Auditing, Accounting, & CPA Blog

Business a Hoppy? Do I need to file a Tax Return for my business

2011-07-10T09:37:00.000-07:00

Business or Hobby? Answer Has Implications for Deductions

FS-2007-18, April 2007

The Internal Revenue Service reminds taxpayers to follow appropriate guidelines when determining whether an activity is a business or a hobby, an activity not engaged in for profit.

In order to educate taxpayers regarding their filing obligations, this fact sheet, the eleventh in a series, explains the rules for determining if an activity qualifies as a business and what limitations apply if the activity is not a business. Incorrect deduction of hobby expenses account for a portion of the overstated adjustments, deductions, exemptions and credits that add up to $30 billion per year in unpaid taxes, according to IRS estimates.

In general, taxpayers may deduct ordinary and necessary expenses for conducting a trade or business. An ordinary expense is an expense that is common and accepted in the taxpayer’s trade or business. A necessary expense is one that is appropriate for the business. Generally, an activity qualifies as a business if it is carried on with the reasonable expectation of earning a profit.

In order to make this determination, taxpayers should consider the following factors:

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Does the time and effort put into the activity indicate an intention to make a profit?
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Does the taxpayer depend on income from the activity?
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If there are losses, are they due to circumstances beyond the taxpayer’s control or did they occur in the start-up phase of the business?
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Has the taxpayer changed methods of operation to improve profitability?
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Does the taxpayer or his/her advisors have the knowledge needed to carry on the activity as a successful business?
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Has the taxpayer made a profit in similar activities in the past?
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Does the activity make a profit in some years?
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Can the taxpayer expect to make a profit in the future from the appreciation of assets used in the activity?

The IRS presumes that an activity is carried on for profit if it makes a profit during at least three of the last five tax years, including the current year — at least two of the last seven years for activities that consist primarily of breeding, showing, training or racing horses.

If an activity is not for profit, losses from that activity may not be used to offset other income. An activity produces a loss when related expenses exceed income. The limit on not-for-profit losses applies to individuals, partnerships, estates, trusts, and S corporations. It does not apply to corporations other than S corporations.

Deductions for hobby activities are claimed as itemized deductions on Schedule A (Form 1040). These deductions must be taken in the following order and only to the extent stated in each of three categories:

*
Deductions that a taxpayer may take for personal as well as business activities, such as home mortgage interest and taxes, may be taken in full.
*
Deductions that don’t result in an adjustment to basis, such as advertising, insurance premiums and wages, may be taken next, to the extent gross income for the activity is more than the deductions from the first category.
*
Business deductions that reduce the basis of property, such as depreciation and amortization, are taken last, but only to the extent gross income for the activity is more than the deductions taken in the first two categories.

How to Save Money on Your Business Audits-Tips & Tricks Clearwater FL

2011-07-10T09:33:00.000-07:00

Business Audits why are they so expensive?

The real answer is business owners put them off until the last minute and are not properly organized. Business owners need to prepare for the business audit in advance and need to meet with a qualified CPA to discuss what will be needed for the audit. Accounts and CPA's bill hourly for time and paying a fee in excess of a $100.00 per hour to locate documents in your office is a waste of money and added audit expense. I always put together a strategy to let clients know what is expected and to make sure I only bill for things that the business is capable of preforming. If you are looking for a new accountant to handle a business audit look early and ask for references. Judy Driscoll CPA specializes in Audits allowing for a faster and smoother experience for your business. If you are considered you are paying to much for your business audit please call me today to get a free opinion on your current audit process and fee schedule.

Thanks for reading.

Tax Time Coming To End. Time to finish or file extensions

2011-04-03T08:25:00.000-07:00

Extensions for Individuals

If you are not able to file your federal individual income tax return by the due date, you may be able to get an automatic 6-month extension of time to file. To do so, you must file Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return by the due date for filing your calendar year return (usually April 15) or fiscal year return. This form is also available en español.

If your a business and you failed to file by March 15th your taxes are now late.

US Federal Contractor Registration

2011-03-31T05:24:00.000-07:00

One of my client just had the below article posted in the startup gazette. I wanted to share with everyone. They help business get registered to do business with the federal government. US Federal Contractor Registration

As interest in government contracting grows, private companies such as US Federal Contractor Registration are helping businesses grow through working with the Federal government.

