Accounting News and Notes

Gwinnett/Duluth/Atlanta CPA Reminds Atlanta Taxpayers That Corporate Returns are Due March 15, 2010 

It is certainly that time of year again. Please be reminded that corporate returns are due March 15. If we want to file by the due date, I will need to receive your data in next few weeks so that I will have an ample amount of time to file. As always, I will file for the automatic six-month extension in the event I do not get the data in time. Please be reminded that an extension to file is not an extension to pay and that both the IRS and the state expect you to pay your taxes as you earn the monies. Please be reminded there are no valid extensions after the September 15 final due date lapses. Below you will find a checklist to prepare your Corporate Income Tax Returns: 

To process your corporate return, please forward your balance sheet and your profit and loss and copies of any W-2’s the corporation might have issued. If you have not yet done so, please be reminded that 1099’s should be issued by the end of January; your payroll service will handle this if you get them the information. Before you send the current year’s financial please be sure to always review the prior year’s balance sheet on the tax return and ensure that your internal books equals the return while being sure to make any appropriate adjustments. That way you will be assured of starting the year off with a clean set of records which will otherwise distort you current year’s operating results.

To complete your corporate return, please forward:

• Your year to date Balance sheet, Profit & loss
• Year end Bank Statements and Bank reconciliations
• Aged Accounts Receivable
• Year-end Inventory
• Aged Accounts Payable
• Year to Date Payroll Records by Employee
• Notes Receivable and Payable Balances at Year end
• Copies of new Notes
• The amount of medical insurance paid for each shareholder
• If your company is new, please forward copies of the incorporation papers.

Before you send your Year-End Financial Please be sure that:

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

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

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

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

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

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

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

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.

Award Winning Duluth, GA CPA Teaches Tucker/DeKalb/Forsyth/Alpharetta Business Owners Advice on Incorporating

Lifting the Veil Surrounding Entity Selection, When Incorporating in Georgia 

Choosing the correct entity for your new Georgia business is not the faint hearted or ill prepared. “Learning the Ropes” and how best to Incorporate Your New Metro Atlanta Business will do much to ensure that you only Pay Your Lowest Legal Possible Tax. Below is a sample of a recent inquiry received: 

I formed an LLC. I am doing professional services as by business and it is in the State of Georgia. I have registered my company with the State and also have FEIN #. I have a business checking account and payment for my work is paid into that account. I draw my expenses from that. My revenue so far is small and for the last few months.

I want to convert to S-Corp by filing with IRS. How soon this should be done? Can I do this retroactively? That is do I have to a 1099 or C-Corp till today and S-Corp from the day I file with IRS for S-Corp. Appreciate a general reply, if not specific points. Can I avail your CPA services? What are the charges? Thanks  

Below is my response: 

Thanks for visiting www.HisCPA.com I can help you with all of that.

I will send you under separate cover a information about converting your LLC to an S Corporation for tax purposes and yes we can get the Incorporation Date as the S Corporation effective date if we act soon.  

Quality wise we strive to be second to no one, while fee wise we strive to be mid-range.  I would welcome talking to you about your becoming a client and us serving your CPA needs for many years to come. All the Best,  John Dillard CPA   

LLC’s can Legally Convert to an S Corporation Saving Thousands Annually. LLC’s came in vogue approximately fifteen years ago when the state of Georgia enacted legislation allowing an LLC (Limited Liability Company) to be established. Although the LLC does allow for some greater flexibility and ease of operation it often results in a higher tax obligation that might not have been incurred if the business was an S Corporation.    

Tax law treats all the earned income from an LLC as being subject to both FICA & Medicaid taxes whereas an S Corporation has to pay those taxes reflected on W-2’s. For tax purposes, the law allows an S Corporation to legally convert to being an S Corporation as long as all active employee/owners pay themselves a fair and reasonable salary. This number is best determined by the facts, position, and profit of a business and the truest test of this calculation is what a business owner would have to pay someone else to perform their position.    

All businesses are unique and therefore all saving opportunities are different. But even the smallest of businesses with the smallest of profits may save approximately $6000 by converting from an LLC to an S Corporation. Already this year, we completed this process for an LLC saving them $25,274 of FICA/Medicaid taxes.   

There are only four rules to qualify for being an S Corporation.  You must: -Have a December 31st year-end.  -Have less than 100 shareholders.  -Have shareholders who are U.S. citizens or resident aliens.  -Have only one class of stock.  

We offer a free initial consultation to see if converting your business to an S Corporation for tax purposes makes sense to you. Put our decades of experience to work for you ensuring you pay your lowest legal possible tax. 

A Christian Atlanta CPA Firm: Never Underestimate the Long Term Benefits. 

John Dillard is an Christian Speaker/Author and an Alpharetta/Tucker 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.

Duluth Georgia CPA Appears on Atlanta Family Business RadioX 

John Dillard of His CPA PC appears on Atlanta Family Business RadioX discussing needs and desires of Atlanta Business Owners & Entrepreneurs. Atlanta Family Business RadioX is geared towards being a ally and resource for Atlanta Family Business Owners and also a source of networking information you will want to utilize again and again. To read more about the interview you can visit http://familybusinessradio.businessradiox.com/47 or you can contact John Dillard CPA today for practical no nonsense consultation to ensure your Family Business Succeeds and that you pay only your lowest legal possible tax. 

