You’ll have a wide variety of questions to ask any accountant you’re thinking of hiring. While many people feel self-conscious about asking questions, it’s important to remember that he or she will be responsible for ensuring business taxes are completed and filed on time to helping you reach your financial goals. Never hire an accountant without getting to know more about them.

“Tell Me About Yourself” Isn’t Intrusive

You’ll want to know if they’re licensed, have any special skills, their work background and experience. It’s an opportunity to learn why he or she became an accountant and the most gratifying part of the profession for them.

Software

If you’ve been using one of the consumer software programs available, you’ll need to know if your software is compatible with the accountant’s. You may have to print out and provide paper documents for transfer to your account if you decide to hire him or her.

Range of Services

Accountants can provide a wide range of services besides filing your taxes. They can provide guidance to assist you in attaining your financial goals, help you in operating more efficiently, and develop strategies for your changing needs. An accountant can be your trusted financial adviser from startup to retirement.

Clients and Reputation

It’s a good idea to find out the type of clients and companies with which the accountant normally works. Don’t hesitate to ask for references and to explore the professional’s social media accounts and website. A good accountant isn’t difficult to locate, but a great one will have earned a reputation for excellence.

Fees, Charges and Outsourcing

How an accountant calculates fees is also a critical question. An accountant is supposed to simplify your financial life, but fees and charges shouldn’t outweigh the benefits. You’ll also want an accountant that tends to your financial health personally, not one that outsources the job.

At Peavy and Associates PC our mission is to assist you with all your tax preparations, payroll and accounting needs.  We provide our clients with professional, personalized accounting services and guidance in a wide range of financial and business needs. Give us a call today (843) 347-0849 and discover why our clients return to Peavy and Associates, PC year after year!

Your accountant does much more than just file your taxes. He or she performs a wide variety of services to help you reach your business and financial goals. There are some essential questions you should ask your accountant each year to help maximize your business.

What Financial Goals Should I Pursue

Your financial goals will change over time as your business grows and your needs change. You may want to lower tax liability, increase profit margins, operate more efficiently, or be seeking an exit strategy. It’s important to talk to your accountant each year to ascertain what your primary goals are for the year.

Cost Saving Strategies I Can Use

Every business owner should be concerned with how to save their business money. Doing so can mean reducing overheat costs, waiting on expansions or upgrades, re-evaluating partnerships, or simply spending less. Your accountant can guide you in all those endeavors.

Tax Liabilities and How to Reduce Them

Knowing your liabilities will ensure you have enough money set aside to pay your taxes each quarter with no surprises. The information will tell you where funds should be dispersed or invested for greater profitability.

Which Financial Reports are Most Important

Your accountant tracks and monitors a variety of information. You need to be informed about every facet of your enterprise, but there are some reports that can be more important at any given time. Don’t be reticent about asking your accountant which reports of which you should be most aware. Doing so will keep you informed of current and future business trends, allowing you to make highly informed decisions about every aspect of your business.

Where Can Automation be Employed

Whether its payroll, machinery and equipment or customer service, there are a wealth of ways in which businesses can automate services and processes. Some enterprises are more automation friendly than others and can result in considerable savings. Automation is a topic that should definitely be discussed with your accountant each year.

At Peavy and Associates PC our mission is to assist you with all your tax preparations, payroll and accounting needs.  We provide our clients with professional, personalized accounting services and guidance in a wide range of financial and business needs. Give us a call today (843) 347-0849 and discover why our clients return to Peavy and Associates, PC year after year!

People can lower their federal and state tax obligation through credits and deductions. Credits typically produce a more favorable result, as they lower the taxes owed. However, in combination with deductions, they provide a way to reduce your taxable income and reduce your total tax bill.

Tax Credits

There are a number of tax credits available to individuals that reduce overall income and can put you in a different tax bracket, meaning your income is taxed at a lower rate They include the earned income credit, child tax credit, child and dependent care credit, and American Opportunity tax credit. These and others reduce the amount you owe the federal government and work to lower your income.

Retirement Savings

Income set aside for retirement purposes and company-sponsored 401(k) accounts can lower your taxable income. They include traditional IRAs, Roth IRAs, and 401(k) plans.

Health Savings Account

People contributing to an HSA for health care expenses can use those funds to lower their taxable income, as they’re made with pre-tax income.

529 Plans

As an educational savings plan, earnings and distributions aren’t subject to taxes – providing the funds are used for qualified educational costs. They’re not deductible on federal taxes, but can lower the state tax burden. Be aware that rules vary by state. Pre-paid tuition plans are another option for qualified institutions.

