Latest News on Denver Accounting & Taxes

Denver Accounting Firm Methods


May 15, 2019

Accounting is defined as the “action or process of keeping financial accounts” and is an extremely important feature for individuals and especially businesses. No matter the type of work you complete or business that is being run, if there are more parties than one who are responsible for putting money into the operation of an organization, then providing an accounting option to serve for monitoring where and how funds are being used is critical.

Even for smaller businesses that may be run solely by family members, a small number of trustworthy individuals, or friends who have known one another their entire lives, the benefits of having an accountant can still be helpful. Understanding why your business needs an accountant is only the first step in the process of providing accurate record keeping. Afterwards, there will be other questions to answer, including what type of accounting method will be used for reporting purposes.

There are currently two main options available, with the third being a combination of the two accounting processes from which to choose. 

Cash Accounting
The cash method of accounting is used primarily by smaller businesses and relates to keeping up with the flow of monies in and out of an organization. Recording revenue, income for the business, when cash is received and noting expenses when they are paid in cash keeps up with the financial part of the business.

Cash basis is not available for C type corporations, leading to the other accounting method option.

Accrual Accounting
Accrual accounting utilizes the investments made, in addition to revenue and accounts payable or receivable to establish a financial bottom line. By counting non-cash based incentives and other liabilities as assets a broader description of an organization's current financial standing can be established.

The accrual method is often recommended for larger companies and the Internal Revenue Service states it must be used for any C companies.

Hybrid Accounting
For non-C companies and other entities, a combination of cash accounting and accrual accounting can sometimes serve in the best interest of all involved parties. For any that have other partners outside of a direct line with the company, a manageable way to account for the funds within an organization is critical.

The tax experts at Bloch Rothman and Associates are ready and able to assist you with establishing an accounting practice for your business, complete tax returns, or answer any other factors associated with issues or concerns you may have. Serving in Denver and all of the surrounding areas for 35 years, our firm has an extensive history in helping clients with any and all of their tax issues or dealings with the Internal Revenue Service. If you have questions about your personal, business, estate or any other filings, don’t hesitate to contact us today. Available for all of your tax needs and filings, there are also a number of bookkeeping and payroll services offered to assist you and your business. We look forward to meeting you and serving whatever your needs may be soon!
 
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Denver Tax Specialist Offers Tax Season Review and Prep Ideas


May 9, 2019

Following the middle of April, tax season is complete for the majority of Americans. However, a small number of individuals or couples who filed for extensions now have an extra six months in order to complete their return paperwork although if they are expected to pay - they too need to have submitted their tax payment prior to the deadline.

For many people this tax season was even more stressful than usual due to the enormous amount of changes instituted. As often occurs, a change in the administration of the country results in there being an adjustment to the fiscal issues and this year such was the case for new laws to be implemented. However, the sizeable difference in standard deduction amounts often created less paperwork for individuals who in the past had benefited from keeping receipts for donations, some medical expenses, and other gifts or charities.

Now that it is over, but still fresh on your mind - taking a moment to reflect on the filing process and how it can be improved for next year should be given some consideration. Instead of waiting until the beginning of next year in order to attempt to remember what may be needed - making plans now can help significantly. Following are three ideas for making next season easier as this tax year continues.

What Can I Do Differently?
If you were one of the people who kept all of their receipts only to find out that you would benefit from the new standard deduction instead of itemizing and aren’t expecting any monumental changes this year, then save time by not worrying about these items. Also, maybe you started to file too late in the year and felt rushed at the end - if so, get a head start on next year by organizing all of your paperwork and documents for an earlier beginning to the process in 2020.

How Can I Increase My Refund?
If you ended up owing the federal government or want to increase a refund that you were paid then take steps this year to accomplish this goal. Changing your tax withholding is one of the best options in addition to seeking out the assistance of a tax professional for filing.
Plan Ahead for Financial Change

Finally, a third method is to consider any financial changes that may be taking place over the course of this year that may impact your taxes next filing season. While nothing should ever be done solely for the tax implications, understanding how certain purchases or selling of property may impact your taxes allows for individuals to be prepared and avoid any surprises when completing their return.

