Looking for the Easy Way Out of Business Bookkeeping ?

Procrastination Isn’t It.

Whether you dread your business bookkeeping or you simply cannot find enough time to get it done, putting off your accounting duties never ends well for you or your business. We understand that as a small business owner, you are being pulled in numerous different directions at once and it can be complicated to accomplish the mundane task of keeping up with the books. It is easy to write it off as non-urgent, vowing to catch up later.
But inevitably, later becomes next week, which becomes next month, which becomes 2 weeks before taxes are due. So why is this important? What does it matter if you wait until April to start actually doing your “business bookkeeping” for the previous year?

Top 5 Reasons Procrastination Can Kill Your Business

     1.)Poor Bookkeeping Leads to Poor Financial Decisions
The list of decisions a business owner must make every day often seems endless – how much inventory should be purchased, how much to invest in marketing, is it time to open a new line of credit, can you afford to hire a new employee, which bill should you pay first, should you get this new software, can you afford hardware updates, and on and on.
It can be difficult enough to make intelligent and informed decisions even with all of the data in front of you, but when you have no idea what the numbers are to back up these decisions, you will be driving blindfolded through your decisions. You are far more likely to crash when drawing upon ‘gut feelings’ for choices rather than your up-to-date cash flow, account balances, Accounts Payable and Accounts Receivable totals.
     2.)Audits…Need We Say More?
Handing your CPA a total mess of papers come tax season will not end pretty for either party. You will end up paying a much larger bill for the time they are going to have to spend on your filing, and while CPAs can work some magic, they are still human. Improper account management will likely leave you open for an audit.
If you are not carefully and accurately reporting what is going on in your business, you’re a much more likely target for the IRS. This can result in large late fees and expensive penalties if mistakes were made when you were rushing to reconcile the books.
     3.)You Could be Giving Away Free Money
Let’s face it, most businesses don’t have customers reminding them that they owe money. Getting behind on bookkeeping for your business means falling behind on your accounts receivable and invoice cycling as well.
If you simply try to make mental notes or “jot down” who owes you what, you will likely forget and lose money somewhere. Not collecting on accounts receivable is like giving away free money. Cash flow is the #1 reason that businesses fail, and much of that success or failure can be tied to tracking and updating your accounts receivable.
     4.)You Won’t Keep Good Employees Around
Your employees are the frontline of your business, and what you do is not possible without them. It is critical that your employees are paid on time and correctly on the regularly agreed upon schedule.
If you are slacking on the books, you may end up with an issue where you sacrifice your own paycheck so that all others are able to be paid. This is not unheard of for small businesses.
You may also end up with employees who do not report if you are over paying them, but who certainly would if you were underpaying them. Overpaying and underpaying employees will show on W-2 forms and can cause serious tax and legal issues for both you and the employee.
If employees cannot expect a reliable and regular paycheck, they will begin to look for work elsewhere, and it will be difficult to find new hires as word spreads.
     5.)You Will be Denied Financing
When it comes time to ask your bank for a loan or other line of credit, they will check your records in order to approve or deny your application. If the bank sees that you have poorly updated records and your bookkeeping is a mess, they may be unable to reach a decision or even deny your request.
Additionally, investors or donors will also want to see your most recent records and financial statements in order to confirm the security of investing in your business. When these are unprofessionally done, or not done at all, you have lost the ability to increase your company’s growth through business lending or investing.
Overwhelmed? Don’t procrastinate your bookkeeping…outsource it!

Outsourcing Business Bookkeeping

Most firms that provide business bookkeeping services actually end up costing far less than the amount of time it would take you to properly manage it. Do you know your ideal hourly wage for your own time (i.e. what are you worth in your business)? Multiply that hourly by the amount of time it would take you to keep your books in order each month. Chances are, it’s much less than the amount you would pay a business bookkeeper to do it for you. And you’ll have the added peace of mind that your business bookkeeping is being done properly and orderly.
If you need help with your bookkeeping, call Perry & Associates today. We have 5 different offices throughout the Mid-Ohio Valley as well as online portals for handling accounting virtually.
 