Following the American Recovery and Reinvestment Act, there has been a surge of interest in government contracting among business owners. While money has been set aside to fund upcoming contracts, working with the government is not quite as simple as calling yourself a vendor. The Federal Government requires would-be contractors to complete an application with the Central Contractor Registration and Online Representations and Certifications Application, known as CCR and ORCA respectively, in order to be awarded contracts or be paid for work performed. Like many other government forms, CCR and ORCA filing can turn out to be very time consuming and too difficult for the average person to complete on their own. Additionally, incorrect or omitted data can be costly to correct and may even result in penalties down the road.

Just as many business owners hire an accountant to complete their taxes for them and avoid costly errors, many new vendors are turning to services such as US Federal Contractor Registration to help them enter the Federal market. By working with a qualified and knowledgeable case manager, business owners can be assured that their CCR and ORCA registration are completed as accurately and quickly as possible. Case managers maintain registration for a full year, applying necessary changes or updates as needed.

Working with a qualified service also helps vendors take the next step after registration when seeking government contracts. For instance, US Federal Contractor Registration’s Targeted Marketing program helps businesses develop promotional materials such as a custom capabilities statement and SBA Dynamic Small Business Profile, set up recurring searches on FedBizOpps.gov, and use services such as FPDS.gov to identify those departments and agencies in their service area most likely to purchase their products or services.

Entering the Federal market for the first time can be daunting and the learning curve can seem steep. Adding the expertise and skill of an established service like US Federal Contractor Registration can make the difference between success and failure for new vendors.

US Federal Contractor Registration makes sense of government contracting by linking all systems into one convenient service. Their registration and marketing programs help both large and small businesses take advantage of new opportunities and find success working with the Federal Government.

Short sale / foreclosure tax info By a CPA in Clearwater FL

2011-02-04T05:50:00.000-08:00

Short sale / foreclosure tax info.

The Mortgage Debt Relief Act of 2007 allows taxpayers to exclude income from the discharge of debt on their principal residence through 2012. This includes debt reduced through mortgage restructuring and foreclosure, but only applies to debt used to buy, build or substantially improve your principal residence. Refinanced debt is only forgiven up to the amount that would have qualified before refinancing and the loss sustained on the short sale or foreclosure of your principal residence is not deductible.

Discharge of debt on rental property is not excluded from income. If a financial entity cancels or forgives debt of $600 or more, you will receive a Form 1099-C, Cancellation of Debt. Unless you meet one of the exceptions, this canceled debt is ordinary income and must be reported on your tax return. Exceptions include bankruptcy or insolvency. Insolvency occurs when the total of all your liabilities is more than the fair market value of all of your assets immediately before the cancellation of debt. If the cancellation of debt exceeds the amount by which you were insolvent, the difference must be reported as income.

If discharge of debt is excluded under the bankruptcy or insolvency exceptions, you must reduce your basis in the rental property by the amount of excluded cancellation of debt income. The lender's foreclosure or repossession of the rental property is treated as a sale or disposition and may result in realization of a gain or loss for income tax purposes. The gain or loss on the disposition of the property is measured by the difference between the fair market value of the property at the time of the disposition and your adjusted basis in the property. Your adjusted basis in the property is your cost plus improvements, less depreciation and less the amount of excluded cancellation of debt income.

CLEARWATER Business Accountant CPA

Should my business be an S-Corporation in Florida?

2011-01-10T09:07:00.000-08:00

The net corporate income of an S Corporation is taxed at the shareholder's tax rate.
You can take distributions of these profits from your LLC at any time tax-free.

If you were a C Corporation, the corporate profit would be taxed at federal rates up to 34% max plus Florida state corp tax at 5.5%.
Then when you took cash distributions from the C Corp, they would be taxable at the dividend tax rate (currently 15%).
So if you were a C Corp, the profits would be taxed at 54.5% (34 + 5.5 + 15).

The maximum individual tax rate is 35% so you are saving about 19.5% tax by being taxed as an S Corp.
The LLC is also saving you self-employment taxes which are 15% for 2010.

Deduction Tips from a CPA in Clearwater FL

2010-11-28T14:28:00.000-08:00

Tax deductions are the often misused and misappropriated.

