Bookkeeping and Accounting FAQs
Successful businesses always stay informed and up to date on business financial performance. Bookkeeping services provide the information that will let you know if your business is making money and from where the money is coming and going. With this information, you will be able to make informed decisions about the financial growth and stability of your organization.
Our bookkeeper reconciles your accounts, categorizes your transactions, and produces your financial statements. They also make adjustments to your books to ensure they’re tax-compliant.
Occasionally, your bookkeeper might need your input on things like categorizing a transaction properly, but we try our best to make bookkeeping as hands-off as possible for you
Activator Consulting doesn’t want to complete your bookkeeping, we want to work with you to make your business as successful as possible. We take great pride in working to make this happen. We have a team of qualified finance professionals, one of which will be personally assigned to accurately complete your bookkeeping in a timely manner and provide you with meaningful information to take business/strategy decisions. Most of all, we offer local, confidential and experienced bookkeeping, at an affordable price.
In today’s digital and technological age, there are several different ways to complete your bookkeeping. All these ways will allow you to have access to your files which you desire for any important decision making. These options include working on your system, or ours. They also include an option where both clients and bookkeepers can work on the files in real time. The key is for you to have the financial information you need at your fingertips. Activator Consulting Bookkeeping Services take pride in providing these services to our clients.
Absolutely not! You will maintain 100% control of all decisions and all checks are still signed by you. You will decide what vendors will get paid and when? We provide you with the desired information and perform the specific task, but you will approve all invoices for payment and sign all checks.
Generally, our customers are startups, small and medium size business entities and individuals who are acting as a sole proprietor but we think, we are a great match for any forward thinking companies no matter the industry. If you’re not sure our services are right for you, please get in touch with us for more details.
All of the data which you provide will be entered into a computerized file. Within the file, all accounts will then be reconciled, so that financial, and other types of reports, can be generated. These reports include, but are not limited to, profit/loss, balance sheet, open invoices and other reports that are vital to your operation. You will be able to compare month-to-month, or year-to-year figures, which will help you, along with our assistance, identify opportunities available within your business. We will be available to talk to you about any of your questions or concerns.
Cash bookkeeping only looks at when money enters or leaves a bank account. Accrual bookkeeping is a more sophisticated approach that records when the money was earned or owed. Most of the larger companies’ use accrual accounting and a good bookkeeper does accrual from day one so there’s no painful transition later.
We provide both cash basis as well as accrual basis bookkeeping, depending on the clients need.
A professional bookkeeper enters all monthly financial data, reconciles, balances & reviews all financial data. They also prepare, and then review financial statements with the business owner(s). Today’s professional bookkeeper is expected to know:
a. What Debits & Credits are?
b. How to set up a proper Chart of Accounts?
c. Must be able to answer questions from the company’s tax preparer?
The Accountant (Certified Public Accountant), is generally the person whom the bookkeeper turns all of the bookkeeping records to ensure that the financial statements are prepared as per generally accepted accounting principles (GAAP) and in accordance with the requirements of the corporate law. Further, an Accountant also help businesses to prepare tax returns. They should also give sound advice on efficient tax planning.
Many business owners think it is less expensive to do their bookkeeping themselves. However, every minute of your valuable time spent working on your bookkeeping is time not spent growing your business. This is often a tedious process. You may not have the expertise to complete. When you hire Activator Consulting, you will have a team of experts dedicated to the success of your business.
For bookkeeping and accounting purpose we will use QuickBooks accounting software. QuickBooks is a cloud based accounting software, it is suitable for small and midsize companies and can provide real time financial and operational insights as well as the ability to automate critical process. QuickBooks can be used in multiple devices. You can access your files on pc, tablet or mobile phone. We will help you to generate different reports as desired by you to make important business decisions.
We work with all types of industries like mid-sized and small businesses, product-based businesses, service providers, and independent professionals – operating in a variety of industries. Everyone needs bookkeeping!
Yes, we provide 30 days free trial for all of our services.
Yes, we have been preparing and filing taxes for businesses. Discounts are available to the clients that contract us for multiple services and on a retainer basis.
Every client’s business is different and so the price varies but hiring an independent bookkeeper is more affordable than you might think. Doing your own books takes away time from running your business, so perhaps a better question is, how valuable is your time?
In the United States (US), federal income tax is collected by Internal Revenue Service (IRS), a branch of the United States Treasury. You must pay federal income tax regardless of where you live in the United States. Most states also have an additional state income tax. However, states like Texas, Florida, Nevada, Washington, Wyoming, South Dakota, and Alaska has no state income tax. Tennessee and New Hampshire only apply state income tax to interest and dividend income. Of course, each state will collect taxes from you in one way or another. Generally, states that don’t charge income tax impose higher rates on things like property tax or sales tax. There may be a city income tax or municipality income tax in some places.
As a business owner, it’s important to understand your federal, state, and local tax requirements. This will help you file your taxes accurately and make payments on time. The business structure you choose when starting a business will determine what taxes you’ll pay and how you pay them?
Most businesses need an Employer Identification Number (EIN). Your EIN is your federal tax ID number. You should get one right after you register your new business. We will help you in getting EIN for your business.
All businesses, except partnerships, must file and pay taxes on any income earned or received during the year. Partnerships file an annual information return to report income, gains, losses, and other important tax information. Almost every state imposes a business or corporate income tax, though each state and locality has its own tax laws. We are here to help your business to file the income tax returns.