 

COVID Brings Spotlight on State Taxation of Telecommuters

With the onset and persistence of the COVID-19 pandemic, more and more employers have had to promote or, at the very least, permit telecommuting (teleworking). Some experts are predicting that the teleworking trend will be here to stay for many, regardless of the pandemic resolution. 6 out of 10 employees have reported greater satisfaction with their work/life balance since beginning work from home, and many businesses have actually reported greater employee productivity and retention.
However, for many companies, this may mean that they now have employees working in states other than those that their business currently has an established taxable presence within. So what does the ‘work from home’ wave mean for your small business tax filing and preparation for 2020? How does state taxation of telecommuters affect your new operations model?

Employees Living and Working in Neighboring States

Fifteen states have reciprocal tax agreements with neighboring states where an employee resides in one state and is employed in the other. The State of West Virginia has reciprocal income tax agreements with Kentucky, Maryland, Virginia, Ohio and Pennsylvania. Reciprocal tax agreements mean that the employee is only responsible for filing taxes in their state of residence, not the state in which their employer is located.
For business owners, a reciprocal tax agreement means that it is not necessary to withhold taxes in the state of residence for their employee. However, if your state, or the state in which your employee lives or is temporarily working from, is not one of the 15 states that have agreements with some of their adjacent states (Illinois, Indiana, Iowa, Kentucky, Maryland, Michigan, Minnesota, Montana, New Jersey, North Dakota, Ohio, Pennsylvania, Virginia, West Virginia, Wisconsin) then there is a tax base nexus on both the state of residence for the employee and the state from which the income is earned.
Businesses are expected to withhold taxes for the employee in the state in which the work was performed, which can be a costly compliance for businesses that are not used to having their net income subject to taxation from multiple states. The employee will have to file taxes in both states, but will receive credits to avoid double taxation.
Both businesses and employees in this situation would benefit from the help of a professional CPA to help prepare and file their taxes appropriately to avoid the expensive consequences of confusion further down the road.

Employees Living and Working in States with No Reciprocal Agreement

As an employer, when you think of having a taxable presence in another state, you probably think that it warrants a physical branch or location. After all, sales alone in another state are not enough for that state to lay claim to any of your business income.
However, having just one employee in another state could be enough for that state to claim that you have an established workforce presence there. If your business makes considerable sales in outside states in which 1) you have no office or sales force located, 2) you do not service your goods there and use a common carrier to ship your goods there, or 3) have them come to your location for pick-up, then you have no tax base nexus there.
If, however, you now suddenly have even just one employee working in that state, then you may have established a taxable workforce presence there, and all of those sales could come into consideration when determining what percentage of your net income that state is allowed to tax.
This is where “nexus” and “apportionment” come into play. Tax base nexus determines whether or not a business’s presence within a state is sufficient enough for the state to tax any of the business’s activity.  Apportionment determines how much of the business income is appropriate for the outside state to tax.
This can become even more complex if you have an employee that is teleworking from a state that is not their state of residence or a state that your business has established presence within. This has become more common with the COVID-19 pandemic as several individuals may have moved temporarily to other states to be with family, or to simply flee a ‘hot spot’ area of concern and wait it out. Some states begin to require those employees to file a non-resident return there the moment they begin working from that location. This means that you, as employer, would also need to withhold for that employee in that state during that time, which can be costly and confusing to navigate without CPA guidance.
Different states have vastly varying regulations with situations like these, so it is important for your employees to check how long their state of temporary residence allows them to work there without having to file and withhold taxes in that state.

Get Help from a CPA Near You for Telecommuting Taxation

Perry & Associates CPAs has multiple offices throughout the Mid- Ohio Valley, where many of these state working lines are crossed. Contact us for expert advice from an accountant that knows the intricacies of each state’s law.

