Accountant in Miami

Accountant in Miami Introducing QuickBooks, 10

Accountants in Miami Getting around in QuickBooks

Finding information to help you get started, 13 Managing your open windows

• Using the menu bar
• Using the icon bar
• Using the navigation bar
• Making the Home page your starting point
• Using the workflow diagram
• Making the Home page work for you

All the Accounting in Miami you need to know

• Your chart of accounts
• About assets, liabilities, and equity
• Assets
• Liabilities
• Equity

Accountants in Miami – Topics

• Cash versus accrual bookkeeping
• Cash basis
• Accrual basis
• How your bookkeeping method affects QuickBooks
• Measuring business profitability
• The balance sheet
  The profit and loss statement
• The statement of cash flows
• Looking at the journal entries for transactions
• Exiting QuickBooks
  Moving between company files

Accounting in Miami Lesson objectives

• To gain an overview of the course and the topics to be covered
• To know how QuickBooks works and how you can get around in QuickBooks
• To learn common business terms used by QuickBooks
• To see how to exit QuickBooks

ACCOUNTING MIAMI COURSE INTRODUCTION

This course by Accounting Miami CPA is an introduction to QuickBooks. Its main objective is to introduce you to the basic features in QuickBooks and give you an opportunity for hands-on practice. You’ll learn about the types of information you need to track in your business, and you’ll see how to enter that information and track it in QuickBooks. By the time you complete the course, you’ll have a good idea of all that QuickBooks offers, you’ll be familiar with the most common tasks, and you’ll know where to find information about more advanced features.

Accountant in Miami Introduces QuickBooks

Although most small business owners are worried about revenue, running a business involves a lot of other tasks. Depending on the type of business, you need to invoice customers, record payments from customers, pay your own bills to outside vendors, manage inventory, and analyze your financial data to see where you need to focus your next efforts. QuickBooks is a tool you can use to automate the tasks you’re already performing as a business owner or to set up a new business.

When you’re working in QuickBooks, you’ll spend most of your time using a form, a list, or a register. Since these are so basic to QuickBooks, we’re going to spend a few minutes introducing them.

Using forms

You record most of your daily business transactions on a QuickBooks form, which looks just like a paper form. Here’s an example of the form you use when you want to record a bill from and write a check to one of your vendors.

The form is intuitive—you already know how to fill out a form. But after you provide the information on a QuickBooks form, QuickBooks does the accounting for you in the background. For example, when you record a bill and then write a check (using the Pay Bills window) to pay for the business expense, QuickBooks enters transactions in your accounts payable register to show the expense you incurred and the payment you made. (Accounts payable is the money owed by your business to vendors.) It also records the check in your checking account, keeping your records up to date, and providing a running balance of what you owe at any time.

Using lists

The list is another basic QuickBooks feature. You fill out most QuickBooks forms by selecting entries from a list.

QuickBooks has lists where you can store information about customers, vendors, employees, items or services you sell, and so on. Lists save you time and help you enter information consistently and correctly.

When you’re filling out an invoice form and you select a customer name from the Customer:Job list, QuickBooks not only fills in the name but also fills in the address, the payment terms, and the customer’s sales tax, based on the information previously entered about that customer.

Here’s an example of the Customers & Jobs list in the Customer Center.

QuickBooks lets you complete a variety of activities from lists, using the menu buttons located at the top of each list. For example, to fill out an invoice for a customer, first select the customer from the Customers & Jobs list, and then choose Invoices from the New Transactions menu buttons.

Using registers

In addition to forms and lists, you’ll also work with registers in QuickBooks. Just as you use your paper checkbook register to see a record of all the transactions in your checking account—checks you’ve written, other withdrawals you’ve made from your account, and deposits—a QuickBooks register contains a record of all the activity in one account. Almost every QuickBooks account has its own register.

Accountants in Miami example of the register for an accounts receivable account.

The register shows information about invoices written to customers—the date of the invoice, the date it’s due, the name of the customer, and the amount. It also shows payments you’ve received against your invoices. The right column of the register gives you a running balance of all your accounts receivable, so you always know how much you’re owed.

Accounting in Miami Getting around in QuickBooks

QuickBooks maximizes your work space and gives you quick access to the features and reports that you use most. In this section you’ll learn how to do the following:

• Find information to help you get started using QuickBooks
• Manage your open windows
• Compare windows side by side
• Customize navigation features

Download lesson….click link below

QuickBooks Lesson 1 – The Basics

Bookkeeping Services in Miami remind business owners who often look for ways to bootstrap or ask employees to go above and beyond. But overlooking overtime could land you in a heap of trouble, according to Bookkeeper Miami VieraCPA.

Bookkeeping Services in Miami

Bookkeeper Miami VieraCPA notes this is the age of expensive equity and debt financing for startup entrepreneurs and small-business owners. The prudent way for business owners to weather this storm is to stretch their company’s cash flow and operating assets in clever, cost-effective ways according to their Bookkeeping Services in Miami. Employee compensation is no exception.

According Bookkeeping Services Miami VieraCPA the problem with bootstrapping compensation to employees is that it’s easy for business owners to fall out of compliance with federal and state payroll regulations. One of the most common areas of oversight is the failure to pay overtime wages to certain types of employees.

Bookkeeper Miami – Plan ahead to avoid payroll surprise

Bookkeeping Services in Miami class employees as either “exempt” or “nonexempt” when it comes to receiving overtime pay for working above 40 hours in a single workweek. Nonexempt employees are generally non-salaried employees who have no direct managerial oversight of other employees or the discretion to make decisions on matters of significance to the organization. The minimum pay rate for overtime is 1.5 times regular pay.

