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5 Tips On How To Best Manage Your Finances If You’re Self-Employed - S-Corp or LLC

9/27/2019

Budgeting needs to include paying yourself too
“I think they should start by figuring out what their pay rate should be: Start by understanding your personal economics and what you require first and then try to back engineer your minimum salary into how much your business needs to make in sales in order to break even and pay yourself,” suggests Duran. “Don’t leave yourself out. Then figure out the fixed expenses, including your salary, and then variable costs and build from there.”

Keep tracking simple
QuickBooks is by far the best option for any small to medium size business. McVay has customized plans starting at only $99.00 per month that would take the burdensome details of running a business. McVay does most or all of the data entry, downloads, adjustments, reconciliations, month end close out and financials for a very reasonable price. Leaving you to increase revenues and profits. Mike McVay is a Certified QuickBooks ProAdvior located in Pensacola, FL. He works with clients all over the USA.

Ask for help
McVay has streamlined the bookkeeping process to allow for lower cost when doing your daily, weekly or monthly bookkeeping task. A good accountant will always offer good business and tax advice to keep you on the right track. Some accountants will offer free or included advice and consultations if you are a regular monthly client.

Invest in yourself and your future, not just your business
“Entrepreneurs should remember that they are their own bosses, and what these means is that they need to be their own motivator and remember to plan for the future,” shares McVay. “This is a very common mistake that people make as they leave the workforce to start their own venture, or even when starting from scratch after college. I many times see how they overlook the importance of setting their own benefits such as: proper health and life insurance coverage, retirement accounts and other flexible spending accounts.” among others. A good accountant or financial advisor can help you choose the right path.

Keep up with other great business ideas by visiting our blog. Mike McVay, Certified QuickBooks ProAdvisor and Tax Consultant. 850-725-5696 * Mike@MikeMcVay.com

What is Bookkeeping? And Why Is It So Important?

9/22/2019

Bookkeeping makes tax filing less complicated.
When tax season rolls around and you must provide your accountant with the necessary documents for filing business taxes, having clean books substantially cuts down on the time it takes to prepare tax documents. Rather than rummaging through your business receipts, the accountant can focus on finding possible tax deductions, saving their time and your money.

Bookkeeping provides key insights into the overall health of a business.
Bookkeeping enables businesses to produce financial statements, which collect financial data and paint a clear picture of how your business is really doing. These statements help you manage cash flow, which is essentially how much cash is coming in and leaving your business at a given time. Cash flow projections are pivotal to the growth of a business, as they can entice potential investors and satiate existing ones. Understanding your business’s financial health eases making future plans involving hiring, expansion, and day-to-day operations. Financial statements, such as your balance sheet or income statement, give you the information you need to make decisions from an informed perspective rather than a taking a gamble.

Bookkeeping lessens the pain of an audit.
Businesses always run the risk of one day being audited. While it’s not something to look forward to, it’s definitely worth preparing for. Having all your bookkeeping organized and in one place will make it easier to retrieve your business’s financial information and can help avoid penalties or late fees.

When it’s time to outsource
There are an abundance of reasons it might be time for you to outsource, whether it’s assistance with driving growth or if you’re just struggling to keep up with these tasks on your own.

Outsourcing bookkeeping and accounting tasks come with a ton of benefits, like improving data security, increasing valuation, and saving time. Regardless of how in-tune you are with your business, financial guidance makes it significantly easier to discern the best next steps to meet your specific and unique goals.

If you own a new or small business, it doesn’t necessarily make sense to hire a full-time accountant, which will cost you. That doesn’t mean, however, you have to do it all on your own. Bookkeeping and accounting are challenging skill sets to learn, and it’s important that your business’ books and accounting are done right so you can make smart decisions and grow healthfully.

What is Outsourcing?
When you outsource anything, you’re giving specific business operations to a company outside of your own.
It may seem odd. After all, if you started your own business, why would you want anyone else to have a part in it?

The reality is that finance and accounting outsourcing (or FAO) has steadily become more and more popular in the business world for many years now.