Charitable Contributions

Those who volunteer at a qualified non-profit organization can deduct travel expenses associated with volunteering. Cash and non-cash contributions can also be deducted – be sure to keep a receipt. Claiming a charitable contribution will lower income and tax burden, but itemization of deductions is required and there are limits on how much can be deducted.

Depreciation and Business Expenses

For those that operate a home business or farm, for example, a portion of equipment or machinery can be deducted as depreciation. A percentage of a home used exclusively for conducting business can also be deducted.

At Peavy and Associates PC our mission is to assist you with all your tax preparations, payroll and accounting needs.  We provide our clients with professional, personalized accounting services and guidance in a wide range of financial and business needs. Give us a call today (843) 347-0849 and discover why our clients return to Peavy and Associates, PC year after year!

CPA stands for certified public accountant. The professional designation is earned by accountants that have obtained a higher level of education in multiple areas that includes accounting, auditing, finance, taxation, and other areas of financial expertise. They’re licensed, trusted and highly-trained professionals that assist clients in attaining their financial goals. All CPAs are accountants, but all accountants aren’t CPAs.

What They Do

A CPA provides consulting services and helps clients create strategic financial plans for the future. The professionals file taxes, maintain financial records, provide litigation consulting, and assist clients with retirement planning and exit strategies.

They work with individuals, businesses, multiple industries, education, government, and a wide variety of non-profit organizations to keep clients informed of their financial standing. A CPA can represent a client during a tax audit only if they’ve qualified as an Enrolled Agent and received the right to practice from the U.S. Government.

Some CPAs choose to specialize in fields ranging from environmental issues and agriculture to forensics. The professionals work for clients ranging from athletes and celebrities to some of the largest corporations in the world, along with small business operators. CPAs are committed to continuing education to provide the most effective and efficient services for their clients. A CPA utilizes highly-sophisticated and specialized software to ensure accuracy.

Ethics

CPAs have a code of ethics. The information between clients and CPAs remains confidential. A CPA in Florida is required to complete a minimum of 4 hours of board approved ethics every 2 years.

Selecting a CPA

It’s critical for individuals to choose a CPA that they trust, since the professional will have access to personal and sensitive information. The CPA should also have expertise and experience in the client’s particular industry. It can be helpful to ask family, friends and peers for recommendations based on their personal experiences. The IRS also maintains a directory of credentialed professionals. CPAs are financial professionals and are available to answer any questions that may arise. Individuals need to feel comfortable taking any financial matter to their CPA.

At Peavy and Associates PC our mission is to assist you with all your tax preparations, payroll and accounting needs.  We provide our clients with professional, personalized accounting services and guidance in a wide range of financial and business needs. Give us a call today (843) 347-0849 and discover why our clients return to Peavy and Associates, PC year after year!

Everyone dreads tax time, as evidenced by the number of people that wait until the last minute to file. Waiting until the deadline can be a costly mistake for individual filers and those that operate a home or small business. There’s an increased risk of mistakes, missing a deadline, and you may not catch deductions and credits for which you’re entitled.

Get Organized

You need to start thinking of tax time long before you’re ready to file. That means keeping and organizing receipts. Keep bills and receipts in folders according to type. If nothing else, at least keep them in a box. It will be a mess for you or a tax preparer to decipher, but worth it. If you utilize the services of a tax professional, you’ll typically have been sending them your receipts, which makes the process easier.

Know Your Obligations

There are plenty of resources online that provide all the information you’ll need for your individual circumstances to file local, state and federal taxes. Bear in mind that you could be audited at any time.

Credits and Deductions

Whether you’re an individual filing your taxes, operate a home business or a gig worker, there are numerous tax credits and potential deductions for which you may qualify. They can reduce your taxable income, the taxes you pay, and could place you in a tax bracket where you’ll be taxed at a lower rate.

Tax Software

Completing your taxes can be much easier with tax software. You’ll still need to keep track of your receipts, but tax software can make it easier to track expenditures and income.

Professional Expertise

A tax professional is well worth the money, especially for those with a home or small business. The professionals use software that’s highly specialized and sophisticated. They’re also cognizant of the constantly changing tax laws and can provide strategies for saving.

At Peavy and Associates PC our mission is to assist you with all your tax preparations, payroll and accounting needs.  We provide our clients with professional, personalized accounting services and guidance in a wide range of financial and business needs. Give us a call today (843) 347-0849 and discover why our clients return to Peavy and Associates, PC year after year!