Here’s the gotcha that often catches business owners off guard. Even if an eager, extra-hardworking nonexempt employee wants to work longer hours without pay, a company is still liable for the cash obligation. Former employees who later leave a company on unfriendly terms can seek overtime back pay and cause a nightmare of audit activity from payroll tax authorities.

To minimize payroll surprises, Bookkeeping Services Miami advise business owners to take care to classify their workers according to definitions of exempt and nonexempt employees under the Fair Labor Standards Act. The definitions are not always clear-cut. Some types of administrative, customer service, engineering, marketing and website workers may be entitled to overtime pay while others may not.

Closing overtime loopholes

Under the Fair Labor Standards Act, Bookkeeper Miami VieraCPA advises business owners they can no longer simply give employees an impressive job title or put them “on salary” to avoid overtime pay obligations. Now, to qualify as an “exempt” employee, all of the Department of Labor’s qualifications for a specific type of job must be met. Key classification descriptions are available for software, administrative, professional and other jobs at the Department of Labor’s website.

Bookkeeping Services in Miami is frequently asked by cash-poor startup entrepreneurs or business owners seeking to turn around struggling operations if they can use common stock or stock options to sidestep minimum wage or overtime pay obligations. They argue that the stock is a form of compensation that may, over time, be worth far more than current cash payments.

That’s true, but if the Department of Labor or local payroll tax authorities find out about the non-cash payment, the business owner will still be held accountable for minimum wage and overtime payments to nonexempt employees. Further, officers and board members of companies can be personally liable for unpaid payroll tax obligations if a company is unable to meet its tax obligations.

Bookkeeping Services Miami notes one last payroll documentation management tip. The Fair Labor Standards Act requires employers to keep payroll and other records for nonexempt employees for three years. The IRS requires employers to keep employment-related tax records for four years.

Accounting Services in Miami VieraCPA want you to think about a recent purchase. It could be as simple as a pair of jeans or as exciting as a car. Did you care what effort went into making the item…

How much labor went into growing the cotton or making the steel? How elaborate were the distribution channels, or how much mental energy went into the marketing campaigns? No, of course not! What you cared about was how much value you placed on owning the item compared to the price it took to acquire it and Accounting Services Miami Flat Fee Business Model uses the same approach to it’s services. If the value (in your mind) equaled or exceeded the price, then you were happy to make the purchase!

Accounting Services in Miami

Miami Accounting Service VieraCPA points out that what you have just experienced is an illustration of the difference between effort based pricing and value based pricing. The hours, energy, and other expenses of production didn’t drive your acceptance of a “fair” price. Accounting Services in Miami VieraCPA and the client are the judges of the fairness of the price and your willingness to pay it was governed by your perception of the product’s value. Given the choice, clients will respond to pricing of Accounting Services Miami in just the same way.

Goals: Increase Revenue and improve profitability

Accounting Services Miami

Miami Accounting Service VieraCPA is first and foremost a business. And, like any business, it must grow and prosper in order to service clients, provide a career for employees, and a financial reward for the owners. Properly managing the Accounting Services in Miami firm means continually seeking ways to increase revenues and improve profitability. Pricing strategies must be designed to support these goals. One critical question firms must address is: which pricing strategy best supports growth and profitability? Is it a traditional effort based pricing structure which computes rates times hours? Or, is a better strategy based upon the client’s perception of value and willingness to pay a set price for it? In order to avoid competing on price for commoditized services in the face of a wider array of competitors, more and more firms are evaluating value pricing as a model for the future.

It’s not the goal of this article to justify the reasons for adopting a value pricing strategy or even to outline the specific steps to get started. That requires a more in-depth treatment of the topic than a brief article can provide. If you wish to explore the reasons and methods, please review

Keys to Success in Value Pricing and How to Manage Them

Virtually every Accounting Services Miami firm uses some form of time and billing software to track time and expenses. Traditionally, this has been used for billing purposes. The problem is, these kinds of “back-office” systems are typically disconnected from “front-office” engagement delivery and client management systems. This unnatural divide makes it hard to see the current margin on in-process engagements– work must be completed and “in the books” before final margin is known. While hindsight may be okay for hourly billing, value pricing requires more visibility & better control over work-in-process.

As you move to value pricing, this typically means a practice-management approach that connects front-office engagement delivery with back-office financial control. Key capabilities to look for include integration among multiple modules, which allow data sharing and all-around visibility for reporting. Capabilities like staff scheduling and job tracking for workflow control will make your management tasks easier. Some of the ways in which you can use your Practice Management solution to assist you in value pricing are outlined next.

Communications. In order to be successful in value pricing your Miami Accounting Service services, you must have frequent and meaningful communications with your client. The client will tell you what he or she needs, but you must be listening and monitoring all the communications which go on between your firm, your staff, and the client’s business staff. A good Client Relationship Management (CRM) program is a must to monitor these contacts. Some firms will invest in a stand-alone product such as Microsoft CRM, while others will opt for one integrated into the Practice Management system. Either way, you will need a method of tracking all the emails, phone calls, and other conversations that any member of your firm has with any member of the client’s business. Mining those conversations may well reveal a need that you are well positioned to address.

Accurate Estimating. One of the frequently voiced objections to a value pricing strategy is the fear of underestimating the cost of the work, and thus reducing the profit from the job. Here again your Practice Management system should provide the answer. Assuming you have done some similar job in the past, either for this client or another, the ability to analyze data from across the firm and draw meaningful reports will give you the information you need to set the appropriate price.

