What are the objectives of tax planning?

There are many types of businesses out there in today’s world. However, the world of accounting surrounds all the business regardless of what they are involved in. This is because no matter what the aim of the business is, or what kind of products and services are being offered, any business has money going in and coming out. Therefore, it will require processes of accounting to be executed. Out of the many things required to be done in accounting, tax services and bookkeeping San Antonio are critical for any business. This is the process that is conducted by the taxpayer. It is done for reducing the tax that is liable upon the payer through the maximum use of all available allowances, deductions, as well as exclusions, etc. that are feasible under the law.

Therefore, it is basically an analysis of a financial situation from the point of view of taxation. Insurance of tax efficiency is the biggest objective behind tax planning. The process allows all the elements of the financial plan to function in proper synchronization. This eventually leads to the delivery of maximum tax efficiency. The process is also imperative for budgetary efficiency.

Following are 5 top objectives of tax planning: 

1. Economic Stability: When the tax planning behind a business is executed properly, a stability is supplemented.
2. Productivity: Proper channelization of taxable income to various investment plans can be done, through flawless tax planning.
3. Reduction of Tax Liability: A taxpayer can save the maximum amount possible from the payable tax amount with the help of using a proper arrangement of the working of an enterprise according to the laws. You need an expert for reliable and accurate tax services in San Antonio.
4. Minimal Litigation: It is crucial that the compliance regarding tax payment is followed as well as used properly. This makes sure that the friction between the collector and the payer of tax is to the minimum.
5. Healthy Growth of The Economy: Growth of an economy is dependable on the growth of its citizens. The process of Tax planning helps in estimating the generation of white money that is currently in free flow.

In conclusion, it is better to know the objectives of a process, in order to plan out its proper execution. Once you know what is to be achieved, it becomes easier to execute the process in such a way that objectives are met with the minimum amount of money and time that should be invested. To know more, give our tax experts a call at 210-701-1040.

Bookkeeping hacks that will change the way you execute accounting!

When it comes to business bookkeeping San Antonio, accounting becomes effortless if you know the right hacks. Not only does it make the process effortless, but also saves tax big time. 
Therefore, if you are someone that offers bookkeeping services in San Antonio or someone who has hired a professional for their business bookkeeping San Antonio, then these hacks can come in really handy.

Have a look:

1. Keeping a Fixed and Scheduled Time For Tax Deductible Purchases
If one were to go on planning early, in the tax year, about buying what one will be requiring, and if that happens to be tax deductible, one might end up saving a big quantity of money. Often, this is forgotten when the bookkeeping services in San Antonio are being executed.

2. Claiming the Bad Debts
This simply means that one can claim money which is owed to them and which they have not been paid on their tax return. What this does is, that it greatly reduces the taxes that one has to pay. The simple logic here is that being taxed on money that you haven’t made, is not at all a smart way to go about it. Therefore, claiming bad debts is a great hack while executing business bookkeeping San Antonio.

3. Deferring the January Income to the Following Tax Year
When one has had quite a very profitable year, and on top has even received the salary for the month of January, it is allowed that you defer the amount to the following tax year. This hack helps in considerably lowering the taxes for the prior year’s return.

4. Keeping Personal and Business Finances Separate
A very common place to make errors is when you do not keep your business and personal finances separate. In fact, this is probably the one thing where people make errors the most! Therefore, one must simply keep their personal and business finances separate. This should be done in order to avoid tax fees. When one keeps their business fees separate, they can be considered eligible for various considerable deductions on their tax return.

5. Automating the Human Resources, Admin, and Payroll Functions
This hack becomes an amazing way to save on payroll taxes. In case your business is allowing you to get away with this, then you should definitely go for it! This makes you save a great deal of money!

By implementing such viable tips to your strategies you will surely see great results on the tax return and it will change the way you practice accounting forever! To employ professional bookkeeping services in San Antonio, please call Uhlenbrock CPA at 210-701-1040.

Solutions to prevent mistakes in bookkeeping

The process of bookkeeping is typical. It requires precision and accuracy on the part of the bookkeeper. This means that when one seeks a bookkeeping solution in San Antonio, they should be careful about the bookkeeper they are hiring. For absolute accuracy and professionalism, they should pick an accountant San Antonio who is experienced and knows how prevent mistakes in bookkeeping.

