Profitability is a key driver of financial success in business. The goal of every Business owner should be to make profit and improve their business to make it better. If you were having a discussion, one year from today, and looking over your financials, Will you be happy with your financial progress? This question should propel you to take action, about what you expect your profit to be for the year. Profit is like a car,that must be driven; it does not drive itself; for you to get a projected profit, you have to be on top of your profit expectations. I have listed some questions, which should stimulate you to focus on an expected profit, as the year is coming to an end: What do you expect your profit (taxable income) to be for this year? Is this level of profitability above-average for your industry? What percent of revenues does your profit represent? Is your expected profit up or down from last year? How much of your profit will be converted into cash this year? As you go through these questions, you're painting a picture of what your financial success should look like, and this will lead you to action, for an end result. Having a picture requires taking action to actualize your projected expectations. These steps below will help you achieve your financial profit picture, feel free to put them into practice and see the transformation, it brings to your business: 1)  Have a Target Goal: You need to have a financial goal for your business at the beginning of every year. The Goal can be broken into monthly, quarterly and semi-annual financial targets. It is advisable and easier to have a monthly target. 2) Monitor your Progress: Once you set your financial goals, you will need to monitor your progress, against your target every month. You can only monitor your progress by examining your monthly financial reports (Profit & Loss/ Balance Sheet Reports). If you have not been preparing your report, this should be a good time to start. 3)  Adjust: At the end of every month, you need to review your target goal against your actual results (financial reports), and decide if you need to make changes, in your business, to achieve your targets. The changes can be in form of reducing an expense category to putting a plan in place for faster accounts receivables process. This is the secret to creating your financial success for your business. I challenge you to put these into action and watch your business achieve your desired projected profit. Do you need help with interpreting your financial reports? Perhaps you are yet to prepare your financial reports for the year, and don't have an idea of your actual profit; Call us NOW for further consultation and Assistance. We will be glad to help you.

The Holidays are here and it's time to ensure that we have some cash tucked somewhere for the Holiday Shopping, Gifts, Christmas Parties, as well as Year-end Savings. In our last Newsletter, we uncovered the myth of profits, and learnt that, understanding how transactions occur in our business and its effect on our financial statement is key to managing our profits. Please feel free to refer to our last newsletter for the full details. This Month, We will be looking at 5 strategies of turning our Profits into "Cash": 1 ) Cash is King: Every company experiences an increase or decrease in Cash availability at any given period; the basic key to turning your profit into "Cash" is what you do, when you have made a Great Sale and received Payments from a Business Windfall. This should be the period to have a Savings or Cash reserve Account, whereby you can set aside a certain percentage of this revenue and discipline yourself, not to meddle with the account. This is called effective Cash Management, and it takes a lot of discipline, but if taken seriously, you will achieve great results. 2) Plug your Cash Leaks: A lot of Business Owners are surprised about the waste, inefficiency and unchecked spending of precious Cash that should have remained in their Bank Account, if they have been managed effectively. As a Business Owner, it's possible to have been a culprit of any of these acts: How many times have you paid overtime, because of poor scheduling practices or slow work performances? How many times have you purchased unwanted Goods/Items for your inventory, without taking a stock count of what you have? How often have you incurred unnecessary Bank Charges, overdraft item payments, late fees and finance charges? It's time to take a forensic trip down your Profit & Loss Statement and try to justify every expense line item, I assure ,you there will be a 5 % more profit ,just waiting to find its way to your bottom line. 3) Take Ownership of your Business Account: A lot of Business owners tend to mingle their personal expenses with their Business Account. Once you indulge in this practice, your financial reports are contaminated and become pretty worthless, especially when it comes to decision making. It's better to take ownership of your Business Account and maintain it, as a separate "entity" from your personal account. This will help you manage your cash flow better, and hence you will able to pay yourself appropriately. After all, this is the reward of being a savvy business owner. 4) Avoid taking on too much Debt: Too much debt sucks the financial life out of a company. In our last Newsletter, we learnt how Principal Loan payments occur on the Balance Sheet and are funded by your profit; Imagine what happens when your company is overburdened with debt, Chances are that you will use your Cash flow to continually offset the debts, and this causes your company to be cash starved. The only way to eliminate debt is to put yourself and your company on a "strict debt reduction diet". If possible, Stop adding further debt to your company; otherwise have a strategy on how to pay off the debt, if you MUST take on further debts. 5) Have a Budget: A Budget is a blue print of an estimation of revenues and expenses for a given period in the future. A Budget gives financial direction. A Budget keeps you on track and helps you to manage your cash flow. Preparing a Budget makes you disciplined and faithful to keeping your profits. This is the best time to prepare a Budget for your Business towards the upcoming year. As we approach the New Year, Why don't you try out these practices and watch your Cash flow grow. You will be surprised at how a few dollars will add up in your Bank Account. Do you need help with creating your Budget for the upcoming year? Are you experiencing problems with recognizing your expense line items and don't understand how your Cash flow operates? Why don't you give us a Call, We will be glad to help you out. Happy Holidays.

