Have you appointed an accounting firm Orlando for your business or do you like managing your accounting by yourself? We suggest that you will be better off with an accountant. Hiring one will make your finances easier and you will be able to monitor your growth. Even your taxes will become simple and you will not have to devote a lot of hours to them anymore.
There are many accounting firms in Orlando. How do you decide which one of them is a great choice? As long as your chosen accounting firm in Orlando has the following traits, they will be a great choice for you.
A good accountant will manage all aspects of your finances
Do you why most of the businesses fail to make a mark, and eventually shut down operations? Because their financial management is not effective enough. Ask any expert, and they will tell you that the primary difference between a business that thrives and a business that fails lies in their accounting system and the control they have over their finances. Why are we telling you all of this? If you hire a accounting firm Orlando, you will put your finances in order, and there is a higher chance that you will succeed.
A good accountant knows the difference between managerial and financial accounting
Financial accounting involves credits and debts. An accountant dealing with financial accounting will prepare all financial statements for your business by considering the figures recorded by your bookkeeping system.
At the surface, yes, this is what accounting is about, but delve deeper, and you will realize that there is a lot more involved. A good accountant is already aware of this and does not only prepare your financial statements, but analyzes them thoroughly. The results can then be used for cash management, budgeting and other major financial business decisions which you may have to take.
A good accountant is aware of all the tax laws
Taxes are something which every business has to deal with. The easier you make them, the better it will be. An accountant can help you with this, and ensure you are paying the least possible amount in taxes. They know all the tax laws, and will assure you are taking all applicable deductions. Doing so will reduce the amount you will be paying in taxes. Other than this, the accountant will fill out your tax return and make sure there are no errors on it.
Generally, CPAs are a good choice for dealing with taxes. They have all the knowledge required and can help you with your bookkeeping as well. EAs are another recommended choice.
A good account should have experience
Every accountant deals with different types of businesses and gains experience in different industries. Whichever one you hire, make sure he has enough experience in your business and sector. Only then will he do your taxes right, and put your finances in order.
Paper Work Required for Small Business Taxes
Are you a small business owner? You will have to file a tax return with IRS, and you may also have to submit a state income tax return, depending on your corporation type. A tax return will highlight the total earnings of your business. From these, your tax deductible expenses can be subtracted to arrive at your taxable income. The amount of taxes you pay depends on the tax rate and your taxable income. Now when you file your taxes, the IRS will require not just your return but supporting documents as well to serve as evidence. These must go back three years from the date on which you file your taxes.
Here are some of the documents which you require. Your chosen accounting firm in Orlando will guide you more about these.
As a business owner, you will have to provide proof of the income you earned for that current tax year. How will you do this? Ask your chosen accounting firm Orlando for the details. Generally, this involves providing copies of your deposit slips, dank statements and sales invoices. If you are using an accounting software, you may have to provide monthly reports as well. All these documents will help the accounting firm in Orlando in preparing your taxes.
A proof of your income is not the only thing required. You must also give evidence of your expenses so that you can use them as deductions. Not abiding by this means paying larger taxes than necessary. There are many deductions which you can utilize such as rents, payroll, insurance, office supplies, utilities and so on. You must have proof of all these documents in the form of invoices, paid receipts or checks. If any expense is large, you will probably require W2, W3 and a number of other tax forms.
Your accounting firm Orlando will require details of your auto expenses so that they calculate your deprecation costs, which you can use to bring down your taxes. You will also require your sales invoice and some roof that you own the vehicle. If you have ever gotten the vehicle repaired, that can also be deducted. Other deductions related to autos include mileage and insurance, but you must have proof with you.
If you are travelling for a business related purpose, you can deduct some of the expenses that incur. Any commutation costs cannot be deducted, but if you are having a dinner with a client or travelling for a business meeting, you can deduct these. You will have to provide receipts that indicate the place, date and time of your travel. Along with this, be sure to state the business reason as well. As for dinners with clients, you need bills for these.
If you have any confusion, take help from a reputed accounting firm in Orlando. They will review your financial situation, and accordingly help you with tax preparation.
If you need more information about our Orlando accounting and tax services, please contact us at 407-344-1012. Freedomtax Accounting’s staff has been providing honest accounting services and tax services for 15 years. Our Orlando accounting and tax firm has its main offices in Kissimmee, FL. Our services are provided nationwide, but mainly in the Central Florida market to areas like Orlando, South Orlando, Kissimmee, St. Cloud, Poinciana, Clermont, Davenport, Hunters Creek, Lake Nona, Celebration, Winter Park, Windermere, Dr. Phillips, Maitland, Altamonte Springs, Winter Garden, Ocoee, Apopka, Belle Isle, Edgewood, and Oakland FL. Our tax accountants and IRS enrolled agents (irs ea) specialize in corporate accounting and bookkeeping, tax services, tax preparation, back taxes help, tax debt relief, tax resolution, tax planning, itin number, incorporations, and non profit 501c3 tax exempt.