Accounting News and Notes

Duluth/Gwinnett CPA: Business Checklist to Ensure That Your Internal Books are Correct

Below is a list of items you might use to critique to your internal books. Each and every company should prepare one that is specifically designed to their business to ensure that their financial results are carefully monitored and operating integrity retained. Serving as an Atlanta CPA for over thirty years, I have learned that both having and referring to a “well-kept” set of internal books is a sign of all successful entrepreneurs. The attached checklist will be a good start to ensuring that your own company’s books are correct:

-Having bank reconciliations and statements agreeing/reconciling all cash balances.

-Do Accounts Receivable and Accounts Payable totals agree to open reports/detail per the system.

-How much of Accounts Receivable is over sixty days.

-Do you expect to collect all of the Accounts Receivable balance. If not how much do you expect to have difficulty collecting. How does this amount compare to your Allowance for Doubtful accounts.

-Review your Fixed Asset Records detail on a book basis against your cost, accumulated depreciation, and depreciation expense amounts listed.

-Review your Fixed Asset Records detail on a tax basis against your cost, accumulated depreciation, and depreciation expense amounts.

-Determine what the net increase/decrease will be when calculating tax depreciation vs. book depreciation. To this end please be sure to consider and reflect what fixed assets you plan to buy by year end.

-Ensuring that Shareholder Distributions reflect those only of the current year and that all applicable estimated payments to the IRS and Georgia have been paid.

-Confirm if you Prepaid are correct.

-Confirm if your Accrued Vacation account is correct and applied on a consistent basis from prior years.

-Confirm that your Accounts Payable Other and Other Accrued Expenses are correct.

-Confirm if your Note Payable Accounts, Capitalized Leases, and all Financial Debts are correct.

-Confirm if Customer Deposits account is correct.

-Ensure that the Shareholder Distributions account as of the prior year is closed to Retained Earnings as the first day of the next tax year.

-Ensure that after you do the above that your internal books equals the retained earnings as of last year’s books.

-Ensure that this year’s Net Income shows as a separate line item on the Balance Sheet.

-Please take a look at your Profit & Loss accounts are correct and verify their financial integrity as all the year to date totals are higher/dramatically different than one would anticipate based upon prior year operating results, trends, changes in number of personnel, etc.

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.

www.HisCPA.com A Christian CPA Firm in Duluth GA Proudly Serving Suwanee, Lawrenceville, Snellville, Lilburn, Duluth, Norcross, Peachtree Corners, Atlanta, Gwinnett, Johns Creek, Roswell, Forsyth, Flowery Branch, Buford, Dunwoody, Grayson, Alpharetta, Roswell, Dunwoody, Sandy Springs & Tucker as an Award Winning CPA

Duluth/Gwinnett CPA: Should my New Gwinnett/Atlanta Business be an LLC or an S Corporation?

If you have a new business the first thing you will want to do is to review to see which type of entity works best for your corporation. Both the LLC (Limited Liability Company) and the S Corporation continue to lead the way in being the most popular choice of entity selection in the state of Georgia. There are many options to chose from when choosing the best entity for your business including:

S Corporations. Generally results in the lowest amount of tax for most businesses. Best suited for U.S. citizens or resident aliens who have less than one-hundred shareholders who do not need to be another entity type for operational or liability reasons.

-LLC. Limited Liability Company. Generally these are well suited to real estate development companies, for entities where owners are not U.S. citizens or resident aliens, you have multiple classes of stock, or have over one-hundred shareholders.

-LLP. Limited Liability Partnership. Frequently utilized by multi-practice physicians and dentists who are looking to limit their professional liability from other owners and practitioners.

-Partnerships. These entities can have general or limited liability partners and are also well suited for business whose predominant focus is the investment of real estate dollars or ventures.

-C Corporations. Typically results in the highest of all the tax entity choices as a result of owners having to pay taxes twice (first at the corporate level for any profits and then later for any dollars paid out to stockholder owners).