As an accountant San Antonio, who has been there, we have curated a list of tips in this blog, that help in preventing common bookkeeping mistakes! Have a look:

1. When you aren’t producing or utilizing financial reports
The correction to this mistake is not only obvious but also very easy. There are a big set of choices for accounting software that is capable of producing financial statements. Two of the most popular options are Xero and QuickBooks. However, if your accountant San Antonio doesn’t enter accurate data, then the reports would become misleading and eventually lead to bad decisions.
For avoiding this problem easily, one can hire someone who provides bookkeeping solution in San Antonio while not only entering the data correctly and producing the financial reports, but also offer advice and help on improving the financial performance.

2. When you don’t keep business and personal spending separate
This can easily be solved. With a little research, it becomes very simple to set up a business bank account. This however, does depend on the size of your business. There are options available for free bank accounts as well.
Therefore, when you require additional funds from the business, you can easily transfer from the business account to the personal account. This saves you from paying for your personal expenses directly from the business card. It makes sure of clear record keeping in the business bookkeeping solution in San Antonio.

3. When you don’t do bookkeeping often enough
When you own a big business, it gets difficult to find time for managing bookkeeping. Hiring someone for the same, has many advantages like freeing up time, getting professional help and advice on improving the business’ financial performance etc.

In conclusion, there are many mistakes that one can make while executing the process of bookkeeping. However, the silver lining is that these mistakes can easily be prevented. Just by following a few simple tips, bookkeeping can be converted into a smooth error free process requiring less time, focus and money. For details, get in touch with the expert accountant in San Antonio at 210-701-1040.

Why is early tax planning the smarter choice?

As accountants, we breathe in and out in the world of taxes. We know the air and what it requires to survive in this world. Well, your business doesn’t only want to survive does it? To excel in this accountancy world, you absolutely should learn that early tax planning is the smarter choice. Talk to any accountant in San Antonio, to understand why tax planning is critical for your business.

Have a look and see for yourself what you can do to get the advantages of early tax planning:

Planning your losses

It’s simple. For example, you want to sell a piece of equipment that you have, the best way to do this is to plan when you will be selling it. The point here is that your loss will successfully offset at least some part of the income. So let’s say, you just had a slow year of business. It’s obvious that you would wish to wait until the next year in order to sell this equipment we’re talking about. This is because you would require the write-off even more once your income climbs back up. If you know you are going lose money on particular inventory-clearance sales, then you should plan those too. In this way, the losses can easily offset the income which is extra. Talk to your accountant if you have any doubts.

Planning the loans
In a case where you are aware that you will require money in the name of a new marketing strategy or a business expansion in San Antonio, you can try to write off the cost of the loan’s interest. Timing the loan for getting as much benefit as you can from the interest deduction is considered as a smart move.

Estimate your payments

You will be aware about what you owe at the end of the year, only if you can plan your taxes effectively. If you fall in the category of small-business owners in San Antonio, then you absolutely must make an estimation of the quarterly payments. The execution of tax planning process, allows one to make estimates that are accurate. It also helps you in avoiding having to pay penalties for the underpayment of taxes that you might end up doing. To keep a record of your payments, make a habit of organizing your bookkeeping. You can get in touch with an accountant San Antonio providing bookkeeping services in San Antonio for managing your records.

There are more benefits that one can enjoy if they get into the habit of early tax planning. Start yours now!

 

What do you need for business tax preparation? PART 1

In our previous blogs, we have mentioned the importance of having an expert by your side when you are going for business bookkeeping San Antonio. Well, the same is applicable for tax preparation too. Getting an expert for tax preparation makes it more efficient, accurate and saves you a lot of time and stress as well. Therefore, the most imperative element that you would need for business tax preparation is an expert who knows what he’s doing.

Apart from this, there are particular things or more specifically documents that you will need to arrange for the business tax preparation.

Through this blog we are going to inform you about everything you will require for the same. Basically, it all comes under gathering the right information from various sources. Let’s begin!

