• Home
  • Our Services
    • Tax Planning & Tax Prep
    • Accounting & Bookkeeping
    • Payroll Services
    • Small Business Seminars
    • Management Consulting
    • Business Development
  • Quickbooks Services
  • About
    • About Us
    • Our Founder
    • Our Owner
    • Our Team
    • Privacy Policy
    • Terms Of Use
    • Ethics Statement
  • Contact
  • Blog
Pathways Consulting
  • Home
  • Our Services
    • Tax Planning & Tax Prep
    • Accounting & Bookkeeping
    • Payroll Services
    • Small Business Seminars
    • Management Consulting
    • Business Development
  • Quickbooks Services
  • About
    • About Us
    • Our Founder
    • Our Owner
    • Our Team
    • Privacy Policy
    • Terms Of Use
    • Ethics Statement
  • Contact
  • Blog

Our News and Events

Preparing to Recover from a Pandemic

5/1/2020

0 Comments

 
Picture
Even though the curve hasn't flattened as much as we'd like, and we've spent a lot of time focusing on staying safe at the moment, it's time to start thinking about the future. Your company is going to overcome all of this, and we are going to talk about how!

April was gone in a flash wasn't it, Summerville? Time has a very strange and unique way of passing. It's been hard keeping the days in order. Thankfully, working from home or with a small staff in our offices has helped us keep track. Can you believe that tax day came and went with so little attention this year? That's right! Tax day has officially been moved to July 15th! If you haven't paid and filed your taxes yet, that's ok! You still have time to do so. But, we do recommend filing your taxes sooner rather than later. This will help with refunds, getting your stimulus checks, and possibly speeding your small business loan applications up. Do what you can for your small business now to help your company in the coming months.

Although things are still unknown in the current market and our personal lives, it's time to start thinking ahead. We've spent our last few blogs sharing tips and suggestions on how to keep your employees safe, how the pandemic might affect your small business, the realities of your stimulus checks, but now it's time to start preparing for the beyond. It's a heavy truth that life as we've known it could be very different after all of this settles. But, we still want your company and the future of your company to be strong and prosperous. So, let's be hopeful and work towards that, together. As the best tax accountant in Summerville, we hope these tips and suggestions help you as we move forward in this very strange and uncharted time. 

All of the financial help and small business loans that have been created and promises may or may not come through for your company. Some companies have received these benefits, while some might never see a cent of help. It's constantly changing, and we aren't sure what these new changes could or couldn't mean. We are following the news just as closely for these updates. Hang in there. This pandemic has affected every industry, and the best way to get through this is to stand strong and to support one another. We are here for you, Summerville. Take these tips to heart, they could help you in the long run.
  • Keep Working! While some of you have shut down, have had to put employees on furlough, or even let some employees go, keep marching on. For those who are working from home or waiting to head back to work, keep working on those leads and prospects. Almost everyone is at home, so why not take the time to follow your leads, stay in touch with prospective clients, and keep researching and learning about the market and demographic around you? It might seem like the time to abandon the leads and connections you were working on right before all of this happened, but keep thinking about the big picture. When we do get back to business, you'll want to be right in front of your prospect's mind. Sticking with them and being supportive during this time can help them depend on and choose you after this. 
  • Keep your clients in mind! Use this time to stay connected with your clients. Don't just use your social media and advertisement platforms to shove sales in their faces. Check in on them, support them, and appreciate them for sticking with you. They're the reason you've made it to where you are today. Also realize that just like you, their needs have drastically changed, as have their financial situations. Are there new ways your company can provide something new and exciting to them now? Can you change your products, make special offers, or even offer a few special free tips and services that they could benefit in the moment? Supporting and nurturing the relationships you have with your clients now can help guarantee their loyalty later down the line when this is all over. 
  • Change up your advertisement! We rely on social media, TV, radio, and print to keep our companies alive. But now, can you think outside the box to connect to your audience in new ways on these channels while we are all at home, missing our normal schedules and interactions? Are there new ways you can deliver your products and services? Can you deliver them right to your client's door? Can you offer a delivery service through popular apps like Postmates or DoorDash? Can you move your products and services online so they can still be accessed by your audience from the safety of their homes? This can keep your company open and running now, help to avoid debt and other financial difficulties in the future, and help keep your clients happy. These changes can help make all of us feel normal and connected to the world around us. 
  • Get stocked up! When this all does turn around, can you imagine how business will flourish? There are so many stores and services that have been marked nonessential or who have to shut down due to the effects of the situation. This could be very scary and devastating now, but it could lead to a boom in business once your doors open again. Your customers are just waiting for their lives to go back to normal, and to get the things they've been missing. Make sure you're going to be prepared for this huge push. Make sure you have a staff ready to help with this boom both online and off to help with this transition and the huge demand coming your way. Also, make sure you have enough product in stock. You want to make up for lost time and to not disappoint your customers. Plus, this will help keep you ahead of the game, ahead of your competition, and help get your finances under control. 
  • Look for that extra money! Make sure you do apply for the small business loans and assistance that is starting to pop up and become more and more prevalent from the federal and local governments. Please reach out to us if you need help doing so, or have questions about how best to do this. Look into Amazon's Neighborhood Small Business Relief Fund, or other locally-based foundations created to help businesses like yours. Use your social media platforms and set up a GoFundMe Small Business Relief Initiative or look into Facebook's Small Business Grants Program. All of these programs are set up to help you now and for the future of your company. There is nothing wrong with taking advantage of these opportunities, that's what they're for! 