Deductions that are a 100% tax write off include office supplies, mileage, and employee salary.

Deductions for meals and entertainment are not valued at 100% and businesses accruing lots of these types of deductions can often owe on the non deduct-able portion of these expenses.

Tax tip.

Remember to pay your employees properly for mileage expense. If you pay employees mileage reimbursements as income you will be liable to pay extra tax payroll taxes on mileage expense. Many business make small mistakes that can often add to thousands in additional tax liability. Putting together a tax plan for your business is key to help plan for tax liability.

CPA Clearwater FL

Accounting Changes Demand more from accounts

2010-11-19T07:34:00.000-08:00

New accounting rules require CPA's and accounts to file for a certificate to file taxes. Please make sure to check and verify that your Clearwater accountant or CPA has filed for this certificate. Tax preparation for personal and business returns is something that demands accuracy and CPA's are always the preferred filer of your returns. If you need to verify tax certificate information please https://www.myfloridalicense.com.

If you have any questions about accounting or are looking for a Clearwater FL CPA please consider Judy Driscoll

New Business Start Up Kit

2010-07-30T21:09:00.000-07:00

Judy Driscoll CPA will be putting out a new business start up kit to help pinellas fl business owners.

The kit will include how to file for incorporation

How to Get an EIN number

How to become an S Corp.

Complied with a list of common things new businesses need to understand.

Please email or call Judy with any business accounting questions or requests for the kit.

American Recovery and Reinvestment Act

2010-07-27T04:56:00.000-07:00

American Recovery and Reinvestment Act (ARRA) of 2009?

Question: What is the American Recovery and Reinvestment Act (ARRA) of 2009?

Answer: The American Recovery and Reinvestment Act (ARRA) of 2009 was signed into law by President Obama on February 17, 2009. The bill is intended to provide a stimulus to the U.S. economy in the wake of the economic downturn. The bill includes federal tax cuts, expansion of unemployment benefits and other social provisions, including domestic spending in education, health care, and infrastructure, including the energy sector.

If your business is looking to get Government Contracts and needs a cage code please visit CCR Federal Contractor Registration

Business Home Office Deduction Info

2010-07-27T04:52:00.000-07:00

Home office deduction information.

Topic 509 - Business Use of Home

Whether you are self-employed or are an employee, you may be able to deduct certain expenses for the part of your home you use for business despite the general denial of business expense deductions for the home.

To deduct expenses for business use of the home, part of your home must be used regularly and exclusively as one of the following:

1. The principal place of business for your trade or business
2. The place where you meet and deal with your patients, clients, or customers in the normal course of your trade or business; or
3. In connection with your trade or business, if you use a separate structure that is not attached to your home

Where the exclusive use requirement applies, you cannot deduct business expenses for any part of your home that you use for both personal and business purposes. For example, if you are an attorney and use the den of your home to write legal briefs and also for personal purposes, you may not deduct any business-use-of-your-home expenses. Further, under the principal-place-of-business test, you must determine that your home is the principal place of your trade or business after considering where your most important activities are performed and most of your time is spent, in order to deduct expenses for the business use of your home.

Deductions also may be taken for regular use of a residence for the provision of day care services or for business storage purposes; exclusive use is not required in these cases. You also may take deductions if you rent out your residence. For more information, see Publication 587.

Deductible expenses for business use of your home include the business portion of real estate taxes, deductible mortgage interest, rent, casualty losses, utilities, insurance, depreciation, maintenance and repairs. You may not deduct expenses for lawn care in general or for painting a room not used for business.

When figuring the amount you can deduct for the business use of your home, you can use the entire amount of expenses attributable solely to the portion of the home used in your business. The amount you can deduct for expenses attributable to the whole house depends on the percentage of your home used for business. To figure this percentage, you may divide the number of square feet used for business by the total square feet in your home. Or, if the rooms are approximately the same size, divide the number of rooms used for business by the total number of rooms in your home. You figure the business portion of your expenses by applying this percentage to the total of each expense. If you are a qualified day-care provider who does not use any area exclusively for day care, your business portion is further limited by the ratio of the number of hours the area is used exclusively for business to the total number of hours the portion was available for any use.