 

5 Ways a Wheeling, WV Tax Accountant Will Help Your Small Business Flourish

A recent study performed by Intuit shows that 89% of small businesses report that they saw more success once they hired an accountant or financial advisor. But why is this? You know your business best, why can’t you just go it alone? Read on for 5 surprising ways that a tax accountant Wheeling, WV businesses lean on can help set you up for more success. 

Businesses in Wheeling, WV Succeed with Professional Tax Service Help 

First, we’d be remiss if we didn’t mention the distinct difference between an accountant and a CPA. A CPA makes all the difference. Not all Wheeling, WV tax accountants you might hire are Certified Public Accountants. CPAs have passed a rigorous, multi-day, state-specific examination on financial and tax expertise. A CPA will know how to best help your business comply with the exact laws and code of your state, where a general accountant may not be able to do so. Also, a CPA will be able to fully represent your business before the IRS in an audit, where an enrolled agent, who is not a CPA, will be very limited in how they can represent you.
So, how does a CPA help businesses profit more?

• Assist with Tax Advice and Planning

A good CPA will know State and Federal Tax Codes inside and out. This means that they will often have far more knowledge of different tax cuts and credits that could save your business thousands of dollars. They can also provide monthly accounting services by managing all the required documentation and record keeping that you will need come tax season. Think of how nice it would be to eliminate the night-before-the-deadline-scramble that inevitably happens every tax season despite best intentions.

• Representation During Audit

As mentioned before, one of the greatest benefits of using a professional CPA for your tax preparation is that they will be able to represent you fully in an IRS audit. Equally as important, CPAs will also be able to audit you themselves as they work with you to catch any red flags or possible mistakes before the IRS does. 

• Protecting Your Finances 

In recent years, small and large businesses alike have begun to recognize the benefit of forensic accounting. Unfortunately, even small businesses can be the victims of embezzlement, fraud, and other financial crimes that a CPA can help catch and resolve. CPAs certified to perform forensic accounting can also help you establish effective preventative measures for guarding against internal financial fraud.

• Managing and Consulting Aid

Not all entrepreneurs are good with numbers. Likewise, not all CEOs have natural accounting skills. Good leadership doesn’t mean you must have proficiency in business financials. And many that have cursory knowledge may not know the depth of what other avenues are available for their business bookkeeping and financial health.  Do you understand accounting methods and terms such as LIFO and FIFO? Do you know the pros and cons of various bookkeeping methods like single entry versus double entry? What about financial statements? Do you know how to properly prepare and interpret Income Statements, Balance Sheets, Statements of Cash Flow etc.?
Even if you do understand these things well and know how to manage them, most likely you don’t have the time. A CPA can act as your CFO assisting with budgeting, risk management, financial statements and more, leaving you free to focus on your operations, goals and growth.

• Bookkeeping and Payroll Administration

A CPA can also help you with day-to-day financial tasks such as payroll, payroll taxes and general bookkeeping. A professional tax accountant in Wheeling, WV can assist invoicing, accounts payable and receivable, vendors, timely rent and more. These time saving and stress saving duties could be worth the fee all on their own!

Need a Tax Accountant near Wheeling, WV?

Perry & Associates CPAs has offices in Ohio and West Virginia. Contact us at our Wheeling, WV office for service you can trust!

Find the Right Tax Accountant in Cambridge, Ohio

Perry CPAs is proud to serve businesses large and small throughout the Ohio River Valley. In this article, we want to highlight opportunities for businesses to partner with a professional tax accountant in Cambridge, OH. We understand that each city is unique with its own industries, challenges, and complexities. From 1806 until now, Cambridge, Ohio has adapted and grown alongside the wider Ohio economy. 
There are important tax considerations for any-sized business operating in the Cambridge area. A Cambridge tax professional from Perry CPAs will be able to give in-depth insight into each of these issues.