-Understanding the Myth of Profits. As a Business Owner, Have you ever wondered why you cannot seem to get hold of your profit? Most Business Owners ask the question....." I see that I made a Net Profit of $XXX, but where is it? ".We have been looking at the topic of profit making, and this topic is a great mystery in Businesses. We agree that making Profit is a good thing and a negative profit (Loss) is not a good one; however, the mind game begins when there is profit, but no money in the Checking account. Do you also wonder why you don't go out of Business, when your Profit & Loss Statement keeps showing a negative profit (Loss)? The Answer is simple: PROFIT IS NOT CASH. The most important fact to remember about Profit is that, Profit has no connection to how much Cash is in the bank. A Profit and Loss Statement shows the movement of transactions, which occur in your Business for any given period (monthly), and the total net effect of these transactions constitute the balance that you see on your reports. An Example is when you enter a Business transaction, and an invoice amount of $3,000 is created in your Books, your Profit and Loss Statement shows the Sale and Resulting Net Profit, but there is NO CASH, until the invoice is paid; this money remains in your Account, only for a period of time, because when you pay your vendors or make your Bill Payments/Loan Payments, the money is being used up. In conclusion, It's not Magic...........It's just having a basic understanding of how transactions occur in your Business and its effect on your Profit & Loss Statement, as well as your Balance Sheet. The Ultimate Goal is to make better financial decisions. However, take Note, You can be profitable and still be broke (Did I hear someone scream?). Turning Profit into Cash is the secret to managing your Net Profit Balances. Our Next Newsletter will feature, how you can turn your Profits into Cash; if you need help with understanding your financial reports, why don't you give us a call? We would be glad to help you.

We welcome you to the Year 2015. We are all aware that the IRS has opened up its system to start accepting our 2014 Tax Returns; we should have also started receiving our W-2s and other earned Income Statements. Even if you don't intend to file right away, you can start gathering your receipts, Bank Statements and other important documents.      It is important to know that Tax Preparation Could be a little more complicated this Year, Thanks to the New Standard Deduction Amounts and the Affordable Care Act. We have compiled the following information, for you to take note, while filing your 2014 Tax Return: 1) You need to decide which type of Deduction, you want to take: You have to compare and decide, whether you want to itemize your Deductions or take the Standard Deduction. Your itemized Deductions are the items, you paid for during the year 2014, and you may be able to deduct. Expenses could include Home Mortgage Interest, State Income Taxes or Sales Taxes (But not both), Real Estate and Personal Property Taxes and Gifts to Charities. They may also include Large Casualty or theft losses or Large Medical and Dental expenses, that insurance did not cover. Unreimbursed Employee Business Expense may also be deductible. In most Cases, Your Federal Income Tax will be less, if you take the larger of your itemized Deduction or Standard Deduction. 2) If you choose not to itemize, your Basic Standard Deduction amount depends on your Filing Status. For the 2014 Tax Returns, the Basic Amounts are: Single                        -  $6,200 ( Compared to $6,100 for Year 2013) Married Filing Jointly - $12,400 ( Compared to $12,200 for the Year 2013) Head of Household   - $ 9,100 ( Compared to $ 8,950 for the Year 2013) Married Filing Separately - $ 6,200 ( Compared to $6,100 for the Year 2013) Married Filing Jointly and Surviving Spouses - $12,400 (Compared to $12,200 for the Year 2013). 3) As a Business Owner, if you choose to itemize your Deductions, your Expenses must be Ordinary and Necessary. An Expense is 'ordinary', if it is customary and conventional for the tax Payer's line of Business. A Necessary Expense is helpful in the Tax Payer's Business, but it need not be indispensable. 4) The Standard Mileage Rate for each Business Mile driven is 56cents for the Year 2014, and rises to 57.5 cents for the Year 2015. To Claim Deduction for the Business Use of your Car, it is better to use the Standard Mileage Rate, rather than the Actual Costs. 5) As a Business Owner, you need to take note of the following Expense Treatment during the Year, so that you can reduce your Tax Liability: Business Equipment: Equipment is grouped as Capital Expenditures, and must be depreciated. This is why lumping Equipment with Supplies is not a Good Idea. Meals & Lodging: When travelling for Business, Lodging is 100% deductible but the Away from Home Meal Deduction is limited to 50% of the cost. So if Meals are charged to a Hotel Room, they must be accounted for separately, and keeping a copy of the Hotel Statement shows the charges, as well as a credit card receipt or other payment receipt is advisable. Entertainment at Sports Events & Theatres: When entertaining Customers at Sporting events and theatres, the deduction is limited to 50% of the face value of the Ticket. The Cost of Entertainment must be "directly related" or "associated with" Business or the Production of Income. Home Office Deductions: There are 2 Methods of deducting the Business Use of a Home. One is the Conventional Method of prorating the expenses (With some limitations) of the Home by Multiplying the Allowable Expenses by the Business Use Square Footage Divided by the Total Square Footage of the Home. The Other Method, referred to as the Simplified Method allows $5/ Square Foot Deduction(Maximum 300 Square Feet) without having to keep records of expenses. Both Methods have the same eligibility requirements. 