For those that own a business or are considered self-employed by the IRS – begin preparing for tax season now. There’s a mountain of documentation to collect. Waiting until the last minute can result in fines and other penalties.

Organize Documents

A substantial amount of tax reporting begins in January. There will be a variety of final documents that must be available when preparing a tax return. Preparation is especially important for small business owners and those considered by the IRS to be self-employed.

Prepare Early

Business owners can begin their returns as soon as they have the necessary documents. They can utilize personal tax software or use online filing sites, but the best solution is to hire a tax professional. Even though tax returns can be prepared early, the IRS won’t begin accepting them until a time the entity will announce.

Documentation

It’s far less stressful and more cost effective to have a tax professional do the work. The expert will need to understand the business and its financials. Individuals should be prepared with their employer ID number, along with receipts from sales and services, expenditures, and bank accounts, to name a few.

All of these documents and more are required for a tax professional to ensure a client is receiving all the deductions and credits to which they’re entitled, and to take advantage of any new state or federal tax laws. They can also ascertain if the business would benefit from itemizing expenses and calculate projected payroll taxes.

Extension

If necessary, a tax professional will be able to file for an extension, which gives business owners an additional 6 months of leeway to submit their tax return. An extension provides a grace period in which to file the return, but business owners will still have to pay any taxes that may be due on time.

An extension can be especially beneficial if any clarification is needed or if all of the essential documents aren’t immediately available. For those in some industries, there may be compliance and regulatory issues to consider.

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 and discover why our clients return to Peavy and Associates, PC year after year!

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Very few people have a good grasp of their spending habits or how much money they could save by simply eliminating a purchase or two every week. That’s when home budget calculators can help you spend less and save more.

A budget is especially important during times of inflation, job loss, or even saving for a major purchase or life event. Only 32 percent of the U.S. population regularly budget. A variety of budget calculators are available that can make a significant difference in spending habits and they’re easy to use.

Financial Stability

Maintaining a budget is the pathway to financial stability. Instead of buying things that catch your eye with no thought to when the rent is due, it can help you plan for long- and short-term goals. That may include a down payment on a home, purchasing a car, or even starting a family.

Pay Bills on Time

Living within your means is a phrase that’s gained renewed popularity. It means don’t spend money you don’t have. People that don’t budget have to worry about taking from one area to pay for another. Don’t rely on credit cards to bridge the financial gap you’ve created. It’s easy to overspend and find yourself drowning in debt. Budgeting enables you to pay the bills on time, which will also help build your credit rating.

Emergency Fund

A home budget calculator can help you establish an emergency fund. You’ll be better prepared in the event of an injury, illness, job loss or other unfortunate event.

Retirement

Most people qualify for Social Security in their later years, but the program was never designed to be your only means of support when you stop working. That’s what a retirement fund is for and a budget enables you to save enough to have a safe and happy retirement.

Spending Habits

Everyone has bad spending habits that result in budget deficits. It may be dining out too often, expensive coffee, video games, or trips to the spa. A budget calculator will show you how you’re spending your money, the amount, and easy ways where you can cut back and save.

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 and discover why our clients return to Peavy and Associates, PC year after year!

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Small business owners are always looking for ways to save money and many make the mistake of trying to handle payroll duties on their own. Even if you only have a single employee, payroll services can save you money. There are serious fines and consequences for not meeting reporting deadlines or keeping accurate tax records for employees.

There are many facets to maintaining payroll ranging from employee withholdings to business deposits and withdrawals. It may include paid time off (PTO), 401k deductions and garnishments. It requires a significant amount of time and effort that could be better spent growing your business.

Flexibility

Small business owners face a variety of challenges and a payroll service helps you remain flexible and meet those challenges as the business environment and economy changes. You could be encountering supply chain issues or need to quickly scale up production to meet increased demand. Payroll services enable you to keep ahead of changing circumstances and minimize business disruptions.

Rules and Regulations

Payroll services enable you to remain compliant with state and federal reporting requirements and deadlines. You’ll also be compliant with the many regulations governing employee benefits ranging from retirement funds to insurance coverage.