To review these choices in greater detail please visit our web site at http://www.hiscpa.com/article2.html  There on the site you will also find a mathematical example which will further illustrate the nuances and differences in taxes by entity selection.

For those who are just beginning a new business a checklist is often a great way to ensure that you have all of your bases covered. One is available for your use and review at http://www.hiscpa.com/checklist.htm  Whether you are an Atlanta business or one in Duluth, GA you will find these articles an invaluable source of information to utilize again and again.

Preparing and Reviewing Financial Statements
As your financial results of your business are like a doctor’s chart of their patient, this will help enable you to understand financials and their use.  See http://www.hiscpa.com/financial-statements.html

Managing the Heart Beat of your Business
Unlock the secrets of your business by learning to check its pulse by a review of your company’s internal financial information.  Visit http://www.hiscpa.com/managing-financials.html

Using the Profit and Loss Statement to Determine the Value of Your Business
The balance sheet shows what a business is worth, the profit and loss statement, properly analyzed, shows a company’s growth rate and rate of return, and points to its future viability. For more information http://www.hiscpa.com/profit-loss-statements.html

Corporate Returns
Discover what type of returns your corporation is required to file and its corresponding due dates ensuring that you do not miss an important deadline resulting in unnecessary penalties and interest.  See http://www.hiscpa.com/business-tax-returns.html

Serving You…One Tax Return at a Time…”WWJD” if he was a CPA

No, we are not perfect but we strive to bring the Good News of Christ to our business and to our clients each and every day. We “Serve Him…by Serving You”.

Looking to advise our clients on each and every issue taking on the task of walking in our clients shoes being willing to look out for the best interests of our clients and not that of our own.

In many of our free initial client meetings we often share strategic and never before heard of advice that they take back to their present advisers and utilize. Though this might often upset others we feel our responsibility is to impart wisdom and advice to our clients without having to hold them ransom or under contract.

We feel that our relationships should be open and not one sided allowing our clients the freedom each and every day to chose what they should do. No, we do not bend on our principles as they are handed down to us from on High, but we do not hold our clients hostage making them bound to continue to use our services.

We constantly advise clients on changes in tax law keeping them abreast of changes which they utilize in their business and financial planning. Our long term goal is your financial security and we work hard to accomplish this each and every day.

 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.

www.HisCPA.com  A Christian CPA Firm Serving 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, Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, Dunwoody, Gainesville, Decatur, and Beyond.

Written by John Dillard CPA of His CPA PC (A Christian CPA Firm)

Gwinnett CPA Asks: Is it a Lie When You Don’t Tell the Whole Truth?

Think about all of the times that you did not quite tell all of the story because you did not want someone to know so they would not get mad at you. Is it a lie when you leave out an important part of the truth?

Think about all of the times that you did not quite tell all of the story because you wanted to be nice. Did you lie?

I believe the answer centers around several key issues

Your Intent

If you intent is to hide the truth because you do not want something to be discovered, then I believe this is a lie.

If you do not answer a question and seek to misdirect or confuse the questioner…this may not be a lie..but it might be worse. Much worse.

If you intent is to not hurt someone when they ask if you like their new clothes, it may not be necessary, especially if you are a casual acquaintance to say “no they look horrible” when perhaps a more gentler response may be more Christ-like.

Your Goal

If you goal is to exaggerate, mislead or re-direct to gain an advantage, then it is a lie.

If your goal is to speak the truth in love to help lead someone back to Christ, it is not a lie.

Your Destiny

Though we are all called to speak the truth in love, we are also called to one of the two higher commandments “to love your neighbor as yourself.”

Another way to consider when to speak and when to be quiet…is to ask God. More times than I can count I have felt led to have lunch with someone to give a “kind and loving rebuke” only to have God tell me to “be quiet, I got this.”

Seek the guidance of a fellow Christian to see if it is your place or position to say something for there have been several times that I have felt led to say something to those in authority only for God to tell me “this is not appropriate, not the right time and your are not the anointed vessel.”