Disciplined Costing. One of the robust topics of discussion regarding value pricing is whether or not to keep timesheets. Some thought leaders and firms advocate doing away with them, since you have established the billing price through negotiation. Others argue for keeping them and recording time for cost accounting purposes. For those who opt to keep track of time on the job, your Practice Management software is designed to do just that.

Effective Control. Once the job is underway you will need a means of tracking progress, ensuring that the right resources are committed to the job, and that milestones are being met. Remember that it is important to use Change Orders to adjust the agreed upon price if additional work is added to the scope. Accounting Services in Miami use a variety of workflow tracking and resource allocation programs to accomplish these tasks, but you may find them available in your Practice Management software. Seamless integration between these workflow monitoring tasks, time entry for cost accounting, and staff availability will ease the burden of keeping your work on schedule, on time and on budget.

Efficient Invoicing. A properly written Value Pricing Agreement (your engagement letter for a value priced engagement) will specify the terms for payment. If the service is ongoing it’s common to use monthly or quarterly billing, or progress billing if the engagement is of shorter duration but still complex. Any good time and billing system will handle these tasks, but a far better solution is one that is fully integrated with your general ledger accounting. A system which will seamlessly issue invoices, post them to client records, accept payments using paperless electronic banking, and update your financials all while tracking the effort expended for cost accounting purposes will reduce your back office work and improve your profitability!

Obstacles to Overcome

There will inevitably be obstacles to overcome in shifting to a value pricing strategy. Some of them are real while others mostly perceived. Some may come from your clients, but many more will be voiced by reluctant factions within your own firm. Some will claim that you’ll be unable to price the job accurately, while others will highlight the risk of “scope creep” – more work added while the job is in progress. Or, they like the level of control they believe they get from closely managing hours billed. We have already examined many of these obstacles and how a fully integrated Practice Management solution can help overcome them.

A final challenge will likely be simple reluctance to change. Clients will often be the first to get on board because they see the value in knowing the costs and benefits of your service. It is a function of leadership to ensure that partners, managers, and staff within the firm buy in and support the value pricing strategy. Good leaders don’t let foot-draggers keep the firm from making progress.

Next Steps

Hopefully by now you have decided that at least some applications of value pricing might be good for your Accounting Services Miami firm and may be wondering if you are properly positioned to give it a try. What steps should you take now to get started?

A good starting place would be to review your management support software. Consider, for example:

Do you have the ability to accurately plan a value priced engagement?

Do you have full visibility into past client contacts, staff availability, and data analytics which will help you accurately forecast the cost of an engagement?

Do you have sufficient workflow control measures which will allow you to track progress and identify early if you are behind schedule or over budget.

Do you have seamless integration between invoicing, collection, and financial reporting?

Do you have the ability to produce clear and concise management reports that will aid in partner level decision making?

None of these items by themselves will ensure a successful entry into value pricing, but trying to do it without them will make the project much harder than it needs to be.

Getting started on value pricing probably sounds like a big step, and it is. But, if you want to raise revenues, improve profitability, and avoid the trap of competing on price consider another of the industry-leading firms who have joined the value pricing movement.

Miami CPAs VieraCPA reflect on the Tax Code and how it has contributed to rising income inequality in recent decades as middle- and lower-income Americans have seen their incomes stagnate while the wealthiest have experienced staggering income growth, according to CPA Firm in Miami VieraCPA.

CPA Firm in Miami VieraCPA

Miami CPA Firm VieraCPA reports from the Miami CPAs headquarters in Palmetto Bay Florida, argues that deficit-financed tax cuts do not spur economic growth. Those who have received the largest income gains in the past three decades have also seen the largest tax cuts.

Since the last major tax reform in 1986, the number of loopholes, special preferences and the volume of the Tax Code have ballooned, resulting in a system widely considered to be inefficient, complex, and unfair, as well as an impediment to growth, CPA Firm in Miami VieraCPA noted.

“Drawing a page from successful prior reform efforts, Miami CPA Firm advocates of comprehensive tax reform generally urge that we broaden the base and lower rates,” said the report. “However, the current economic context for tax reform is far more challenging than it was in 1986. Most immediately, the economy is still in the midst of a slow recovery with an unemployment rate that remains too high. Even with robust rates of job growth, it will take years to close the jobs gap. An important role of fiscal policy in the near term is to support recovery in the labor market.”

Miami CPAs

Miami CPAs acknowledge that while a larger number of families do not pay federal income taxes nowadays, it took issue with the idea that these households do not pay any form of taxes, as many suggest. “In fact, most Americans pay more in payroll taxes than in income taxes,” said CPA Firm in Miami VieraCPA.

“Those who pay no federal taxes—on payroll or income—are disproportionately young (such as students who will pay taxes after they join the workforce) or old (such as retirees who paid taxes over their lifetimes), or temporarily out of work.”

Miami CPA Firm VieraCPA argues that cutting individual income tax rates would modestly increase the earnings of the typical American family, but substantially increase the federal budget deficit.

Besides its single level of taxation as a pass through entity, Accountants in Miami remind clients that the advantage of an S corporation over a C corporation is that a shareholder’s share of the corporation’s net income is not considered self-employment earnings and therefore is not subject to self-employment tax (13.3% in 2011 and 2012). Accountant in Miami VieraCPA notes the stark contrast to that of a general partner, LLC member, or sole proprietor, for whom net earnings from self-employment include any trade or business income and a partner’s distributive share of income from a trade or business carried on by the partnership according to CPA Firm in Miami, Gustavo A Viera.