If your gross income from the business use of your home is less than your total business expenses, your deduction for certain expenses for the business use of your home, other than mortgage interest, taxes, casualty losses, and the like is limited. However, those business expenses that can not be deducted because of the gross income limitation can be carried forward to the next year but will be subject to the deduction limit for that year.

If you are in the business of farming or are an employee, use the worksheet in Publication 587 , Business Use of Your Home, (including use by daycare providers) to figure your deduction. As an employee, you must itemize deductions on Form 1040, Schedule A to claim expenses for the business use of your home. Farmers claim their expenses on Form 1040, Schedule F (PDF). If you are self-employed, use Form 8829 (PDF) to figure your business-use-of-the-home deductions and report those deductions on Form 1040, Schedule C (PDF).

Publication 587 has detailed information on rules for the business use of your home, including how to determine if your home office qualifies as your principal place of business.

Business Accountant Palm Harbor FL

Call Today To Schedule a Free Consultation
Judy Driscoll CPA Located at:
250 N. Belcher Road, Suite 100
Clearwater, FL 33765

Office 727-441-6829

Business Accounting Services Largo FL

2010-07-25T06:45:00.000-07:00

Judy Driscoll CPA.

Is offering a Free consultation to all businesses. If you are having trouble with your bookkeeping or just have tax questions about your business please ask Judy. Judy will be able to help you put together a plan to get your business books on track. Don't wait till the end of the year to start keeping proper records. Judy also is a quick books pro certified.

Business Accountant Largo FL

Call Today To Schedule a Free Consultation
Judy Driscoll CPA Located at:
250 N. Belcher Road, Suite 100
Clearwater, FL 33765

Office 727-441-6829

New Business Expenses-Capital Expenses

2010-07-24T15:37:00.000-07:00

Below is some information to help business with accounting.

From IRS

Going Into Business

The costs of getting started in business, before you actually begin business operations, are capital expenses. These costs may include expenses for advertising, travel, or wages for training employees.
If you go into business. When you go into business, treat all costs you had to get your business started as capital expenses.

Usually you recover costs for a particular asset through depreciation. Generally, you cannot recover other costs until you sell the business or otherwise go out of business. However, you can choose to amortize certain costs for setting up your business. See Starting a Business in chapter 8 for more information on business start-up costs.

If you do not go into business. If you are an individual and your attempt to go into business is not successful, the expenses you had in trying to establish yourself in business fall into two categories.

1.

The costs you had before making a decision to acquire or begin a specific business. These costs are personal and nondeductible. They include any costs incurred during a general search for, or preliminary investigation of, a business or investment possibility.
2.

The costs you had in your attempt to acquire or begin a specific business. These costs are capital expenses and you can deduct them as a capital loss.

If you are a corporation and your attempt to go into a new trade or business is not successful, you may be able to deduct all investigatory costs as a loss.

The costs of any assets acquired during your unsuccessful attempt to go into business are a part of your basis in the assets. You cannot take a deduction for these costs. You will recover the costs of these assets when you dispose of them.

Accountant Clearwater FL

Judy Driscoll CPA Located at:
250 N. Belcher Road, Suite 100
Clearwater, FL 33765

Office 727-441-6829

Clearwater FL CPA-Accountant Business

2010-07-24T15:34:00.000-07:00

Clearwater Florida businesses deserve good accountants.

If you have read my blog our tax tips you will see the importance of finding an accountant and especially a CPA. A good accountant that is a good fit with you and your business is key. When you look for an accountant in Clearwater make sure you ask questions and are able to develop a good relationship with the accountant.

Business often have the tendency to run a lot of personal expenses through a business and an good accountant can help you decipher between proper an improper deduction strategies.

Below is straight from the IRS

What Can I Deduct?

To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your industry. A necessary expense is one that is helpful and appropriate for your trade or business. An expense does not have to be indispensable to be considered necessary.

Judy Driscoll CPA is a business accountant florida

Judy Driscoll CPA Located at:
250 N. Belcher Road, Suite 100
Clearwater, FL 33765

Office 727-441-6829

Audit Business Accountant

2010-07-24T15:27:00.000-07:00

Finding an accountant or accounting firm for your business can often be the difference between having perfect accounting and problems. If your business is facing an audit and your located in Florida or near Clearwater, FL. Please call or stop in to see Judy Driscoll to discuss your tax needs.