A Christian CPA: Never Underestimate the Long Term Benefits

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

Atlanta/Duluth Georgia  CPA Provides Top Five Financial Tips to Success When Buying a New Business

When you get ready to buy a business it is a critical decision which you will want to approach with caution and due diligence to ensure that you are well informed in your purchase. A wrong decision will cost you great financial pain and emotional suffering whereas the right purchase will be a feather in your cap for many years to come. Below is a sample inquiry I that I might receive:

I just considering buying a new business and I am looking to investing alternatives that might be best to consider when evaluating my proposed purchase.

Below is my response:

Below you will find Top Five Financial Tips you will want to consider both in buying or selling a business.

• A Good Attorney. A good attorney is the best protection (along with following their advice of course) to help ensure that you evaluate, consider, and document all important/critical factors in making your decision. As the purchase itself is the culmination of your due diligence, you will want an attorney to draft the actual purchase agreement to ensure that all needed critical components of your decision are well documented and agreed to. Your acquisition agreement should also document to whom the total purchase price is to be allocated, as this will be important for both tax planning and to prepare your tax return at year-end.
• A Good CPA. Before you make any substantial investment in any new business venture I suggest you discuss it with a CPA who can help ensure that your due diligence allows you substantive enough information to make a wise and prudent decision. Though financing is an important part of the equation the most essential piece is to consider the nature, scope, size and anticipated results of your new business venture.
• Evaluating Past Income Tax Returns & Interim Financial. Due diligence on the company’s financial condition, I suggest that we get at least two years of financial statements and tax returns, a year to date financial statement for the year including the balance sheet and the profit and loss, a copy of all material leases that you plan to assume, a non-compete on the prior owners and any key employees, and a list of all fixed assets and their fair market value that you will be buying, a detailed list of all inventory at cost, a list of open receivables, and a list of open payables.
• Due Diligence Procedures. Determining what specific procedures were done to evaluate the integrity of the financial statements (i.e., consultations with their major vendors, customers, an evaluation of checks written being sure that all checks are valid business expenses and have been properly recorded, consultations with their banker, their prior CPA, an evaluation of their overall books and records and internal controls, and tracing several months detailed deposits to the bank statements along with reconciling the total bank deposits for the year to the financial). Also I would suggest getting copies of detailed payroll records for employees and independent contractors so that you are aware of the staffing needs/requirements and those monetary considerations. A good CPA can help evaluate these in detail looking at trends, the market, and other demographic data, and any undue/excessive concentration of business & clients, technology etc., to ensure you are fully aware of what you are buying.
•  Gain Independent Verification/An Appraisal. An acquisition that also includes the of buying real estate as part of the total purchase, you will want to determine fair market value by having an independent appraisal performed.

The above is a good list to get started and then to see where these answers/questions take you. Please note however, there is no substitute for the facts and intuitiveness that a good CPA/financial adviser can bring to the table to evaluate buying a business and its purchase/sales price.

Utilizing a payroll service will do much to make this administratively burdensome process more seamless than if you strive to go it on your own. To learn more visit http://www.hiscpa.com/payroll.html

Knowing what is a legal tax deduction and the documentation thereof is essential to sound business management. To see  how you can be ready http://www.hiscpa.com/business-expenses.html

Ensure that your workers are properly classified predominantly to ensure that there are no workers, who are truly employees, that you are in error classifying as employees, visit  http://www.hiscpa.com/independent-contratctor.html

Contact HIS CPA PC (A Christian Atlanta 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 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.

His CPA (a Christian CPA firm)

Gwinnett CPA Proudly Serving for over Twenty Years and our Comprehensive List of Services

Contact John Dillard CPA at 770 814 9304 and let’s get started today.

http://www.hiscpa.com/irs-selection.html      Atlanta CPA Teaches How Audits Are Selected

http://www.hiscpa.com/irs-audit.html  Georgia CPA Advises on How to Handle IRS Audits

http://www.hiscpa.com/working-with-the-irs.html  Atlanta 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 CPA on How to Avoid IRS Audits

http://www.hiscpa.com/offer-in-compromise.html  Atlanta CPA Advises on Offer of Compromise, Back Taxes and IRS Problem Resolution

http://www.hiscpa.com/comparing-tax-methods.html  Gwinnett CPA on National Sales & Flat Tax

http://www.hiscpa.com/article6.html   Gwinnett 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

http://www.hiscpa.com/irs-representation.html    Georgia IRS Representation, Offers in Compromise and Back Taxes

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  Georgia CPA Tax Preparation and Planning Services

http://www.hiscpa.com/what_we_do.htm  Atlanta 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

http://www.hiscpa.com/marketing_plans.html Georgia CPA Helps with Business Marketing Plans

John Dillard is an author and Certified Public Accountant (All Rights Reserved). To See how he takes Christ along with him to work visit http://www.hiscpa.com/ (a Christian CPA firm) and for his latest book Overcoming Life’s 9/11’s: Job’s Journey visit 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!” 

Preparing the S Corporation Income Tax Return K-1 A Guide How to Guide to Prepare a K-1 

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, Payroll Administration, Bookkeeping.

Serving 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, 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, and Beyond.