Accountant in Miami

However, if the S corporation shareholder (let’s say an Accountant in Miami) provides services to the S corporation, he or she must receive an adequate or reasonable amount of compensation for these services. The S corporation may deduct the compensation expense and must pay the employer share of employment taxes: 6.2% Social Security tax and 1.45% Medicare tax. The shareholder-employee (i.e. Accountants in Miami) is responsible for 4.2% Social Security tax (in 2011 and 2012) and 1.45% Medicare tax. The S corporation is also responsible for Federal Unemployment Tax Act (FUTA) taxes. Minimizing these taxes provides an incentive to keep the S corporation shareholder’s wages low and to characterize most of the pass through income as distributions.

Accountants in Miami

The U.S. Government Accountability Office reported in 2009 on employment tax noncompliance among S corporation shareholders. The IRS has been pursuing this perceived abuse of inadequate compensation in favor of dividend distributions to shareholder-employees and has won a number of cases, according to CPA Firm in Miami VieraCPA.

According to Accountants in Miami, the IRS has the authority to reclassify dividends, distributions, or payments to the shareholder-employee, including loan repayments, as compensation if it deems compensation inadequate or unreasonable. The courts have held that the question of reasonable compensation is one of fact, determined on a case-by-case basis. The IRS has posted on its website three major sources of gross receipts it will consider when determining reasonable compensation: the services provided by the shareholder, the services of non-shareholder employees, and the capital and equipment of the corporation.

IRS fact sheet FS-2008-25, Wage Compensation for S Corporation Officers line an Accountant in Miami with Sub S status, lists the following factors in determining reasonable compensation: training and experience, duties and responsibilities, time and effort devoted to the business, dividend history, payments to non-shareholder employees, timing and manner of paying bonuses to key people, what comparable businesses pay for similar services, compensation agreements, and the use of a formula to determine compensation. Sources of information on comparable compensation for services include the U.S. Department of Labor’s Bureau of Labor Statistics, employment agencies, and a market analysis. The key in defending a claimed compensation amount is to document all research to support the amount.

Shareholders who are officers of a corporation who do not perform any services or perform only minor services in that capacity and who do not receive or are not entitled to receive direct or indirect compensation are not considered employees of the corporation. Thus, since most shareholder-officers of closely held corporations do provide more than minor services to the corporation, they most likely are considered employees. If a shareholder is an officer who is considered an employee, CPA Firm in Miami  point to Section 530 of the Revenue Act of 1978, P.L. 95-600, does not apply as a safe harbor for re-characterizing the shareholder’s compensation because, under Sec. 3121(d)(1), corporate officers are statutory employees.

The S corporation entity form provides planning opportunities to avoid payroll taxes or self-employment taxes on distributions that are instead a return on capital and assets. With the increase in Medicare tax of an additional 0.9% for high-wage earners scheduled to begin in 2013, this may represent a larger opportunity. The key in defending against a possible audit and re-characterization of dividends is to document all research and analysis of the determination of the shareholder-employee salary.

With April 17, 2012, behind us and Oct. 15, 2012, still a few months away, Miami Accountants it’s a good time to start individual clients thinking about 2012 tax planning. Miami Accounting Firms are currently in a situation of uncertainty somewhat analogous to 2010. At the end of last year, the growing list of regularly expiring provisions again expired, and once again they have not been renewed as of this point. Miami Accountant VieraCPA warns the Bush tax cuts from the 2001 and 2003 tax acts will expire at the end of 2012, as they had threatened to do at the end of 2010, and again uncertainty reigns over whether they will be extended.

Miami Accounting Firms

In 2010, Miami Accountants faced a similar situation and Congress finally extended both in December 2010. In 2012, it is looking like neither issue will be addressed before the November elections. However, the agreement patched into place in 2010 may be more difficult to come by this time. With the economy on a slow mend and the Federal Reserve holding off on further economic stimulus other than holding interest rates low, President Obama appears less likely to agree to an extension of tax cuts for the wealthy. The Republicans have shown no signs of agreeing to anything less than an extension of the Bush tax cuts for everyone. And some deficit hawks are now raising their voices to suggest that letting all the Bush tax cuts expire, perhaps on a phased-in schedule, might be the best course according to Miami Accounting Firms.

Miami Accountants

As for the regular renewal of expiring “extender” provisions, there is growing talk in Congress that renewal may not be so certain anymore. Republican proposals for lower tax rates assume eliminating some tax entitlements without identifying them. Some of those may be the regularly expiring provisions. Some in Congress have specifically suggested taking a closer look at each provision, rather than just renewing them en masse.

It would be wise for Miami Accountant and their clients to consider what to do should the Bush tax cuts and expired provisions not be extended. Given Congress’ propensity for late-year decisions on these matters, and especially during a presidential election year, preparing several contingency plans should not be considered foolish. There may be little time left to execute these plans in late 2012, let alone planning them at that time.

There are also some new 2012 planning concerns not faced back in 2010. In 2013, unless stopped by the Supreme Court, some further tax provisions of the health care legislation are scheduled to take effect, most notably the increased Medicare taxes of 0.9 percent on earned income and 3.8 percent on net investment income for those with adjusted gross incomes over $200,000 ($250,000 for married filing jointly). So what are some of the strategies taxpayers should be thinking about?

