1 Week till Tax Deadline

Many taxpayers have more than likely filed their tax returns, but for those that have not; the deadline is one week away. According to a recent article in Accounting Today most taxpayers have been preparing their own returns with off the self and online tax preparation. E-filing numbers are also up for the 2009 tax season. For those taxpayers that have not filed their tax return, an extension may be in order. Be sure to complete Form 4868 (can also be e-filed). The extension of time to file does NOT extend the time to pay. Taxes due must be paid by the April 15th deadline. Speak to your professional tax advisor for additional options if you can not pay the total amount due.

Getting Your Taxes N Synergy

Congress Helping the Small Business Owner

Small business owners (especially those that file Schedule C) are getting a little assistance from Congress recently. Congressional leaders are pressing the IRS to ease up the audits on small businesses (see previous posts regarding the tax gap) and let small business owners take advantage of the tax relief provided in the American Recovery and Reinvestment Act. Small business are getting audited more often than their larger counterparts, coupled with the fact that small business are the backbone of the economy, providing the small business owner a helping hand may be a good idea. Blog readers can be rest assured that we will keep you posted on any changes that will benefit you and your small business. Be sure to speak to your tax advisor regarding how the American Recovery and Reinvestment Act will affect your small business this year.

Business N Synergy

Conficker Conflicts

Today is the day of pranks all over the country and although most April 1 pranks are suppose to be harmless and fun; the Conficker worm is no laughing matter. For those that are worried about their computer systems being compromised, be sure to get all the facts regarding the Conficker worm. According to an article in PCMag, the worm should (and I emphasis should) not harm many of the computers operating in the U.S. that is if those computers are not loaded with updated anti-virus and malware software. Another security procedure that many should take is to ensure that their passwords are strong and updated regularly. This reader was also surprised to learn that the Conficker worm is mainly a Microsoft XP issue. Be sure to check out the PCMag article for ways to protect your computer and remove the worm if you have it already.

Keeping Your Tech Gadgets N Synergy

IE 8 is Here

For those that did not know, Microsoft has finally unveiled their Internet Explorer version 8. We have currently been demoing the beta version of the product and must say that it has improved considerably. IE8 provides small business owners with more security and stability to help them run their businesses more efficiently. Small business owners that have not had a chance to beta test IE8 can now get the browser from the Microsoft website.



Technology N Synergy

A waiver goodbye

Taxpayers that are in their retirement years are provided a small bit of relief for 2009 with regards to their IRA’s. According to the IRS there is a temporary waiver being offered of the required minimum distribution rules. Taxpayers are not required to take a minimum distribution from their traditional IRA. The waiver is available to IRA participants and beneficiaries.

The change means that taxpayers can take withdrawals a year later than the past. With the economy down, the change allows retired taxpayers to not dip into retirement funds after waving goodbye to the majority of the retirement income. There are additional details regarding the waiver, so be sure to speak to your professional tax advisor for details regarding eligibility.

Your Taxes N Synergy

Technology Tax Breaks

Small business owners are constantly looking for ways to cut costs and increase productivity within their operations. Recently I was able to speak first hand with a group of small business owners at a networking event regarding how the new American recovery and Reinvestment Act would affect their businesses. One of the major changes within the Act was the changes to bonus depreciation and Code Section 179 depreciation (expensing) that will allow small business owners to deduct more of the costs associated with certain asset purchases. One common asset purchases for small businesses are computers and other technology equipment. Computers play an important role in the operation of a small business and a small business owner needs to know all the facts before purchasing a new system.

Those small business owners that are interested in purchasing a laptop, SB360 have developed a free training webcast on how to select the best laptop computer for your small business needs. The webcast will provide a small business owner with information on the different types of laptops available, how to evaluate the differences between laptop components, and your small business needs.

The webcast is a great way to get all the facts about laptops before you buy to ensure that the system that is purchased is the right one for your small business needs. After you have selected the model, be sure to speak to your tax advisor to carefully plan your depreciation deduction.

Technology Keeping Your Business N Synergy

Your Pay Is Up!!!

With the passage of the economic stimulus package recently there are a great deal of changes that will more than likely effect all taxpayers. One of the more important parts of the stimulus package is the Making Work Pay credit. In a nutshell the credit will increase the amount of an employees take home pay. There are income limitations however so higher income taxpayers may not apply. Typically an increase in an employee’s take home pay would be caused by a change in their withholding information (Form W-4). This credit ($400 for individuals and $800 for married couples filing jointly) can be claimed on the 2009 income tax return.

When Should a Taxpayer change their Withholding?

Taxpayers may want to update their withholdings if the following conditions apply:

• Taxpayer started a new job
• Taxpayer has self employment taxes and no estimated tax payments were calculated
• Taxpayer is employed and receives alimony
• Taxpayer is employed only part of the year
• Taxpayer held more than one job during the year.

Be sure to speak to your professional tax advisor regarding the stimulus tax changes, or withholding changes.