Large Manufacturing

Ohio is home to a deep and storied manufacturing base. Cambridge is no exception. Located at the intersection of I-70 and I-77, the city is one day’s drive from half of the nation’s consumers and manufacturers. Cambridge is home to over 49 manufacturing facilities that make paints, electronics, glass products, plastics, machine mine tools, ceramics, wood products, electric motors, tools, and metal alloys.
When it comes to state and regional taxes, the Ohio sales tax rate is currently 5.75%. The Guernsey County sales tax rate is 1.5%. The Cambridge sales tax rate is 0%.

Use Tax

As a manufacturer, you likely use equipment and services that were not sold or produced in Ohio. These items come from other states, which means you don’t pay taxes the same way you would if these items were sold in Ohio itself. For example, your office computers likely qualify for use tax since they were sold by a company outside of Ohio. Storage containers for fuel or solvents also qualify. You can read this guide from the Ohio government for more information on what equipment qualifies for use tax. A professional tax accountant in Cambridge, OH can help you determine what machinery falls under the use tax category.

Tax Exemptions

Because Ohio has traditionally been a hub for manufacturing enterprises, the state government provides many tax exemptions for manufacturing equipment. Most of these exemptions apply to sales tax. You’ll likely be exempt from sales tax if you purchase manufacturing machinery, warehouse machinery, or equipment related to research and development. Tax exemptions are determined by The Ohio Tax Credit Authority. 

Small “Mom and Pop” Businesses

Not all businesses in Cambridge, Ohio are based on manufacturing. As a small town, Cambridge relies on its local businesses for its charm and attraction. Running a small town business can be very challenging. You’re competing with big box stores on price. You’re likely figuring out how to engage worldwide customers on the internet. But knowing what tax benefits you qualify for can give your business a competitive edge.

Qualifying for the Healthcare Tax Credit

The IRS allows small businesses to write off up to 50% of employee healthcare premiums paid by employers. To qualify, your business must:

• Have fewer than 25 full-time equivalent employees
• Pay average wages of less than $50,000 a year per full-time equivalent (indexed annually for inflation beginning in 2014)

According to recent census data, the average worker in Cambridge, Ohio makes about $20,000 a year, which means many businesses would qualify for the healthcare tax credit.

Hiring Freelancers and Contractors

More and more skilled professionals are moving their services online due to COVID-19 and broader economic trends. This means that even a small business in Cambridge, Ohio can have a world-class designer build a new website or create promotional videos. However, contractors are not taxed the same as traditional employees. Depending on how much you pay your contractors, you might need to fill out and send 1099 forms. 
Contact one of our tax accountants for a full explanation on how hiring a contractor and freelancer will affect your 2020 tax return. 

Deducting Transportation Costs

Depending on your business, you may need to travel quite often to major cities in Ohio and surrounding states. Thankfully, you’re close to both I-70 and I-77. If you do a lot of driving for work, you can write off your miles as an expense. 
Quickbooks reminds business owners, “You also have to choose between two methods: actual expense method or standard mileage method. The standard mileage rate for 2019 is 58 cents per mile. This figure is meant to reflect each of the following expenses: gasoline, lease payments, insurance, maintenance and repairs, vehicle registration, and depreciation. On the other hand, the actual cost method entails deducting each business-related car expense by itself. This includes gasoline, insurance, maintenance, depreciation and lease payments.”

Partnering with a Tax Accountant in Cambridge, OH

Whether you run a large manufacturing facility or a small corner store, you’ll want to hire a Cambridge, OH tax professional to advise your business. Perry CPAs has the professional and regional expertise to set your business up for financial success. Contact one of our representatives today and learn how our team can support you.

If you are a small business owner, odds are that you are a “do-it-yourself” kind of person. After all, you started your own business for a reason, right? However, some of the biggest mistakes small business owners make could have all been avoided had they just asked for a little help. 
 
