Tax Accounting and Representation

Tax Accounting helps you save money

As productive members of society, we all face a host of taxes on a regular basis. We pay sales tax, income tax, tax to support Social Security and Medicare and several hidden taxes. As a tax accountant, I help my clients understand and minimize their tax liability.

For the business owner, the load is even heavier. Some examples of how government at all levels impact the bottom line include:

Sales tax – The shop keeper must collect the tax where the sale happens. With the recent Supreme Court decision in South Dakota v Wayfair, if a business owner ships to another state, that business owner may have to compute and send sales tax to a state where they do not live or work.

Income tax – All profitable businesses must pay income tax. Some will report the income on their personal returns, others on separate returns. How much of a businesses income is considered taxable is completely dependent on the total revenue minus all legitimate deductions. It is the tax accountant who helps the business owner find those deductions. It is also the tax accountant who gives the business owner valuable insight on how tax policy affects the business’ changing financials. Whether the company buys new equipment or changes the product line, or any other decision has a tax component. As a trusted advisor, the tax accountant provides the information that allows key decision makers to take actions that will be help the bottom-line profitability with minimal adverse tax consequences.

Employee (payroll) taxation – The business owner is not only responsible for withholding appropriate taxes from employees but must match the FICA and Medicare taxes paid by the employees. They are also responsible for ensuring the total tax is sent in a timely manner to the appropriate agency.

Business and other taxes – Most jurisdictions charge taxes on revenue created within their boundaries above and beyond those described above. These taxes must also be paid timely.

The tax accountant monitors the deadlines, acts as a trusted advisor to decision makers and often completes all reports. Sometimes we facilitate the transfer of money between the client and the taxing agency, but only with prior consultation and approval.

Let Books, Taxes & More help you turn your accounting department into a strategic, cost-saving aspect of your company.

Tax Accounting & Representation

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