6)  This will be the first Filing Season with Two Major Provisions from the Affordable Care Act on Form 1040.They are the Premium Tax Credit and the Individual Shared Responsibility Payment on Form 1040. 7) The Premium Tax Credit is a refundable Tax Credit, which is also advanceable, designed to help Eligible Individuals and Families with low or Moderate Income, so that they can afford and purchase Health Insurance through the Health Insurance Marketplace. You can claim the Credit, when you file your Taxes, and this will lower your Tax Liability or you can choose to increase your Returns. 8) The Individual Shared Responsibility Payment on Form 1040 is the Fine payment that you make with your 2014 Tax Returns, for not having Health Insurance Coverage. It is the greater of : 1% of Your Household Income that is above the Tax Return Threshold for your Filing Status, Such as Married Filing Jointly or Single. Or Your Family's Flat Dollar Amount, Which is $95 Per Adult and $47.50 Per Child, limited to a Maximum of $285 for the Year 2014; $325 for the Year 2015 and $695 for the Year 2016 and the Applicable Dollar Amount will be inflation adjusted for the Tax Years after 2016. 9)   Tax Payers will need a Form from the Market Place, called Form 1095- A, to complete their Tax Return. The Forms should arrive by Mail by the End of January or First Week in February and can also be downloaded from the MarketPlace Account. You are advised to wait for the Form 1095-A to arrive, before you file your Taxes. 10) Small Employer Health Insurance Credits: An Eligible Small Business Employer may claim Tax Credit, if it makes nonelective contributions that pay at least one-half of the cost of Health Insurance Premiums for the coverage of its participating Employees.  An Employer Contribution is considered a nonelective contribution, as long as it is not made through a Salary reduction arrangement, and is done on behalf of each employee, who enrolls in a Qualified Health Plan, offered by the Employer.This Credit is computed on Form 8941 and is claimed as a component of the General Business Credit. We have complied these Basic Information, to enlighten you about the latest Tax Changes, and prepare you to get ready for the 2015 Tax Filing Season. Remember, if you are fully prepared, it will save you time and help ensure that you receive all the Tax Benefits, Credits and Deductions Allowed. We know that Every Business is unique and the Basis of ensuring a correct Tax Liability is having a Good Record Keeping System. If you will need assistance in setting up your Record Keeping System to reflect your correct Tax Deduction. Please feel free to call us to help you out. You will be glad you did.

It is important to note that, to assess your company's financial health, you will need more information than your Gross Income, to see how well your business/organization is doing. There are three important financial information, that you will need and these will also help you in making your Business decisions. They are: Balance Sheet-A Balance Sheet provides an instant picture of an organization's financial situation at a particular point in time. It shows an organization's assets(what it owns),liabilities(what it owes) and net worth(the difference between the two).It also provides a breakdown of current assets and fixed assets, as well as current liabilities and fixed liabilities. The Balance sheet also shows how much equity(ownership interest),that you have in the Business. Profit & Loss Statement - A Profit & Loss Statement shows all actual income and expenses incurred for a particular period of time, such as a month, quarter or year. This statement reports the most important numbers of the organization, like the Company's Gross Profit, total expenses and Net Income, through which Business owners can determine, if their business is making a profit or loss. Cash Flow Statement - This Statement shows how much actual cash enters and leaves your company's accounts for a time period,including all operating activities, investing activities and financing activities. Incoming Cash appears in different categories, such as Sales, Cash from Vendors, interest received, Owner contributions, any borrowed money or miscellaneous sources. The categories for outgoing cash are Payroll, inventory, operating expenses, equipments, capital expenditures, debts and distributions to owners. It is important to note that by combining these three statements, you will be able to assess the financial health of your company at any given time. Please note that you NEED to have a GOOD BOOKKEEPING SYSTEM in place, because this is the only way that your statements can be accurate, and with this, you will be able to make accurate business decisions. If you need help with assessing the financial health of your business/organization's and also  preparing any of the statements listed above, We are available to help you out. GIVE US A CALL TODAY ON 202-422-4586,and see how we can assist you. We will also give you suggestions, that will enhance your business and help your company grow. Please also feel free to fill out our contact form, so that we can get in touch with you and respond to your questions. We will love to help you.

