By LousS90 November 30, 2012
Kathy has been my tax preparer since 1994. She has given us the best service and tax advice since the first day we met her. Kathy always answers/returns phone calls promptly and treats us in a courteous, professional manner. We have recommended her to many of our business associates and they have all been extremely satisfied with her accounting and tax services and rates!! ...read more
www.mcfarlinbrokke.com Newsletter sign up Year-end tax planning is more complicated this year than in most years. With the possibility of major tax change just ahead, many standard tax-cutting moves are turned upside down. There's not much time left for making changes that could affect your taxes for 2012. Here are some ideas for individuals and business owners to consider. The following is an excerpt from our newsletter. If you would like to schedule an appointment, please email Kathy@mcbrok.com or call (386) 882-6047. To receive our entire newsletter, please visit http://www.mcfarlinbrokkecpa.com/ to sign up. For individuals- Tax rates may be lower this year than they're likely to be in future years. If that's the case, you could save taxes by realizing income in 2012 and delaying deductions until 2013, instead of following the more traditional practice of postponing income and accelerating deductions. We will help you estimate your situation for both 2012 and 2013 in deciding what makes most sense for you. Decide whether you want to sell appreciated stock or those with losses before year-end. If the maximum long-term capital gain rate goes to 20% next year, compared with 15% this year, you might decide to reverse your strategy on realizing gains and losses in 2012. Max out your retirement plan contributions. You can set aside $5,000 in an IRA ($6,000 if you're 50 or older), $11,500 in a SIMPLE ($14,000 if you're 50 or older), or $17,000 in a 401(k) plan ($22,500 if you're 50 or older). If you're trying to increase your itemized deductions for 2012 but you're short of cash, pay with a credit card by December 31. You can then deduct the expenses on your 2012 tax return even though you pay your credit card bill in 2013. If you plan to sell a security before December 31 to take advantage of a capital loss, don't get caught by the wash sale rules. To make sure the loss is deductible, refrain from buying a substantially identical security during the 61-day period that begins 30 days before you sell and ends 30 days after.If you want to deduct worthless securities on your 2012 return, you'll need to prove the security became worthless during the year and that it truly has no value. If you're not sure you can meet those requirements, selling the security before year-end may be a better option.Make charitable deductions before year-end. Cash and checks mailed by December 31 count as 2012 deductions, as do credit card charges you make by December 31. Donations of stock are deductible when you relinquish control. Allow extra time for stock transfers handled by your broker or a mutual fund company.Have you taken your 2012 required minimum distribution (RMD) from your traditional IRA? RMDs for those 70 1/2 and older must be taken by December 31 each year, or a 50% penalty could apply. If you just turned 70 1/2 this year, you could wait until next April 1 to take your first distribution. In deciding, consider the possibility of higher tax rates next year and the fact that a delay means you'll have two taxable distributions for 2013.Start a retirement plan for your small business. You may be entitled to a tax credit of up to $500 in each of the plan's first three years.Review your asset acquisition schedule to determine if buying needed business equipment will provide a larger tax benefit in 2012 or 2013. Section 179 lets you write off up to $139,000 of the cost of new or used assets placed in service during 2012. The amount you can deduct is limited when annual asset purchases exceed $560,000. In addition to Section 179, you can claim bonus depreciation, which gives you a deduction of up to 50% of the cost of new assets. Used assets don't qualify.Hire your children to work in your business. If you're a self-employed taxpayer, you can reduce your taxable income (and associated self-employment tax) by employing your children who are under the age of 18. You can avoid payroll taxes on the child's wages and shift income from your higher bracket to the child's lower bracket. The wages you pay must be reasonable for the work performed.Review the entity you operate under. Many small businesses start out as sole proprietorships or partnerships. Now may be the time to transition to another entity, such as a corporation, which can help shelter you from financial and liability risks.To make the right year-end tax decisions for your particular situation, CONTACT US soon for an end-of-the-year review. At McFarlin&Brokke, we keep an eye on what Congress is doing so that we can factor any tax changes they make into your decisions. For 2012, our goal is to help you reduce your taxable income and increase deductions or credits on your income tax return. ...read more
By McFarlin & Brokke CPA December 02, 2012
What are the roles and titles of a business owner? They include, but are not limited to the following: CEO Marketing Salesman Inventory Control Executive Assistant CFO/Bookkeeper/Accountant Parent, spouse, caretaker What is the result of all these “hats” a typical small business owner is wearing- Overwhelmed!!! The following is an example of a typical conversation I have with business owners- Kathy CPA (me):What are currently doing to manage your company finances? Business Owner:Not much, I provide a service (or product), receive money and deposit into the bank. Then I pay my bills, if I have the money as they come in. Kathy CPA (me):In other words, if you have enough money to pay your bills, then you are doing well. Business Owner:Pretty much! So, what should I be doing to manage my company finances? Kathy CPA (me):First of all, do not feel bad. Because, if everyone was an accountant, then I wouldn’t have a job! You either love accounting or you hate it, no gray area! This is why every small business should engage a qualified certified public accountant. Business Owner:But, I’m a new company, it will cost too much and I need all the money I can save. Or, I