Accounting News and Notes

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/Johns Creek/Alpharetta CPA Advises Atlanta Business Owners on Preparing a Profit and Loss…The Atlanta Bookkeeping Series

How to Prepare a Profit & Loss

A well presented Profit & Loss will be broken out in the sales section, cost of goods sold, and general and administrative expenses. Many businesses will break out their sales and cost of goods sold accounts into several categories that might be useful for review and analysis.

In evaluating 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.

Frequently financial statements are unduly cluttered with accounts that have no financial, operational, or tax significance. A company’s statement should be concise giving the business owner as well as the CPA meaningful information without unnecessary data. A financial statement, like a heart monitor in a hospital, is the barometer that measures the lifeblood of a business, giving its holder critical and insightful information that is needed for all short and long term operational and strategic decisions.

Understanding and analyzing your company’s financial statement is one of the most critical aspects to having information to properly manage your business. Our exhaustive experience in this field will help guide and direct you to understanding this critical aspect of your business.

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!

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.

Atlanta CPA on What Atlanta Taxpayers Need to Know Before Your Buy Tax Software …A Financial Survivability Series

Providing Atlanta With Bookkeeping, Accounting Needs & Financial Statements for Decades

The Financial Survivability Series is for taxpayers who are looking to “Get More” by seeking advice that is both salient, wisdom-filled and insightful. Today’s Series focuses on whether you should prepare your own tax return. I recommend that all business for profit owners seek out a business CPA who is well versed, experienced and informed in such matters.

Countdown of Top 10 Things Your Accounting & Tax Software Might Not Be Able to Do

10. Pass the CPA Exam.
9. Go to College.
8. Win An Award For Giving Back to the Community.
7. Discuss Incorporating in Georgia and Entity Selection Issues.
6. Assist You With Back Taxes, IRS Representation or an Offer in Compromise.
5.Get a Law Passed in Georgia Making it a Better Place For All to Live.
4. Rely on Decades of Work Experience to Ensure That You Pay Only Your Lowest Legal Possible Tax.
3. Help Provide You Retirement Planning Options For You and Your Business.
2. Serve as a Atlanta CPA Part-time CFO/Controller for  You and Your Business.
1. Ask You How You Feel.

If you have ever performed your own major surgery without being a duly licensed and trained doctor or if you have ever attempted to fly to the moon without being either a highly skilled pilot or astronaut then you might want to fly full steam ahead.

As a CPA I have learned and continue to learn that I do not know what I do not know and that buying technology to help me get there faster is akin to using speed dial to dial wrong numbers faster. Just as the tools of a skilled surgeon will not enable me the skills, knowledge, verve and wisdom of a Board Certified Physician, neither will a software program make you a skilled CPA.

CPA: Never Underestimate the Value

John Dillard is an Christian Speaker/Author and an Atlanta CPA. To See how he takes Christ along with him to work visit http://www.hiscpa.com/ and for his latest book Overcoming Life’s 9/11’s: Job’s Journey and a Voice of One: Nehemiah’s Prayer visit http://www.john-dillard.com/ or call John Dillard CPA today at 770.814.9304 (All Rights Reserved) 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, 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.

Award Winning Roswell/Sandy Springs CPA Advises  on Accounting and Bookkeeping for Your Atlanta Business 

This is the third of a Series about how Atlanta Business Owners & Entrepreneurs can make sound Accounting & Bookkeeping Decisions to Both Track and Record their Business Assets, Liabilities, Income and Expenses.

To determine the future net worth of your business, a determined and insightful understanding of your Profit & Loss statement (P&L) is essential and critical. Though a balance sheet is a recap of what has happened to a business’s assets and liabilities to date, a P & L, if properly presented/managed/understood is a look into the company’s short as well as its long term viability. A businesses P & L essentially measures how well the business is utilizing company assets, personnel procedures and facilities in its effectiveness of serving customers while keeping a keen eye on profit maximization. By properly gathering and studying one’s operations and its corresponding P & L, one can learn much about a business which is useful for measuring rates of return, detecting both positive and negative trends, taking corrective action, and business valuation.

As with all ratios, care and attention should be given to evaluate them in light of company size, maturity, business climate and industry. Though there are many general rules of thumbs for a variety of different industries, there is no substitution for wise and judicious counsel of a wise and trusted business adviser/CPA. They will help evaluate these and many other nuances which make your particular circumstances, operating overhead and unique niche. Below is a sample letter we might use to help get the data we need to help a business owner as they take steps to correct errors in their internal books and records. Having served as an Atlanta CPA for decades, I know firsthand that the beginning to properly running and managing an Atlanta Business is to have Adequate Bookkeeping & Financial Statements that reflect actual operating results.