Fines and Penalties

You can run afoul of the IRS for multiple reasons ranging from failure to pay business income tax, underpayments or late payments. The fines and fees associated with even small infractions increase over time and limits cash flow to your business. A payroll service reduces your risk.

No Degree Necessary

You don’t have to have experience or a degree in accounting. Your payroll company has the knowledge and experience to attend to all the details. They’ll provide you with accurate accountings and keep you informed of the financial health of your business.

Security

You need to maintain security against physical and cyber incursions. A data breach at your company can cost you dearly, leave your business vulnerable to ransomware attacks, and compromise employee data. Payroll services utilize advanced security measures to keep sensitive information about your enterprise safe.

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 and discover why our clients return to Peavy and Associates, PC year after year!

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Increasing concern for the environment has led many to pursue a career as an environmental accountant without fully understanding what’s involved. It’s a field that was first introduced in the 1980s and is employed by multiple types of businesses and governments to determine the best way to conduct business, while minimizing the impact on the environment.

There are four types of environmental accounts. They encompass environmental financial accounting, environmental cost accounting, environmental management accounting, and environmental national accounting.

Environmental financial accounting pertains to estimating and public reporting of environmental liabilities, along with financial material environmental costs. They produce reports of exposure and management of the financial and non-financial impacts due to climate change of various entities.

An environmental cost accounting expert is concerned with the use and depletion of natural resources. The professionals calculate the costs of managing natural resources and the operational costs of doing so within multiple types of organizations and businesses.

Environmental management accounting helps companies save money and provide product pricing through optimal use of resources. The information can result in cleaner production practices. The primary benefit is increasing value for shareholders, improving an entity’s reputation, and improving the public’s perception of a company.

The field of environmental national accounting is used to determine a country’s economy and the environment. It takes into consideration a country’s physical and monetary assets and operational costs of natural resources.

The environment plays a vital role in the economy. Environmental accountants provide businesses and nations with important data that’s instrumental in determining criteria ranging from economic health, degradation of natural resources, and the costs of pollution. The professionals provide data on the contribution of the environment to the economy and vice-versa.

Environmental accounting is also known as green accounting. The accounting processes have become invaluable for business and countries in making policies in regard to natural resources in an international marketplace.

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 and discover why our clients return to Peavy and Associates, PC year after year!

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Farm businesses need the services of an agricultural accountant. In many instances, farm businesses are large corporations. Farm accountants provide an essential service for farmers, helping them anticipate expenses, track expenditures, and ascertain ventures that will be most profitable – such as planting more corn, wheat or soybeans and letting field lie fallow.

Reporting and tracking farm expenses pose some interesting challenges. Cash basis accounting is one type of method to report income and costs and can be used to report taxable farm income. Farm accounting is utilized to record all goods, money and services used in the farming industry.

A farm accountant will deal with a variety of aspects relating to their client, from cash flow, day-to-day expenses, government subsidies when applicable, and even estate planning. Farm accountants provide a wide range of information to their clients to help them make informed and strategic decisions about their business and potential risks.

Agriculture plays a major role in the nation’s overall economy, just as much as oil and other resources. The accounting specialists will need an extensive variety of knowledge. They’ll need to be cognizant of fluctuating costs and prices, have an understanding of how unpredictable weather affects the business, and changing commodity prices locally and around the globe.

Farming is a unique type of business with special challenges. Farmers always have the last decision, but they rely on an agricultural accountant to help them plan for purchases of land, equipment and the operation of their business. Agricultural accounts are responsible for filing taxes on time, accounting for assets, liabilities and depreciation, along with meeting specific government regulations and definitions.

Farm accounting is an ideal profession for anyone that loves numbers and farming. They’ll be called upon to keep track of arable land to native plants, pasture to crop production, changes in land use, and even green/sustainable farming practices.

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 and discover why our clients return to Peavy and Associates, PC year after year!

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A significant number of college students are reassessing their career path. They’re discovering they won’t make as much as they anticipated. A study conducted by Real Estate Witch found that undergrads across all majors overestimated their starting salaries by 88 percent. There are numerous well-paying opportunities in accounting for 2022 and the U.S. Bureau of Labor Statistics projects a significant growth rate in all areas.