ROTH CONVERSIONS

Roth conversions have been a hot topic since the income restrictions went away in 2010. With 2012 being perhaps the lowest tax rates we will see in a while, Roth conversions should be on the agenda as well. While Congress is talking a great deal about lowering tax rates, the deficit realities may limit what is actually doable in that regard. A Roth conversion in 2012 would ensure taxation at 2012 tax rates and make further accumulations in the Roth account tax-free in the future — assuming, of course, that Congress does not eliminate Roth accounts while it is attacking tax expenditures.

REALIZING CAPITAL GAINS

The stock market has been doing rather well of late. Current maximum capital gain rates of 15 percent would rise to 20 percent in 2013 under current law. Realizing those gains in 2012 would ensure taxation at the current rates. Investors can even immediately repurchase the investments that they desire to hold for a longer period and still recognize the gain in 2012.

Of course, there are proposals to eliminate capital gains taxes entirely. Taxpayers may want to wait until after the November elections to get a better sense of which way the political winds are blowing before deciding whether capital gains taxes are more likely to rise or to fall in the future. Investors may also consider the likelihood of some companies sitting on cash to pay out a special dividend before 2013 if the law threatens to start taxing dividends as ordinary income again.

INVESTING IN TAX-EXEMPT BONDS

One option being discussed as a way to avoid the increased Medicare taxes on net investment income is to shift more investments to tax-exempt bonds. Tax-exempt bonds generally offer a lower return, and an investment portfolio too heavily weighted in such bonds probably does not offer sufficient diversity, but it is one move to avoid the increased taxes on taxable investments.

Obama has proposed that the same categories of wealthy taxpayers that are subject to the increased Medicare taxes also be taxed on their municipal bond investments. Again, taxpayers can judge after the November elections how likely Obama’s budget proposals are to gain traction in 2013.

GIFTING TO CHILDREN

The current unified gift and estate tax exclusion of $5 million (actually $5,120,000 for 2012) will revert to $1 million in 2013 under current law. The maximum tax rate will also go from 35 percent to 55 percent. Most taxpayers would be unwilling to accelerate their deaths, but they might be willing to accelerate gifts to take advantage of the current high exclusion amounts.

Neither the Obama administration nor the Republicans are advocating a return to the $1 million exclusion. However, in an impasse, it might happen because no one can agree on how to keep it from happening.

ACCELERATING AND DEFERRING

Normally, taxpayers are advised to try to postpone income and accelerate deductions. In an environment, however, of anticipated higher rates in the following year, 2012 is a year to consider the opposite strategy. Accelerate income to get it taxed at the lower rates of 2012, and postpone deductions so they can offset income in 2013 that would otherwise be taxed at a higher rate than 2012 income.

REQUIRED DISTRIBUTIONS

One of the provisions that expired at the end of 2011 was the provision permitting taxpayers over age 70-1/2 to make IRA distributions directly to charity and avoid taking those distributions into income. Taxpayers who have taken advantage of this strategy in the past and who would like to do so also for 2012 should try to postpone required minimum distributions until after the November elections to see if Congress acts to retroactively extend the provision.

In 2010, when Congress finally acted to retroactively extend this provision, recognizing the difficult position it had put taxpayers in by not acting until December, it enacted a special rule permitting taxpayers to elect to have a qualified charitable distribution made in January 2011 treated as having been made on Dec. 31, 2010. Congress might do something similar again this year, but if taxpayers have already taken required minimum distributions directly, it would be too late to then treat the distribution as going directly to a charity.

ALTERNATIVE MINIMUM TAX

One of the regularly expiring provisions that also expired at the end of 2011 was the increased Alternative Minimum Tax exemption amount. More than 25 million taxpayers would be caught by the AMT in 2012 if Congress did not act to extend the exemption amount. Congress is very likely to extend the exemption amount again, at least until they can agree on fundamental tax reform and get rid of the AMT entirely.

Still, taxpayers should realize that, if they are in the group that would get caught by the AMT in 2012, there are a variety of tax breaks that they may be accustomed to claiming that would not be available to them in 2012 because they are disallowed under the AMT regime.

SUMMARY

Like 2010, 2012 will continue to be a year of considerable tax uncertainty that will make planning difficult. With the growing list of regularly expiring provisions, almost every year becomes more difficult to plan for. In 2012, with the Bush tax cuts expiring, many of the same tax planning issues focused on when those cuts that were scheduled to expire in 2010 also re-emerge.

However, in 2012, we have the additional issue of the new Medicare taxes taking effect in 2013, also made somewhat uncertain by the Supreme Court’s consideration this year of the enforceability of those taxes as part of its review of the constitutionality of the health care reform legislation that brought them into being.

Taxpayers may decide that the uncertainty is too much to take any specific action yet this year: They may decide at least to wait until after the November elections to view what 2013 is likely to bring. However, taxpayers will need to be armed with the facts and options available to intelligently weigh those decisions. To do that effectively requires at least some advance consideration.

Your Small Business Accountant Firm advices you that you forgot to report some income on your 1040 or just got a corrected Form 1099 or K-1 in the mail. What should you do? Miami Accounting and Small Business Accountants Firm provide 5 tips for amending your Small Business accounting returns.

1. Amended returns aren’t mandatory, according to Miami Accounting Firm VieraCPA. You might be surprised to find you are not obligated to file an amended return, even though Small Business Accountant Firm tax advisers may tell you it’s a good idea—that’s because the IRS will probably send you a bill based on the revised Form 1099 or K-1 once IRS computers match that form against your Form 1040 according to Small Business Accountants Firm VieraCPA.

Small Business Accountant Firms

Small Business Accountant Firms note amended returns are not mandatory even if something happens after you file that makes it clear your original return contains mistakes. Ask if the return you filed was accurate to your best knowledge when you filed it. If it was, you are probably safe in not filing an amendment.