If you might please print out and mail to me. 

2009 Standard Balance Sheet

2009 Standard Profit and Loss

2009 Trial Balance 

Please be reminded to ask your prior accountant to give us a copy of your detailed fixed asset schedule. 

Please forward to me a copy of your 2009 Corporate and Personal Income Tax Returns. 

Please forward to me a copy of your Journal Entries for both 2008 and 2009 being sure to list them on separate reports. 

Please forward to me a copy of your detailed general ledger by year for 2008 & 2009

What, then, shall we say in response to this? If God is for us, who can be against us? Romans 8:31 Why are these verses here? Learn how His CPA became a Christian Accounting firm visit http://www.hiscpa.com/christian-CPA.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/ Contact John Dillard CPA (An Atlanta Christian/Speaker & Author) to retain him to speak to your business group or church congregation. 

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, and 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 CPA on Addressing Back Taxes & Submitting an Offer in Compromise & Form 433A to the IRS 

Below is a sample letter we might receive from a client who is considering the submission of an Offer in Compromise to address their Atlanta Back Taxes. Coordination of the filing of returns, being sure you are current on your present/this year’s tax filings and payments is an essential part of the Offer and has to be done prior to an Offer of Compromise being forwarded to the IRS, as tax law requires it. 

I’m sorry we’ve been out of touch.  I’m not sure what’s been going on with my bookkeeper but she sort of dropped off the face of the earth recently.  I’m struggling to get caught up to where she left off with accounts receivable (which I’m finding has had nothing done since early January) and the bookkeeping (best I can tell hasn’t been updated since last month).  I’m having to go back and figure out where she left off and get caught up.

I’ve attached Form 433-A.  There are some things that haven’t been completed yet.  Before I spend much more time completing items and copying dozens of statements, etc. for backup, I want you to glance at it and advise on if we should continue to move forward based on the information included.   

Below is my response: 

To adequately do and submit and Offer and that attendant forms, it is most critical first to complete your 2009 corporate and personal returns. Otherwise we run the risk/likelihood of doing them twice as the information has to be current. 

ASAP after we get the corporate returns done then I suggest we get together and go over the Offer process and consider and evaluate all forms and the submission of an OIC (Offer in Compromise).

To learn more about issues affecting your Business visit:

http://www.hiscpa.com/incorporating-nv.html Gwinnett CPA Advises Of Incorporation Pitfalls
http://www.hiscpa.com/incorporating.html Gwinnett Christian CPA Helps with Basics of Incorporation
http://www.hiscpa.com/business-tax-returns.html Duluth Christian CPA Helps Georgia Business’s with Corporate Income Taxes
http://www.hiscpa.com/depreciation-expense.html Atlanta Christian CPA Firm Helps Explain Depreciation Expense Deductions
http://www.hiscpa.com/tax-basis.html Atlanta Christian CPA Firm Advises on Selecting an Accounting Method
http://www.hiscpa.com/independent-contratctor.html Duluth Christian CPA Firm Helps in Determining Employee vs. Independent Contractor Status
http://www.hiscpa.com/employee-checklist.htm Gwinnett CPA Firm Advises on Hiring Employees – A Checklist for Small Businesses
http://www.hiscpa.com/payroll-tax.html Gwinnett Christian CPA Firm Advises on IRS & GA Unemployment Tax Issues
http://www.hiscpa.com/payroll.html Duluth CPA Advises on IRS & GA Payroll Reporting Guidelines  

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/ Contact John Dillard CPA (An Atlanta Christian/Speaker & Author) to retain him to speak to your business group or church congregation. 

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

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

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/Norcross CPA Offers Atlanta Business Owners Advice in the Preparation of the Company’s Internal Books & Records

Atlanta Bookkeeping & Financial Statements
 
Failing to gain the insight of a professional CPA we run the risk of poor bookkeeping for our business, poor entity selection and the overpayment of our taxes. Also a CPA will do much to ensure that you record and track all valid and justifiable business deductions that you are entitle to. Below is a sample inquiry we might receive from a client looking to adequately book and record their accounting transactions:
 
John,
It made me feel good when you said I was making progress so thanks for that. Here are a couple of questions because I want to start out right this year. 
1)  I have attached a spreadsheet with all of my regular expenses.  I am sending you this to make sure I am paying the right things directly out of my business account instead of transferring all of my money from my business account into my personal account and paying everything from there (like I have done forever).  I have two columns, one for business account and one for personal account, I have put an “x” to signify which account I should pay the bill from.  The ones I have highlighted in yellow are the ones I wanted to make sure about.  Some I guessed at based on our conversations.  I have also listed out to the side which category I should designate it to in Quickbooks. 
2)  I want to make sure I am getting money from clients and then doing the right things with it.  Is this the process?
Receive check from client
Deposit into business account
For business expenses (phone): write a check from business account and record in proper category (telephone & utilities)
For personal expenses (tithe): write a check to my personal account and record in proper category (shareholder distribution)
I hope that question makes sense.  That whole process from the moment I get the check was pretty blurry but if this is right I think I am getting there. OK, thanks for your help.
 