If there are sizeable changes in your earnings, or other tax related differences from the preceding year - getting married, having a child, moving to a different state, changing jobs, selling property, etc. - getting a jump on the impacts can allow for you to make some type of adjustments, if needed, before it is too late.

The tax experts at Bloch Rothman and Associates are ready and able to assist with not only completing a tax return when needed but also analyzing any other factors associated with issues or concerns you may have. Serving in Denver and all of the surrounding areas for 35 years, our firm has an extensive history in helping clients with any and all of their tax issues or dealings with the Internal Revenue Service. If you have questions about your personal, business, estate or any other filings, don’t hesitate to contact us today. Available for all of your tax needs and filings, there are also a number of bookkeeping and payroll services offered to assist you and your business. We look forward to meeting you and serving whatever your needs may be soon!
 
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Denver Tax Return Refund Estimate Application Idea


May 1, 2019

Tax season has come and gone and while some end up owing the federal government taxes, many do receive a refund. Especially with the new tax laws put into effect this filing year, those who have sometimes had to pay in the past may now be receiving money back because of the changes in standard deduction amounts for both individuals and those married filing jointly, in addition to other types of applications.

For those who may be receiving a refund for the first time, finding a good use for the small, albeit sometimes large windfall at an unexpected time can be a difficult task. Many choose to use the money to pay off credit cards, book an exotic vacation, or even pay down the principal on a mortgage but for those who wish to be considered “tax savvy” - another application could be more beneficial.

Refund
As recently as 2015, nearly 80-percent of individuals who filed received taxpayer refunds. This year the number may be slightly lower but there are still an overwhelming majority who pay in too much throughout the course of the year and then receive money back in the spring.

Estimates
For some taxpayers, it is suggested that they pay estimated taxes at different points throughout the year to avoid having to come up with a large some of money when taxes are filed, fulfill their annual tax obligation, and avoid any penalties. Especially for those individuals who are considered self-employed, the tax burden can be cumbersome. 

Estimates are used to ease this burden, although coming up with first-quarter payments that are due the same time as last year’s taxes (April 15 - during most years) can be a difficult task.

Application
For this reason, it is recommended that those who need to make estimates but are receiving a refund, apply their overpayment toward the next year. For example, if you make quarterly estimated tax payments of $500 ($2,000 annually) and are getting a $250 federal refund - apply this money toward the next due estimate. 

Instead of adjusting your due estimates to the previous year’s refund, changing it to $1,750 - applying the money back to an already established norm can benefit all involved parties. The taxpayer fulfills their obligation and instead of having to come up with multiple checks within a relatively short time frame, the anticipated payments are adjusted accordingly.

The tax experts at Bloch Rothman and Associates are able to assist with completing your tax return or analyzing any other factors associated with issues or concerns you may have. Serving in Denver and all of the surrounding areas for 35 years, our firm has an extensive history in helping clients with any and all of their tax issues or dealings with the Internal Revenue Service. If you have questions about your personal, business, estate or any other filings, don’t hesitate to contact us today. Available for all of your tax needs and filings there are also a number of bookkeeping and payroll services offered to assist you and your business. We look forward to meeting you and serving whatever your needs may be soon!
 
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Denver Tax Return Extension Benefits


April 17, 2019

The tax filing deadline of April 15 has now passed but there are a few advantages for people who may have filed an extension and if you didn’t, some things to consider for next tax season. While getting all of the required information submitted before the deadline can be helpful, if you purposefully needed to get an extension on your tax return, there can be a few positives.

One of the most obvious is being allotted an additional six months of time in order to submit the tax return but a granted extension doesn’t prolong the necessity to pay any owed taxes. If you typically pay the federal government upon completion of a return, then sending in money can help to avoid any late fees and penalties. However, the push back may assist in eliminating any filing penalties which could be incurred.

