Taxes?
Benjamin Franklin was right: Taxes remain one of life’s two certainties. But if you set about preparing your 2010 returns on your own, you’re likely to face a process fraught with uncertainty.
Gilt City members are invited to hand over their W-2s and 1099s to the experts at CFO Rick’s Financial District offices. They’ll prepare and file your 2010 return for you, guaranteeing you minimum anxiety—and maximum refund.
They’ll guide you step by step through your completed 2010 return, and even highlight hidden write-offs and missed opportunities from returns from prior years. They’ll deliver maximum deductions for 2010, and help you win back any overpayments from years prior.
In most cases, the process more than pays for itself. And CFO Rick’s thoughtful and patient projections of your financial future will give a leg up—to savvy couples, families, homeowners and small-business proprietors alike—for many tax seasons to come.
We are now into the second quarter of 2010, tax season is winding down, and most companies have or will review first quarter results. I will assume that foremost on the review will be sales trends and expenses, along with profitability. Results will be compared to goals. Strategies will be adjusted for the year based on the results.
For some businesses, there may be cuts in certain expenses to lower costs. For others it will be a drive to get more revenue, or a combination of both. For some it may be the best strategy to remain with the current plan.
One area often missed and often considered a “sacred cow” is the accounting arm of the company. It’s a major cost center and a good business strategy should include serious thinking about what pieces of it should be kept internally or outsourced. There is definitely a cost in outsourcing but there is also an efficiency gained when it is outsourced to the right firm.
There are some companies, like CFO Rick Inc., that have full accounting and bookkeeping services available, like consulting, budgeting, payroll and human resource support. The company also processes tax returns. Companies like this one are making roads in markets like San Francisco because of the need of businesses to lower costs and increase efficiencies. Reducing overhead in a cost center like an accounting department without losing quality of service has proven to be a great solution for small and big businesses. On average immediate saving are around 25%. However, over time more and more savings are realized as the outsourcing partnership is leveraged for further services.
It’s good business to look at your accounting and bookkeeping strategy for the rest of the year as a way to plan for your business success.
A few shoppers splurge before sales tax goes up
California’s budget crunch
Eric Edenfield of San Francisco did just that when he purchased a water heater last weekend for the duplex he rents out in Guerneville. The new water-saving “on demand” heater might be good for the environment, but at $3,000, it’s tough on the wallet.
“I bit the bullet and I ordered it,” said Edenfield, 45, who was considering buying a second water heater for his other unit before Wednesday. “I didn’t need it until the end of the year, but I thought, why not save (some money) now?”
The new sales tax is set to expire July 1, 2011, or July 1, 2012, depending on whether voters approve a constitutional amendment, Proposition 1A or the Budget Stabilization Act, in a statewide election to be held May 19.
The increase means that the sales tax in California will range from 8.25 percent in some areas – among them Humboldt, Monterey and Shasta counties – to as high as 10.25 percent in Pico Rivera and South Gate, both in Los Angeles County. That’s because voters in some cities and counties approved local sales tax increases that also go into effect Wednesday.
In the Bay Area, voters in Sonoma and Marin counties approved an increased tax to fund rail transit, bumping the rate to 9 percent there. In Santa Rosa – where Edenfield bought his water heater – the rate will be 9.25 percent due to the city’s current district tax.
Effective Wednesday, the sales tax in San Francisco will be 9.5 percent. The tax will be 9.75 percent in Alameda County, 9.25 percent in San Mateo County and 9.25 percent in Contra Costa County, with the exception of Richmond, Pinole and El Cerrito, where it will be 9.75 percent.
Some consumers said they increasingly are turning to the Internet, where often they can skirt state taxes if retailers fail to add those charges to the total sales costs.
Byron Gordon of San Francisco said he’s cutting back on nonessential purchases and buying online when he calculates that shipping costs are lower than taxes.
“In principle, the sales tax is a great thing because it pays for health care, education and all those services we need, but people are finding ways to cut back on spending,” said Gordon, 41, an account executive with an Internet public relations firm. “If they can find a way to not pay, they will.”
