Professional Accounting Solutions

In this article, we have explained the terms for the deduction of business meal expenses for 2021 and 2022. Pandemic had a drastic impact on all the businesses and companies across the globe. However, the worst impact was on the companies that handle the food services. As a result, a large number of businesses saw closure in the United States.  To help the rocking food industry, the Consolidated Appropriations Act (CAA) came into existence in December 2020. It provides quick economic assistance to struggling restaurants and their families. The CAA enables the tax-paying individuals to deduct 100% of the cost of business-related meal expenses incurred at restaurants in the years 2021 and 2022; Meals includes both beverages and food given by the restaurants.  Previously, it was only possible to deduct the cost of business meals to only 50% of the total cost.  IRS guidance in Notice 2021-25 defines “restaurants” that will come under the tax break. The term will include those businesses th...

Pay Tangible Personal Property Tax by March 31 2022.  There is no payment discount of the total tax due. Additionally, this is the last date to pay tangible personal property taxes. Delinquent Tangible Personal Property Tax Taxes become delinquent on April 1st each tax year.  Interest accrues at 1.5% per month (18% per annum) plus additional fees are added. What is Tangible Personal Property Tax? Tangible Personal Property Tax is an ad valorem tax assessed against: - Any equipment, fixtures or furniture used in a business or for a commercial purpose - Leased equipment - Furnishings and appliances in a rental property, owned by the real property owner - Any attachments made to a mobile home or manufactured housing in a rental park Tangible Personal Property includes  everything other than real estate used in a business. Assets such as office furniture and fixtures, office equipment like copier machines, printers, and scanners, etc.  Also tools, machinery, signs, leasehold ...

Business Sales & Use Taxes Deadline January 19th, 2022 If you electronically file and/or pay sales tax with the Florida Department of Revenue, you must complete the initiation of your December, 2021 reporting period payment on or before 5:00PM, Eastern Time, on Wednesday, January 19th, 2022 , to ensure you pay on time. To learn more about Florida Sales & Use Taxes Read about: Do you have physical nexus in Florida? Tax or fee due dates that occur on a weekend or holiday are moved forward to the next business day. However, initiation dates for electronic payments are moved back to the previous business day to ensure the funds are received by the state on the tax due date. State recognized holidays are listed on the reverse side. Late returns and payments may be subject to a late penalty.  The late penalty of 10 percent of the amount of tax owed, but not less than $50.00, maybe charge. The $50.00 minimum penalty applies to all returns filing late, even if no tax was due. In additi...

In this article, we will explain the benefits of online bookkeeping services for your business. When you are just starting a company, it may make sense to try to meet your own accounting and bookkeeping requirements. As a result, costs are reduced. But it didn't take long to realize that you might need help. Why not rely on online accounting services for these tasks so you can focus on your business? Today we are going to take a closer look at the business benefits of online bookkeeping and how these services can help you get your mind off the books and back into the game. Regardless of the industry, accurate and efficient accounting is essential. It can help you manage your business finances and make smart, data-driven decisions. Fortunately, you don't have to hire an in-house accountant. Also Read: How Much Does A Bookkeeper Cost? Save money Hiring a full-time accountant is expensive. You must cover their salaries, payroll taxes, benefits, and insurance. You will also ha...

As most taxpayers are required to file a tax return every year and technically the Internal Revenue Service (IRS) does not impose a statute of limitations on how long you have to file past-due tax returns, filing your tax returns is the quickest and easiest way out of any back tax issues. Why it is important to file back taxes and most importantly, how to file returns for back taxes? Are you wondering whether you should file back taxes or whether is it too late for this? Let’s make it clear, it’s never too late to file your back taxes.  In fact, you should start taking steps right away to file an accurate tax return for any years missed. Here we will explain why it is essential to file returns for the previous years as soon as you can and what is the complete procedure to do so. Also Read: How Much Does A Bookkeeper Cost? Reasons why you should file back taxes When you file tax returns for previous years, you get one of the following benefits: You can claim a refund One of the ...

Wondering how much does a bookkeeper cost? Let’s find out. It is not an easy task to manage your business- it requires a lot of hard work where you have to closely manage your inventory, employees, and the ever-growing client base at once. In this ever-ending struggle, the most important task that should not be sidelined is the handling of the company’s financial accounts. To make sure you do not miss any transactions or make an error, it is essential to hire a bookkeeper or an accountant to handle your business. This will make sure that all your financial transactions are correct, which will go a long way to save up on taxes and lots of stress. Bookkeeping will help you make your business more efficient and in turn, it will improve the revenue and growth of your company. If you decide to hire a bookkeeper for your business, you have two options- hire an in-house bookkeeper, or outsource the bookkeeping. Choosing either of the two is an important decision to make and requires a lot of ...

