How Is Accounting Beneficial For Your Business?

Accounting is data science. It’s used to gather and coordinate vital financial information for people and businesses. Tax preparation is also highly detailed and focuses on analyzing, gathering, and arranging data. These practices are money-minded: naturally, they’re (highly serious) games of numbers and operate through facts, not assumptions. Accounting ultimately helps businesses operate at their best.

These fields are extremely specialized and fluctuate for practically each and every piece of legislation in the country. When it comes to accounting, one needs to be highly skilled and knowledgeable to serve businesses best. Our valuable team is delivering the most sophisticated and personalized tax accounting services.

At Guber & Company, our motive is to grow your business by providing superior quality services including GST Audits, income tax returns, company registrations, tally accounting, and much more. Our team of professionals believes in examining and taking advantage of every last tax deduction.

Is accounting really necessary?

There’s a lot that a good accounting firm can help you determine: specific inventory values, available options to sell, amounts expended to deliver items, and how much cash a business should and shouldn’t spend at any given time. Additionally, a business owner would do well to gain knowledge of their own individual accounting records with expert help.

If someone were to slip up in regard to how much comes in and what amount goes out, they may be in deep trouble before long. The best accounting firms help companies and people deeply understand their accounts and settle on choices about what’s to come. A good firm will additionally assist you with learning from the past to make better financial moves in the present and future.

Why your business needs tax experts

Proper tax preparation assists you in deciding how to run your business at its maximum efficiency and profitability. It also keeps you in the loop about issues to look out for and can even inspire thoughts or actionable steps for changing and growing your organization over time. This way, you can prevent problems before they occur and, of course, remain in the black. Choosing a CPA firm in Philadelphia is a wise choice for your business, but planning to improve a company may also rely upon:

  • Up-to-date and in-demand technical skills
  • Having a growth mindset (this includes members of your team)
  • A willingness for some sacrifice in order to achieve goals

As a new proprietor, you should hold yourself accountable to dominate these abilities and strategies to the best of your ability. It’s highly important to recognize your reasons, needs, and desires regarding why you choose to possess your own business in the first place. Some reasons may be more motivating than others, but none are wrong. However, know that a CEO lifestyle entails some compromises. For instance, while you may be able to “escape” a typical 9 to 5, you might still find yourself working many hours and needing to implement some strategies for better work-life balance.

A thorough self-examination is warranted prior to starting any business venture. Get to know your strengths and weaknesses and do everything you can to maximize your abilities as well as improve areas in which you struggle. Remember that although it may slightly depend on your industry, it’s advisable for your oral and written communication skills to be highly developed. On a similar note, take advice only from the right people who have the experience and/or qualities you desire. Following are some questions you may want to ask yourself if you want to be a great business owner or continue on the path to success:

  • Do you have the endurance to deal with a strict timetable and a great deal of responsibility?
  • Do you have savings in place, allowing you or your family to take on some level of risk?
  • Do you know if all your bills can be paid on time every month during the start-up phase?
  • Are you financially in place to lose some funds in the chance that your arrangement does not go as planned?

To find these answers and deal with these realities in a proactive way, it is highly advised to hire professionals. This is key whether you’re a window washer with a bucket and a wipe or a producer with numerous workers and a multi-million-dollar corporation. Obtaining tax planning services tends to be essential for all businesses, big or small. A CEO should always think long term—so why wouldn’t he or she hire professionals that can handle taxes quickly and intelligently? This decision saves money over time and steers your company in the right direction.

As a business owner, there are some hurdles you should watch out for, especially in the beginning phases. A failure to recognise seasonal patterns, excessive money taken from the business for everyday costs, and growing too quickly without effective systems in place are common mistakes that can be easily avoided, especially with professionals on your side.

If you have considered all the points above and remained steadfast in your drive to continue your venture, you are surely ready to move onto the next step. Hiring an accounting firm in Philadelphia is the smart choice for you to manage risk effectively and maintain peace of mind with regard to all your finances.

Is Blockchain the Future of Accounting?

Industry developments continuously usher in new paradigms and change how business is led, from paper to PCs to the cloud. The accounting profession and tax services have stood the test of time, remaining vital to ensure that business finances are sound. After all, without solid methods to evaluate all financial and tax data thoroughly, a business is not built to succeed. 

Organizations have begun utilizing another option in recent years, a growing innovation called blockchain. For those of you that know a bit about blockchain or at least heard about it, you may have heard some of the associated buzzwords, such as mining, hash, and encryption, among others. Some people outside the industry may even assume that miners are those individuals who maliciously target cloud services.

What is blockchain and how is it beneficial for accountants?

To obtain a grasp on blockchain, consider a rock climber scaling the side of a mountain. Each move the climber makes is carefully determined, and they know that their whole existence hinges on their next move of sticking their pick again perfectly—in other words, clarity and organization is of the utmost importance to maximize efficiency and stay the course.