am an established company, but cannot afford you in this economy! Kathy CPA (me):I know this, believe me! However, to run a successful, growing business, and fulfill your tax reporting requirements, you need well managed books. Basically you have three choices for managing your accounting needs: Do it yourselfIf you answer yes to these questions, then you should do the accounting yourself-Do I have time? Depending upon the size of your business this could be as much as 3-4 hours a day.What is my time worth? If you pay yourself, or wish you could at this point, how much is your time worth when you are selling your product or service, basically promoting your business? $10, $15, $20, or $40 per hour? If your time is worth $20 per hour and you are spending 15 hours a week on your bookkeeping and accounting functions (not spending that time on YOUR expertise), then you are losing almost $16,000 a year in revenue by “doing it yourself”. Or maybe you are spending precious family time working on your accounting.Do I know what I am doing? Are you knowledgeable on income tax laws and reporting requirements, payroll tax reporting requirements, sales tax laws? Do you know how to prepare a balance sheet or income statement?Do you know what to do with your financial statements once you have them prepared? Can you prepare a cash flow analysis, trend analysis, budgets, and goals? Business Owner:Okay, okay…..so I should not do it myself. What are my other choices? Kathy CPA (me):You can either employee a bookkeeper or outsource a qualified professional, like me! Hire a bookkeeper-This will be costly, to employ a qualified bookkeeper in my locale, Ormond Beach, FL, you should expect to pay close to $20 per hour, plus FICA/Medicare (Social Security Taxes), State Unemployment, hold workers compensation insurance, which increase your hourly cost over $25 per hour.Don’t try to reduce that expense by settling for someone who does “light” bookkeeping, because you will not be getting the information that is best for your company and the bookkeeper may cost you more in year-end accounting fees from your CPA.Don’t forget about paid vacation, sick days, and turnover. Outsource to qualified professionals-Every small business and many individuals can benefit from having a team of advisers with different perspectives. One of the most valuable advisers a business can have is an accountant, especially a certified public accountant (CPA). For example, it can be beneficial to have a skilled accountant review financial and operational business data, to help you identify ways to maximize profits, areas for growth, and cost saving measures.We can save you time and money as you file your quarterly and annual personal or small business taxes. Consider the following:It is difficult and time consuming to do tax preparation work yourself.Your time can be better spent growing your business or spending time with your family.Because the compliance requirements can be complicated, there is a higher risk of error if you try to prepare your tax returns on your own. The result could be missed tax deductions and/or an IRS audit. We can “bundle” your accounting and tax needs and provide a flat rate, providing you budgeting advantages and saving you money! We will provide our product to you- in a timely, reliable, professional manner You will have a team of professional advisors with over 50 years of combined experience as Certified Public Accountants at your disposal! Experience, Experience, Experience!!! In general a CPA is better qualified to help with tax and accounting needs than a non CPA accountant. This is because the CPA is required to pass a stringent exam, have a certain amount of experience and take a certain amount of continuing education each year. For an initial consultation (at no charge of course) please contact Kathy Kluth, 386-882-6047 orKathyK@mcbrok.com Kathy is a licensed Certified Public Accountant in Florida with over 20 years of accounting, tax and audit experience. As the firms partner in Florida, Kathy has extensive experience working with distribution, retail, construction, insurance, and not-for-profit clients. Kathy is a partner in our Ormond Beach, Florida location. Kathy has been with McFarlin&Brokke; since 2001. Kathy has been responsible for all aspects of audit work for a range of entities, from SEC companies to small not-for-profit organizations. She has also been involved in several 401(k) audits. Kathy also services the Firm’s clients by providing sophisticated, proactive tax consulting and planning. In addition, Kathy assists clients with general business matters. Kathy received a Bachelor of Science in Business Administration with a concentration in Accounting from the California Polytechnic State University and has served on the boards of many not-for-profit organizations in Nebraska, Iowa, and Florida. ...read more
By McFarlin & Brokke CPA November 30, 2012
My wife and I have both moved into the Daytona Beach area when we were in our teens. We have lived in many of the different cities in the area from New Smyrna to Ormond Beach. We currently own a house in Ormond Beach. Having grown up in the area, we have both worked for different companies around the Daytona area. My wife has also graduated with her Associates Degree from Daytona State College and is currently wrapping up her Bachelor's in Accounting from UCF. We are offering you our combined experiences with our services and will be glad to talk to you about your needs. We will do whatever is best for you and your business, even if that means referring you to someone with more resources than we have. We are here to help. ...read more
By Innovative Bookkeepers November 15, 2010
Payroll accountants are responsible for tracking the expenditure of money and assets through a company. Their job is to help companies track their income and maintain a timely payment record for expenses and bills. If you are interested in becoming a payroll accountant, you will have to be... ...read more
Computer files can sometimes be deleted by accident, get lost or damaged. This could be a potential nightmare, especially if these are small business accounting files. You have peace of mind by knowing how to use the "Backup and Restore" function in Microsoft Small Business Accounting. With a few keys... ...read more