In my marriage there are frequently times when it my opinion is not needed or warranted, not because my wife does not love me for she does. Greatly!

But because no one, no not one, likes a busy body who always has to have the last word and to have an opinion.

Sometimes during a tough conversation with my wife, kids and friends I even raise my hand seeking their permission first before I share a word of guidance.

No these are not iron clad, but they are mine and I seek to always bathe my words in prayer for often the best thin

www.HisCPA.com A Christian CPA Firm Serving Duluth, Gwinnett, Atlanta, Suwanee, Johns Creek, Lawrenceville, Snellville, Lilburn, Norcross, Alpharetta, Dunwoody & Beyond

To Get Into Heaven Do You Have to Be Baptized?

I grew up in a Southern Baptist church at the time was one of the first mega-churches in Atlanta and the world. There we had a baptismal pool and it was expected that you would be baptized after you accepted Christ. Our pastor used a pulpit from each he gave great sermons each and every Sunday, People frequently will ask me “when was it that I was saved?”

To which I answer “most every Sunday” as sometimes the sermons scared me and I did not want to take any chances that I might live eternity in the heat of hell rather than the glorious streets of Heaven.

However it was in my teens that I first accepted Christ and I now rest in the assurance that my destiny is with Him (John 3:16).

There I was taught that you have to be baptized to gain access to Heaven.

From there I went to a Presbyterian church that that did not even have a Baptismal pool but did sprinkle to signify your acceptance where I also learned that not all churches/denominations even have an Altar Call.

I soon learned that many churches did not even have a pulpit. I soon began to love this style of worship as it felt our pastor was more accessible and felt more like the New Testament teaching of Jesus made our faith walk more personal. However there is nowhere in the Bible that I am aware of that says either having a pulpit or not having one is better.

We have been doing mission work for six years to serve our Native American Indians, the Navajo. We feel that this has been a divine appointment to our life as God continues to give us strength for the journey and the many challenges that come with serving God for Satan is out to get those who seek to serve Him.

Frequently while we are on the Navajo reservation we are asked “where are you from” seeking to know what church sent us. To which I always reply “If you are asking who we are here representing, we are here to represent Christ. If you are asking where we came from, we came from Duluth GA. If you are asking what denomination is of the church we attend, it is a Methodist church.”

Christ came to break the bond of the old law of the Old Testament seeking to create a new way of worship and relationship with Him. In so doing we warred with the sin of our world and the religious leaders of the day, who had forgotten their first love of Christ and of others.

Now back to our question…Do You Have to be Baptized to Get Into Heaven?

If you say yes then you make Christ words on the cross untrue as He told the thief on the cross “today you will be with me in paradise [Heaven].”  But Jesus words cannot be untrue as He as perfect.

However Jesus himself was baptized by John the Baptist as a symbol of both His upcoming death and resurrection. His baptism is SO important we are still talking about it 2000 years later. And God himself spoke to Jesus after His baptism “this is my son of whom I am most proud.” So should we follow in His foot-steps by our baptism whether we be baptized in a pool or by sprinkling. Just as He taught us how to pray by the Lords Prayer we are to follow His example by our life as an encouragement to others and indeed a witness to others we are now sealed as His.

However Jesus was not baptized because he accepted God as He was indeed God incarnate, “God in the flesh” but He was willing to submit to the will of His Father, just as we should be.

This world is tough and at times really tough. As Believers we need to focus on the things that unite us and not those that separate us as many items such as having a pulpit or not having a pulpit are a nuance and a personal preference. They are not a religion. They are not my religion!

Continue to Seek God in all that you do and He will raise you up at the anointed time.

There are those around you who need an encouraging word and not a critique for Christ came to serve the World and not to rule over it.

Who are you serving today?

What groups of people do you seek to serve every day?

Yes there are “non-negotiables” in the Bible (John 14:6) but many of the things we bicker over are not. Seek God with all your heart soul and might and to see to “love others as yourself.”