Delay Interest Fees and Filing Penalty

The Internal Revenue Service (IRS) distributes penalties for late payment and late filing on all types of tax returns. In order to avoid a late filing penalty from being administered, a properly filed extension holds those charges at bay. If you do owe, payment is still required by the April 15 deadline, but an extension can keep multiple penalties from being all charged at one time.

Extra Time For Details

Depending on the information needed in order to complete a return, an extension gives individuals more time to finish a correct return. If you’re tax situation revolves around K-1 receipts or dividend applications, it often takes time for these figures to be distributed following the beginning of the year. 

Instead of rushing to complete a return, increasing the potential for mistakes, filing an extension and allowing proper time to double check a complicated return may be beneficial.

Holiday Spending

Those individuals who are prone to receive a substantial refund, often have an idea for what they wish to do with the money they are owed. If one of those ideas involves any type of holiday spending, then delaying the submission of a return and thus, the refund would allow for the windfall to occur later in the year.

This would be beneficial for those who wish to receive some extra spending money around the holidays as opposed to earlier and having to budget the money accordingly throughout the coming months.

The tax experts at Bloch Rothman and Associates are able to assist with completing your tax return or analyzing any other factors associated with issues or concerns you may have. Serving in Denver and all of the surrounding areas for 35 years, our firm has an extensive history in helping clients with any and all of their tax issues or dealings with the Internal Revenue Service. If you have questions about your personal, business, estate or any other filings, don’t hesitate to contact us today. Available for all of your tax needs and filings there are also a number of bookkeeping and payroll services offered to assist you and your business. We look forward to meeting you and serving whatever your needs may be soon!
 
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Denver Tax Return Prep Work Saves Time


April 10, 2019

Tax season is in full swing and while individuals all across the United States rush to file before the April 15 deadline, other options do exist. Extensions are possible, but still require a legal filing and while, if granted, it gives the taxpayer an additional six months to submit a return, it is not an extension to pay - only for the paperwork.

If you’re not wanting to file an extension then time is quickly running out but there are some steps people can take in order to save time when filling out the return. Depending on the number of taxable materials you have that need to be reported, organizing some of the information and putting it together prior to entering an office can help to save you much needed time during the filing process.

Consider these potential adjustments to help you make the best use of your time this tax season.

Standard Deduction Changes

The increase in standard deduction amounts for individuals and those filing jointly take a lot of the preparation work away from most taxpayers. Where many who have itemized in the past with their required documentation for each potential deduction, the increase covers more than enough in most scenarios. Unless you have totals exceeding $12,200 as an individual or $24,400 for joint returns, then choosing to take the allowable standard deduction is often a best case and time saving scenario.

Receipts Over Statements

Another technique many taxpayers use is for bank and credit card statements to be used as backup for any potential deductions. While this can be handy, the receipt which shows exactly what was purchased and when is a better document. Keeping up with these over the course of the year and then matching them to your statements can keep everything in one place and ready for any potential audit that may occur.

Mileage

Claiming a mileage tax deduction for W-2 employees disappeared with the changes applied to the 2018 tax year but those who are self employed can still cash out. Depending on your personal employment situation, you may or may not need to keep up with specific mileage during the year. Understanding where you stand will save you time in the long run. 

Bill of Sale

Should you sell any property during the year, keeping up with the bill of sale can help make your tax preparations easier. Depending on if you are selling property within the given time restrictions for personal use or utilizing the sale of a rental or other property, keeping up with the prices and amounts paid at closing and/or purchase is important. These numbers can assist you in getting the most out of your return and those who prepare it from having to chase down any missing figures.

The tax experts at Bloch Rothman and Associates are able to assist with completing your tax return or analyzing any other factors associated with issues or concerns you may have. Serving in Denver and all of the surrounding areas for 35 years, our firm has an extensive history in helping clients with any and all of their tax issues or dealings with the Internal Revenue Service. If you have questions about your personal, business, estate or any other filings, don’t hesitate to contact us today. Available for all of your tax needs and filings there are also a number of bookkeeping and payroll services offered to assist you and your business. We look forward to meeting you and serving whatever your needs may be soon!
 
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