Judy Driscoll CPA now hosts her blog on wwww.auditbusinessaccountant.com

If you are looking to have an audit preformed please consider using Judy Driscoll CPA. Judy Offers a free consultation that can help address your tax concerns and lead your business on its way to being profitable.

Audits are very important to your business please visit Judy's website to view Business Audit Tips

Judy Driscoll CPA Located at:
250 N. Belcher Road, Suite 100
Clearwater, FL 33765

Office 727-441-6829

Quick Books Pro Advisor-Clearwater FL

2010-07-18T12:47:00.000-07:00

Judy Driscoll CPA is now a quickbooks pro advisor. If you are having any issues with your quickbooks please take advantage of Judy Driscoll CPA's Free Consultation. Judy Can help you setup your quickbooks or address any problems you are having with quickbooks.

Quickbooks is a great asset for many small businesses. Judy can help you understand how to use your quickbooks as well as make sure your businesses is using quickbooks the right way. A CPA is able to really help a business owner with all aspects of accounting and Judy takes the time to help all her clients.

Many business owners understand their business but are unsure of many accounting rules. Judy Driscoll CPA encourages business owners to stop by and take advantage of her free consultation to help them with their tax concerns. Judy enjoys helping small business become profitable and develop strategies to increase revenue.

Quickbooks Advisor Clearwater
Judy Driscoll CPA
Judy Driscoll CPA Located at:
250 N. Belcher Road, Suite 100
Clearwater, FL 33765
Office 727-441-6829

Capitlaized Leases and Section 179-Effects Florida Business-Accounting-CPA

2010-07-14T14:54:00.000-07:00

Capitalized Leases 2010

Below is information that Tampa Bay Business need to know about capital leases and how it effects their accounting. Please feel free to schedule a free consultation with Judy Driscoll CPA About Business Accounting.

For financial statement and tax purposes, a lessee should capitalize a lease if it meets at least one of the following criteria:

a. Ownership transfer test. The lease passes title to the lessee by the end of the lease term.

b. Bargain purchase option test. The lease contains a bargain purchase option.

c. 75% test. The lease term is at least 75% of the property's estimated economic life.

d. 90% test. The present value of the minimum lease payments is at least 90% of the property's fair value.

If the lease meets any one of these criteria, the leased asset should be recorded on the Company's financial statements along with the corresponding lease liability net of deferred interest. For tax purposes, the leased asset may be depreciated by the lessee and qualify for the Section 179 expense election. The maximum Section 179 dollar limitation is $134,000 for tax years beginning in 2010.

Business Accountant Tampa FL

HIRE ACT effects Tampa Bay Businesses.

2010-07-13T14:00:00.001-07:00

What is the HIRE ACT-Definition

The Hiring Incentives to Restore Employment Act (HIRE Act) provides two valuable incentives for employers to hire new workers this year.
A payroll tax exemption of 6.2% which is claimed on Form 941 Employer's Quarterly Federal Tax Return and an up-to-$1,000 tax credit for keeping such new hires on the payroll for at least one year. The 6.2% payroll tax exemption applies for wages paid to qualified individuals after March 18, 2010 and before January 1, 2011.

Business Accountant Clearwater

Audt Accountant and CPA Clearwater FL-Business CPA

2010-07-11T09:17:00.000-07:00

Accounting-

Is more than putting numbers down on paper it is helping a business move toward consistency. Accounting helps small business understand how they can maintain and achieve profit goals. Managing a P&L statement for a small company is tricky and often takes many hours out of a business day. Using a CPA to make sure your books are accurate and your business is headed in the right direction is key to success.

Many small business do accounting in office and often dread doing the work. By having your accounting performed by a CPA you are not only guaranteed accurate and conforming tax returns you are relieving pressure and stress.

When looking to have a CPA preform your tax work make sure you verify that all license info is valid and the that CPA has experience. A new CPA will not be able to provide the level of knowledge an experienced CPA can provide. I would recommend calling references on new CPA's and accountants to make sure they are qualified for your business.

A CPA is an accountant that can preform every aspect of accounting not just the one you need at the moment. Many business owners think they need a bookkeeper when they really need a business partner. Business often rely heavily on there accountant to help them with tough business decisions and to make sure they make the right tax moves.