We understand your concerns and worries. We hope this list inspires you to keep working and to keep your hopes up. We will get through this and will continue to work hard together. Also don't forget, if you're looking for the best tax accountant in Summerville, the best tax services in Summerville, the best Quickbooks services in Summerville, the best IT services in Summerville, and the best payroll services in Summerville, we are still here for you. Tax season may be over for some and just starting for others, and we will be here for you no matter what! 









0 Comments

The Reality of Stimulus Check Scams

4/17/2020

1 Comment

 
Picture
During one of the worst times in recent history, scams should be the last thing we should be worrying about. But, the truth of the matter is that new scams surrounding the stimulus checks and government bailout programs for small businesses are starting to come to life daily, and are more powerful than ever before. 

Almost all of us have been anxiously awaiting the financial relief checks since the approval of the COVID-19 Relief Bill was passed. When will they get here? Who will receive them? How much will you get? On top of all these questions its a sad fact to share that during this terrifying time when we should all be standing together, stronger parties are trying to take advantage of those who have been the most affected by this devastating pandemic. Following in the footsteps of our recent blog about social security scams, we wanted to do a followup blog on the very real reality and the possibility of scams and frauds appearing right now. They could look like the relief checks, the key to getting your check quicker, small business loans, loans to help out larger companies, and even promising the cure for the pandemic all in exchange for your personal information. 

Waking up every day to the news right now is difficult. The unknowns are overwhelming and the lines to get toilet paper are still ridiculous. In this time that has brought so many of us together, it is almost impossible to think that yet another attack could be upon us. While many are still working or now working from home, the hauntingly large numbers of those who are now facing unemployment due to the coronavirus are staggering. This is leaving thousands upon thousands of people without a paycheck, unable to provide for their families or even pay their simple bills. Businesses, even if they are still operating on a very small level or have been forced to close or made the conscious decision to close, are also losing money by the day. When the news came that the stimulus package had been approved and relief checks would soon be on their way, a collective sigh of relief was felt among all of us. New small business loans and other relief options for companies are now in place as well. We all will slowly be getting back on our feet, in very small steps one way or another. But, while we wait for these checks, scammers could be and are now rearing their very ugly heads saying that they have your funds and to receive them you must supply them with very personal and private information. Let us stop you right now, and say that is NOT how the stimulus checks will be handled. 