Recently, I was discussing with a friend, who was competing with her sister in selling their hand made beads. The conversation was about raising her prices from ten cents to twenty five cents per bead. I asked her what she needed to achieve from the increase and what areas of her life, that she feels the increase will make an impact, hence asking her the five most important things that matters to her in life. She thought about it, looked at me and said in this order: “First, My Family, then My House, Television, Candy and then Money”. Impressed that she had come up with exactly five items, I probed a little deeper. “Mary, what do you need to get the candy that you love?’ “Money”, she said. “And how about the TV, what do you need to get that?” “Money” “And how about your house?” “Money”, she replied once again. And then I asked, “How about your family, what do you need to get them?” Just as quickly, she replied, “Love” “That’s right, “I said, but don’t you think that maybe you have to reorder your list? You see, if you need money to buy the candy, the house and the TV, then don’t you think money should be more important than what it can buy? In that instance, she thought about it and said, I was right, and within that short period, I introduced her to the law of money, a law that serves as the foundation for wise spending. THE LAW OF MONEY: PEOPLE FIRST.THEN MONEY.THEN THINGS You see, most of us are just like Mary, we value things more than we value money. We care more about having what money can buy than we care about having money itself. When we follow the law of money, we will find out that, we are respectful of money, and if we follow it and keep what we have and spend, it will make us truly rich. We will analyze each category: PEOPLE FIRST: We should always prioritize everything that is created by love, which include our Family, Friends, Partners, Children and Ourselves. The saying that goes that Money can’t buy love is true, and a life without love –regardless of how much money one has-is a poor life indeed. THEN MONEY: Can you imagine going to someone’s  house and having them proudly show you a room filled with thousands of dollar bills and telling you the history of how all that money came to be? You will be amazed at all that vulgarity, but at the same time, you will think nothing of it, when you compare it to another person's home that is filled with beautiful decorations, What did it take to decorate the home? Money. Money exchanged for furniture, paintings, carpeting, lamps and so on. The difference in your perception is the VALUE SYSTEM that you applied- A Room filled with things is okay, whereas a room full of money is not. THEN THINGS: When your financial priorities are in order; things come last. In conclusion, when we work hard for our money, maybe forty hours or more a week and then go shopping, buy food, clothes and stuff, we usually say that we don’t know where the money went. This is also applicable, when we pay for services, that we really need; but why don't you consider this- CHANGE your perspective now, if we valued money over things and over items it can buy, then we would know exactly where our finance is going. We should change our money/thing ratio, so that we will have more money than things, this will also encourage us to take great pleasure in seeing our money and watching it grow. With this approach, we would always know when we can afford something that we need and will be more likely to be able to buy the things we TRULY WANT to make us happy. So next time, you go out to spend money, always remember that you are not throwing the money away, but you are exchanging it for something that has a value to you. Please feel free to give us a call today to get your finances organized, so that you can capture where your expenses are going and invariably increase the value you need for the important areas in your life.