Below is some general info on CPA's and what is required to be a CPA.

CPA Requirements:

5 Years Of Education

Continuing Education

Passing of The CPA Exam

CPA Clearwater Florida

Call Today To Schedule a Free Consultation Judy Driscoll CPA (Certified Public Accountant) Located at: 250 N. Belcher Road, Suite 100 Clearwater, FL 33765 Office 727-441-6829 Specializes in Business Accounting for: Audits, 401k Audits, and Financial Statement Reviews.

2010-07-11T09:16:00.001-07:00

State and Local Government Spending In the Tampa Bay Area generates not only jobs and revenue for business that are directly effected by the funding but also other businesses. In the Tampa Bay Area over 50,000,000 Dollars are spent by the government each and every year in this area.

The government makes small changes to its budget that have consequences to many local businesses. If the government decides to become more energy efficient it will have offer large impacts to local business in that field but if it doing so it reduces spending else where it will offset the good with the bad.

Local Tampa Bay Business need to make sure to save funds and be prepared for the local governments changes and reduction in spending. The economy and budget shortfalls are going to continue to limit government spending. If your business deals mostly with government contracts you need to look for other avenues to help protect your revenue stream.

Long lines at the unemployment office will also be generated as well by these cuts. The government will not only effect business but its own head count. If you are in the government make sure you take preventive measures to ensure reserve funds.

A CPA will be able to help your business prepare for these accounting issues and make sure your business stays afloat with these changes. Please plan for the worst and your Tampa Bay business will have no problems being successful even in a new client.

CPA Clearwater Florida
Call Today To Schedule a Free Consultation
Judy Driscoll CPA (Certified Public Accountant) Located at:
250 N. Belcher Road, Suite 100
Clearwater, FL 33765
Office 727-441-6829
Specializes in Business Accounting for: Audits, 401k Audits, and Financial Statement Reviews.

Small Business Accounting Why Outsource?

2010-07-06T16:51:00.000-07:00

Small Business Accounting Why Outsource?

1) Lack of specialization.

Most small business owners are very good at what they do but not good at accounting. Don't Force your self to do something you hate.

2) Increased costs. Less time in the field.

3) Lack of efficiency.

Think about it it takes a long time just to get organized and than you only do it once a year. It normally takes a small business owner 3 to 4 times longer than a CPA to do accounting work. Lets say you are a plumber making $86.00 dollars an hour you can find a true CPA professional to work for $115.00 an hour and a less qualified CPA for under $86.00. You are looking at huge saving's. The average tax return for a business can be completed in less than 10 hours and is under $1000.00. I have preformed accounting for much less with simple returns.

4) missed deductions.

If you don't understand what you are doing it is very easy to miss something. For instance all capital leases can be written off, did you do that. I'm not going to list everything but a CPA does not miss valid deductions so use one.

5) Tax abuse, IRS Audits :(

Many business owners take too many deductions to compensate for all the ones they forget. Business throw up huge flags and get audited adding frustration and increased costs. Sometimes the IRS will audit back multiple years after they discover a flag. Save yourself time and headaches. Do the right thing get a CPA.

I have plenty more but if you hate accounting and bookkeeping frustrates you, outsource it. If you love numbers and always dreamed of being an accountant have a CPA review your return, it's cheap and can be done in many cases for less than an hour of billing. A CPA can help you find things you missed.

Don't get audited have a CPA prepare your business tax return.

Small Business Accounting

Clearwater FL Budget Cuts and small business accounting

2010-07-05T09:19:00.001-07:00

State and local government budget makers face challenges as the nationwide economic downturn that began in 2008 continues to cause budget problems. One of the greatest challenges that budget makers face is lower-than-expected revenues from taxes. In Fiscal year 2009, budget makers were overwhelmed by lower-than-expected revenues from taxes. As a report produced by the National Center of State Legislatures concluded,

Lawmakers in virtually every state scrambled to keep their FY 2009 budgets balanced while at the same time struggling to enact new ones for FY 2010. Hemorrhaging revenues drove the massive difficulties they faced. No matter how pessimistic revenue forecasts were, actual collections seemed to come in lower. This happened over and over and over again. Ultimately, states were not just faced with lower revenue growth rates, they confronted year-over-year declines in actual collections[1].