Join us as we seek to focus on what unites us as we Take Christianity into the World.

www.HisCPA.com A Christian CPA Firm Serving Duluth, Gwinnett, Atlanta, Suwanee, Johns Creek, Lawrenceville, Snellville, Lilburn, Norcross, Alpharetta, Dunwoody & Beyond

At His CPA PC we have an award winning CPA, John Dillard CPA on full time staff and as our President and a Board of Director

We serve a wide variety of for profit business in Gwinnett and Metro Atlanta as a Faith Based/Christian CPA Firm. The below is a sampling of the type of business clients we serve. Is it time to upgrade your Tax Services today?

• Automotive Repair Shops from Tires to Routine Maintenance
• Gas Stations and Car Detailing
• Manufacturing Companies & Distributors.
• Catering Companies, Insurance (Business & Retail).
• Custom Media Companies, Graphic Artists and Commercial Printers.
• Cabling Companies for both business and Internet
• Residential Home Builders, Home Improvement Companies, Electricians, Plumbers, Painters, Deck Builders, Pressure Washing Companies, Granite Counter tops, Wood Refinishers, etc.
• Law firms from General Counsel for Business Owners, Criminal and Tort Liability.
• Dentists, Doctors/Physicians, Nurse Practitioners and Chiropractors.
• Permanent Recruiting Firms and Staffing Agencies from general staffing to licensed medical personnel including doctors and nursing agencies
• Independent Computer consultants, programmers, distributors and computer sales.
• Retail sales for storefront locations and on-line from sales on E-Bay to privatized sites.
• Child/Day Care Centers and Long Term Care Providers/Staffing Agencies
• Retail, Art and Frame Shops/Arts and Crafts Distributor.
• Retail Book Stores, Awards/Trophy Manufacturers, Pop Corn Supplies Companies, Distributors, Landlords

We advise clients on: IRS representation, Offer in Compromise, Tax Problems, and Incorporating 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

www.HisCPA.com Serving Duluth, Atlanta, Suwanee, Lawrenceville, Snellville, Johns Creek, Buford, Snellville, Grayson, Lilburn, Tucker, Norcross, Alpharetta & Beyond as a Faith Based CPA Firm

Duluth/Gwinnett CPA: Tax Tips & Quotes for Your Personal Income Taxes 

“Being able to avoid the most common pitfalls taxpayers make is critical to your personal financial success. Careful discernment and wise application of tax law is an essential and critical part of avoiding otherwise avoidable IRS notices, penalties, responsibilities, IRS audits and amendment of prepared returns. As a Body of Believers, we are commanded to give unto Caesar what is Caesar’s. As such and based on the premise of the U.S. tax system, we as taxpayers are solely responsible for the initial filing of our returns and the fair and just filing of our lowest legal possible tax. Avoiding these top pitfalls that many fall prey to will be an integral step in the proper preparation of your return.” — Gwinnett/Duluth CPA, John Dillard CPA 

“When you get ready to file your personal tax return, perhaps one of the biggest issues you will want to initially determine is your filing status. This one issue will affect not only the way you compile and file your return but the actual amount of your tax obligation as well. Tax law mandates that your filing status is determined by your marital status on the last day of the tax year, December 31st.” — Atlanta CPA, John Dillard CPA

“Understanding how your Adjusted Gross Income (AGI) is determined and what yours is will be essential to managing your family’s income and spending levels for without a keen grasp, there is both nothing to manage and to benchmark your cash outlays against.” — Atlanta CPA, John Dillard CPA

www.HisCPA.com A Christian CPA Firm Serving Duluth, Gwinnett, Atlanta, Suwanee, Johns Creek, Lawrenceville, Snellville, Lilburn, Norcross, Alpharetta, Dunwoody & Beyond

Quotes from Atlanta Virtual CFO John Dillard CPA

“We work hard as a CPA for Gwinnett and Atlanta Business Owners on your tax and administrative issues offering solutions so that you are able to focus on the running and profitability of your business.” — John Dillard CPA, President of His CPA PC