If you have employees, there are federal tax requirements for what you must pay and the forms you have to file. These employment taxes include Social Security and Medicare taxes, federal income tax withholding, and federal unemployment (FUTA) tax. In all states, businesses must pay state workers’ compensation insurance and unemployment insurance taxes. We are here to help in filing employment income tax returns.
The federal government taxes businesses that manufacture or sell certain products. You may also have to pay this tax in other situations, including if your business uses various types of equipment, facilities, or other products. Contact us to learn more about federal excise tax requirements and the forms you must file.
Each state has a different definition of what property is taxable? Some states collect property tax from businesses in commercial real estate locations whereas, others collect property tax for business assets, such as vehicles, computer equipment, and peripherals. The amount of tax you pay is calculated by the total value of the property or on a certain percentage of the value. Search for property tax requirements in your state and contact us if you are interested in filing property tax in your state.
States may tax the sale of goods and services. Check whether your business has to register to pay and/or collect sales tax in your state. Exclusions in sales tax often include food, clothing, medicine, newspapers, and utilities. States may also tax your business on the use of goods and services when sales tax has not been collected. This typically applies to goods and services purchased outside of the state where you conduct business.
Estimated tax is the method used to pay taxes on income that is not subject to withholding tax. This includes income from self-employment, interest, and dividends. You may also have to pay estimated tax if the amount of income tax being withheld from your salary, pension, or other income is not enough. We will help you in estimating your tax liability and paying it accordingly.
Individuals who conduct their own business typically have to make estimated tax payments. You may be charged a penalty if you do not pay enough through withholding or estimated tax payments. We will help you in estimating your tax liability and paying it accordingly.
The year is divided into four periods to pay estimated tax. Each period has a specific payment deadline.
These are estimated Federal Tax due dates:
– April 15
– June 17
– September 16
– January 15 of next year
For Immigration purposes, as long as you don’t get green card, you are not permanent resident of the United States and you are considered a nonimmigrant. However, for tax purposes, you are considered as a resident of United States, as long as you stay in the US for 183 days or more in a year.
The United States and permanent resident of United States must report their worldwide income in the U.S. tax returns. However, as United States has a tax treaty with many countries, you will not have to pay double taxes.
The Foreign Account Tax Compliance Act (FATCA) was enacted by the U.S. Congress in 2010. FATCA aims to target non-compliance by U.S. taxpayers using foreign (bank) accounts. Under FATCA, foreign financial institutions (FFIs) are required to report information about U.S. taxpayers to the Internal Revenue Service (IRS).
An FBAR is a Report of Foreign Bank and Financial Accounts. If you have a financial interest in or signature authority over a foreign financial (bank) account, the Bank Secrecy Act may require you to report the account yearly to the U.S. Department of the Treasury by filing a Financial Crimes Enforcement Network (‘FinCEN’) Form 114.
If you are single, you have to file an individual tax return
If you are married you can file a joint return or a separate return. Joint return can be filed as long as the spouse is not the spouse and is not a non-resident alien. If you are filling a joint return, both spouses must sign the return.
Activator Consulting will help you in filing both individual and/or joint return as the case may be. Please contact us for further details.
The IRS allows taking either standard deductions or itemized deductions. If you take the standard deduction, you can deduct a flat amount per person (the exact amount depends upon tax filing status and changes) form your taxable income.
If you have a large amount of deductible items, you may want to go for itemized deductions. You can deduct local and state incomes taxes, interest on mortgage, interest on student loans, medical expenses in the past year as long as they are at least 10% of your annual income, business expenses (for self-employed), charitable donations and health insurance premiums are generally not deductible.
You have an option to use our tax experts for your tax related issues. Please note that tax preparation is not included in your Bookkeeping subscription, tax services will be charged separately.
Financial Reporting And Business Intelligence FAQs
Generally Accepted Accounting Principles (GAAP or U.S. GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). The Financial Accounting Standards Board (FASB) has published U.S. GAAP in Extensible Business Reporting Language (XBRL) beginning in 2008.
Generally accepted accounting principles (GAAP) refer to a common set of accepted accounting principles, standards, and procedures that companies and their accountants must follow when they compile their financial statements. GAAP improves the clarity of the communication of financial information. At Activator consulting, we have qualified accountants who will
prepare your financial statements according to the required standards.
A feasibility report is a document that assesses potential solutions to a business opportunity or problem and determines which of these are viable for further analysis.
The forecast is an estimation of future business trends and outcomes based on historical data. Budget is a financial expression of a business plan, whereas forecast is a prediction of upcoming events or trends in business, on the basis of present business conditions
Ratio analysis is the process of examining and comparing financial information by calculating meaningful financial statement figure percentages instead of comparing line items from each financial statement.
A business intelligence dashboard (BI dashboard) is a data visualization tool that displays on a single screen the status of business analytics metrics, key performance indicators (KPIs) and important data points for an organization, department, team or process. The BI dashboard help business owners to readily review the performance of business on real-time basis either using a computer or a hand held devices.
The feasibility report will look at how a certain proposal can work in a long-term basis or endure financial risks that may come. It is also helpful in recognizing potential cash flow problems to take desired actions. Another important purpose is that it helps planners focus on the project and narrow down the possibilities.
Activator consultancy will provide you with financial reporting and business intelligence services which will help you in decision making and other core business activities and in making beneficial future investments to grow your business