You, the American citizen, don't have to do anything or file any kind of paperwork or to receive your stimulus check. The economic impact payment will automatically be deposited into your bank account that was connected to your 2018 and 2019 tax returns. Even if you have received your tax returns in the past as a paper check, the IRS will still deposit the funds into the account they have on file for you automatically. They will also calculate the amount you need based on your income over your 2018 and 2019 tax returns and your personal need. You won't have to do any calculations or send in any kind of paperwork. The IRS will not be contacting you in any way. The IRS did just announce that they will be releasing a brand new website that will allow you to see the status of your stimulus check when it will arrive, and it will also allow you to check the bank account or it is headed to. If there is a problem with the bank account number, you will need to change that right away on the IRS website. The IRS is making updates to their website almost daily, so if you have any questions make sure you visit their website. 
  • Who and How Much? 
Now the big question is who will be receiving these stimulus checks and what kind of amount could you be looking forward to? 
  • Individuals who make up to $75,000 and married couples who file together who make a combined $150,000 a year are automatically eligible. 
  • For individuals who make $99,000 a year or more and joint-filing couples who make $198,000 or more are not eligible. 
  • For those individuals who make between $75,000 and $99,000 a year and married joint filers that make between $150,000 and $198,000, will receive $5 less per $100 they make.  
  • Those who receive social security and railroad retirees who do not file a tax return are also able to receive relief funds and will not have to file a return for receiving this money. 
  • Payment can be up to $1200 for each individual and up to $2400 for married couples filing jointly. 
  • Married couples can also earn up to $500 for each child they claim on their taxes. 

  • Scams on the Horizon
With all of that being said, with all of this new information being released by the IRS every day and everyone needing this money, this is when the scams begin. What could a hacker or scammer look like in this situation? 
  • The IRS will NOT contact you over the phone. You will not receive phone calls or text messages from them. If you do, these are scams. Even if they push you to give away your information to receive your payments faster or offer you the cure to the coronavirus (which sadly does not exist yet) do not give way your bank account number, debit card number, PayPal information, or anything of the sort. Do not click on any links you receive in text messages promising the same information. Hackers can get into your phone once you open these links, and get the same information they need to break into your bank accounts, and so on. 
  • The IRS will not be emailing you about your payment or faster ways to receive your money. DO NOT open any links or emails about receiving your checks. These links can give hackers access to your computer and all of your personal information. 
  • The IRS will not be sending you your relief check through the mail. If you receive a "check" in the mail that you have to call to activate or deposit, this is a scam.
  • Please note, it will take some time for the IRS to calculate who is receiving what and when. Please be as patient as possible. 
  • Do not engage with these scammers in any way. Hang up right away and delete any text messages and emails immediately. If you have been contacted by one of these scammers, please alert the FBI at www.ic3.gov right away. 
  • These emails or letters could look like they are from the CDC or the World Health Organization. No funds are coming from there. They are looking for your donations and support. 
  • Watch out when donating to COVID-19 related charities. Always make sure they are legitimate charities. Fake charities do exist out there and are looking to steal your money. 
  • Beware dangerous or fake websites promoting that they have the real truth about COVID-19, real updates, or a cure, and only allow you to access this information if you provide them your banking information or to pay for it. That is also a scam. 

We hate that these scams and schemes are very real right now. Since they are, we wanted to make sure that you are on high alert. All of these warnings also apply to small businesses and companies receiving financial support during this time. Please take comfort in the fact that the Department of Justice is forming a legal and integrative response to deal with these frauds. The US Attorney General's office has also developed a special task force along with appointed COVID-19 fraud coordinators to help deal with this situation. Here in the Lowcountry and throughout the state of South Carolina, our District US Attorney Peter M. McCoy Jr has also stated that his office and the department of justice are making this type of fraud a priority. 

Scary times can become scarier. But, we are here to help all of you through it. Stay alert, stay safe, and stay home. We will get through this Summerville, we know it! 

1 Comment

The Unspoken Threat of Tax Season

2/13/2020

0 Comments

 
Picture
Now that Tax Season is officially here, there are so many things on your plate and that of your Tax Preparer. But did you know that there is a very scary potential danger lurking behind the dark doors of the internet that could ruin your life simply by getting access to your tax documents?

Happy February! We are in full swing of Tax Season here in Summerville and have been thoroughly enjoying helping our clients get their taxes prepared and sent off. The IRS has been accepting online tax submissions for over two weeks now, and we are ready for the very busy weeks ahead of us. We are here to help you with all of your tax needs in Summerville, so please don't hesitate to reach out and connect with us so we can help you file appropriately and on time!