Bookkeepers and Accountants work in the same field and deal with the same set of information. They have the same goals while working for a company and support it at different levels. In simple terms, bookkeeping is more of administrative work, while accounting is more of an analysis and subjective work. Nowadays, almost every business needs a bookkeeper and accountant. The need for an accountant is not much in small companies, but it is a must when it comes to the bigger ones. On the other hand, bookkeepers are mandatory in every business, whether they are big or small. Sometimes people use the terms bookkeeping and accounting interchangeably, but as a business owner, you must know better. While bookkeeping is an essential part of accounting, accounting is broader. In this blog post, let's find out how you can differentiate between the two. Also Read: What Is Virtual Bookkeeping What Is Bookkeeping? Bookkeeping is the act of recording daily transactions and keeping them togethe...

Property taxes that are paid by December 31 received a 3% discount of the total taxes due. Other discounts for early payments are as follows: - 2 percent discount if paid in January - 1 percent discount if paid in February - Any equipment, fixtures or furniture used in a business or for a commercial purpose - Leased equipment - Furnishings and appliances in a rental property, owned by the real property owner - Any attachments made to a mobile home or manufactured housing in a rental park Business Tax Preparation of Tangible Property Taxes All businesses are required to file a Tangible Personal Property Tax Return if you own personal property. Hire a tax preparer for peace of mind. Our firm can assist you identifying all assets,  estimate the fair market value, prepare the depreciation schedule and complete your business tax return.  Additionally, we will keep timely, accurate records if you sell your business, go out of business, or move to a new location. https://pasfirm.com/2021/1...

If you electronically file and/or pay sales tax with the Florida Department of Revenue, you must complete the initiation of your November, 2021 reporting period payment on or before 5:00PM, Eastern Time, on Friday, December 17, 2021 , to ensure you pay on time. Late returns and payments may be subject to a late penalty of 10 percent of the amount of tax owed, but not less than $50.00, maybe charge. The $50.00 minimum penalty applies to all returns filing late, even if no tax was due. In addition, interest may also be charged on late payments. https://pasfirm.com/2021/12/01/sales-use-taxes-deadline-december-17th-2021/

If you are required to deposit payroll taxes monthly, deposit payroll tax liabilities for November 2021 on or before December 15, 2021 . The payroll process includes: - Calculating and preparing paychecks - Accounting for amounts withheld from these paychecks - Making deposits of taxes withheld from paychecks - Reporting on taxes withheld and deposits made. Deposit Requirements: Before the beginning of each calendar year, you must determine which of the two deposit schedules you are required to use. There are two deposits schedules as listed below: - Semi-weekly schedules are for the largest employers. - Monthly schedules are used by the majority of employers. Payroll taxes must be deposited with the government in a timely manner. If you fail to make a timely deposit, you may be subject to a failure-to-deposit penalty of up to 15 percent. https://pasfirm.com/2021/12/01/employer-monthly-schedule-depositor-payroll-tax-deposit-due-december-15-2021/

The American Rescue Plan Act of 2021 significantly changes the reporting threshold associated with Form 1099-K. This change will substantially increase the number of Forms 1099-K required to be filed with the IRS and furnished to recipients by third-party settlement organizations (TPSOs) and their electronic payment facilitators (EPFs). Modified Reporting Threshold Prior to the update, the IRS required the payment settlement entity (PSE) to report all payment transactions if the total of such transactions exceeded $20,000 and the aggregate number of such transactions exceeds 200 per customer. Now, this new update means that all payment settlement entities are required to file a 1099-K and send a copy of the form to the IRS and to the customer for processing transactions amounting to $600 or more in a calendar year with no minimum transaction requirement. Who is Required to File a 1099-K form? Every PSE or other party which submits instructions to transfer funds to the account o...

2021 Tax deduction for qualify business use of vehicles Generally, you can claim vehicle deductions as a business owner or self-employed taxpayer. If you own a business or are self-employed and use a vehicle for business, you may deduct car expenses on your corporate tax return. If a taxpayer uses the car for both business and personal purposes, the expenses must be split. The deduction is based on the portion of mileage used for business. You may deduct vehicle expenses in one of two ways. 1. Actual expenses These include: - a. Depreciation - b. Lease payments - c. Gas and oil - d. Tires - e. Repairs and tune-ups - f. Insurance - g. Registration fees Your deduction for actual expenses is based on the percentage of business use. If for example you use your car 80% for business and drive it 20% personally, you may write off 80% of your qualified expenses. 2. Standard mileage rate Taxpayers who want to use the standard mileage rate for a car they own must choose to use this...