Below is my response:
 
For the items on your checklist I suggest that:
 
-You pay all utilities personally.
-That if you have any portion of your home used exclusively for business that once a quarter that you get a reimbursement check for the prorated portion.
-Please be reminded that tax law allows you to only deduct a second business phone in your home.
 
Be sure before at include your current year data that you add all business expenses including business mileage on personal car.
 
You have the below process correct. Put all business revenue into corporate account and then pay only business expenses out of business account.
 
After you get all data current we will look to add you to payroll and also have you start getting a paycheck.
 
I will go ahead if we have not ready and prepare the paperwork to convert you business to an S Corporation for tax purposes.
 
There are three things you will want to take out of the business monthly, which includes a paycheck, a monthly expense reimbursement and a shareholder distribution.
 
You will want to be sure to pay all personal bills that you incur out of your personal checking account, and not the corporate account.
John Dillard, CPA of His CPA, PC, (A Metro Atlanta 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!

We serve clients that are located in Atlanta GA, Gwinnett County, North Fulton County, Dekalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Alpharetta, Johns Creek, Lawrenceville, Milton, Norcross, Snellville, Roswell, Buford, Cumming, Grayson, Lake Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, Dunwoody, Gainesville, Decatur, .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, Sandy Springs, Smyrna, Peachtree City, Douglasville, Newnan, Griffin, Woodstock, Carrollton, Forest Park, Canton, College Park, Cartersville, McDonough, Riverdale, Fayetteville, Covington, Stockbridge, Conyers, Clarkston, Butts, Carroll, Haralson, Heard, Jasper, Lamar, Meriwether, Pickens, Pike, and Spalding.

Norcross/Johns Creek/Roswell CPA Advises  on Keeping Good Financial Statements for Metro Atlanta Taxpayers… The Accounting and Bookkeeping Series

This is the second of a Series about how Atlanta Business Owners & Entrepreneurs can make sound Accounting & Bookkeeping Decisions to Both Track and Record their Business Assets, Liabilities, Income and Expenses. Below is a sample letter we might use to help get the data we need to help a business owner as they take steps to correct errors in their internal books and records. Having served as an Atlanta CPA for decades, I know firsthand that the beginning to properly running and managing an Atlanta Business is to have Adequate Bookkeeping & Financial Statements that reflect actual operating results.

All successful business owners either initially or over time become extremely proficient in their field of choice for it is by this growth of knowledge and wisdom which affords them the insight to make prudent decisions. Each and every hour of a business owner’s day, there are a series of insignificant and important thoughts and directions that directly impact the profitability of a business. Continually you are faced with making a positive impact towards bringing your business closer or further away from your goal. A company’s financial statement is the measuring stick by which you are able to gauge a company’s progress along the business continuum and are able to accurately measure the distance between where you are and where you want to be. Below is a sample note that might be sent to help a business owner properly evaluate and track their internal bookkeeping. Over the decades of being an Atlanta CPA, I have learned that running a business is hard enough, even while having proper books records and financial statements.

Below are Critiques to your Internal Books: 

-On your 12-31-09 Balance Sheet, please correct the Retained Earnings account so it equals to the prior Corporate Income Tax Return as filed. 

-Please confirm the cash balances listed agrees to your checkbook balance  listed on your checking account and on the Balance Sheet. 

-Please confirm that your Accounts Receivable balance listed agrees to your A/R aging detail 

-Please confirm your Accrued Revenue account is correct. 

-Please confirm your Accrued Payroll Tax Commission account is correct. 

-Please confirm that your Accrual Accounts are correct. 

-Please confirm your Customer Deposits Balance is correct. 

-Please confirm that your Accounts Payable balance listed agrees to your A/P aging. 

-Please confirm that the amount listed on credit cards agrees to the total of the detail of business charges owed at year-end.

 -Please get to me copy of the company’s W-2’s issued and the W-3 so that we can ensure that the gross wages agree to the Profit & Loss. 