Conversely, if you knew your return was inaccurate when you filed it, Small Business Accountants Firm VieraCPA warns you should amend it to make it accurate without delay. The IRS rarely brings up an originally filed return in civil audits or criminal prosecutions once the taxpayer attempts to correct it by filing an amended return. But to take advantage of this rule, you need to be proactive, and you need to make the correction before the IRS finds your error according to Small Business Accountants Miami VieraCPA.

2. You can’t cherry-pick what you correct states Miami Accounting CPA VieraCPA. You don’t have to file an amended return, but if you do, you must correct everything. You can’t cherry-pick and only make corrections that get you money back and not those that increase your tax liability. If you amend, you must correct all errors, not just the ones in your favor. See Beware Amending Tax Returns by Small Business Accountant Firm.

3. Some errors don’t merit amending. Math errors are not a reason to amend, since the IRS will correct math errors on your return. Likewise, Small Business Accountants Firm recommend you usually shouldn’t file an amended return if you discover you omitted a Form W-2, forgot to attach schedules, or other glitches of that sort. The IRS can process your return without them or will request them if needed.

Small Business Accountants Miami remind you certain parts of your original return can’t be changed by an amended return. For example, you can change your filing status on an amended return from married filing separate to joint, or from qualifying widow(er) to head of household status. However, you cannot change from married filing joint to married filing separate after the due date for the original return (usually April 15) has passed.

4. Timing counts. You must file a Form 1040X, Amended U.S. Individual Income Tax Return, within three years from the date your Miami Accounting Firm filed your original return or within two years from the date you paid the tax, whichever is later. This either/or test can give you extra time, but it is safer to amend within three years of your original return so there’s no dispute.

How soon is too soon to amend? You can file an amended tax return right on the heels of your original return if you like. However, Small Business Accountant Firm VieraCPA warns  if you are filing to claim an additional refund, you should wait until after you have received your original refund before filing Form 1040X. You may cash the first check while waiting for any additional refund.

5. Only paper will do. Amended returns are only filed on paper, so even if you filed your original return electronically, you’ll have to amend on paper. Amended returns are prepared on Form 1040X. You must use this form whether you previously filed Form 1040, 1040A or 1040EZ. Label the top of the 1040X very clearly with the tax year you are amending. See Small Business Accountants Miami Instruction 1040X.

Sometimes your small business accounting tax preparer is to blame for an audit. If a Miami Accounting Tax Preparer promises unusually high refunds without asking to see proper documentation for deductions and credits, don’t be fooled, said Gustavo Viera a Small Business Accountants Miami CPA and managing partner at Miami Accounting Firm VieraCPA.

Small Business Accountants Miami VieraCPA remind you you’re legally responsible for the information on your return no matter what a Small Business Accountant Miami tax preparer tells you, so make sure to look over your return before it’s sent to the IRS.

Small Business Accounting

” Miami Accounting Tax Preparers can promise you the world, but then when they deduct a bunch of stuff they shouldn’t, you’re going to be the one stuck with an audit,” said Viera. Also, you’ll be required to repay any money you receive fraudulently.

Small Business Accountant Miami

This year, all Small Business Accountant Miami and paid TAX Preparers are required to have a Tax Preparer Tax Identification Number (PTIN) so customers can verify that they are legitimate. Ask Small Business Accounting and Tax Preparers to see their PTIN before signing up for help, and be wary if your preparer doesn’t put a PTIN on your return when submitting it to the IRS, said Viera.

You make stupid mistakes

Small Business Accountants Miami know whether you accidentally omitted information or you slipped up when doing subtraction, making errors on your tax return will cause the IRS to take a second look.

“The No. 1 mistake is not putting down the right Social Security numbers, and the second is not doing the right math,” said Gustavo A Viera CPA a Small Business Accountant Miami.

It may be worth hiring a Small Business Accounting Tax Preparer to handle your return or walk you through the process, Miami Accounting CPA Viera said.

“In tough economic times, people may be getting away from Small Business Accountants Miami

Professionals,” said Viera. “And as more and more people do their taxes on their own, there will be more mistakes — both in terms of math errors and the deductions that are taken.”

Take the time to double-check everything if you’re filling out your own return, and if you decide to use tax software to file, make sure you understand how to use it, Viera advised.

You have a big mouth

You may think you’re a hot shot for pulling a fast one on the IRS. But when the friend you entrusted with your secret snitches on you in exchange for a fat check, you’re going to be in big trouble.

“Most cases start the old-fashioned way,” said Viera a Small Business Accountant Miami who represent taxpayers whose returns were flagged by the IRS. “You blab about it to a friend, colleague, spouse or girlfriend, and one of them turns you in.”

Small Business Accounting CPA Viera warns even your closest pals may be tempted to tattle, since the IRS offers whistleblowers a reward of up to 30% of any additional tax or penalties it collects from tax cheaters.

And with the popularity of social media, it’s now much easier to publish private information publicly. So if you did something you think was questionable, don’t post it all over Facebook.

You’re extremely charitable

It’s great to be charitable, but don’t exaggerate the amount of money or items you’re donating according to Miami Accounting CPA Viera.

When giving small items to Goodwill or thrift stores, report the estimated resale value, not the original value. And make sure you keep track of when donations are made and hold on to receipts. It also doesn’t hurt to take photos of the donated items for your records.

“Be realistic and try to be as specific as possible,” said Small Business Accountants Miami VieraCPA. “Generally, if a donation is under $250, it’s not a big deal, but if it’s over $250 you should have supporting documentation.”