In a similar fashion, blockchain shows its worth as a game-changing tool to help organizations increment their processes and maximize cost efficiency. With blockchain, each block of information contains timestamps and other key information about the block before it. These blocks build on each other, forming—you guessed it—a chain of information. The information in any given block can’t be changed without altering the remainder of the chain. That’s why this system not only helps to maintain a flawless financial record, but helps accountants transfer assets in a manner that is virtually impervious to fraud and other digital dangers, at least as we know them today. 

Until very recently, modern accounting technologies were replacing older, paper versions rather than creating entirely new systems. Blockchain, by contrast, is something completely different and industry-disrupting. In addition to the aforementioned security benefits, blockchains also show proof that each piece of value was only transferred a single time.

The accounting trendsetter to rule them all

Seeing potential for innovation with various technologies, numerous organizations have taken to creating apps for virtually all financial tasks, including following stock trends, buying and trading, or shopping for anything and everything online. But instead of following dozens of random industry trends, oftentimes into oblivion, imagine a scenario in which blockchain innovation could be utilized everywhere to maintain the financial data of practically any organization that needs the ironclad security.

Enron and Worldcom are two infamous organizations that collectively caused $250 billion of financial misfortune. These megadisasters resulted from the executives’ choices to falsely control the monetary data being given to investors. Of course, they performed their deception to arrive at their profit targets and reap the rewards, never foreseeing the catastrophes ahead.

These well-known cheats were obviously the most gigantic in history, but misrepresentations of this nature do happen in all sizes. The temptation to alter records still influences financial backers big and small. This is why the SEC has settled billions of dollars of fines for mistakes and misrepresentation.

Role of Quickbooks to handle business accounts

Apart from all this, QuickBooks is a popular accounting software that has exploded in recent years. People still believe in getting Quickbooks services to manage all their financial transactions. Entrepreneurs believe in this software, as it has effective features for handling business transactions. However, it remains to be seen if Quickbooks can keep up with the ever-changing global financial landscape.  

The use of ERP systems 

Enormous organizations use ERP frameworks that total information and accounting data as it streams onto the organization’s books. This meticulous process is fundamental to observing and streamlining how organizations adapt. 

Proper accounting rules in business to shield financial backers’ inclinations is crucial. Choosing an accounting firm for small business is the best way to adjust to a steadily changing universe of goods and products. Something to keep in mind is that as organizations ceaselessly adjust current frameworks, inevitably they will always linger behind the tireless pace of technological advancement and the never-ending updates that ensue. 

In the past, numerous organizations could perceive an offer of income each time a deal is made. Now, programming organizations can’t necessarily always pick up, or keep up with, all the income in the event of a buy. For example, if a software company were to offer an item to a client that incorporates three updates over its life expectancy, there will be four instances of income acquired: once when the base item is downloaded by the client, and one each subsequent time an update is delivered. 

This expanded unpredictability of income perception has begun to run rampant and result in financially perilous dilemmas. An ERP framework can hold information, but the information requires substantially more exertion for an evaluator to work and to confirm. The best system would undoubtedly change an auditor’s role from investing tons of energy confirming exchanges to staying on top of every bit of key data—that is, moving from a place of reactivity to one of proactivity. However, without blockchain, they don’t yet have an approach to attach the entirety of their monetary information to confirmed exchanges. 

Executives still operating under traditional systems would do well to examine their decisions and assessments with auditors to guarantee that everyone holds fast to proper accounting rules. After an auditor nails down a transaction or their decision is composed into a smart contract, they can execute their treatment across all exchanges with no human intercession.

We can imagine a future where organizations can snap their fingers and keep safe and flawless fiscal reports continuously and with integrity—a future where the line among tech and money is obscured and where auditors are accountants as well as analytical pioneers. We can likewise see a future where an accountant in Philadelphia and other major metropolitan areas can be the hero through the use of blockchain innovation.

What Do Tax Accounting Services Provide?

The need for flawless financial statements has only increased in recent years. Tax accounting services include professionals who manage payments, expenditures, and tax procedures. These critical records can form a basis for future business decisions and analysis.

Tax accounting services are crucial for small- and medium-sized businesses to make the best possible use of their available resources. The constant availability, accurate analyses, and smart business recommendations from skilled tax consultants can provide excellent support so that business owners can pay attention to the many other demanding aspects of running a business. Auditing can help to prevent potentially harmful losses that can be a huge detriment for a new business.

Why should businesses hire tax accounting services?