-Please be reminded that companies that are an S Corporation for tax purposes are required when making Shareholder Distributions to do these in accordance with the percentage of ownership of the business. Please review the Shareholder Distributions to ensure compliance. 

-Please be reminded that Business/Corporate Gifts by tax law are limited to $25 per recipient per year. Please advise of any amount over and above this threshold. 

-Please ensure that all new fixed assets purchased in the period are added to the schedule. I did not see the items/cost being added to the Balance Sheet. 

-The Depreciation Expense on the Profit & Loss looked high relative to the Fixed Asset schedule. Please review/correct. 

If you have any questions along the way, please do not hesitate to call. 

What, then, shall we say in response to this? If God is for us, who can be against us? Romans 8:31 Why are these verses here? Learn how His CPA became a Christian Accounting firm visit http://www.hiscpa.com/christian-CPA.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/ Contact John Dillard CPA (An Atlanta Christian/Speaker & Author) to retain him to speak to your business group or church congregation.

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, and 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 CPA Provides Critiques to Chart of Accounts to Help Atlanta Taxpayers with Bookkeeping & Accounting Issues/Services for Alpharetta/Grayson

Award Winning CPA Serving Grayson, Norcross & Forsyth Provides Tax Tips for Atlanta Taxpayers

John Dillard CPA: Addressing Bookkeeping, Accounting & Financial Statement Issues for Atlanta Business Owners for Decades 

Well too frequently I see business owners fail to procure insight in the beginning phase of their business causing undue starts and stops, fines and penalties, poor financial reporting and failure to properly price, value and deliver goods and services to clients. Below is a sample letter I might send to assist a client with the initial setting up and recording of their internal bookkeeping to ensure prompt and correct internal financial reporting: 

I got your internal data for your financial and I had the below thoughts/questions. 

-I would put all of the income into one account called sales. At present you have five. 

-I set up a chart of accounts that has the below accounts.

Office Supplies (I would put into this account all of the items you presently have in expenses)

Telephone & Utilities

Rent/Lease

Salaries

Salaries – Owner

Salaries – Payroll Taxes

Meals & Entertainment

Insurance – General

Insurance – Medical 

I would close the Opening Balance Equity account and Retained Earnings (if these are the dollars you originally  loaned the business) into a Current Liability account called  Due to Shareholder.

I would set up the below accounts in the Equity Section:

-Common Stock

-Shareholder Distributions

 When you forward your financial, please send only the Standard Balance Sheet & Standard Profit and Loss. 

Does your bank balance listed agree to what the bank balance should be.

After you make all of the above changes I would change the status of the below accounts to inactive:

-All of the Expense accounts you are presently using.

-Opening Balance Equity 

If you are using the Journal Entry Module as we discussed there should be no dollars in Undeposited Funds. To learn more about what you can do to improve you business and management skills visit the below articles for additional insight and clarification.

http://www.hiscpa.com/budgeting.html Georgia CPA Helps Reduce Unnecessary Spending: Budgeting 101
http://www.hiscpa.com/article1.html Atlanta CPA Illustrates Difference Between Planning & Historical Accounting
http://www.hiscpa.com/article3.html Gwinnett/Duluth CPA Teaches Personnel Keys to Managing Business Growth
http://www.hiscpa.com/article6.html Georgia CPA Teaches the Tax Effects of Entity Choice
http://www.hiscpa.com/marketing-efforts.html Tracking Marketing Statistics for Your Georgia Business  

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/ Contact John Dillard CPA (An Atlanta Christian/Speaker & Author) to retain him to speak to your business group or church congregation. 

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 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 CPA Teaches Tax Planning 101: Utilizing Tax Information To Understand Changes in Your Tax Situation 

Understanding nuances of your own personal tax information will do much to help you both communicate with your CPA as well as to plan for your current tax bill and well into retirement. As such a CPA will work with a client to help understand and apply the many tax variances that might consist on a return to both enlighten and to educate a taxpayer. Below is a sample of what we might send to a taxpayer to teach and to help show clients reasons for variance in both their final tax obligation as well as the net amount due or to be refunded upon year-end income tax preparation: 

In Comparing Your Personal Tax Bill From 2008 to 2009 I noted the below, which are the primary contributing factors to your increased tax liability and taxes due: 

-Your K-1 from your P.C. increased $25,000 from 2008 to 2009.

-Your Interest Income increased $18,000 from 2008 to 2009.

-The K-1 from your Partnership Interest increased by $40,000 from 2008 to 2009.

-Your federal withholding fell by $8,000 from 2008 to 2009. 