We know many entrepreneurs cringe at the thought of asking someone else to “take care of their baby”. However, asking for help with your business bookkeeping in Parkersburg, WV could be one of the best steps that you take to ensure that it continues to grow and scale properly. This doesn’t mean that you have to put out for a full-time bookkeeping position; in fact, as long as your business has fewer than 30 employees and does not make more than $1 million in yearly revenue, you most likely only need to hire part-time help. But many businesses over those thresholds also find value in outsourcing their business bookkeeping. Quality professional bookkeeping services will save you money, time and stress. Let’s take a closer look:
 

How Professional Business Bookkeeping Will Save You Money

 

• Ensuring that you pay your bills on time

While seemingly small as they come, interest and late fees are unnecessary expenses that can be easily avoided with some time management organization. Some vendors even offer discounts and refundable amounts for paying bills early or on time, and a bookkeeper can effortlessly help you stay on top of this.
 

• Saving on hiring, training, and additional payroll costs

Unless you have over 30 employees and/or annual revenues over $1 million, it is highly unlikely that you need a full-time staff position to keep track of your books. Plus, the hiring search, interview, and training process is no cheap adventure in itself. Save time and money by contracting a professional bookkeeper to manage your finances who is already well trained and up for the task.
 

• Offering insight on how to increase small profit margins

A good bookkeeper will be able to save/earn you money by analysing your operating expenses versus your revenues and offering up suggestions on how to leverage the amounts you are spending to run your business with greater returns.
 

• Helping you make a more solid pitch to investors

Investors like numbers. Especially ones that are about to take on the considerable risk of investing in a small business. Having a bookkeeper can help you create professional financial statements that highlight the positive aspects of your business and where you need investment in order to improve success. 
 

• Help find all possible tax deductions

When your year-end bookkeeping style looks a lot like how you used to cram for exams back in school, you will often miss many opportunities to save money come tax time. A professional bookkeeper in Parkersburg, WV will be keeping track of these things all year long, and will help you owe less and get a greater refund. 
 

How Professional Business Bookkeeping Will Save You Time

 

• Freeing you up to focus on things like customer and employee relations and sales

As a business owner, your main goal for how to spend the day should not be with your nose in the books and your hands on the calculator. You should be able to spend the majority of your time networking with potential clients/customers, forming solid relationships throughout the community, taking the time to understand and provide for your employees and oh yeah…sales. Outsourcing the tasks of bookkeeping can really free up your calendar.
 

• Saving time on the hiring process of a full-time bookkeeper

We mentioned above that outsourcing could save you the money involved in a full-time position job search, but it also will save you a ton of time! Advertising for a position, searching for potential employees, reading applications, interviewing contenders, and training whomever you choose takes a considerable amount of hours most likely best spent otherwise.
 

• No arduous midnight research 

We know you’ve been there…googling accounting rules, watching YouTube videos of how to work bookkeeping software, and looking up professional financial report templates online…all for a bundle of mistakes that could totally throw off your reports and warrant a lengthy audit. Again, it is okay to ask for help! Leave it to a professional bookkeeper to save you all the hours of research and headaches.
 

• No more scrounging through the receipt shoebox

Most business owners that try to take on bookkeeping by themselves save everything for the year’s end. The problem is, that when you are sorting through all your receipts and you are up against the new year, it is going to be near impossible to remember what every purchase was for, much less how you paid for them and which account they belong in. Save time and let a professionally outsourced bookkeeper keep consistent track of these things for you all year long so that tax filing comes and goes like a breeze.
 

How Professional Business Bookkeeping Will Save You Stress

 
Imagine you woke up tomorrow, and someone had flawlessly reconciled your books, cleaned up your accounts receivable and accounts payable, reviewed and updated your assets, and taken care of all your 1099s. Did you just feel a weight lifted off your shoulders?
 
