinnett/Duluth Georgia 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  

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.

Suwanee/Buford CPA Provides Tax and Business Directory for Atlanta Business Owners

When was the last time you got any good FREE Business and Tax Management Information you can use 24 Hours a day & 7 Days a week.

http://www.hiscpa.com/irs-selection.html Atlanta/Marietta CPA Teaches How Audits Are Selected
http://www.hiscpa.com/irs-audit.html Gwinnett/Forsyth CPA Advises on How to Handle IRS Audits
http://www.hiscpa.com/working-with-the-irs.html Atlanta/Cobb Christian CPA on IRS Representation
http://www.hiscpa.com/paying-taxes.html Gwinnett CPA on Paying Your Taxes and Extensions
http://www.hiscpa.com/avoiding-audits.html Duluth/Cumming/Forsyth CPA on How to Avoid IRS Audits
http://www.hiscpa.com/offer-in-compromise.html Atlanta/Cobb CPA Advises on Offer of Compromise, Back Taxes and IRS Problem Resolution
http://www.hiscpa.com/comparing-tax-methods.html Gwinnett/Forsyth CPA on National Sales & Flat Tax
http://www.hiscpa.com/article6.html Gwinnett/Hall CPA Advises on Tax Effects of Entity Choice
http://www.hiscpa.com/about_us.htm Providing Accounting and Tax Services to Georgia Businesses for Over Thirty Years by Gwinnett/Atlanta CPA
http://www.hiscpa.com/irs-representation.html Georgia IRS Representation, Offers in Compromise and Back Taxes by Snellville/Lawrenceville CPA
http://www.hiscpa.com/testimonials.htm What Clients of John Dillard, (An Atlanta Christian CPA) Have to Say
http://www.hiscpa.com/tax-services.html Atlanta/Cobb CPA Tax Preparation and Planning Services
http://www.hiscpa.com/what_we_do.htm Atlanta/Northpoint CPA Financial Accounting Services
for Small Business and Individuals
http://www.hiscpa.com/small_business_plans.html Writing Georgia Business Plans for Over 30 Years by Johns Creek/Northpoint CPA
http://www.hiscpa.com/marketing_plans.html Johns Creek/Northpoint CPA Helps with Business Marketing Plans
http://www.hiscpa.com/management_plans.html Atlanta Johns Creek/Northpoint Christian CPA Helping with Budgets for Over 30 Years

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/ 

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

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

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.