The basic purpose of hiring an accountant is to have a competent financial advisor on hand. There are a lot of people linked to a small business including various stakeholders, owners, and administrators. Taking any kind of loophole in tax management can result in serious legal consequences that can cause great financial loss, not to mention the stress-related toll of such a situation.
Seeking the best Accounting Firm for Small Business can be difficult. Tax accounting is a skilled job that requires a good deal of education, training, and experience to educate and assist other business professionals. There are countless benefits of tax accountant services, some of which are listed below.

● Accurate tax payments:

Tax management, payment supervision, and reports on income and expenditure can be difficult and tedious to maintain by someone without the required experience. There are plenty of opportunities for errors both small and large. Professional tax accounts can ensure accuracy in this critical work.

● Accounting for required deductions:

Business owners know that it is incredibly important to cut down expenditure and work on required deductions in order to improve profit ratio. Tax accounts are trained to analyze reports and recommend important deductions that enable money-saving alternatives. They also put a hold on unnecessary spending and services that consume a lot of the business’s money.

● Timely filing of annual records:

According to legal provisions, every small- and large-scale business is required to file annual dealings, expenditures, income, and tax record statements to the government. The tax accountant makes sure that the annual records are filed on time or, preferably, early.

● Utilization of advanced software:

There is modern software for tax accounting purposes, but most business owners only have access to normal software. A qualified tax accountant can utilize advanced software that can prepare timely, accurate, and beneficial accounting records.

● Action plan recommendations for businesses:

Tax accountants also devise relevant plans and proposals for the further prosperity and success of businesses. They use reliable and valid data to design and formulate successful business plans.

Beneficial Tips for Finding a Tax Accountant

According to reports, nearly ⅓ of businesses hire professional tax accountants, but approximately 80% of those businesses never ask the tax accountants about their credentials. Hiring properly qualified tax accountant services can be challenging. Here are 7 tips to finding a reputable tax accountant:

1.Ask For References: A good way to find a reputable tax accountant is to ask for references among your business groups. Your partners, contacts, or other connections can give valuable suggestions for a tax accountant in your field. The benefit of references is trust in their services and transparent reviews that can be useful for a better decision.

2.  Search Local Services: The advantage of hiring local tax accounting firms is their competence to manage local laws as well as a better general understanding of the area. Search for skilled local tax accountants for personalized service with respect to a particular region. Local firms will be more precise in handling local companies. They can also give helpful networking recommendations.

3.  Arrange a Prior Meeting: The work of quality tax accountants is essential for nearly any business, so it is good to choose an apt accounting firm that will ensure accuracy and professionalism. It is always a good idea to go and have a formal in-person or virtual meeting with a tax accountant before finalizing or hiring them. You can get an idea of whether they are eligible to manage your business’s finances and whether you will be able to harmonize with them in the future.

4. Ask Questions and Have Discussions: You can ask some of your important questions and talk with a prospective tax accountant service before employing their services. You can feel free to share your requirements and basic details about your resources in order to determine if the accounting firm will be a good fit. Along with that, get an idea of their services, experience, fees, time requirements, and work style before making your decision.

5. Be Willing to Switch: There may be a frustrating occasion where you make a wrong decision at some point in your analysis or choice of a tax accounting service. However, this can be fixed. There is no need to stick with inaccurate services for long, stressful periods of time. You can always choose to move ahead and just hire a different service. This wrong turn can even give you a dose of wisdom that ultimately aids the future of your business.

6. Compare Fees and Services: An important component of making your decision for tax accounting services is comparing fees and ranges of services. When you make these comparisons, you get a better understanding of the best deals and can confidently make an educated decision.

7.Analyze their Experience: A competent, if not exemplary, level of experience in the field of accounting is a necessary asset of a reputable tax accountant. It is important to look at experience and check reviews on work and services to avoid problems. Try to look into their experiences and get an idea of whether their experience matches your work needs.

If you utilize these 7 important tips to find a reputable tax accountant Philadelphia, then Guber and Company, CPA will likely land right at the top of your list. Call us at 215-876-9800 to schedule a consultation.

It is Still Time to Withdraw from your 401(k) without penalty!

The Coronavirus Aid, Relief, and Economic Security (CARES) Act allows withdrawal up to $100,000 from certain retirement plans without 10% early distribution penalty. Distribution should be made by December 30, 2020.

To find out whether you qualify, and how to plan your income in 2020 and succeeding years using this distribution, please contact Eileen Guber, CPA at (215) 876-9800.

HAD NET OPERATING LOSSES IN 2020?

YOU CAN CARRY THEM BACK AND GET REFUND OF YOUR TAXES FROM PRIOR YEARS!

Under The Coronavirus Aid, Relief, and Economic Security (CARES) Act Net Operating Losses (NOLs) for tax years 2018-2020 are required to be carried back five years. NOLs can fully offset taxable income, not just 80% as under the TCJA.

There are two options for filing NOL carryback claims: Form 1045 and amended return form 1040X. Taxpayer may elect to forgo carryback back period and carry losses forward instead.