That is exactly what an outsourced bookkeeping service in Parkersburg, WV could do for you and those stressful tasks. If you are up at night unable to quiet your brain about all of the financial tasks you have put off on the to-do list and are beginning to feel that looming procrastinator’s guilt, it is time to do yourself a service and hire a bookkeeper.
 
Anxiety over incorrectly categorized expenses, overlooked tax deductions, missed deadlines, remembering what every transaction was for, bank reconciliation, controlling your cash flow, sticking to a budget, small errors turning into big mistakes and more, GONE. Poof. Somebody else’s problem. Now isn’t that priceless?

Need Help with Business Bookkeeping near Parkersburg WV?

 
Perry & Associates CPAs have multiple offices all throughout the Mid-Ohio Valley. Contact our Parkersburg office to get started:
Office: (304) 422-2203
Email: perrypkg@perrycpas.net

In March 2020, the US government passed the CARES Act in order to provide financial assistance to businesses struggling with the effects of COVID-19. A large portion of these emergency funds went to the Paycheck Protection Program (PPP), which helps businesses keep employees on payroll during shutdowns. Perry & Associates broke down the CARES ACT in an earlier news article, and you can read that here.
 
It’s important to know that the PPP is not like the federal stimulus checks that were sent to individual taxpayers. The stimulus checks can be used for any purpose. PPP funds, however, have specific requirements for how they are used.
 

Tax Accountants in Parkersburg, WV – Necessary or Not?

 
Many of the most recent inquiries that have come to tax accountants in Parkersburg WV have been in relation to the PPP forgiveness. While some businesses are more than ready to have a local CPA firm handle the intricacies of the forgiveness process, some small businesses may still be hesitant as to whether or not an accountant is necessary for this process.
 
Our answer: Yes!
 
Of course we would say that…right? We’re accountants. While that is quite true and we do find an odd amount of enjoyment from things that most of the population abhors, we believe an accountant is necessary beyond just what it means to us.
 
Because although a tax accountant isn’t required for the PPP, a lot can go wrong when dealing with complicated government legislation.
 

Parkersburg, WV Accountants Help with PPP Forgiveness

 
If you’ve received the PPP loan, here are five reasons why you should look for a tax accountant in Parkersburg, WV to help you navigate all PPP-related accounting.
 
 

• Make Filing Season a Breeze

 
Tax season is complicated no matter what, but filing your 2020 taxes will be even trickier if you took government assistance. In order to receive payment forgiveness, you must show that you used funds for payroll-related expenses. A tax accountant will keep your records in order now until filing day.
 
 

• Receive Maximum PPP Forgiveness

 
A tax accountant will make sure you claim every eligible expense this year. You’re busy running your business, and it can be hard to stay up to date on the details of new legislation. For example, did you know that the government passed the Paycheck Protection Flexibility Act that changes the initial terms of the PPP loan? A tax accountant will keep your finances in order and get you the most forgiveness possible despite any changes to the law.
 
 

• Keep Track of Multiple Programs

 
The PPP is not the only assistance program for small businesses struggling during COVID-19. You can take advantage of state and local initiatives, too. Governor Justice recently announced a grant program for West Virginia small businesses. Small businesses can receive up to $5,000 to cover COVID-19-related expenses. Read our recent email for more details on the program. You will need a tax accountant to make sure you stay in compliance with each of these separate programs.
 
 

• Avoid Penalties

 
If you spend PPP funds on items that aren’t eligible for forgiveness, your PPP funds will convert into a traditional loan with a maximum interest rate of 4% and a 10-year repayment window. This applies to honest mistakes as much as it applies to intentional fraud. A tax accountant can protect you from making honest mistakes. When in doubt, trust the experts.
 
Perry & Associates serve small businesses with tax accountant services in Parkersburg, WV. We put your mind at ease so that you can focus on leading your business through these unprecedented times. Learn more about the accounting service that’s right for you.
 
Contact us today.