Bookkeeper

A bookkeeper maintains a company’s day-to-day financial transactions. They record, prepare and present financial statements to supervisors and managers about some or all of an organization’s accounts. They’re responsible for keeping a running total of costs and income and it represents an excellent opportunity for those entering the field. Bookkeepers enter data, verify billing statements, and work with multiple types of financial software.

Personal Accountant

There’s an almost endless need for personal accounts. They keep track of and help individuals and business owners manage credit card and bank statements, keep tax records, review expenditures, and ensure staff are paid.

Tax Preparer

Individuals, entrepreneurs and small businesses utilize the services of a tax preparer throughout the year to ensure their finances stay on track. Tax preparers prepare taxes, ensure clients are only paying what they should, and help them organize records. They may work for a larger company, but often operate their own business out of their home.

Forensic Accountant

Law enforcement agencies, lawyers, private investigators, insurance companies, government agencies and financial institutions employ forensic accountants. They’re often called as expert witnesses in court cases to prove embezzlement, fraud and other financial wrongdoing. They analyze financial statements, bank records and other documents.

Environmental Accountant

The job includes recording income, expenditures and other transactions related to cost savings. Many companies and corporations employ environmental accountants to create social responsibility statements in terms of energy costs and similar changes relating to green practices.

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 and discover why our clients return to Peavy and Associates, PC year after year!

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If you’re a small business owner, you may attempt to maintain your payroll with software that can be obtained anywhere software is sold. You may think you’re saving money, but you may find yourself spending more time attending to accounting and payroll tasks than operating your enterprise. Even if you only have a single employee, you can benefit from the services of a payroll processing service.

It’s important that you understand the IRS ultimately holds you responsible for all payroll requirements, even if you hire a payroll service. Do your research and choose a payroll company that meets your individual needs and has experience. Ask friends, family and other business owners which service they use and if they’re satisfied with the company.

Accuracy

A payroll service will know exactly how much in taxes to keep out for each employee and ensure their pay check arrives on time, whether pay periods are weekly or bi-monthly. The service will calculate federal, state and FICA for employees, along with creating W-2s and 1099s. It will enable you to stay compliant with all applicable state and federal laws.

Filing Requirements

Businesses are held to different filing times and requirements than private individuals. A payroll service will help ensure you meet filing deadlines and pay the appropriate tax amounts to avoid penalties and fines.

Paying Yourself

Depending upon the type of business you have, you may be required to pay yourself. A payroll service can do this and it’s especially important if you’re considered self-employed. The service will calculate your own taxes, along with personal state unemployment taxes and federal unemployment taxes.

Saves Time

Payroll is a complicated process and the average business owner spends more than 6 hours per month handling payroll. A payroll service will streamline the process, take care of all the details, and give you more time to spend on operating your 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 and discover why our clients return to Peavy and Associates, PC year after year!

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An accounting firm offers an extensive array of services to meet a multitude of needs. They have highly trained CPAs that provide personalized guidance in financial matters of all types to maximize client profitability. They assist clients in creating strategies for the future, meeting financial goals, and minimizing tax liability.

Tax Services

Tax services encompass far more than simply filing taxes with the IRS at the appropriate time. Accounting firms help clients develop strategies and plans to reduce taxes on income, investments, and retirement distributions. An accounting firm will also assist clients in reducing taxes on gifts and their estate, along with optimizing available financial opportunities.

Accounting

Startups, established enterprises and sole proprietorships can all benefit from the services of an accounting firm for budgeting, corporate tax planning, and accounting systems. Many businesses provide profit sharing plans and employee benefits to attract and retain the best workers. An accounting firm will help clients establish those benefits in a cost-effective way.

Payroll

One of the biggest expenses for any company is its payroll and records must be kept meticulously. Accounting firms prepare payrolls, handle direct deposits and ACH payments, and take care of federal and state tax payments. An accounting firm will also prepare W-2s, 1099 statements, and provide clients with monthly and quarterly payroll reports.

Consulting

One of the many services provided by an accounting firm, and one of the most valuable, is consulting. Accounting firms help clients focus on what’s most important to them to achieve their financial goals through forecasting and cash flow budgeting. They create personal financial statements, provide ledger services, and clients receive litigation support.