To discuss which solution will be more beneficial to you and to your business, please contact Eileen Guber, CPA at (215) 876-9800.

Want to Escape being Audited?

Have your business operate as an S-corporation or a partnership!

The IRS continues to struggle to audit S-corp and partnership returns. This situation is likely to get worse as the more experienced IRS business auditors continue to retire. Audit rates for S corps and partnerships are both 0.22 percent — or, put another way, one in every 455 passthrough entities were examined in 2018. It is no wonder that the number of S corporations have increased by 38 percent from 2005 to 2018 (3.5 million in 2005 versus 4.85 million in 2018).

IRS Confirms Tax break For Large Gifts

The Tax Cuts and Jobs Act temporarily increased the basic exclusion amount for gifts (BEA) from $5 million to $10 million for tax years 2018 through 2025, with both dollar amounts adjusted for inflation. For 2019, the inflation-adjusted BEA is $11.4 million. In 2026, the BEA will revert back to the 2017 level of $5 million, as adjusted for inflation.

On November 22, 2019 IRS issued Final Regulations that individuals who take advantage of the increased gift and estate tax exclusion amounts in effect from 2018 to 2025 won’t be penalized after year 2025. They will be allowed to use higher of BEA applicable to the period the gifts were made in.

Tax Accountants Who Make A Difference

Before you look further, it’s important to consider a business in total, including its history, its services, and its reputation. The position of business helps make a decision regarding its future potential and current trajectory.

Truth is, there are multiple outsourcing firms that handle accounting and tax-related services in the market. Sometimes, it’s very difficult for a businessman to figure out the best one. Fortunately, Guber & Company is at the top. As the most recommended and certified public accountant and business adviser in Pennsylvania, Guber & Company know what to do and how to do it. We handle accounting and tax filing for individuals, small and medium businesses, and large-sized enterprises and corporations of multiple sectors and government entities across the Philadelphia area.

Tax Accountants Who Make A Difference

Guber & Company provides the Tax Services Philadelphia trusts. This includes a wide range of services to individual and business clients. Our professionals are well experienced, and highly knowledgeable, and provide personalized quality service for every client.

Bottom line: we provide smart planning and strategies according to every client’s personal or business accounting, tax, and financial circumstances. We offer a full range of services that ensure a positive direction for your financial future.

Without professional accounting and bookkeeping services, the financial future of your business is at risk. At Guber & Company, we handle payroll, bookkeeping, and small business accounting. Our business incorporation services are top-notch. Because every sector of industry demands a different set of skills and requirements, we cater. For example, a manufacturing company complies with different standards than an HVAC company.

Our professionals will work hard to save your money. Through our expertise and experience, we can facilitate maximum tax refunds adherent to our clients’ financial obligations. We are the Tax Accountant Bucks County leans on. Our experts use their in-depth understanding of the complex code of laws to guide clients through the tax process. We save you time and money, as well as ensuring legal compliances. We ensure you that your financial future is bright, safe and secure.

You can get our free advice and support at any time, reminding you of all pertinent deadlines and notifications. Avoid penalties and remain fully compliant. If you require an urgent service and consultation, we will assist.

Please Contact Today

Trump Tax Law and Millennials

Concerning the recent Tax Cuts and Jobs Act (TCJA, 2017),  74 % of  millennials  indicated  that they  have a little knowledge  about it:  33 percent admit to knowing only “a little”; 29 percent claim to have “some” knowledge and how it will impact them; and 12 percent claim they know “a lot” about the TCJA. If you want to know how you and your business can benefit from Trump Tax Law, contact Eileen Guber, CPA at (215) 876-9800.

Workers prefer benefits over more pay

The American Institute of CPAs released the results of its “2018 Employee Benefit Report” this week, which polled 2,026 U.S. adults (1,115 of whom are employed) about their views on workplace benefits. The report found that   80% of workers would choose a job with benefits over an identical job that offered 30 percent more salary with no benefits.

Employed adults estimated that their benefits represented 40 percent of their total compensation package, according to the study. The Bureau of Labor Statistics, though, states that benefits average 31.7 percent of a compensation package. Still, workers in the report see benefits as a vital part of their professional lives.

Don’t give up on year-end planning

It is not Dec. 31 yet, so while it’s time to start thinking about the filing process, it’s not too late for some last-minute adjustments. There are plenty of collections of suggestions for year-end strategies; here are just a few.

To start, don’t forget the usual tax-loss harvesting and maximizing contributions to 401(k) plans and other retirement and savings accounts.
And then there are plenty of parts of the TCJA to dig into, like planning around the new standard deduction.  Should you want to know more and to use the services of the professional for reduction of your taxes, contact Eileen   Guber, CPA at (215) 876-9800.