“Running a business is tough enough without deadly miscues. As a Duluth CPA for decades this is perhaps one of the biggest “deal killers”  a business can try to struggle through. Giving power, control and influence to those who are not ready and not well suited to be your partner is akin to playing with a loaded weapon. Get to know potential partners for at least a year using an aggressive well-documented and considered agreement with key personnel they have to achieve before any consideration of ownership is granted. It is far easier to give away ownership than it will ever by to take it back.” — John Dillard CPA

“Left alone, all of us, only know what we know and in this world that is not enough. Going it alone is a fast recipe for disaster. As a Faith Based CPA serving Duluth, Gwinnett, Atlanta and beyond we work hard to offer business solutions from administrative and tax issues to short and long term issues while serving as a Virtual CFO.” — John Dillard CPA

“As a Duluth CPA firm serving Gwinnett , Metro Atlanta & beyond we have know “when to say when.” As your business grows and new employees are hired to help you run and staff the positions in your business, the need to delegate accounting tasks will correspondingly increase the need to strong internal controls.  Evaluating your business internal controls at least annually is essential to protecting the assets of your business.” — John Dillard CPA, President of His CPA PC

“With over three decades of experience as an award winning CPA firm, we work hard to “think outside the box” focusing on strategic as well as short term issues concurrently. As a Gwinnett CPA firm located conveniently in Duluth we take time energy and effort to make sure we offer financial insight and wisdom on business and tax issues you did not know even existed. Our keep it simple style will help you understand complex business and tax issues so that you are most able to make wise and informed business decisions.” –John Dillard CPA, President

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

www.HisCPA.com A Christian CPA Firm in Duluth GA Proudly Serving Suwanee, Lawrenceville, Snellville, Lilburn, Duluth, Norcross, Peachtree Corners, Atlanta, Gwinnett, Fulton, Johns Creek, Roswell, Forsyth, Flowery Branch, Buford, Cumming, Dunwoody, Alpharetta, Dunwoody, Sandy Springs and Tucker as a Faith Based CPA Firm

Questions to Ask a CPA When Starting a New Business

If you are a new Gwinnett Entrepreneur you will want to find a Gwinnett CPA who is well versed in small business start-ups. Before you hire a new CPA be sure to do a thorough investigation about who they are, what they do and their reputation in the business community.

What are the average size of your clients? Do you work exclusively with for profit business owners?

What are you business philosophies? Are you more kindred to a caretaker or a Virtual CFO?

Do you have a network of business associates in financing, mortgages, banking, lawyers etc. who are readily available and are tops in their field?

Did you graduate with honors? Have you won awards in your industry? Are you well known in the business community? Are you published? Are you active in the community?

Do you see your clients or as partners working toward a common goal of “business success? Do you return calls within just a few hours? Do your complete returns/tax work within just a few days?

What type of services do your offer? How are you different from your competition? Are you there when I need you? Are you readily assessable? Are your fees competitive?

Do you accept the status quo? Are you always seeking to better your performance? Are you always seeking to better your services? Do you consistently seek out ways to keep my tax bill as low as legally possible?

Finding a CPA is essential. Be sure you take the time to find who practices excellence at each and every level of their business.

Duluth Income Tax Preparation

Duluth Corporate & Personal Income Taxes

Duluth Financial Statements

Duluth IRS Representation, Back Taxes & Offer in Compromise

www.HisCPA.com A Christian CPA Firm in Duluth GA Proudly Serving Alpharetta, Suwanee, Lawrenceville, Norcross, Atlanta, Gwinnett, North Fulton, Johns Creek, Roswell, Forsyth, Flowery Branch, Buford, Dunwoody, Snellville, Lilburn & Grayson as an Award Winning CPA

www.HisCPA.com  Incorporating in Georgia, Setting up an LLC in Georgia, Setting up an S Corporation in Georgia, Georgia Entity Selection, Converting Your GA LLC to an S Corporation, Converting Your GA C Corporation to an S Corporation, GA LLC, GA S Corporation and Converting Your Georgia Business to an S Corporation