If your charitable donations are unusually high relative to your income, the IRS is likely to give your return more scrutiny as well, said Viera a Small Business Accountant Miami.

“If you have $20,000 of income and report $10,000 in charitable contributions, that’s going to raise eyebrows,” said Small Business Accounting CPA Viera.

You didn’t file your taxes

Talk about raising red flags: If you’re required to file a return and you don’t, the IRS will hunt you down.

The agency has ways to identify people who have filed returns in the past but stopped filing, as well as people who have never filed a return. Once you’re identified as a nonfiler, the IRS will want to know how much tax you owe and what you’re hiding, said Viera, CPA and Small Business Accountants Miami.

To avoid a confrontation with the tax man, it’s better to simply file — no matter how much you’re dreading the deed, Viera said.

“Many taxpayers get overwhelmed particularly if they owe money they can’t pay, and they stick their heads in the sand,” said Small Business Accountant Miami VieraCPA.

But late payment penalties kick in as soon as the filing deadline passes, so if you don’t file and get caught, you could end up having to pay a lot more than your original tax bill. If you’re worried about not being able to pay your tax bill, there are installment plans available. Just ask the IRS what your best option is.

Of course, if you want to delay the pain a little longer, you can always file an extension. And if your income is below a certain level — which varies widely depending on your filing status and age — you’re not required to file a return at all. But even if you don’t have to file, make sure you’re not missing out on any deductions or credits that could actually put a little extra money in your pocket.

“Many times people build up an irrational fear over filing their taxes and in fact are due a refund,” said Small Business Accounting CPA Viera.

You own a business

The IRS tends to look extra closely at taxpayers reporting businesses on Schedule C forms because there’s more room for fudging.

“The IRS primarily targets small businesses, especially sole proprietorships, and cash industries like pizza parlors and coin-operated Laundromats with opportunities to hide income and skim profits,” said Miami Accounting CPA Firm VieraCPA.

If you own a business, report every single bit of income you’ve received. If you’re still worried about being audited, you may even want to reorganize your business as a corporation or partnership (which means you’re not required to file a Schedule C) instead of a sole proprietorship, said Viera.

And if you’re flagged for an audit, the IRS will be skeptical of any business that looks like it’s actually a hobby, especially if you are deducting a loss on your return.

You’ve been audited before

Sometimes getting flagged for an audit comes down to having a bad reputation with the IRS.

If you’ve been audited in the past, you’re on the agency’s audit hit list for at least a few years, said Small Business Accountants Miami VieraCPA. And while there’s nothing you can do to avoid being scrutinized, you should play it extremely safe to avoid getting another audit.

“If you get audited once, you have a very good chance of being audited again,” said Miami Accounting CPA Firm VieraCPA. “For the following three years or so, you should be very careful about the aggressiveness or risk you take on subsequent returns, because the IRS is going to be monitoring you.”

You have a home office

Deducting a home office can always be a red flag, because many taxpayers consider any part of the house where they do work to be an office — even if they do other things, like watch TV or cook, in that same area.

To qualify for a home office deduction, you must use the office exclusively for work and it must be your primary place of business — not one of several offices. If this is the case, make sure you document expenses like housekeeping, alarm systems and other items you plan to claim — down to the share of utilities you use in just the office itself — in case the IRS decides to check it out.

And even if you think it’s legitimate, don’t go overboard. VieraCPA had a client, for example, who ran a business breeding and raising high-end cats. Since the taxpayer had cats sprawled out in every room of the house, she thought it would be okay to deduct 90% of her house as a home office. While VieraCPA agreed that the business took up a significant portion of the client’s home, he advised lowering the percentage to about 40% so that it was less likely to raise red flags.

You’re rich

Being rich isn’t always a good thing. Your chances of being audited increase dramatically the more income you report.

While the IRS audits only 1% of taxpayers overall, those odds rose to 7% for people with income between $1 million and $5 million last year. About 21% of taxpayers with income between $5 million and $10 million were audited, and 30% of people making $10 million or more were dealt audits.

If you have a lot of income to report, make sure you get a savvy preparer so at least you’ll have everything documented should the IRS come knocking.

“The rich is where the new focus is, and it’s because of one reason — it’s generating extra income for the IRS,” said Small Business Accountant Miami VieraCPA. “And because upper income filers tend to have a lot more complicated returns, that makes it easier for the IRS to go after them.”

You have foreign assets

Foreign bank accounts have been a huge focus for the IRS in recent years.

In an effort to reel in taxpayers with illegal overseas accounts, the agency has launched initiatives that waive certain penalties for taxpayers who come clean. This year, the IRS introduced a program that gives taxpayers a reduction in penalties — and no jail time — if they fess up to any undisclosed overseas accounts for an indefinite window of time.

The agency also introduced a new form and filing requirements for reporting foreign assets this year. In addition to reporting any foreign bank accounts holding more than $10,000, you now also have to report any foreign assets — including pension funds and foreign stocks — totaling more than $50,000. Failing to report such assets will result in a $10,000 penalty, and any underpayments of tax on them will be subject to an additional penalty of 40% of the amount owed.

If the IRS has any hunch that you are not reporting an offshore account, you’re in serious trouble. “The safety people thought they may have had offshore isn’t so safe anymore,” Small Business Accountants Miami VieraCPA. “It’s time to come in from the cold.”

You guess on investments

Before this year, brokers were only required to provide the IRS with the date you sold a stock and how much money you earned from that investment.