1. Last year’s business tax return

We know that you wouldn’t want to go down that memory, but it helps in providing valuable information and serves as a guidance to make your way through this year's return. It basically helps you in verifying the following things -

• The method used to track business finances
• The date of incorporation of the business
• The date of electing to become an S corporation
• The federal tax ID number
• The business code number and activity descriptions
• The method used for tracking the inventory 
• The beginning balance sheet amounts (the same as previous year's ending balance sheet amount)
• Partner or shareholder information provided that there are no changes

2.  Articles of Incorporation

If you find yourself not having the prior-year tax return, or you are filing a tax return for a new business, then the Articles of Incorporation help in giving some important information:

• List of officers
• The state of incorporating the business
• List of shareholders and percentages of ownership (in case of being  an S corporation)

3.  Partnership agreement

Again, if you are lacking a prior-year tax return, then the partnership agreement becomes the best source of:

• Date of the partnership being started
• The method used to track business finances
• Information of any particular expense or income item that isn’t allocated based on loss, profit, or even ownership percentages
• The amount of money put by each partner initially as well as current ownership percentages
• The list of partners

Stay tuned to the second part of this blog for more information on the things you need for business tax preparation. As we have been providing the tax preparation and bookkeeping services San Antonio for years, impressing and satisfying our customers, we are your best source of information on the topic!

Steps to Earn Success in Small Business Accounting

Regardless of the type of business, any company cannot cease to exist without accounting. If a company wants to successfully operate, the business bookkeeping San Antonio becomes the very foundation of the same. As the owner, you are the one who is in charge of getting the business books in order. You can hire an accountant for business bookkeeping process in San Antonio.

 

Accounting Activity

Three major areas:

• Bookkeeping process - When the financial statements are managed according to the established procedure. A business needs to perform bookkeeping on a regular basis.

• Tax records - Those documents of your business that deal with tax base and calculation for reporting to fiscal bodies.

• Management accounting - Analyzing the recorded data or getting it done through an accountant San Antonio to evaluate the effectiveness, make sound economic decisions and plan work processes.

Steps to a Successful Beginning 

Picking the best accounting method for your business:                         
The two methods that can be looked at are accrual and cash. See what method would best fit your small business and go ahead with implementing it. You can always refer to a professional’s advice for the same.

What are the records you have to keep?                                                            
As the owner of a small business, you need to know what type of records you have to keep. The legal documents like sales tax licenses, business permits and licenses or any other kind of documents which have legal significance are to be stored and kept accurate as well.

Supporting financial documents:                                                                    
These documents hold great value since all the accounting operations are based on them. Such documents include invoices, all contracts with counterparts, cash register tapes, payrolls, receipts and a few other documents that are related to the finance area.

What to record and how?                                                                         
Each and every thing that is related to money and explains the sales transactions of your business need to be recorded. If you keep day by day records of incoming as well as outgoing payments, you’ll get a full picture of the funds of your business. It is imperative for you to know your liabilities that include overhead and employee paychecks, operating expenses, taxes etc                                                                                                                   
Management of documents:                                                                                            
There will be a lot of documents that you’ll be receiving for various different purposes after getting your license and opening a bank account offline or online. Further, the number of documents will only be growing. This means that you should have a well-organized process of slotted documents to ensure high efficiency of the record-keeping system.  

As the best an accountant San Antonio, we provide the best service of business bookkeeping San Antonio. To know more about our services, give us a call at 210-701-1040.

A Checkup for your Paycheck

When you get an annual checkup in order to maintain the physical health, why shouldn’t you do the same for the financial health? In general, every year, a person or  a business  gains more and more experience,  skills, revenue and growth. That being said, the potential earnings that you hold can increase greatly without you even knowing about it. It is important that you not only maintain your accounting books with bookkeeping services San Antonio, but also the payroll checks of your employees.

Payroll management has long been seen as a hassle for business owners. It is better to outsource your payroll to a certified accountant. Following are a few great reasons for thinking about a checkup paychecks to ensure you have the right calculations for your business.

Why is going for a checkup of paycheck an important step?

In April 2016, you will be thanking yourself for paying attention to paychecks. If the employee takes out the time right away in order to check their withholding, calculations will be easier. On the other hand, in case of they are withholding a small amount, they will actually owe it at the time of tax. Therefore, ideally, you should have just the enough amount withheld so that the amount comes as close as possible to the actual tax liability that you hold for the year.

2. WHO SHOULD BE DOING A PAYCHECK CHECKUP?

Although, any person can generally take the benefits or advantages from a paycheck checkup, but there still seem to be a few groups who should specially consider taking a step towards the paycheck checkup. Following fall in this category:

• Any person who has a fairly complicated financial situation
• A person who has two income families
• A person who has more than one job or multiple jobs
• Any person who itemized the deductions in the year 2017
• All the people who claim credits like the Child Tax Credit

For professional accounting, bookkeeping and payroll management in San Antonio, get in touch with Uhlenbrock CPA. Call 210-701-1040.