PENSACOLAFLTAX.COM
  • Home
  • QuickBooks Accounting
    • Payroll Processing
    • Accounting
    • Bookkeeping
    • QuickBooks Services >
      • QuickBooks Set-up
      • QuickBooks Training
      • QuickBooks Tune-up
      • QuickBooks Hybrid Bookkeeping
    • CFO Services
    • Non-Profit Organizations
    • Security
  • Income Tax Services
    • Virtual Remote Tax Service
    • Business Tax
    • Personal Tax
    • IRS payments and Problem Resolution
  • Blog
  • Contact
  • New Business Formation
  • Q&A
  • Home
  • QuickBooks Accounting
    • Payroll Processing
    • Accounting
    • Bookkeeping
    • QuickBooks Services >
      • QuickBooks Set-up
      • QuickBooks Training
      • QuickBooks Tune-up
      • QuickBooks Hybrid Bookkeeping
    • CFO Services
    • Non-Profit Organizations
    • Security
  • Income Tax Services
    • Virtual Remote Tax Service
    • Business Tax
    • Personal Tax
    • IRS payments and Problem Resolution
  • Blog
  • Contact
  • New Business Formation
  • Q&A
Search by typing & pressing enter

YOUR CART

10/13/2016

Don't Let Bookkeeping Mistakes Result In Overpaid Taxes

There is not a company anywhere that wants to pay more tax than they legally have to. That is why it is so important to make sure that bookkeeping mistakes are not resulting in overpaid taxes. Not just income taxes but sales taxes, payroll taxes and any other state or local tax that relies on your financial information can be overpaid if the data is not correct. This can total up to a great deal of money. 

The one deterrent to overpaid taxes is to have a highly trained bookkeeper. Small business can sometimes have a bookkeeper that is not fully trained. There are a number of reasons this happens. When small businesses first get started they may not think they need bookkeeping help. This means that the owner or the office manager may well be doing the accounting along with their other jobs. This puts additional work on someone who already has a full time job. 

Some of the most common problem areas are:

Payroll reporting can be a problem if the bookkeeper does not understand how to enter the data correctly. The gross wages need to be on the income statement not the net paid out. Often this is missed when a non-trained person handles the books.

Fixed assets need to be properly recorded. Depreciation is only correct if the asset has not been expensed in error.  

Balance sheet accounts need to be reconciled monthly. By year end it takes a lot of work to go back through twelve months to find out a double posting was made or that the cash account has not been reconciled. Duplicate entries will throw tax calculations off.

Untrained bookkeepers often do not understand how an entry can cause so much time and trouble. Trained bookkeepers know that a prior year adjustment is not something to consider lightly. These kinds of changes can cause  major tax problems and are not easy to find and fix.

Bookkeeping mistakes can really bring on the penalties and interest when dealing with sales tax. Knowing who to collect sales tax from and who to pay it to is what a trained bookkeeper can do without generating fines and interest. 


One of the best things a business can do to keep their taxes correct is to have a trained bookkeeper or a bookkeeping service. Mike McVay, Tax Accountant 850-725-5696 Pensacola Florida Tax 

    Mike McVay, Tax Accountant Blog
    Certified ​QuickBooks ProAdvisor & Licensed Tax Accountant Pensacola, FL

    Best Price
    ​No Compromise

    Picture

    Author

    Mike McVay, Accountant Experienced IRS Tax Resolution Specialist
    With over 20-years experience working with individuals, families & small business owners. McVay has long term knowledge in taxation to help with their income tax, I.R.S tax issues and businesses management.
    850-725-5696​
    Mike@MikeMcVay.com

    Book An Appointment

    Archives

    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    August 2015
    July 2015
    February 2015
    January 2015
    December 2014
    November 2014

    Categories

    All

 ©2022 this website and all of its sub domains are owned and operated by
​McVay Consulting Services Inc. dba McVay Business Services
All Rights Reserved · Privacy Policy in place.
Pensacola Tax Services, Payroll, Accounting & QuickBooks Services
​
Mike@MikeMcVay.com

​850-725-5696

5336 N. Blue Angel Parkway
Pensacola, FL 32526


Client Portal Login

Subscribe to our newsletter