Wow, Where did the month go? First it was HAPPY NEW YEAR, and now it's almost the end of January 2014.Now,that the Holiday Season is far behind us, the month of January provides a welcome breather for busy schedules, but hold on, before you spend all your free time sprawling on your sofa, it's time to take a jump start on filing your taxes. This is the time to gather your W2s, 1099s, Other Earned Income Statements, Contribution Statements, Receipts, Bank Statements and other important documentation, so even though the IRS states that Tax Filing will begin on January 31st 2014, because it needs extra time to ensure that the systems are in place and working properly, We still need to get ready and prepare ourselves. We want to give you some tips on what to look out for as you get ready to file your taxes. We all know, that there are some New Tax Filing changes: Look for Every Possible Deduction: Some of the most commonly overlooked ones are charitable contributions, Student Loan Interest, Job Hunting Costs and State Taxes Paid last year. -  It is worthy to note that many credits and deductions for Education were extended for 2013 returns, among which is the American Opportunity Credit, which is up to $2,500. -  The Personal Exemption is $3,900; Standard Deduction is $12,200 for Married Tax Payers filing jointly, $6,100 for Singles and $8,950 for Heads of Households. -  Tax Payers will still be able to deduct their medical expenses, but it will be more difficult for many to qualify. The threshold for deducting Medical Expenses now stands at 10% of adjusted Gross Income, which is up from 7.5 percent. - Among the other changes, Tax Payers who work at home will now have a simplified option for taking a Home Office Deduction. Starting with 2013 returns, if you are eligible for this deduction, you can take a Standard Deduction of $5 per Square foot, up to 300 Square Feet. The Maximum Deduction using this method is $1,500. - The Deduction for Business Use of a Car has also been simplified; you can use your actual costs or the IRS mileage rates. The standard mileage rate for Business Use of a Car in 2013 is 56.5 cents a mile, up from 55.5 cents. - If you made Energy Efficiency improvements to your Home, such as Installing New Windows or a Qualifying Furnace or Heat Pump, you might be able to take an energy credit of 10% of the cost up to a lifetime maximum of $500,hence of the total, the IRS states "Only $200 can be for Windows,$50 for any Advanced Air Circulating Fan,$150 for any Qualified Natural Gas, Propane or Oil Furnace or $300 for any Item of Energy Efficient Building Property. Rapid Refunds: If you expect a Refund, the earlier you file, the earlier you will typically receive it. Using the refund to pay off interest-bearing debt is even more of a Plus. Planning Ahead: For those who owe taxes, earlier filing means more time to budget and set aside what will be due. Even if you file early, you still have until April 15th to submit your Payment. Double Check: If you prepare your own return, Completing it before the Deadline provides ample time to check and double-check your work to ensure that everything is correct before you file. Ensure that your Social Security/ Numbers/Individual Taxpayer Identification Numbers (ITIN) are entered correctly and the returns are signed. Those who feel that they need more time can apply for extension, until October 15th, but if you do file for an extension, remember to estimate and Pay any Taxes Due or you will face possible Penalty. We hope that these tips will guide and help you in your Tax preparations, Do you Need Help in checking your Reports and ensuring that everything is entered correctly and adequately reconciled? Do you Need Help in getting your Charitable Contributions ready? Do you Need Help in ensuring that all your Receipts and Invoices are correctly accounted for into your system, Remember that the more accurate your transactions are, the more deductions you can claim and invariably, the more accurate your Tax Returns will be. Why Don't you give us a call on 202.422.4586 or Email Us, to see how we can further assist you. We would love to hear from you.

It's October 1st 2015 today, Have you received your new Credit Card with embedded microchip yet? If you haven't , it's time to call your financial institution and ask them to send it to you. Remember, you start inserting your card at the Point of Sale as from today. No More Swiping.

Merry Christmas and A Prosperous New Year 2016 to all our Current and Prospective Clients. We want our Clients and Fans to know that we appreciate them and continually look forward to a great working relationship. The Year is almost coming to an end and It's a Busy Season for everyone. As you make your Holiday Plans, Remember to close your Books and Accounting Records for the Year 2015. We have listed some Tips to help you close the year properly, so that you can make great plans for the upcoming year: Evaluate Your Accounting System: This is the time to start searching for a good Accounting System for the Year 2016. If you are the technology savvy person, who prefers High-tech financial management tools like Digital Vaults, Smartphone Apps, QuickBooks or Peach Tree, you will need to evaluate your system to confirm if it has worked for you. If you are the Old School of thought that prefers the Shoe Box, Envelopes and Spreadsheet System, you also need to evaluate this to see how it has improved your Accounting System. If you cannot truly attest to the effectiveness of the Accounting System that you are using presently, This is the best time to consider switching to a more effective Accounting System. Review Your Sub Contractor Data: Every Organization needs to confirm if they have paid anyone for services more than $600 during any given year; If you have, You are required to send a Form 1099 to the recipient by January 31st of every year. You have to ensure that the Subcontractor completed the information on the Form W-9 issued, at the inception of the Contract. Your Bookkeeper needs to update the 1099 Detail Reports and reconcile the amount paid during the year with the amount in the Books. Reconcile your Expense Account Data: This is the best time to ensure that you look at your expense data and accept all reimbursement checks prior to December 31st. This will ensure that your Company will receive Tax Deductions for all the Business Expenses being claimed. You also need to ensure that you have all your Receipts Handy and properly filed. Evaluate your Financial Standing: This is the best time to review your Profit & Loss Statements, Balance Sheets and general Ledger to ensure Accuracy and to make sure that all transactions have been recorded, so that you can get your Tax Deductions. Examples of Transactions to watch out for are as follows: 1) Ensure that the Bank and Credit Card Accounts have been reconciled.           