Our company, along with many others like us, are in the busiest times of their work year. Tax season can bring the fear of making sure your tax documents are filled out appropriately and on time along with the need of avoiding any penalties and accruing penalties. But the fear of online security attacks on CPA's and Tax Preparers also needs to be added to the list of worries and concerns for everyone this tax season. Cyber crime has sadly become one of the largest and most expensive forms of crimes globally. Banks, shipping companies, medical corporations, and even dating sites have become victims of cyber attacks, causing the leak of some of the most private and personal information that someone can get their hands on to use against the company or to steal someone's identity. It looks like CPA's and Tax Preparer's are starting to inch their way further up the list of those who are attacked most frequently, especially the deeper we head into Tax Season. The reality that Tax Preparers are some of the most attacked and targeted because of the very high profile data they are in charge of is becoming all too familiar. Cyber crime is running rampant through the streets of the internet, and during tax season, the level of crime and danger has become catastrophic.

Why specifically are these cyber criminals going after your CPA's and Tax Preparers? Think about the kinds of information they are privy to and have stored on their hard drives. They have years worth of bank account numbers, social security numbers, years of previous tax returns, your Employee Identification numbers, and plenty of other documents that could lead to your whole life being stolen if taken into the wrong hands. This kind of information is the forbidden candy store that is off-limits to any prying eyes, making it even more appealing to cyber criminals. This kind of information can also be very lucrative for the criminal, as they can use it for blackmail, something they can sell, or simply ruining your credit and stealing your identity. Thankfully this is where the Financial Services Act of 1999 comes into the picture to save you and your Tax Preparers state of mind. This act legally obligated any Tax Preparer to provide protection for their clients' digital documents.

Cyber criminals know that tax season is the most stressful, busy, and difficult times of the year for any Tax Preparer, and they will take advantage of that. As much as we hope this would be common knowledge to our fellow tax preparers, there are still some out there who are not as aware or not as prepared as they should be. Even if cyber attacks have never been an issue for your company or your tax preparer before, that doesn't mean they couldn't be attacked in the future. One of the biggest issues with cyber criminals now is that they are becoming smarter and more dangerous as time goes by. They are starting to figure out how to break in quicker, stronger, and in ways they never have before. Now, many of these attacks can go unnoticed for long periods or go under the radar without ever being caught. No matter the size of a Tax Preparation company, it will be at risk and can still be targeted. To a cyber criminal, any information they can steal is a good opportunity for them, and a horrible loss for you.

We understand how difficult this time of year is for anyone involved in preparing taxes, we are doing it right alongside you. But we could not stress enough that it is past time to take your IT protection seriously. Make sure you are constantly up to date with the programs you use to keep your digital files protected and consider working with a company whose sole job it is to keep you safe from things some software can't even detect. It might seem like overkill, but when it comes to your client's personal information and your reputation as a company, you can't put a price on that! For those looking into working with a Tax Preparation company, make sure to ask about the company's IT security. Do your research and see what protection they have provided their clients. Make sure their track record is strong, and that you feel confident in the protection they offer. Don't be afraid to ask about their security measures. you're handing over your personal information and it needs to stay this way. If they can't provide this information, then they might not be the company for you. We understand that asking these types of questions might be the last thing on your mind during tax season, but asking them and getting a positive response is just as important as filing your tax documents by April 15th!

Be smart this tax season and take your protection seriously. Make sure you are prepared for whatever might come your way. Until next time, we are Pathways Consulting and we are are here for all of your tax needs here in Summerville!
0 Comments

Financial Resolutions for 2020

1/2/2020

0 Comments

 
Picture
It is so easy to start a new year with a power-packed list of resolutions, that come February will find itself in the bottom of your trash can. For you and for your small business, create a list of financial resolutions that you can really stick to. Let this list make 2020 be your most successful year yet! 

Let's shake up the beginning of this new year with a set of resolutions that you can really and truly stick to. New Year's resolutions aren't just for dieting and working out. They can be utilized to give your finances a boost. It's a new decade and it's an exciting time for you and your small business. This new year doesn't have to be a burden for you or your company. Take 2020 and turn it on its head by beating it to the finish line with resolutions you can be proud of! Keep in mind too, that even though these resolutions have been specifically picked for your company to thrive, you can also apply them to your personal life. Let's get going! 

