How much does accounting cost?
Pricing greatly depends on your company’s needs and financial situation. We’ll conduct a detailed interview to determine what services you would benefit from, the complexity of your finances, and a monthly cost that fits your budget.
What accounting programs do you use?
We support all major accounting programs including Quickbooks and Peachtree.
Who should I consider outsourcing their accounting?
If you’re not in a position to hire specialized accounting employees, hiring a CPA to handle your accounting is a highly cost-effective option. Many small business owners also attempt to handle their own accounting. But owning a business puts a plethora of other responsibilities on your shoulders. Handling payroll alone can put over 10 extra hours of work per month on your plate. If you’re looking to free up more of your time to give back to your business, hiring a CPA to handle your accounting is wise.
What kind of documents do you request from clients in order to get started?
We’ll need access to the following documents:
- Bank statements
- Credit card statements
- Sales systems
- Accounting software
- Accounts payable
- Accounts receivable
- List of liabilities such as loans and corresponding closing statements
- List of assets such as vehicles, properties, machinery, or other large ticket items
What are the current state and federal minimum wage rates?
California state minimum wage: For companies with 26 or more employees, minimum wage is $15 per hour. For companies with 25 or fewer employees, the minimum wage is $14 per hour. However, some cities have additional wage requirements. For example, Los Angeles just increased their minimum wage to $16.04 per hour, regardless of company size. At the time of writing, the Federal minimum wage is $7.25 per hour.
What documents are needed to begin payroll services?
We'll request the following from you:
- EIN letter or number
- Articles of Organization or Incorporation
- Current business address if different and mailing address if different from the Articles or EIN letter
- The Employment Development Department (EDD) state payroll tax account number, if applicable. Otherwise, the Owner/Officer’s name, address, and social security number in order to set up the EDD account
- Business bank routing and account number
- Pay schedule and type. Example: bi-weekly via direct deposit
- A W-4 and I-9 from each employee
- Pay rate for each employee
- Information on commissions, bonuses, tips, etc, if any
- Information on employee benefits such as 401(k) or healthcare
- Information on any other recurring payroll deductions, such as withholding orders
How much do payroll services cost?
The cost of payroll services is greatly dependent on the size of your company and complexity of your financial operations. Some factors that will affect the price include:
- Your payroll schedule
- Number of employees
- New hires
- Amount of W-2s that need to be filed
Do I have to have a business bank account?
While having a business bank account might not be a requirement, it’s certainly a strong suggestion for any business owner.
Keeping your business’s finances and your personal finances separate is crucial. Not only will it make tracking expenses significantly easier for you, but it will help protect you in the end. When tax season comes around and it’s time to make deductions and organize your files, you’re going to have significantly less of a headache than if it were all mingled with your personal transactions. Opening a business bank account also helps your business establish credit. Your business will have its own credit score, and it will need a good one in order to qualify for a credit card or loan down the line. Keeping your business finances separate now (even if you’re not bringing in as much income as you’d like just yet) sets you up to build credit and scale your business.
Why would the IRS choose to audit me?
Less than 1% of tax returns sent within a year end up being audited. So your odds of not being audited are very high, but there are a few factors that make you extra susceptible to it.
Being audited doesn’t necessarily mean you’ve done something wrong, but it does mean they’re going to take a fine tooth comb through your records. Factors that might encourage the IRS to audit you include: mathematical errors, leaving out a 1099 or source of income, claiming too many business expenses, or allowing personal & business finances to intermingle.
What happens if I receive another tax form after I've filed my return?
You’ll need to submit an amended return, using Form 1040-X.
Are Unemployment Benefits Taxable?
Generally, all unemployment compensation is taxable. You’ll receive Form 1099-G for the tax year your compensation was received. This form will reflect the amount you received, as well as any federal taxes that were withheld from your unemployment compensation.
Is there a penalty for filing my taxes after the deadline?
There is no penalty for failure to file if you are due a refund. Those who owe taxes will be subject to The Failure to File Penalty. This penalty is 5% of the unpaid taxes for each month or part of a month that a tax return is late. The penalty won't exceed 25% of your unpaid taxes.
Employee or Independent Contractor?
California considers all workers employees unless they pass certain criteria. Generally, if your company does not control the details of a worker’s performance—when to work, where to work, etc—the worker has independent financial control. They have a business registered with the state, do not get reimbursed for business expenses, or are free to seek out other business opportunities, etc – and the worker has a written contract with the company or the service performed is not a key aspect of the regular business of the company, then the worker could be considered an independent contractor. Once an employee or position is determined as an employee, that employee or position will always be an employee/employee position.
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