A subsequent report by the National Governors Association and National Association of State Budget Officers found that FY2010 presented the most difficult challenge for states' financial management since the Great Depression.[2]

In total, states faced a budget shortfall of $113.2 billion in FY 2009. As substantial as that is, it is far less than the deficit some have forecast for FY 2010. According to one such projection, states could face a total shortfall of $142.6 billion this year.[1]

Federal "stimulus" funds, authorized under the American Recovery and Reinvestment Act, helped some states avoid some cuts in programs and civil service employment. However, as the entry below explains, that short-term fix carries costly consequences as well.

State budget cuts will have impacts on local business as spending slows from the government into the community. Be prepared to have increased cash reserves if your business deals mostly with the government.

Audit Accountant CPA Call Today To Schedule a Free Consultation Judy Driscoll CPA (Certified Public Accountant) Located at: 250 N. Belcher Road, Suite 100 Clearwater, FL 33765 Office 727-441-6829 Specializes in Business Accounting for: Audits, 401k Audits, and Financial Statement Reviews.
Audit Accountant

Audit Tips

2010-07-04T07:02:00.000-07:00

Audit Tips

1) make sure all parties that are involved understand the audit.

Many Business do not communicate what an audit is to the employees and how important it is to be preformed correctly. When the employees buy in to the process it makes the audit take less time and be less of a burden on the business.

2) Assign a lead for the audit at the office.

The audit lead should be paid a bonus if the audit comes in under budget giving them extra incentive to help out with the process.

3) Ask your CPA for a check list of what is needed on the business end.

This check list will give structure to the process and make it easy for the accountant to communicate the paperwork needed to the business.

Give this check list to the person in charge of the audit so they can use this to give structure and framework to there job.

4) Prepare for your audit in advance and give your CPA plenty of time to complete the process.

If you wait until the last hour many problems can occur with your audit. If you plan to get it done in shore time please be prepared to pay overtime and have an audit cost up 40% more than if planned ahead.

5) Learn

Keep detailed notes and use this as time to expose future leaders in your company to the dynamics of the business. When an audit is preformed many aspects of the business are available and this provides a good learning block for future leaders.

Audit Tips Call Today To Schedule a Free Consultation Judy Driscoll CPA (Certified Public Accountant) Located at: 250 N. Belcher Road, Suite 100 Clearwater, FL 33765 Office 727-441-6829 Specializes in Business Accounting for: Audits, 401k Audits, and Financial Statement Reviews.

Workers Compensation Audits

2010-07-03T07:01:00.000-07:00

If are looking for ways to help with workers compensation below is some general information on the process.

Please visit Judy Driscoll's Qualification page to learn of her experience with Auidts

http://www.judydriscollcpa.com

The Work Comp Audit Process

The first thing you need to know is why an audit is being requested. Workers compensation premium is determined by exposures. The two basic exposures for a workers compensation policy are payroll (remuneration) and cost of uninsured subcontractors. When a workers compensation policy is first set up the premium is based on ESTIMATED exposures, or best guesstimates of the future. After the policy expires the actual exposure for the policy period will be determined by the audit. Once the audit is completed the insurance carrier will prepare and send a FINAL AUDIT STATEMENT. This statement will indicate any additional premium you owe or any credit due as determined by the AUDITOR.

So what is the AUDITOR really looking for? The answer is any payroll or any increase in exposure which includes payment to others such as uninsured subcontractors. Keep in mind, the auditor does not work for you, they work for the insurance company. The auditors job is to find all premium producing exposures they can, not to give you advice on how to save premium dollars!

Business Bookkeeping

2010-06-23T15:39:00.000-07:00

Business Accounting-

The most common request for business accounting is help with bookkeeping. Please take the time to keep accurate records throughout the year it's to hard to play catch up at the end.

Good Bookkeeping tip of the day:

Keep personal items separate from business expenses. Use separate bank cards or keep all receipts and detailed records if you must use cash or the same card. It's almost impossible to properly reconcile these transactions at the end of the year if they are both combined.

Please feel free to email questions specific to bookkeeping and the answers will be placed in the blog.

Thanks Judy Driscoll CPA