2) Ensure that the Loan Interest has been separated from the Principal Amount and is accurately entered into your Books.           3) Check for the Accuracy of Accounts Receivable and Accounts Payable.           4) Write Off Bad Debts for Customers who are Noncollectable. Make a Charitable Giving Budget Calendar: Charitable Gifts are some of the easiest Expenses to overlook, when it comes to itemizing Deductions. During the Year End, Gifts and Donations to Thrift Stores are easily forgotten. You can use this Holiday Season to make your Donations to your Chosen Organizations, so that you are sure of claiming them for the Upcoming Tax Season. Review Your Personal Expenses: If your Business entity is a Sole Proprietorship or Partnership, then it's time to ensure that your Personal Expense is not co-mingled with your Business Expenses. You will have to get your Receipts and Cancelled Checks and record these expenses to your Company's Books. Many Tax Payers have ended up paying extra taxes needlessly because they overlooked Business Expenses paid from Personal Funds. Re-evaluate your Retirement Plan: This is the time to find out if you are putting away enough money for your Retirement. Maxing out a SEP Plan or taking advantage of an Employer match can be your best option. The IRS limits on Tax deductible IRA Contributions can change just as the benefits an Employer provides changes. You have to find out if you are putting away enough to offset your Tax Burden. Prepare an Income Projection: Most Organizations prepare income projections to gauge their income and expenses during the mid-year and year end; It's actually advisable to take stock every Quarter, Half Year and Year End. The Projection looks at your Cash Flow, Estimated Taxes for the Self - Employed, Stock Options, Bonuses and other things impacting your Income. This is necessary especially if your Profit increased substantially during the year, your Bookkeeper/Accountant will help you prepare and analyze your Books to see where you need to reduce your taxable income by implementing some last minute strategies. Take your Bookkeeper to Lunch: Everyone knows that all Bookkeepers and Accountants are always busy starting from the Month of January through April of every year; We all have these Last - minute Questions, which we all need answers to at the last minute. Now is the Time to get them answered. Try to set up an appointment with your Bookkeeper/ Accountant, to find out what you can do better next year to help reduce your Tax Burdens. If putting together your information was challenging for your Bookkeeper/Accountant, Try to make the meeting over a meal or another token of appreciation. Otherwise if you have a less- than - ideal experience with your current Bookkeeper/Accountant, This is an ideal time to shop around for one that is a better fit. Another Tax Season is about to start; Filing your Taxes will probably never be fun, but being proactive when you are not under a Deadline can help ease some of the burden and save you time and frustration when April Comes around. If you need help with getting your Books ready for Taxes, We are available to help you. Please Free to give us a Call on 202.422.4586. You will be glad you did.

January 19 2016 will mark the beginning of the 2016 Filing Season. The Internal Revenue Service (IRS) announced that Tax Return filing for the year will begin one day earlier than the previous one. The IRS will begin accepting individual electronic returns from this day. They will also begin processing paper tax returns at the same time. There is no advantage to people filing tax returns on paper now instead of using the e- file method. The Tax Day also witnessed slight changes as Washington, DC celebrates Emancipation Day on April 15 instead of the usual April 16th, which is a Saturday. Hence,The filing deadline to submit 2015 tax returns will be Monday, April 18, 2016. Please Note that this Date coincides with Patriot's Day so Massachusetts and Maine will observe their Tax Day on Tuesday, April 19, 2016. All in all, this Tax Season starts early and ends with a Delay. With this, Tax Payers have more than the regular time period to file their returns. But NOTE that filing the Returns within the IRS time frame can be a smart and effective way to stay safe. The IRS urges all tax payers to make sure that they have all their year-end statements in hand before filing, including Forms W-2 from their employers, Forms 1099 from Banks and Other Payers and form 1095-A from the Marketplace for those claiming the premium tax credit. One Aspect that Tax Professionals should take care is the tax software that they use for Tax filing and submitting forms to the IRS. It is better not to choose your tax filing software only on the basis of filing dates that they provide. Below are some tips to consider as you file your Tax Returns: Ensure that all your Income Statements - W-2, 1099, 1098 and 1095-A are all collected, reviewed and organized. Collect all your Receipts and Sort them all out, as this will help you get your maximum deductions during your Tax filing. Coordinate and organize all your Deductions. Business Owners need to organize and review their financial reports for the previous year to ensure that all Business Expenses are accounted for and recorded, so that they can claim all the necessary deductions. Please note that picking up software that serves your tax needs better should make a smart choice. You have to think of the various requirements, that your return filing will depend upon such as the number of Transactions, Business Size and States in consideration, then analyze the choices available to meet those requirements and pick the most suitable one. Get a Trusted Tax Professional that can provide helpful information about advice and the ever- changing tax code. Remember that Choosing E-File and Direct Deposit for Refunds remains the fastest and safest way to file an accurate income tax return and receive a Refund. If you need Assistance with organizing your Documents and Accounting Records, as well as getting them ready for Tax Purposes, Feel free to call us on 202.422.4586. Let the Tax Season Begin....................................