  • Add a Month to your Emergency Fund 
Most American's and many small businesses don't have a rainy day fund for when things get hard or when business isn't booming. Not having a rainy day fund is essentially putting your company at risk for a financial catastrophe. It is recommended to build a fund that has between 12-18 months' worth of operating costs. Don't put your company and everything in your life on hold to make this goal happen overnight. Remember, this is a resolution. It will take time to reach this goal. Even though it won't happen by January 1 or even February 1 of this new year, continue to make it a priority as you plan out your fiscal year and your budget for 2020. 
  • Create a Reasonable Budget 
Speaking of creating a budget, resolution number two is creating a reasonable budget that you can maintain in reality and stick to all year long. It is always great to dream but begin with reality so you can build your dreams on top of that. Avoid credit card debt and limit your spending on credit cards to exactly what you're budgeting for them. Remember how damaging missed payments and poor credit scores can be to the future of your small business and your finances. It can halt the growth of your business and keep it from expanding until you deal with it. This will cause you to lose precious work time and money spent on recovering from these poor actions. 
  • Security Care
It's time, if you haven't already, to invest in excellent security care. The number of internet leaks and hacks of both personal and professional information in 2019 alone was terrifying. This has lead to the destruction of huge companies, the loss of loyal customers, and a fear that is all too real for the company and client alike. No matter the size of your company, you need to be prepared. Back up your data regularly. Create a very strong firewall to keep out intruders. Invest in the best security, optimize the safest web browsers, and use the best operating systems. Protect your companies money and information that you have worked so hard to build. 
  • The Long Term 
Take the time to determine your long term financial goals. It's easy to get caught up in what your current financial status is and what your budget is for the current quarter. But what is your long term goal? Knowing and understanding this is just as important as setting your yearly goal and budget. Your yearly goals should be determined by where you want to go and where you want to end up. This can include how much you want the company to make, how much you want your employees to make, how much you want to give in retirement, benefits, HSA's, how much it will cost to grow your physical office space, how much it will cost to hire more employees, and how much it will cost to create more products. The options are staggering, but if you have a long term goal to work towards, it will be a much easier path to walk. 
  • Clean It Out
As painful as it can be, sometimes cleaning out the cobwebs throughout your company can help your finances more than you think. Getting rid of the unnecessary things and really "trimming the fat" can cut down production and operating costs very quickly. Every company can streamline operations and cut back to save money. As much as you want to keep every employee on board, the cost of labor is going to continue to rise for the foreseeable future. Overstaffing becomes very costly very quickly. Make sure you are properly staffed during busy and slow seasons. Also, continue to review your vendor pricing. There is nothing wrong with looking around and checking out the competition. Always stay on top of technology that can cut costs for your company too. Going paperless is one of the most popular ways to save money right away. 

This won't be the easiest list of resolutions to follow, but the important ones never are. We can guarantee that each one of these is worth sticking to and the will help you and your company in the long run! Cheers to 2020! 
0 Comments

The Pros and Cons of Filing a Tax Extension

11/26/2019

0 Comments

 
Picture
The tax season is getting closer and closer as we reach the holiday season. With the ending of the most wonderful time of the year, that also means the end of the last fiscal period of 2019. Are you ready or do you think you might need a little more time? 

Happy November everyone! We hope you enjoyed our most recent blog about safe shopping tips for Black Friday and Cyber Monday! As we are still heading towards all of these wonderful holidays, there is still so much to think about. Taxes need to start making their way to the top of your priorities list. With the end of 2019 looming so close, tax season will be here before you know it. Are you ready for this next tax season or do you think you might need a little more time? There is no problem with needing that extra time - that's why tax extensions can be such a relief. Do you know the pros and cons of filing a tax extension? If you're new to the process, you've come to the right place. In this blog, we will be discussing the pros and cons, which will hopefully help you decide the best route for you before April 15 is here! To begin with, you file an extension request using the IRS form 4868. You fill it out and mail it right to the IRS. 