CNN’s Help Desk – Tax Credits 2009
Getting Yourself Out of the Rabbit Hole
As business owners, we’re sometimes like Alice and get distracted by taking our focus from reality and following the figurative rabbit down the figurative rabbit hole. We fall into a place that we are unfamiliar with, that makes no sense, and that takes up so much of our time to figure out. And that seems like madness.
Yes, that’s what it’s like when business owners try to do their own accounting and bookkeeping. Before you know it they’ve ended up in a mess worse than Alice.
The reality of the matter is that business owners need to trust an expert to handle their accounting and bookkeeping. Once you put it in the hands of a competent expert, the benefits to you and your business will increase exponentially.
You’ll have more time to focus on your key skill sets, which usually means handling all those things that will increase revenue. Your accounting expert will also help you manage cash flow. We’ve seen our San Francisco clients transform their businesses into profitable firms by allowing us to handle all their financials and accounting.
So remember – beware of the rabbit hole. Hire a bookkeeper and/or accountant and see your business thrive.
A Great Blog from “Don’t Mess with Taxes” – by Kay Bell
Attention, not luck, will prevent an audit
March 17th, 2010
On St. Patrick’s Day, we all claim a bit of the Emerald Isle. But it takes more than the legendary luck of the Irish to prevent a tax audit.
True, the IRS has most recently been focusing its examinations on higher income taxpayers.
And more business, both large and small, also are getting once overs, especially when it comes to how they classify workers.
So most of us don’t have to worry that much about getting that dreaded letter from an auditor. Unless, of course, we do something that attracts an IRS examiner’s eye.
One way the IRS decides whether to pull a return for a closer look is if it sticks out from the crowd. Yep, when it comes to taxes, it doesn’t pay to be unique.
Kay Bell is a proven professional in both journalism and corporate communications.
In 2009, her first book, “The Truth About Paying Fewer Taxes” (FT Press) was published. It examines ways individuals can make the tax code work to their filing advantage, whatever their stage of life.
As principal of SKB Editorial Services LLC, Kay provides, on contract and freelance basis, writing, research, editing and communications consulting services.
Friends Don’t Let Friends Forget to File Their Taxes
The clock is ticking and the April 15th deadline to file taxes is a little over a month away. I’m sure you’ve already done it for yourself – you’re the responsible one.
But have your friends done it? Have all required members of your family done it? How about your co-workers? If not, have you reminded them?
Of course, you can remain silent. It’s none of your business, right? It’s not like they’re trapped in a burning building or abusing illicit substances. It’s just their finances. I mean, if they mess up on their taxes, is that really a big deal?
Well let me tell you something. One of the reasons we as a country are in a recession is because of financial mismanagement. Not filing taxes on time is financial mismanagement.
Be a true friend. Show your friends, family and colleagues that you really care. Ask them if they filed their taxes. Refer them to a tax expert or an accountant who will not only do it correctly and on time, but also assist them with a tax strategy for 2010.
That’s what friends are for, right?
Getting Fiscal
When you budget or review financials with your accountant, bookkeeper or tax expert, you sometimes hear the word “fiscal.” So here are some definitions:
Fiscal: Relating to financial matters.*
Fiscal Period: Any period of time covering a complete accounting cycle, generally consisting of 12 consulting months.**
Fiscal Year: A fiscal period consisting of 12 consecutive months.**
**College Accounting, Douglas J. McQuaig and Patricia A. Bille, 8th Edition
Client Testimonial
One of our clients, Dr. Aiden Kinsella – Owner, Verve Chiropractic
JP Leddy – Our Driven Sales Manager – Your Resource
Jon Paul Leddy is our Sales Manager with over 20 years of vendor and sales experience in the financial and technology industries. After graduating with an international relations degree from Brigham Young University, JP served as the Communications Director for a large nonprofit, and later transitioned into sales for Fortune 500 companies and start-up ventures in Silicon Valley and internationally.
JP keeps very busy in the community, as he is an Ambassador for the San Francisco Chamber of Commerce and the Membership Vice President of the Mission Merchants Association. As a native of Guam, he has earned the honor of being one of the Outstanding Young People of Guam.