Everyone wants to find ways to lower their tax burden each year. There are some everyday write offs that many individuals are eligible to take on their federal income tax and they don’t even know it. A tax write off is a deduction that taxpayers can use to reduce the amount of taxes they owe. Not everyone qualifies for each write off, but the following are some of the most popular.

Vehicles and Mileage

People that use their own vehicle as part of their job can deduct the milage on their vehicle used strictly for work. It applies to people such as delivery drivers, reporters, and gig workers.

Mortgage Interest

Homeowners can deduct the interest paid on their home mortgage. Space used for a home office can’t be counted and deductions must be itemized.

Home Office

More people are operating a home business and a percentage of the space used for business can be deducted if the area is used exclusively for business purposes.

Student Loan Interest

The interest paid on a student loan is deductible for yourself, a spouse, or a dependent child. You can deduct up to $2,500 worth of interest, whether from a private or federal loan.

Charitable Donations

Cash and non-cash items donated to a qualifying charitable organization can be deducted if you itemize deductions. Volunteers can deduct the mileage they drive to the organization. Taxpayers that claim the standard deduction can no longer take the charitable contribution write off.

Medical and Dental Expenses

Any expenses greater than 7.5 percent of your adjusted gross income can be deducted – provided you itemize deductions.

State and Local Taxes

State and local income taxes paid can be claimed on your federal tax return, up to $10,000.

IRA and Retirement Contributions

To take this, you need to have had earned income from work. The amount that can be written off depends on age.

Health Savings Accounts

Setting aside money to cover medical expenses is a good idea. The amount you can set aside depends on age.

At Peavy and Associates PC our mission is to assist you with all your tax preparations, payroll and accounting needs.  We provide our clients with professional, personalized accounting services and guidance in a wide range of financial and business needs. Give us a call today (843) 347-0849 and discover why our clients return to Peavy and Associates, PC year after year!

No business owner wants to pay more in taxes than necessary, but many are losing out on ways to reduce their tax burden without even knowing it. The following are just some of the ways that small business owners can reduce their company’s taxable income.

Health Insurance

The cost of health insurance isn’t cheap, but it can help small business owners reduce their company’s taxes. The IRS allows a deduction for people that are self-employed and pay for their own health insurance. That includes premiums for medical, dental, vision, and even long-term care coverage. The coverage extends to spouses and children age 26 and younger covered under the policy. This is especially important for people that are gig workers, independent contractors and freelancers, all of whom are considered a small business by the IRS.

Retirement Savings

If you have no employees, you can establish a single participant 401(k), also known as a SOLO 401(k). You might also be eligible to deduct your contribution to an employee retirement plan. Other options include the Self-Employed Individual Retirement Account, also known as a SEP IRA, Roth IRA and traditional IRAs. There’s also a Saver’s Credit for which you may be eligible due to your retirement contributions.

Qualified Business Income Deduction

Also known as the Section 199A deduction, you may be eligible for it if you claim your business income on your personal income tax return. It’s available for sole proprietorships, partnerships, LLCs, and S corporations.

Home Office and Depreciation

Operating a business out of your home can net you deductions in a variety of ways. It’s possible to deduct a portion of your home dedicated to the business, internet service, business phone, office supplies, and similar bills that are necessary for the operation of the business. You can also deduct depreciation of your office equipment and assets essential for conducting business.

At Peavy and Associates PC our mission is to assist you with all your tax preparations, payroll and accounting needs.  We provide our clients with professional, personalized accounting services and guidance in a wide range of financial and business needs. Give us a call today (843) 347-0849 and discover why our clients return to Peavy and Associates, PC year after year!

When your small business has reached the point where you need even one employee, its time to hire a payroll service. The service takes the worry and headaches out of the entire process, allowing you to focus on building and growing your business.

A payroll service ensures that employees are paid accurately and on time, but not all services offer the same level of benefits. It pays to shop around for the company that best fits your needs now and in the future. Payroll services may help you with employee schedules, your accounting practices and even software. The company may also track overtime and employee benefits.

Compliance

One of the most important tasks that a payroll provider does is ensure that the business is in compliance with all relevant reporting requirements and changes in tax laws. They know what forms employers must file and when.

Accuracy and Security

Employers are required to withhold specific taxes and in certain amounts. The computations can be complex. Payroll services ensure the appropriate amount of withholding is calculated. They use highly specialized software and are dedicated to accuracy in every aspect. They can provide the appropriate financial information for any governmental query or request. All data is maintained securely and confidentially.