THE PROS! 
  • It's fairly easy to file a tax return. You can do it on the IRS website. Just make sure to do it as soon as possible! 
  • If you are in the military serving abroad or in a similar situation, you may get an automatic extension due to the nature of the job. 
  • You don't need to explain why you need an extension. 
  • It moves your deadline from April 15th to October 15th! 
  • Filing an extension can help reduce late penalties or avoid them completely. 
  • Filing for an extension can often end up becoming a necessity not because you need time for yourself, but because you've been waiting on tax documents from your employer(s) or you need more time to organize your deductions.
  • Filing gives you more time to file gift tax returns if you've been overly generous that year. 
  • It allows you to still get your refund. You will have to wait for six months to get it, but you'll still get it. If you don't file or file late without an extension, you won't receive it. 
  • It gives you time to decide what you can write off, provide all the paperwork to do so, and if you're qualified for the write-offs you have. 
  • You don't have to rush to fill everything out and you can avoid making mistakes on your paperwork. 
  • Getting an extension can save you money. Fees to pay for someone to file taxes for you close to the 15th gets more expensive the closer you hire time to tax day. After the 15th, their prices will drop back down to a much more reasonable price. 

THE CONS! 
  • The extra time does not mean you have extra time to pay for your taxes, the amount you owe is still due on April 15th. 
  • The extension doesn't give you more time to report on your IRA accounts. Those reports are still due on April 15th. 
  • If you're married and you want to file separately you only have until the 15th to make this switch. 
  • If you don't pay your taxes by the 15th, you will begin to accrue penalty fees that can add up very quickly. 
  • It will delay getting your tax refund. 
  • You might not know how much you owe without filling out all of your paperwork on time. If you miscalculate and don't pay enough, you'll still end up paying penalty fees. 

There you have it! The pros and cons of filing a tax extension. If you have any more questions or need to talk with us, please don't hesitate to pick up the phone. We are here to answer all of your questions and get you ready for the next step in your taxes. 

0 Comments

The Easy Failings of Bookkeeping

11/1/2019

0 Comments

 
Picture
Running a business is hard, anyone can acknowledge that.  Today, one of the biggest downfalls of any company is its bookkeeping. Simple mistakes and errors can not only make the running of the business difficult but it can also be its downfall. Try and avoid these easy bookkeeping mistakes to make your business run smoothly.

Bookkeeping is something that all businesses, big or small, have to do. The pen to paper bookkeeping for many is a thing of the past thanks to amazing online programs and applications, like Quickbooks, that do a lot of the hard work for you. For some, making and keeping a note of everything by pen and paper is still preferred. But your bookkeeping and how you handle it is just as uniquely personal as your business model and strategy. But the biggest factor, however you decide to do your bookkeeping, is to avoid some of the most simple and common mistakes out there. Today we will be discussing how to avoid these common mistakes to keep your small business working smoothly no matter what!

The First Steps
When it comes to the point where your small business can grow and expand, that is so exciting! But it's so easy to overlook the important steps of your full bookkeeping to successfully make those steps. Many new business owners will just do the bookkeeping themselves. They rush the process, they don't account enough time or attention to the process, and completely mess up a good chunk of all of it by doing so. Our first recommendation is to work with a professional. If you don't want one full time or on staff, at least learn from them how to properly do everything that needs to be done. Take more classes, attend seminars, or even bend the ear of professional bookkeepers. Or hire someone like us at Hoods, who can help you understand Quickbooks and how to properly use it for your company! Most importantly when you sit down to do your bookkeeping, take your time and breathe.

Budget Time
This might be obvious, but it still needs to be said. You have to budget for your small business or the outcome could be a disaster! You raised and created the fund to create the company in the first place. So you know that your bank account doesn't have unlimited spending for the year or years to come. You need to plan how the money of the company will be spent, or in other words, what will your budget be. A budget will help you track your accounts and records, any issues can be corrected quickly, you can plan for any emergencies, keep the company running, and pay your employees. In 2018 alone, 61% of small businesses didn't create a budget. How scary is that? A lot of young companies don't have a full appreciation of what a budget can do for the company itself. Without one there is no way to evaluate the performance or even the goals for the company. You also can't continue to develop the business without one, and you can't see any growth either.