Hiring an accounting firm will be an ideal solution for small businesses and startups. In 2021, there are about 400 million small and medium-sized businesses in the world, and accounting forms their backbone. Managing your business finances requires a fundamental understanding of numbers, budgeting, forecasting, tax planning, and risk management for best financial performance. While many have understood this game and play it correctly from the start, for example, Warren Buffet, most of us are too caught up in our day-to-day challenges to even understand the complexities of numbers. And if you are the founder of your startup or run a small business, it can be intimidating to deal with numbers day in and day out, particularly when your focus should go into working on upcoming projects and growing your business. Doing your business finances, yourself could definitely save some money in the short term but outsourcing your accounting tasks can undoubtedly bring not just the financial expert...

We understand how caught up you may feel while running an e-commerce business. You will have to live on the pinnacle of your transactions, inventory, administrative fees, and what’s not. We know that due to so much work pressure and being occupied among these tasks, your accounting and bookkeeping responsibilities must have taken a back seat. But remember that these low priority tasks are most important and they will come back to create a nightmare sooner or later. Managing your personal books may also appear like a cost-saving strategy, however, many online traders lack the time or know how to live updated and in compliance. Moreover, any e-commerce business needs dedicated attention of an eCommerce accountant. In this article, we’ll display how you can collaborate with an accountant that has a specialization in e-commerce so that they can assist you in growing and managing your ecommerce enterprise. How to find the Right eCommerce Accountant Here’s what you need to remember when you’...

Whether you’re just considering a new business idea or already act as a sole proprietorship, incorporating a business is a good decision. There are several benefits to incorporating your business, all of which you should fully understand before you decide what’s best for your business. Following are some of the must relevant benefits of incorporating your business. - Asset Protection Through Limited Liability - Creation of Corporate Identity - Perpetual Life for the Business - Transferability of Ownership - Ability to Build Credit and Raise Capital - Optimizing Your Income and Taxes - Retirement funds and qualified plans, like a 401(k) https://pasfirm.com/2021/11/02/incorporation-is-a-big-milestone-for-your-business/

Corporations must generally make estimated tax payments if they expect their estimate tax to be $500 or more. Fourth installment payment of your 2021 estimated taxes is due by December 15th, 2021 . A worksheet, Form 1120-W is available to help you estimate your tax for the year. Some corporations are required to electronically deposit taxes, this includes estimated tax payments. You can make electronic funds transfer by using the Electronic Federal Tax Payment System (EFTPS). However, if the corporation does not have an EFTPS account with the IRS, you can arrange payments through a third-party provider. https://pasfirm.com/2021/11/01/corporate-taxpayer-estimated-tax-payment-due-december-15-2021/

Get ready for your W2 & 1099 forms reporting requirement Businesses must prepare tax reporting forms as part of their tax filing obligations. Generally, W-2 forms are used for part-time or full-time workers, Form 1099-NEC is used for contractors and other non-employees. W-2 and 1099-NEC forms must be filed by January 31, 2022 . The same deadline applies for completing both W-3 and 1096 forms to the appropriate government agency. There are penalties on companies that issue W2 and 1099s forms late. Must taxpayers do not like receiving IRS forms 1099. Businesses may not like sending them out.  Generally, business must issue the forms to any payee (other than a corporation) who receives $600 or more during the year. As the Year-End approaches, good preparation now can help business avoid problems later. Review payments you have made during the year and verify you have completed information for all payees for whom you will be required to file a 1099. Information that should be gat...

Sales & Use Taxes Deadline November 19th, 2021 If you electronically file and/or pay sales tax with the Florida Department of Revenue, you must complete the initiation of your September, 2021 reporting period payment on or before 5:00PM, Eastern Time, on Friday, November 19, 2021 , to ensure you pay on time. Late returns and payments may be subject to a late penalty of 10 percent of the amount of tax owed, but not less than $50.00, maybe charge. The $50.00 minimum penalty applies to all returns filing late, even if no tax was due. In addition, interest may also be charged on late payments. https://pasfirm.com/2021/11/01/sales-use-taxes-deadline-november-19th-2021/

Employer Monthly Schedule Depositor – Payroll Tax Deposit Due November 15, 2021 If you are required to deposit payroll taxes monthly, deposit payroll tax liabilities for October 2021 on or before November 15, 2021 . The payroll process includes: - Calculating and preparing paychecks - Accounting for amounts withheld from these paychecks - Making deposits of taxes withheld from paychecks - Reporting on taxes withheld and deposits made. - Semi-weekly schedules are for the largest employers. - Monthly schedules are used by the majority of employers. Payroll taxes must be deposited with the government in a timely manner. If you fail to make a timely deposit, you may be subject to a failure-to-deposit penalty of up to 15 percent. https://pasfirm.com/2021/11/01/employer-monthly-schedule-depositor-payroll-tax-deposit-due-november-15-2021/