Have you reconciled your Bank Statements lately? Just a Reminder, We have only a few days left to the end of the Year. Very Soon, It will be Tax Season and you will need to submit your Financial Statements for Tax Filing. Can you confidently say that your Company Accounts are updated and reconciled? It is very important to reconcile your Bank and Credit Card Statements at the end of every MONTH. A Bank Reconciliation is the balancing of a Company's Cash Account Balance to its Bank Account Balance. It is important to ensure that the Cash Account and Bank Account Balances match. The Main Document used for Bank Reconciliation is the Bank Statement. There are great benefits in reconciling your Accounts and we will be looking at a few of them today. These Benefits include: Accurate Financials - Financial Statements are more accurate and can be relied upon, when reconciled. Better Business Decisions - Everyone knows that when your Financials are accurate, you are able to make better decisions for your Business. This ultimately enhances your Business Growth. Better Planning - When Bank Reconciliations are done monthly, you are assured that the entries entered into your Company's Account are all correct, this also gives you a clear view of the checks that you may have issued but has not cleared from your Bank Account. Eliminating Money Leaks from your Company - The Last Thing you will want for your Business is for your Hard- Earned Money to go down the drain because of a Money Leak in your Business. It is worthy to note that Only Bank Reconciliations will catch Big Money Leaks like A Deposit that was not posted to your Bank Account due to various reasons ranging from Returned items to Bank Errors, Unnecessary Bank Charges, Fraudulent Activities, Double Vendor Charges and Other Common Errors. If your Bank Reconciliations are not done monthly, you could be losing thousands of Dollars in errors, that could have been captured on time. Updated Company Records/Reduced Bookkeeping Charges - The Month of January is a busy time for Accounting Professionals.; it's a period of closing the Year End Reports as well as Tax Preparation Season. Any Business Owner that doesn't have a Bookkeeper presently will definitely spend twice as much to get one, between the months of January - April. Would it not be wise to get a Bookkeeper Now and tidy your Books before the Rush Period? I have listed a few of what I discovered in my years of engaging Bank Reconciliations for my Clients. For easy assimilation, I will categorize them as Internal and External Observations: INTERNAL OBSERVATIONS: 1) Pilfering Employees/Employees that steal from the Company. 2) Cash Registers not closed out. 3) Bank Deposits not being timely deposited by the Employees. 4) Cash Advances and Loans taken by Employees are not properly accounted for. 5) Unauthorized Purchases made on the Company's Credit Card. 6) Forged Checks being endorsed and cashed at the Bank. 7) Managers taking Clients to a strip club on the company's Credit Card (Yes, This Happens). 8) Rampant Starbucks purchases on the Company Credit Card. 9) Wrong Recording and Classification of Loan Accounts, Line of Credits and credit Card Accounts. EXTERNAL OBSERVATIONS : 1) Customers reversing charges, without the knowledge of the Business Owner. 2) Automatic Payments increase by the Bank. 3) Utility Companies like Telephone/Internet Companies billing Clients twice in the same month. 4) Fraudulent Purchases on the Company Credit Card. 5) Match.Com Payments made on the company Credit Card. 6) Unauthorized Withdrawals by the Banks ( Inadvertently claiming the Business Owner authorized it). 7) Bill Payments issued via Bill Pay were not mailed out by the Bank to the vendor issued, hence the business Owner incurs late charges for Non Payment of Bills. 8) Over $3,500 in Annual Bank Fees for Overdrafts/NSF/Late Fees. We can see that most of these items are charge worthy and I have seen a lot of Business Owners experience One or more of these errors because they don't reconcile their Statements. We need to have internal and external procedures in place to get our accounts reconciled. If you have not been recording your transactions from the beginning of the year and have not reconciled them, the best time to start is NOW.  Please do not feel that it is a waste of time to reconcile your accounts, you never know, you may have been losing a lot of cash under your nose. Try to take a look at your account today and begin to experience increased Cash flow. If you feel that you don't have time to get to your Bank Reconciliation, Feel Free to Give Us a Call on 202.422.4586. We are always available to help you.