To help avoid any unnecessary penalties and interest from being assessed by either the IRS or GA I recommend that we tax plan at least twice annually.

Year End Tax Planning: What Businesses Should Do Now
If you fail to plan, you are preparing to be surprised. Learn how you can get ready now for your year-end liability and survive the year-end tax preparation process. To learn how tax planning tips today visit http://www.hiscpa.com/year-end-tax-planning.html

Should You Maximize Profit or Work to Pay Fewer Taxes?
Tax Planning is an art under-girded by the science of the tax code and proper planning. Learn what you need to know to be a wise steward of your tax monies. To learn more visit http://www.hiscpa.com/profit-maximization.html

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

To learn more about tax entities and the taxation thereof visit http://www.hiscpa.com/article2.html  There you will also discover a wide host of resources for Atlanta Entrepreneurs.

John Dillard is an Christian Speaker/Author and Certified Public Accountant in Duluth, GA. To See how he takes Christ along with him to work visit http://www.hiscpa.com/ and for his latest book Overcoming Life’s 9/11’s: Job’s Journey and a Voice of One: Nehemiah’s Prayer visit http://www.john-dillard.com/ or call John Dillard CPA today at 770.814.9304 (All Rights Reserved) 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, 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 Teaches  Getting Your Business’s Internal Financials Ready for an Audit, IRS Representation Issues or Submitting an IRS Offer in Compromise

Although it is tempting to address a crisis only when it arrives, it is much more prudent to be aware and ready for events before they come issues for failing to prepare, is preparing to fail. However it is often when a client has been called to task on an audit or is considering submitting an Offer in Compromise when a CPA can especially be invaluable in readying for the tasks at hand. Like a good general, the first task of a CPA in representing a corporate or personal tax return is to assess the damage, understand the whole of the tax environment and nuances thereof, control the communication with the IRS/taxing authorities, and to plan a strategy that works best for the client. Care needs to be exercised to ensure that a well-thought out plan needs to be tailored to that particular client to ensure a successful IRS audit experience. Below is a sample of a letter that might be sent to a client to coordinate the many and varied tax issues to ensure no important items are missed or ignored.

I just received statement for the open monies for the 2006 to 2008 showing $120,000 outstanding, including taxes penalties and interest due and payable to the IRS. Time, when dealing with the IRS, is not our ally. It is critical that we get all of your tax filings and current payments, for the 2009 tax year, ASAP. Failure to do so can/will result in two potentially worse negative tax issues than before:  

-The IRS is not statutorily allowed to work with a taxpayer to either consider/process an Offer in Compromise or an Installment Agreement unless a taxpayer is current on all of its current year responsibilities and payments.

-Tax fines and penalties along with its attendant interest continue to be accrued until the manner/open balance is either paid is full or formally abated. 

ASAP please forward me a copy of your filed 2009 corporate and personal income tax returns so that I might review it for any potential errors or deficiencies. We have often helped taxpayers to legally amend their corporate and personal income tax returns to correctly claim previously missed deductions resulting in the refund of thousands and thousands of dollars. 

I suggest that ASAP that you complete IRS Form 433A, Form 656 and Form 433B (if applicable) so that we might evaluate if you are an candidate to submit an Offer in Compromise. To read more about the rules of submitting and processing a successful Offer in Compromise visit http://www.hiscpa.com/offer-in-compromise.html  

Failing to respond to IRS notices ASAP can expose you to additional collection efforts by the IRS including levies, liens, asset seizure and garnishments, which otherwise might be avoided by quickly, efficiently, and effectively addressing IRS notices received. 

If you are not a candidate for an Offer in Compromise I suggest that either ASAP you pay the tax and interest in full, while asking for penalty abatement or get on an installment plan. 

Please be sure your internal 12-31-08 Balance Sheet equals the Balance Sheet on page Four of the Corporate Income Tax Return/IRS Tax Form 1120S. In this way we will know that your 2009 internal financial statement is starting off with the correct balances, as they are listed on the corporate income tax return.

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

To learn more about addressing IRS Tax Issues and Back Tax Returns visit http://www.hiscpa.com/working-with-the-irs.html  

John Dillard is an Christian Speaker/Author and Certified Public Accountant in Duluth, GA. To See how he takes Christ along with him to work visit http://www.hiscpa.com/ and for his latest book Overcoming Life’s 9/11’s: Job’s Journey and a Voice of One: Nehemiah’s Prayer visit http://www.john-dillard.com/ or call John Dillard CPA today at 770.814.9304 (All Rights Reserved) 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, 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.