Employee Verification

There’s a lot of paperwork involved when hiring any employee. A payroll service streamlines the process of verifying a potential employee and gathering the necessary information about them, such as if they’re eligible to work in the U.S., if they have a criminal history, and past employment records. Self-service employee accounts are another benefit. Individuals can manage their employee account online to enroll in benefits and update their information when needed.

Scalability

Even if you only have 1 employee now, that will change as your company grows. The ability to handle payroll for any number of employees is essential. You’ll want a payroll service that’s able to keep up with your evolving company needs and the services it offers, along with flexible payment plans.

At Peavy and Associates PC our mission is to assist you with all your tax preparations, payroll and accounting needs.  We provide our clients with professional, personalized accounting services and guidance in a wide range of financial and business needs. Give us a call today (843) 347-0849 and discover why our clients return to Peavy and Associates, PC year after year!

Most people hear the term entrepreneur and immediately envision a startup company in the tech industry or similar field The truth is that there are millions of entrepreneurs, many of whom are operating businesses in the gig industry. Whether an individual is a first-time business owner or a serial entrepreneur, there are some essential accounting tips they need to know.

Expenses

Create a budget. Cash flow is the life blood for an entrepreneur. Cash flow issues are the primary cause of business failure. It’s essential to keep careful watch over expenses. Use bookkeeping software to make the process easier.

Cash or Accrual

A cash-based accounting model records expenses and revenue when the money is paid. It’s good for small businesses, those that offer professional services, and businesses that don’t maintain an inventory. An accrual model records revenue when it’s earned instead of actually received. It’s a better solution for larger companies, those that are more complex in nature, and businesses that keep inventory.

Write-Offs and Deductions

Maintaining receipts ensures entrepreneurs receive all the write-offs and deductions to which they’re entitled on their taxes. That can include vendors, transportation, and monthly bills associated with operating the business. Be sure to categorize expenses.

Credit

Don’t rely too heavily on credit cards It’s easy to use credit as a means of supporting the business, but entrepreneurs can easily find themselves so far in debt they’re unable to even make minimum monthly payments on their card.

Predict the Future

Keep an eye on financial trends. A realistic financial forecast is essential to plan for future sales, expenses and income.

Separate Accounts

Never combine personal and business accounts. Its easier to monitor business health and prevents entrepreneurs from being responsible for business-related debts.

It’s the Law

Entrepreneurs need to know and understand the law regarding the type of business they have. Anyone in business for themselves will have tax responsibilities and expenses that hourly or salaried employees don’t. Hiring an accountant is a smart strategy. Individuals can benefit from an accountant’s experience, knowledge, and the professional can help keep a new business on track for success.

At Peavy and Associates PC our mission is to assist you with all your tax preparations, payroll and accounting needs.  We provide our clients with professional, personalized accounting services and guidance in a wide range of financial and business needs. Give us a call today (843) 347-0849 and discover why our clients return to Peavy and Associates, PC year after year!

Choosing an accountant isn’t a task to be taken lightly. An online search can be helpful for accountants in your area, but you’ll have no point of reference. It can be helpful to seek referrals from family, friends and associates when seeking an accountant. You’ll want an expert that’s nearby, responsive, and available to answer any questions that may arise. The professional will play a vital role in your business and should be selected carefully.

Know Your Needs

A small business or one that’s newly established will have very different needs than that of a larger and more complex enterprise. It’s important that you take a good look at your business and understand the services you need before hiring an accountant.

You may need bookkeeping, payroll or tax preparation services. An accountant can provide all of that, keep you informed of financial trends, identify inconsistencies, and aid in maintaining cash flow. He or she can also assist in helping you create business strategies, investment opportunities for the future, and a business structure that best benefits you.

Certification

Only work with a certified public accountant (CPA) and one with experience in the same industry as yours. The professionals have the extensive training and expertise required to assist with bookkeeping, tax preparation and planning to help you attain your goals.

Ask Question

Narrow down your candidates and set up a meeting to talk with each one. Ask about their qualifications, services offered, and how much they charge. Determine what types of businesses they work with and how they can help your company grow and thrive. One of the primary questions should be their recommendations for saving your company money.

Take your time choosing an accountant. He or she may be an integral member of your business for many years to come. The right accountant for your business will be one of your greatest assets.

At Peavy and Associates PC our mission is to assist you with all your tax preparations, payroll and accounting needs.  We provide our clients with professional, personalized accounting services and guidance in a wide range of financial and business needs. Give us a call today (843) 347-0849 and discover why our clients return to Peavy and Associates, PC year after year!