Attestation

Individuals should choose an accounting firm that offers all three levels of attestation – audits, reviews and compilations. The firms conduct in-depth audits to confirm inventories, transactions, and account balances. Reviews are provided to ensure the integrity of information and compilations prepared for internal management.

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 and discover why our clients return to Peavy and Associates, PC year after year!

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Many people are confused about how to list their business. Many think that one type provides more protection from lawsuits, when in fact, both offer protection against liability for business obligations.

LLC stands for limited liability company and Inc. is an indication that a business is a corporation. The difference between LLC and Inc. is the way in which each is owned, managed and taxed, along with reporting requirements and record-keeping methods.

Ownership

Owners of an LLC are called members instead of shareholders. Each member holds a specific percentage of the company called a membership interest. If an LLC wants to transfer shares/percentages, it’s more difficult. In some states, unless otherwise specified, if an LLC member leaves the organization, the LLC must be dissolved.

In contrast, a corporation issues shares of its stock to owners that are called shareholders. Transferring stock is a relatively simple process. If a stockholder leaves or sells their stock, it typically has little impact on the corporation’s future operations.

Taxation

The taxation structure in an LLC is flexible. If a single person owns the LLC, they’re taxed as a sole proprietorship. LLCs owned by multiple members are taxed as a partnership. An LLC can be taxed as a C or S corporation. The difference is that a C represents a business entity and the S is a tax classification used to protect assets from double taxation. Profits can be claimed on the owner’s individual tax return.

Corporations are taxed as C corporations by default, pay income taxes on corporate profits, and shareholders pay tax on dividends they receive. If the corporation chooses to be classified as a C corporation, stockholders avoid being double taxed and the corporation doesn’t pay corporate income taxes – providing it meets specific requirements.

Management

LLCs can be managed by its members or a managerial group. A corporation has a board of directors that makes rules, policies, and oversees the way its run. Officers manage day-to-day affairs and shareholders typically aren’t involved in the day-to-day operations.

Records and Reporting

An LLC has less formal record keeping requirements than corporations. They may be required to adhere to a standard of minimal record keeping and the entity doesn’t have to file annal reports. Corporations are required to hold an annual shareholder’s meeting and provide notice of the meeting. Minutes of the meeting must be kept and corporations may be required to file annal reports.

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 and discover why our clients return to Peavy and Associates, PC year after year!

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Individuals have an important decision to make each year at tax time – hire a tax accountant or use software. The decision will depend largely on how complicated an individual’s financial situation is, their income, investments, stocks and other factors.

Tax Accountant

One of the major benefits of hiring a tax accountant is that minimizes the potential for an audit. That’s especially important for high-income earners and those with stocks and investments. The IRS audits approximately 4 percent of all returns. The chances increase for people making over $200,000 per year, business owners – especially sole proprietorships, the credits and deductions claimed, if foreign assets are involved, and the complexity of the return.

Anyone with those risk factors would do well to seek the services of a tax accountant. They’re highly trained professionals that are knowledgeable about all aspects of tax law. Individuals consulting a tax accountant for the first time are usually surprised at the number of legal deductions they’ve been missing. A tax accountant can also provide advice about tax planning to lower your tax burden and help manage finances more effectively.

Tax accountants have access to professional-level tax software that’s far more sophisticated than that available as a single purchase or online as a service. A tax accountant is available to answer questions and provide guidance throughout the year, not just at tax time. Complicated business and investment issues that can be handled with alacrity by a tax accountant can take individuals days or weeks to research.

Tax Software

Most people simply look at the cost of consumer tax software as a primary benefit. Software to install on a computer can cost as little as $50. Online tax software fees are based on the complexity of the services requested and are charged when the taxes are completed. Software solutions are less expensive but really aren’t designed for those with complex tax forms.

Using tax software is easy, user-friendly, and faster than the services of a tax accountant, who make take several days or a week to complete taxes. Tax accountants must deal with sometimes hundreds of clients one at a time, while software servers can accommodate millions of users at the same time.

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 and discover why our clients return to Peavy and Associates, PC year after year!

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