It's already the eighth month of the Year, We are gradually getting to the end of the year, and soon it will be time for Year End Reports. In our last Newsletter, We discussed the concept of Cash Flow and how it affects our Business Operations; this month, we will be looking at tips to manage our Business Cash Flow.   Being in Business for yourself is like being an Air traffic controller, especially in the area of cash flow management ; You can imagine trying to control 100 Airplanes landing simultaneously on two runways; this can be an upheaval task, but we regularly see clients line up their monthly bills, their projected income, business projects and business expenses and try to combine all these activities, at the same time, trying to ensure a steady cash flow into the business; you can imagine, the projected outcome, if all these activities are not properly coordinated.   Cash Flow is the heartbeat of every Business, and if a Business does not have the cash on hand to pay their vendors, they will definitely run into problems. The main Cash Flow Problem, that Business Owners face is as a result of Lack of Creative Cash Management. Below are some Tips to overcome the Ups and Downs of Cash Flow Problems in your Businesses: 1) Always Schedule All Payments: Most Business Owners line up their monthly bills, compile them, sit down and issue all the checks and set up Bill Payments at once; but the trick is to have a " Holding Pattern". It is advisable to schedule each payment, in order to get to your vendors in a timely landing, without affecting other Cash Flow activities.    Every Business has Three (3) tiers of Checks Disbursements Groupings:         a) Must Pay Group- These are payments that can hurt you, either in cost or ability to operate your business, if they are not paid. These include items like Taxes, Rents, Payroll and Service Charges. b) Important to Pay Group - These are payments, that have a reasonable grace period, and if not paid, a financial penalty can be incurred, as a result of Nonpayment. These include Utility Bills , Credit Card Payments and Insurance Payments . c) Flexible Payment Plan Group - Suppliers, Vendors and Wholesalers, that supply most Small Businesses are the best sources of flexible credit financing. Most of them will continue to work with you, if you arrange a regular payment plan with them. Tip #1: Try to schedule Payment Dates, into the Three (3) tiers of Checks Disbursements groupings and issue check/Bill payments accordingly. 2)  Make Payments on your Revenue, not on uncollected Sales : I am sure, that none of us will want to land a plane, hoping that the runway is beneath us in the fog bank, as also Business owners, it is not advisable to make projected payments on uncollected revenue. You may wander, what happens to Credit Facilities, Guess What, Most Credit Facilities still have a timeline for payment. Tip #2: Always prepare your Cash Flow Statement and financial reports, and review them periodically, to have a full knowledge of your Cash Flow. 3)  Do not use Payroll Taxes to float your Business Operations: Studies have shown that most Business Owners use the Tax liabilities, collected during payroll, to float their businesses, rather than remitting the payments to the appropriate Tax Authorities. They don't realize that they spend more in potential penalties, fees , interests, time and aggravation, if they engage in this act. Tax Liabilities grow, if they are not remitted at the appropriate timing.  Tip #3: Try to discipline yourself to deposit the payroll tax money collected, into a Separate Bank Account, until you are ready to remit the payments. 4)  Establish Relationships with your Credit Provider: It is very important for every business owner to plan for a rainy day. Having a great relationship with a vendor, that gives you a credit facility, avoids cash flow storms, which might bring in a sense of desperation or lack of control.  Tip #4: If you work with a quality company, that provides working capital or credit facility, stick with them and build a relationship, once they know your credit worthiness, they will be there to help you quickly, in times of need.  5)  Invest in a Good Bookkeeping/ Accounting Service: It is important for Business Owners to have a grasp of their cash flow and understand the effect on their business growth. A Good Bookkeeping service is invaluable to your business, particularly in preparing your monthly financial reports and cash flow statements, which will help you, see how your Business is doing as well as maintaining your Business Cash flow.   Tip #5: Rather than worry about how to prepare your company financials and your cash Flow Statements, as well as trying to figure out, the amount of Payroll taxes to pay; let the professionals handle it.   Understanding and Managing Cash flow has been a challenge for many Business owners, but with the application of these tips, it is possible to grow your Business to a greater level , and also have enough funds for other activities, that will bring more revenue into your Business.      Please feel free to contact us on 202-422-4586, if you will need further help on how to manage your Business Cash flow and financial Reports. We will love to help you. Remember: The best time to take control of your Cash Flow is RIGHT NOW.