Taxes N Synergy

Windows 7 Small Business Panes

Recently while reviewing small business networking sites and forums, a few conversations centered around small business owners trying to decide on new technology improvements and many were stating that they were going to keep their XP systems until the release of Windows 7.

Hold on there small business owners…..

As a small business that not only has run the beta version of Windows 7 on a business machine (not recommended by Microsoft) and one that tries to stay ahead of the technology curve waiting may not be a very smart move. While there will still be issues with software compatibility, small businesses XP computer systems may not be able to handle Windows 7 thus an upgrade will be needed. Microsoft will continue to service XP through 2014 so there is still some time to receive support.

A Vista machine makes the path towards Windows 7 at bit less painless due primarily to tighter compatibility between Vista and Windows 7 and lessens the chances of software problems. Small businesses thinking about adding the Windows 7 pane, should map out a technology plan that is in line with their goals and budgets.

Technology N Synergy

Take More than Standard

When a taxpayer files their taxes they have the option to take either the standard deduction or itemized deductions that go on Schedule A. For those taxpayers that do not qualify for the itemized deduction, the IRS has a small bit of relief. For tax years 2008 and 2009 standard deduction taxpayers will be able to take an additional standard deduction for real estate taxes that are paid in those years.

There are a few things a taxpayer will need to ensure that they qualify to take the additional standard deduction for real estate taxes. Be sure to review the IRS Form 1040 instructions or speak to your professional tax advisor for details so you can take more than the standard deduction.

Keep Your Taxes N Synergy

Small Business Paperless Options

Maintaining an organized back office and filing system can become quite a strain for many small business owners (SBO’s). Small business owners are currently more focused on cash flow and sales than taking care of the administrative tasks. There are a great deal of online tools available to SBO’s that can assist them with the administrative tasks. Many of the options can be added with a very small learning curve and price.

Here are a few examples of paperless options that small business owners can utilize to assist with back office administrative tasks:

• Company Intranets – Can help SBO’s stay organized, access documents, track progress on projects.
• Online File Storage – SBO’s have a centralized location for all documents.
• Online Backup – SBO’s have assurance that their critical documents are available in the case of a casualty, theft, loss, or disaster.

A simple search of “small business paperless options” will provide the SBO with all kinds of paperless solutions. When searching for paperless options SBO’s should look for solutions that are secure, improve productivity, improve customer service, and ensure business continuance. Typically the change from paper to paperless in an ongoing process and SBO’s should closely monitor technology expenses to ensure there is a cost benefit.


Keeping Your Business N Synergy

Get Your Money Off The Table

There was a recent web poll conducted by Liberty Tax that provided some very revealing information about our economy and tax refunds. Over 80% of the respondents filed their tax returns early because they really needed the money this year. This filing season more than ever, those taxpayers expecting a refund are getting their returns filed as soon as possible. Timely filing your taxes should be a priority every year, but according to the IRS, many taxpayers have forgotten to file all together. The IRS estimates that it has around $1.3 billion in unclaimed refunds from 2005.

Taxpayers that have not filed a 2005 tax return and have not received a “nasty gram” from the IRS may need to file a tax return before the April 15th tax deadline this year. After that time the statue of limitations will expire for refunds in 2005. If you are one of those taxpayers that may not be able to locate all of your tax information from 2005, there are additional forms that will need to be sent to the IRS that will ensure your filed return is accurate. Be sure to speak to your professional tax advisor for more information. In this economy, not leaving any money on the table can play an important role in your financial stability.

Keeping Your Taxes N Synergy

Accounting Software N Synergy

For a small business owner, having immediate access to information about their business can be one of the most important factors in making sound business decisions. Accounting software can provide a small business owner with a wealth of information that can lead to tax savings, improved cash flow, and better internal controls. The information that an accounting software title provides is only as good as the information that is entered. This is why it is important for a small business owner to accurately setup their accounting file before they start to actually use it. Many times this will require hiring a professional small business software consultant who knows how to setup your company file based on the business’s specific needs.

As a small business owner, many wonder where they should start after they have purchased a small business accounting software package from their local office supply store. Be sure to check out this following PCMag article that will guide them through organizing their information before entering it into the software, after it is entered, and beyond. Taking these steps is one of the most important aspects of running a small business for if you put garbage into your accounting software you will only get garbage out.

Keeping your Business N Synergy

Giving to Charity

Taxpayers that gave to a charity in 2008 may find it difficult to accurately assess the value of their household items that are donated. IRS rules according to Publication 561 require that items are given a Fair Market Value (FMV) based on what the item would sell for on the open market. Many tax preparation software titles have a donation calculator built in. Here is a nice link from the Salvation Army to cross check what your software calculates or to use alone. Most lists are adjusted yearly and there are times when appraisals may be needed. Also, it may be a good idea to check more than one list because FMV amounts can vary.