The Paperwork
One of the most important steps in bookkeeping is the reconciliation of your books. This is making sure all of the bank accounts, credit cards, and all the reports match and you have proof to show that they do. This is a huge step when it comes to paying your taxes based on how much the company made, how much was spent, and how much was paid to the employees. These factors will all factor in how much you owe the IRS come tax season. Not doing this properly can lead to over or underpaying your taxes. This might have you re-doing your taxes, owing more, and possibly accruing late fees. Not to mention the hours spent on the phone and in front of your computer to fix these issues. You can also become a victim of fraud, have bank withdrawals that were not authorized, several other bank errors, and the disappearance of money you can't account for.

It Doesn't Mix
Many small businesses start in garages or home offices. Some of the greatest companies of all time have started this way. But don't make the mistake of mixing your home and business bills, expenses, or taxes. Make sure you know exactly how to write off business expense items and what they are before doing so. The IRS is very well versed in what you can and cannot call business expenses from your home, so don't try and fool them. Even if you make an honest mistake, it can still hurt you come tax time. Separate your credit cards, your living space from your workspace, your landlines, and cell phones. Keep meticulous records of expenses and receipts, mileage, and time. Don't muddy or blur the lines between home expenses and business expenses. This will make your life and dealing with the IRS much simpler!

There are a lot of small moving parts to bookkeeping, but all of them have to be well oiled to keep the machine running. Don't rush, make sure you know what you're doing, and never be afraid to ask for help. We are here to offer you the best tax services for your business and to help you do your bookkeeping with Quickbooks. Don't let your small business become prey to these easy mistakes. Take the time to educate yourself and keep your bookkeeping focused and accounted for.

0 Comments

The Benefits of Estimated Quarterly Taxes

10/16/2019

0 Comments

 
Picture
For some companies it's a choice and for other's a necessity. We are going to be discussing the benefits of estimated quarterly taxes, and why it might be one of the best ways to tackle your taxes head-on. 

We have talked about how to prepare for your taxes, where to get help to prepare your taxes, how to save money for your taxes, and the best ways to do so. Now it's up to you to decide how you will file your taxes. Paying once a year vs. quarterly is just as unique as your financial situation and your company. The choice on how to pay for your taxes depends on your preference and financial situation. It's very common to wait until the end of the fiscal year and fill out the tax forms and pay for everything by April 15th. But, for others, this isn't an option or is the worst option for them personally. For this group of people, their best option is to pay estimated quarterly taxes. So, instead of paying in one large chunk, you pay four small chunks throughout the year. It might sound intimidating and more of a hassle than its worth. But you might be surprised to find that it's more beneficial than you think! 

So, who does estimated quarterly taxes benefit? By IRS ruling, you have to file your taxes quarterly if you are expected to owe over $1000 in taxes for the current year or you expect your withholdings and refundable credit to be less than 90% of the tax shown on your current tax return or 100% of the tax shown on last year's return. Sounds a little harsh, right? But for a lot of businesses and even those who are self-employed, there are many benefits to filing taxes this way. Contracted persons or independent contractors and people who receive dividend income or real estate and rental income receive all of their pay upfront and no taxes are taken out of this pay. But that doesn't mean taxes won't be taken out of this pay. These persons are the perfect candidates to pay quarterly taxes instead of paying on a giant lump sum at the end of the year. They can live well off of their earnings, but a lot of the time one giant tax bill is more than this type of lifestyle can afford. If you cut it up into four smaller payments, it is much easier to handle. 

The Pros
  • If you choose to pay quarterly, you're going to avoid the shock of owing so much at the end of the year. By the time you've made it through the year living on lump sums that have come sporadically throughout the year, you may not have enough to pay off all of your taxes at one time. Plus, no taxes have been taken out to begin with, so it's going to seem like you owe way more than you should. If you stretch out the payments throughout the year, there won't be any unexpected shock. You will have smaller payments that are easier to handle and easier to prepare for. 
  • It's easier to adjust to unforeseen financial changes. 
  • You will have more cash on hand throughout the year, not having to save and prepare for a possible large sum owed to the IRS. 
  • You'll be able to avoid unpleasant penalties. If you are unable to pay your taxes at the end of the year, the IRS tacks on penalty fees, and you'll end up owing even more than you did when you started the process. 
  • You will have a better understanding of your cash flow. You will have to track your spending and earning closer and more often since you'll be paying four times a year. You'll need to understand the ebb and flow of the expense of your company and what you're making far better than you did before. This way you can understand what your expenses are every quarter to then turn around and pay taxes on everything. 
  • You might think filing this way will be a lot of paperwork. But you can catch mistakes faster and fix them quickly throughout the year. It's easier to track down and keep receipts too since you'll have to start looking for them and claiming them sooner than waiting a year to do so. 

