Does outsourcing save money?
Yes, outsourcing accounting and bookkeeping can be save significant cost for a small business. Here are some key benefits:
Cost Savings: Outsourcing eliminates the need for salaries, benefits, and office space for in-house accountants. You only pay for the services you need, which can lead to substantial savings.
Access to Expertise: You gain access to skilled professionals with specialized knowledge and experience, which might be difficult to find and retain in-house.
Time Management: Outsourcing frees up time for business owners to focus on core activities like growth and strategy, rather than managing financial records.
Improved Accuracy and Compliance: Professional accountants are well-versed in financial regulations and can minimize errors, ensuring compliance and accurate financial reporting.
By leveraging these benefits, small businesses can improve their financial management, reduce overhead costs, and enhance overall profitability.
What software do you use for accounting and bookkeeping?
Primarily Quickbooks Online, but we also use QuickBooks Desktop and Peachtree/Sage and have experience with a range of ERPs.
What industries do you specialize in?
We don’t limit ourselves to specific industries. From construction services to professional services, restaurants to retail, massage studio to property management. Nonprofits and government agencies included.
However, we follow the AICPA Code of Professional Conduct which requires the exercise of due care. Some situations will arise where we have to decline providing services because we lack needed expertise. If you feel you are in an industry that requires specialized knowledge, please email service@cpasity.com or set up a live meeting at Calendly so we can clarify whether CPAsity has the knowledge needed to serve you well.
How will my financial statements be delivered to me?
When your financial statements are finished, they will be available on the Portal for your review. Once you accept the financials, the month is closed and no more changes are made to those results.
How will my tax return be delivered to me?
Once your tax return is completed and reviewed, it will be uploaded into the portal for your review. The return will be locked until the final invoice is paid. Once you review it, you will need to sign the Form 8879, which authorizes us to e-file.
Please remember, once you sign the 8879, you are certifying that your return is complete and ready for us to efile. We are required to file once signed.
What documents do I need to provide for tax preparation?
- Essential Forms: W-2s, 1099s (interest, contract, dividend, etc.), K-1s, and 1098s (mortgage interest).
- Healthcare Forms: 1095-A, 1095-B, or 1095-C if you received them.
- Business Financials: Income Statement (P&L), Balance Sheet, Statement of Cash Flows and Equity Rollforward.
- Helpful Notes/Tips:
- Due Dates: Most of these 1099 and other IRS source documents are due 1/31. It’s not uncommon that they are late. Please
- IRS Transcripts: Checking your ****IRS transcripts is the #1 way to make sure you don’t miss anything that the IRS is expecting for you. They detail every document received on your behalf. 2024 transcripts will become available around May to June. Filing an extension and waiting to file after downloading your transcripts is an effective strategy to make sure nothing is missed and you avoid any potential IRS letters for forgetting basic documents like a 1099-k or 1099-b or 1095.
You should retain income statements, expense receipts, previous year’s tax returns, W-2s or 1099s, investment records, and any other relevant financial documents for 7 years.
What are the tax filing deadlines?
- Partnership & S Corp return: Mar 15,2025 , Extension: Sep 15, 2025
- Individual return: Apr 15, 2025, Extension: Oct 15,2025
What happens if I have my return extended? Do I pay my tax once my tax return is filed?
Estimated tax payments can be made based on quarterly financial results or last year’s return.
When will I get my refund?
What are the penalties?
Failure to Pay: This is 0.5% of the unpaid balance per month or any part of a month. For example, if you owe $1,000 and file the return on May 16th, you would owe $10 in Failure to Pay penalties, which is computed as follows: $1,000 x 0.5% x 2 months.
Interest: Interest is assessed on the unpaid balance at a rate of 8% per year; however, this does change as interest rates change.
Filing an extension avoids the most costly penalty, which is the Failure to File penalty. This penalty is 5% per month up to a maximum of 25%. This is why it is important to file an extension, even if you can not pay anything.