Keeping Your Taxes N Synergy

Your QuickBooks is slow

Intuit, the makers for the widely used small business accounting software QuickBooks have been seeing an increase in the disapproval of the changes that were made with their 2009 product. According to many of our clients and others that I personally have seen on accounting web forums, the problems seem to arise from the new R6 update and the online banking features of the product. According to Intuit, they are frantically working on the updates to ensure that the software is more stable. Some specific issues that are being addressed are:

• Performance issues
• Pre-fill split totals, reminders
• Pre-fill QB forms (checks, CC charges)
• Expanded account associations

Intuit states that they will not be able to fix all the issues at once and request that users of the 2009 product be patient. Many small business software consultants are advising their clients to wait on upgrading to the new 2009 version of QuickBooks. Another option is to look toward other more stable options for your small business accounting software. Maintaining a stable accounting system is important for any small business owner.

Keeping Your Business N Synergy

Bill is Signed…Now what?

The President has signed the much anticipated American Recovery and Reinvestment Act of 2009 that will provide the country with almost $800 billion in economic stimulus. Of that amount, about $300 billion is for tax relief. So as a taxpayer, many wonder how this will affect them. The bill provides for tax relief for individuals and business owners in many areas. Specifically the tax relief is broken down into general tax relief, education relief, AMT relief (Alternative Minimum Tax), business relief and energy relief. Many of the provisions in the tax relief take effect in 2009 and beyond, but there are a few that take effect retroactively for 2008.

For details of the tax provisions and how they will affect your current and future tax filing seasons be sure to speak to your professional tax advisor to find out which provisions will be beneficial to you.

Keeping Your Business N Synergy

Tax Gap Bridge Delayed

The IRS had made a concerted effort in the past few years to close the tax gap through enforcement and compliance. There have however been problems with the execution of their plans. With high workloads and low employee levels, closing the tax gap has been quite a large task for the IRS. Well now the IRS has more problems to deal with since a new report by the TIGTA (Treasury Inspector General for Tax Administration) reveals that the IRS has not been effective with their cases that involve large dollar amounts. The IRS estimates that discontinued collection accounts total around $209 million.

Guess the new report means that there will be a delay in building the bridge to close the tax gap.

A Counting For Tomorrow

The advent of technology has made a significant impact on the lives of the small business owner. There are a myriad of tech tools out there that can help a small business owner mange their businesses more smoothly (many have been mention in our posts). One major tool is accounting/bookkeeping software and when the software is properly setup, important information is at the fingertips of the small business owner. Looking ahead tomorrow, accounting software is continuously evolving. Recently two former QuickBooks employees received 2 million in funding for their online bookkeeping service business. The new service called Outright.com plans to focus on SOHO (small office home office) types businesses. Small business owners will now have the access to their financial information anytime, anywhere.

The news is interesting for two reasons in my opinion one, small businesses are receiving investment funds in this economy especially when your idea is forward thinking and progressive. The second reason is that the funding move is a good example of where technology is taking the accounting/bookkeeping world. As a small business owner always look ahead so you too can account for tomorrow.

Keeping Your Business N Synergy

Great Payroll Freebie

For those of you out there that are interested in processing your own payroll or would like to cut down your payroll processing time, be sure to check out online payroll processor Paycycle’s website. By using an online payroll processing resource like Paycycle, the headache of processing your payroll, withholding the correct amounts, and paying the taxing agencies will go away. For those that are new to processing payroll, be sure to pick up a copy of Payroll For Dummies a free booklet being offered by Paycycle. The booklet will provide any small business owner with the necessary tools they need to process their payroll quickly, efficiently and with fewer errors.

Keeping Your Business N Synergy

A Late Year End

For most of us, the year 2008 could not have gone away any faster. This is especially true for many taxpayers that saw the majority of their investments fall considerably as the financial markets took their swan dive. As tax season moves into high gear, and taxpayers eagerly anticipate their tax refunds; a recent IRS article informs taxpayers to not file their returns so fast for they may not have all their year end forms. Many of the year end forms from brokerage firms, mutual fund companies and barter exchanges may not arrive till mid February. The change for certain Form 1099’s to mid February was enacted last fall and will provide investment firms more time to ensure the accuracy of their forms. The change will hopefully reduce the rate of amendments by the investment firms and ensure taxpayers tax returns are filed correctly.

If you have not received your year end statements from your investment firm, don’t fret, it should be in your mailbox by the 17th of February.

Keeping Your Taxes N Synergy

Just Browsing

As the war for internet browsers begins to heat up, there is one other variable that small business owners should consider. If you are a small business owner that uses an online bookkeeping solution like QuickBooks Online Edition, and you use a web browser other than Internet Explorer, will you be able to access your data using another browser. Recently a client had a problem accessing their data using the Firefox web browser and luckily there is a fix for the problem by simply locating an add-on for the Firefox browser. The add-on allowed the client to continue to use their existing web browser at the same time being able to access their data. There was no change on our end since we use Internet Explorer.

Small business owners are sure to check for additional add-ons to many of the new and improved web browsers if you are not running Internet Explorer so that your business can continue to run smoothly.

Keeping Your Business N Synergy