Federal Taxes

Bookkeepers and tax accountants both operate in the same arena, but they have very different specialties. To maximize the benefit for your business, it’s important that you make sure to select the most qualified professional for the job.

BCA Bookkeeping Gets Your Accounting Files Ready for the Tax Preparer

Cheryl Driscoll has many years of experience, working for both large and mid-sized companies; she has worked for a CPA firm, preparing tax returns; and has been involved with many audits with both the IRS, and the Department of Revenue. Because of her history, she brings a unique level of experience to bear on all her clients’ accounts, expertly preparing QuickBooks Files for small to mid-sized business owners. 

She will include questions for your tax preparer, along with a QuickBooks file that is ready for tax preparation. This allows the tax preparer to be aware of any questions or concerns that may exist. Clean-up work is not needed, so the tax payer generally saves money on their tax bill.

For tax preparers, tax season does not end on April 15th; tax season is year-round. Tax preparers work with the IRS on a regular basis, and fully understand what the IRS is looking for in the tax return. There are areas where the IRS allows you to be more aggressive, and other areas where you need to be conservative. Further, there are many exceptions to rules (and even exceptions to those exceptions!). 

Unless you are processing taxes on a regular basis, it is very easy to miss some great tax deductions. Also, as a tax preparer, you have much more information available to you (due to the tax software), which allows you to have up-to-date details as rules and regulations change during the tax season.

It is my belief that the business owner is getting the very best if BCA Bookkeeping does only what we are experts at, and allows the tax professionals to do what they are specialized in. This also creates a check and balance system, allowing two separate organizations to be a watchdog for your business.

Keeping Up With the Federal Tax Code Is a Full-Time Job

Keeping up on the latest rules and exemptions, the changes to forms 1040, 1065, and 1120, for example, not to mention the hundreds of schedules involved in preparing your taxes is always best left to a qualified specialist. You wouldn’t let your general practitioner perform neurosurgery on you, right? While they’re both doctors and they both work on the human body, they have radically different specialties. Tax preparation and small business bookkeeping function in much the same manner.

On January 1 of 2014, for example, the IRS changed the rule regarding Capitalized Assets. This rule change affected nearly every business in the U.S., regardless of their size. The new rule stated that all items with a value of more than $500 and a useful life of more than one year had to be capitalized and depreciated.

The new rule represented a huge change from previous years when companies could decide independently what was considered a fixed asset. Realizing that this was a bit of an extreme rule change, the IRS again changed its mind in late November of 2015, raising the threshold for capitalized assets to $2500, retroactively effective back to January 1st of 2015.

BCA Bookkeeping Prepares You to See Your Tax Accountant

BCA Bookkeeping works with your financial statements and records so that when it’s time to visit your Tax Preparer, you and your business’s books are completely ready. Regardless of what forms and schedules your Tax Preparer will need to fill out to get you the best possible outcome, your records are ready, easily accessible and easily understood, ultimately saving you the most money possible on your tax preparation bill.

And if your Tax Preparer does have questions about your books, BCA Bookkeeping will step in and work with them directly to expedite the outcome, again saving you time, hassle, and money.

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