In fact, as of 2018, nearly $33 billion is spent worldwide on outsourcing finance and accounting processes.
It has grown nearly 25 percent in the past five years and doesn’t show any signs of slowing down.
As odd of a concept as it may seem, it’s certainly nothing to scoff at.

Mike McVay, Accountant - 850-725-5696
Mike@MikeMcVay.com

What is a BPO for your business? Business Process Officer.......

9/14/2019

Many business owners are now engaging a BPO or "Business Process Officer" to oversee the complete financial and payroll process of small businesses. The benefit of having a trusted BPO in the background allows you to focus on growing your business and profits and not stressing over paperwork, QuickBooks, taxes or payroll.

Outsourcing becomes more and more popular these days, as more companies all over the country are turning to different advisors for outsourcing their business activities, and it’s no wonder. There are many advantages of outsourcing, and in today’s economy, it becomes a common practice. Most small business owners need to focus on their business operations, customers and profits, not paperwork and computer entry.

Here are some benefits of using a BPO (Outsource Business Process Officer)
Reduced operating costs
If you figure your lost productivity and what it cost if your doing these task in house the cost benefits of outsourcing your bookkeeping is huge. Cost are much lower than you may think. Some accountants such as Mike McVay @ HomeMcVay Business Services use the latest technology to accomplish these taxes. Reducing your cost and increasing your small business profits.
Focus on the core areas of the business
The most obvious and prominent benefit remains the fact that it saves money. Many of the companies and individuals that provide outsourcing services can get your job done at a lower cost
Skilled professionals
The biggest issues companies confront in their customer success programs is not collecting the data, but efficiently acting on it. This is the distinct skill set that specialized companies have been very successful in performing.
Access to the right toolsOutsourcing rules out the need for infrastructure costs as the outsourcing partner takes care of the business processes and therefore develops the infrastructure needed for providing successful accounting and payroll programs.
Thorough analysis and reportsA thorough analysis of your business journey is essential when it comes to analyzing the data and then following that with action. McVay provides custom application, reports and consulting to keep you a step ahead of the competition.

Many new businesses can start this full service accounting, bookkeeping, tax and payroll services for $150.00 per month. Discount pricing for all clients on monthly QuickBooks Online Subscriptions.
Mike McVay, Certified BPO - Certified QuickBooks ProAdvisor - Licensed Tax Return Preparer
850-725-5696
5336 N Blue Angel Pkwy Pensacola, FL 32526
Mike@MikeMcVay.com

Stop Stressing over your Business Bookkeeping - We do it all at a great price !

9/12/2019

Stop the stress! McVay's Business Bookkeeping and Tax Services awarded best service and price in Pensacola,FL for multiple years in a row. Let us do all the work so you can focus on growing your business. Small Business Bookkeeping starting at $99.00 per month. 1/2 Price QuickBooks Online Subscriptions! Mike McVay, Certified QuickBooks ProAdvisor.
Mike@MikeMcVay.com * 850-725-5696

What is an IRS audit? How to be prepared and how an experienced business Accountant can lower your chances of an I.R.S Audit. - Why Turbo Tax has the greatest I.R.S Audits.

9/4/2019

An IRS audit takes place when the Internal Revenue Service chooses to review a taxpayer's accounts to verify that tax laws are being followed. Audits aren't terribly common: Only 0.6 percent of individual returns were examined in the 2017 fiscal year, according to the IRS. But filing your return completely, accurately and honestly can reduce your chances of being pinpointed and increase the odds of a favorable outcome.

According to 2017 fiscal year statistics from the IRS, individual filers who made between $200,000 and $1 million were audited at a 0.8 percent rate. If they were business owners, that rate was 1.6 percent. Those earning more than $1 million were audited at a 4.4 percent rate. If you're a high earner, be aware that you may hear from the IRS. Consider using some of that income to hire an experienced tax preparer in Pensacola, FL like Mike McVay, Tax Accountant.