The IRS had to rely on taxpayers to correctly list the date they bought a stock and how much they paid on their Schedule D capital gains and losses statement.

So if you put down the wrong date or purchase price — whether innocently or on purpose — you could end up paying less tax.

But now, the IRS is getting this additional data straight from brokers. If the information on your return doesn’t match, you’re in trouble. Be sure to locate your exact buy dates and prices, advised Small Business Accounting VieraCPA. Otherwise the IRS will quickly scoop you up for an audit.

The only thing worse than income tax preparation Miami is the dreaded process of getting a tax audit and it could soon take place over a computer screen in the comfort of your living room. Better hire a Tax preparation business or a Certified Tax Preparer Miami to sit on the couch next to you.

Income tax preparation Miami

Income tax preparation in Miami CPA Firm VieraCPA advises clients in what could be an indication of things to come. Income tax preparation Miami VieraCPA states the IRS launched a pilot program at the end of last year that allows taxpayers to use two-way video conferencing for assistance with tax questions and problems. Tax preparation business or a Certified Tax Preparer Miami having been using this for consultation purposes for year, the IRS has caught on.

Tax Preparation Business

The Taxpayer Advocate Service, an independent watchdog arm of the IRS, is already calling for the agency to expand to virtual audits notes VieraCPA a Income tax preparation in Miami. The IRS says it needs to evaluate the success of the pilot program before making a decision.

Tax Preparer Miami

Income tax preparation Miami notes the pilot program is currently being tested in 12 locations, where taxpayers needing assistance can log into a computer enabled with video-conferencing. They can then talk to an IRS agent who pops up on the screen to discuss whatever issues they’re having — whether it’s tax preparation or help with a tax form or a question about a refund.

TAS is also piloting a virtual assistance program. And VieraCPA stated that the tax preparation business and Certified Tax Preparer Miami that this technology has the potential to “radically transform” the current audit process — eventually allowing taxpayers and tax preparers to use their personal computers to video conference with an IRS examiner.

To schedule an audit with an Income tax preparation in Miami firm or its client, the IRS would send a taxpayer a sign-in code so they could then log in to the meeting from a home or office computer. Documents could be transmitted by simply scanning them with a computer’s built-in camera notes Tax preparation business or a Certified Tax Preparer Miami VieraCPA.

This could one day replace the need for correspondence audits, which are the letters the IRS currently sends taxpayers in the mail asking questions or requesting more information and their Income tax preparation Miami responding.

To save costs, the IRS has become increasingly reliant on correspondence audits instead of summoning taxpayers for in-person meetings says VieraCPA an Income tax preparation in Miami CPA Firm. But TAS says that these audits receive fewer responses and that many of the taxpayers dealt with these audits don’t understand how they work, default on payments and get hit with penalties.

Plus, with correspondence audits a specific representative typically isn’t assigned to a case, leaving many taxpayers without a point person to ask questions or to contact with concerns.

Virtual audits could eliminate the confusing paperwork and recreate a face-to-face meeting via computer. Tax preparation business or a Certified Tax Preparer Miami agree it would be easier to explain complex situations.

Doing this would also help taxpayers better understand why they are being audited and what additional information is needed, said Viera. It would also help the IRS obtain the accurate information it needs and help the agency view taxpayers as more than just tax returns.

The IRS’s virtual assistance pilot program is scheduled to continue through the 2012 filing season and end in May. Office locations include Colorado Springs, Colo., Fresno, Calif. and Utica, N.Y.

Once the program is completed, the IRS will evaluate its performance. So far, it said the pilot has allowed it “to maximize our current resources, by expanding hours of service in remote locations and balancing the workload in high-traffic areas.” But it wouldn’t say whether it is considering using this same technology for audits.

“The initial focus of virtual delivery is on taxpayer service. We’re still in the middle of the pilot and still assessing the results,” the IRS said in a statement. “It’s premature to speculate about future steps.” 

Miami CPAs VieraCPA describe cost accounting is the branch of accounting which directly pertains to the overall cost of running and managing a business. The concepts and formula involved in this branch of accounting are based on standard accounting practices.

Miami Accounting and CPA Firm cost accounting takes into consideration the expenses and the cash flow of an organization to analyze the cost of running it. Many Miami accounting CPA Firm mistakenly believe that cost accounting itself is an all-inclusive branch of accounts whereas that really isn’t the case. It is just the branch which deals with the cost of the business functions. Standard accounting practices are usually carried out side by side with cost accounting.

Miami CPAs basic objectives for which cost accounting is utilized:

Measuring Company Resources:

Miami Accounting and CPA Firm cost accounting helps provide data for the resources of the company being utilized. Identification of production costs related to a particular event and the creation of its data is the primary purpose of cost accounting. Also, cost accounting helps in identifying the cost of production through the three business cycles.

Marketing Strategies and Product Development:

Miami accounting CPA Firm marketing strategies and product development plans are also addressed by using cost accounting. When it comes to product development, Miami CPAs cost accounting can measure the cost of the product and determine whether it is right for the business or not. Similarly, cost accounting can also determine whether the marketing budget for the product is appropriate or not. Through cost accounting techniques, CPA Firm can measure the effectiveness of the marketing plan can also be reckoned.

Miami Accounting Decision Making:

Cost accounting plays an important role in making the right decisions for the company. The techniques involved to reach this stage usually compare the total cost of the product to the anticipated benefits.

Those handling cost accounting should keep in mind that the sole purpose of this branch of accounting is to manage costs and provide data for further consideration. Cost accounting itself is not responsible for making marketing plans or the creating action strategies.