The Cons
  • You have a greater chance of penalties and interest for underpayments. You have to stay on top of your finances and pay exactly what is expected for each quarter. There can't be any guesswork, and you have to save and report everything. 
  • It's hard to remember to pay quarterly and cut the check and fill out all the forms on time. 
  • It has the chance of not being viewed by the government as paid evenly through the year. 

These lists are heavy. Even though the list of Pros is much longer than that of the Cons, the shorter list might outweigh its component. But however you decide to pay your taxes, or how they are dictated that you must pay, just be very smart in preparing. Stay educated, stay prepared, stay organized, and stay alert. In this case, with so many moving parts, having someone do your taxes for you just might be the best way to go. We are here to help you no matter what. Until next time, prep well! 

0 Comments

    Author

    The Pathways Team

    Archives

    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    January 2018
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    January 2015
    August 2014

    Categories

    All
    2019 Taxes
    2020
    2020 Taxes
    401(k)
    Accountant
    Accounting
    Artificial Intelligence
    Black Friday
    Blog
    Blogging
    Bookkeeping
    Budget
    Business Blog
    Business Consultant In Charleston
    Business Consulting Summerville Sc
    Business Management Consulting Summerville Sc
    Business Management Summerville Sc
    Business Services And Management Consulting
    Business Services Summerville Sc
    CARES Act
    CDC
    Coronavirus
    COVID 19
    COVID-19
    Cyber Monday
    Dave Ramsey
    Emergency Fund
    Employee Retention Credit
    Estimated Quarterly Taxes
    FAQs
    File Your Taxes
    Filing Taxes In Summerville
    Fishbowl Inventory
    Growth Of Quickbooks
    IRA
    It Consultant Charleston Sc
    It Consulting Charleston Sc
    Management Services Summerville Sc
    Online Jobs
    Online Safety
    Online Sales Tax
    Online Shopping
    Pandemic
    Pathways Consulting
    Payroll Accountants Charleston Sc
    Payroll Accountants Summerville Sc
    Pay Taxes
    Pos Quickbooks Integration Charleston Sc
    Pros And Cons
    Quarterly Taxes
    Quickbooks
    Quickbooks Basics And Beyond
    Remote Work
    Retirement
    Retirement Plan
    Safe Spending
    Sales Tax
    Saving Money
    Selling Online
    Significacnt Other
    Small Business Accounting Service Charleston
    Small Business Bookkeeping Service Charleston
    Small Business Bookkeeping Services Charleston
    Small Business Info
    Small Business Payroll
    Small Business Seminars Summerville Sc
    Smart Spending
    Starting A Business
    Stimulus Check
    Stimulus Check Fraud
    Stimulus Check Scam
    Summerville Sc Tax Services
    Tax Accountant Summerville Sc
    Tax Documents
    Taxes
    Taxes And Accounting In Summerville Sc
    Taxes And Accounting Summerville Sc
    Tax Extension
    Tax Extension 2019
    Tax Planning
    Tax Prepares
    Tax Prep Summerville Sc
    Tax Season
    Tax Services Summerville Sc
    Tax Wrtie-Offs
    WHO
    Work From Home Tax Write-off
    Working From Home
    Work Online

    RSS Feed

Picture
(843) 261-9293
105 South Cedar St. Suite E
Summerville, SC 29483
9:00am- 5:00pm, Monday- Friday​
Site designed by Creative Consulting
Site powered by MadeSimply
  • Home
  • Our Services
    • Tax Planning & Tax Prep
    • Accounting & Bookkeeping
    • Payroll Services
    • Small Business Seminars
    • Management Consulting
    • Business Development
  • Quickbooks Services
  • About
    • About Us
    • Our Founder
    • Our Owner
    • Our Team
    • Privacy Policy
    • Terms Of Use
    • Ethics Statement
  • Contact
  • Blog