"Cryptocurrency is going to be an emerging issue with the IRS," says Phyllis Jo Kubey, enrolled agent and certified financial planner in New York City. "A lot of people don't know that when they buy something with cryptocurrency, it’s a taxable transaction." If you're receiving bitcoin as income or successfully mining it, for example, these transactions may need to be reported. The IRS receives information from digital currency wallet Coinbase and may apply increased scrutiny to your tax return if it doesn't reflect the data provided.

"Unless something is specifically exempt from being taxable income, it is income and you're supposed to report it," Kubey says. The IRS gets its own copies of the 1099 and W-2 income forms you have received and may notice your omissions. Track down any tax forms that have gotten waylaid or lost in the mail and contact a tax preparer if you're not sure about which earnings count as taxable income.

CREDITYou made typos or a math error.
It might be an honest mistake, but if something looks fishy, such as an incorrect Social Security number or calculations that don't add up, you may bring on additional scrutiny from the IRS. Be careful and check your work twice when filing taxes.

CREDITYou aren't reporting cryptocurrency.
"Cryptocurrency is going to be an emerging issue with the IRS," says Phyllis Jo Kubey, enrolled agent and certified financial planner in New York City. "A lot of people don't know that when they buy something with cryptocurrency, it’s a taxable transaction." If you're receiving bitcoin as income or successfully mining it, for example, these transactions may need to be reported. The IRS receives information from digital currency wallet Coinbase and may apply increased scrutiny to your tax return if it doesn't reflect the data provided.

Business owners may attract additional scrutiny from the IRS. Uncle Sam tended to examine the returns of self-employed filers at higher rates than it did comparable nonbusiness filers, according to IRS data. If you claim self-employment income and deductions through your individual income tax return, double- and triple-check your figures and keep a pristine paper trail to back up tax deductions. Tax Services can help create an audit trail. Certified QuickBooks ProAdvisors like McVay Business Services in Pensacola, FL can help organize your books.

For self-employed filers who have reported losses for three consecutive years, "that does create a potential audit risk because the IRS will challenge that to see if it’s a business or it's a hobby," says Dave Fultz, a partner with Barsz Gowie Amon & Fultz, located outside Philadelphia. The important difference: "A loss from a business is deductible. A hobby loss is not," he says.

Be specific when itemizing various expenses, Fultz says. If the numbers all end in a double zero, it can look fishy. "The IRS does look at that, and they might feel you don't have documentation for your expenses," he says. Again, keep good records and be specific when writing off expenses.

When listing the business use of a work-related automobile, the IRS knows that it's unlikely that you're using it 100 percent for work. For example, if you use it for commuting, that expense isn't deductible. There are myriad mobile apps and tools to help you track mileage. Maintain your paper trail. Turbo Tax has the greatest audit chances, because of past audits this software is known to be a treasure trove of mistakes based on I.R.S auditors. Claims of 60% of Turbo Tax users will be audited within 3 years of filing.

As long as you file taxes accurately and keep good records, you shouldn't fear a tax audit. "At the end of the day, honesty is the best policy," Fultz says. "As long as you have support for everything you put on the return, even if you are audited, it’s OK." If you're concerned about your tax return or the paperwork involved, meet with a good tax preparer and make sure you keep accurate records throughout the year.

To recap, here is what triggers a tax audit:

You earned a lot of money.
You aren't reporting cryptocurrency.
You are self-employed.
You failed to report taxable income.
You made typos or a math error.
You have three consecutive years of business losses.
You use round numbers.
You deduct 100 percent of a business car.
Something doesn't add up.

Remember that audits are rare, and good record keeping will help you endure the audit process. If the time comes an experienced Tax Accountant will stand by your side on an I.R.S audit. Mike McVay, Tax Accountant 850-725-5696 - Mike@MikeMcVay.com

5 Tips On How To Best Manage Your Finances If You’re Self-Employed - S-Corp or LLC

What is Bookkeeping? And Why Is It So Important?

What is a BPO for your business? Business Process Officer.......

Stop Stressing over your Business Bookkeeping - We do it all at a great price !

What is an IRS audit? How to be prepared and how an experienced business Accountant can lower your chances of an I.R.S Audit. - Why Turbo Tax has the greatest I.R.S Audits.

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