Latest News on Denver Accounting & Taxes

Denver Accountant Details Financial Statement Options


July 10, 2019

No matter what type of business you have, keeping the financial practices in order are an extremely important factor in the success of an operation. While the bottom line procedural results are a direct correlation to the amount of money being received being higher than the amount of money spent, there are a number of different factors which contribute to the causes of both. Ensuring that your business practices are in order, from the finances to the operation and delivery of goods or services, can create a foundation for a successful future.

After start-up, a shocking number of entrepreneurs will not make it on the road to secure a successful business. Studies show an astonishing eight out of 10 businesses fail within the first two years of existence, indicating that owners are facing an uphill battle no matter their circumstances. Whether you have an excellent idea, are creating a better component to an already existing product, or created an entirely new concept for something, the odds are already stacked against you.

Understanding the finances, in particular two of the key components that provide an overview of your current business practices, is an extremely important step. This is also the reason many individuals or groups of owners choose to outsource their bookkeeping and financial practices. By having a third-party that is not emotionally tied to the product or even related to the business partners or practices, an unobstructed and direct view of the situation at hand may be provided.
Balance Sheet

One of the most integral parts to a financial analysis of a company involves the balance sheet. A balance sheet provides a snapshot of the company’s current situation regarding liabilities, assets and shareholder equity. These components are essentially a look at the overall health of a business and can typically be constructed for any given time period.

Whether you need a current fiscal year-to-date analysis, a deeper look at a particular quarter, perhaps a comparison of quarters, or even an entire year in one report, the information provided here is both extremely important and relevant.
Profit and Loss

Another important report regarding the overall health of a company is the profit and loss statement. Often referred to as a “P and L” for short or an “Income Statement”, these reports refer to the bottom line of a company and the ability to ensure they are making more money than the organization is spending.

Analyzing the revenue generated in a side-by-side comparison to the expenses incurred along with the complete results, these financial reports are also important. They too can typically be adjusted to show the desired results from a given time period in order for comparison analysis and other types of results to be computed.

The tax and financial experts at Bloch Rothman and Associates are ready and willing to assist if you should need help assessing your current financial situation of your business, paying all associated taxes, or any other personal or corporate wealth management issues. In addition to providing a quality tax service, including navigating the intricacies of an audit, our group can also complete tax returns or answer any other factors associated with financial 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 Credit Card Debt Payoff Plans


July 3, 2019

Credit card debt is something that many Americans deal with on a daily basis. Yes, these bills may only need to be paid once a month, but if someone has developed a significant amount of debt then it is likely they are faced with decisions involving a card’s use every day. Choosing to face the reality of a situation and then putting a plan in place in order to help climb out of the seemingly never ending hole is a first step toward being financially free in the future.

It is going to take some time. With average annual percentage rates (APR) hovering between 16 and 22 percent, the interest paid on live balances can accrue significantly over time. Paying the minimum payment does eliminate any additional interest and fees that may be applied but continually using the same card will typically only make your due payment increase - a step back in the process. To get ahead, follow some of these simple first steps in the process.
Pay Down Lower Balances First

If you have multiple credit cards and are able to put a stop to buying on credit, then move forward with a plan. If you need a credit card for emergencies, research which of the one’s in your possession have the lowest APR and use this one - ONLY in the case of emergencies. 

Pay the minimum balance due on this one or any others and attack the lowest balance remaining first. For example, if you have three cards and typically used $300 to pay over the minimum due on each previously, then consider using the same amount but in the above described method. You may pay the minimums on two at $75 each and then use the remaining $150 to attack the lowest balance. Soon this amount will begin to reduce and if the card isn’t being used, ultimately it will be paid off without increasing the amounts you were previously putting toward these cards. Not only will this give you a sense of accomplishment but you can then reduce the amount of cards you have to a lesser number.

Request a New APR

Ask and typically you shall receive, in addition, all the credit card company can say is no and more often than not they will negotiate to lower your current APR provided you have been a loyal customer for a given period of time. Negotiating a better credit card deal can save you an enormous amount of money in the long run.

Make On-Time Payments

Not only will being a loyal customer help in your negotiation process but by making on time payments you can establish the reputation as a quality customer. This helps to both eliminate any additional fees and or penalties that may be issued due to a late payment and also adds leverage when attempting to secure a better interest rate.

The tax and financial experts at Bloch Rothman and Associates are ready and willing to assist if you should need help assessing your current financial situation, paying taxes, or any other wealth management issues. In addition to providing a quality tax service, including navigating the intricacies of an audit, our group can also complete tax returns or answer any other factors associated with financial 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 Audit Notifications and Timeline


June 26, 2019

Every taxpayer who submits a return is subject to an audit by the Internal Revenue Service and although many Americans will never be faced with such an issue, knowing what to do next is critically important. Depending on the size of your return and many other characteristics, the IRS may choose to complete a closer examination of your return - especially if there are significant changes from one year to the next or if the figures don’t make sense upon an initial review.

Income level is just one of the factors that may affect your chances of an IRS audit. While these figures may change annually, going over the $200,000 threshold in household income seems to increase an individual’s chances of being targeted. In addition, there are other factors that contribute to the potential of being selected for an audit due to the varying tax situations and available assets to those in upper tax brackets. 

Notification Method

First and foremost, if you are chosen for an audit the IRS will notify you via the United States mail service. There are numerous tax scams and others attempting to steal identity and gain access to funds and other information by appearing as a legitimate service - which is one reason the government operates as they do.

Instead of sending an email or calling on the phone, the IRS only initiates an audit through a letter addressed to the taxpayer and waits for a response before proceeding. Typically, the individual in question has up to 30 days in order to respond.

Timeline

An audit can take anywhere from weeks to months and even years depending on the size and scope of the review. While these timeframes may vary, a majority are completed in a few months and also rely on the type of audit for a closer example. 

There are four different types of audits and each requires varying levels of cooperation and materials. Depending on the specifics, the timeline can vary tremendously.

Initial Steps

If you receive a letter, seeking professional assistance can be a quality first step. Even before you respond, letting a trained professional take a look at the specifics of what is being asked or needs to be examined can be a beneficial step in order to ensure the audit gets started correctly.

Fortunately, the tax experts at Bloch Rothman and Associates are ready and willing to assist if you should need help navigating an audit from the IRS. In addition to providing a quality tax service and helping to navigate the intricacies of an audit, our group can also complete tax returns or answer any other factors associated with financial 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 Accounting Firm Estate Tax Highlights


June 12, 2019

The statement of there only being two guarantees in life - “death and taxes” is a familiar phrase often heard around tax time or when any event pertains to one or the other. However, for some the combination of both can have an effect on the inheriting parties from a wealthy individual. Coupled together, when death leads to taxes, the term estate tax becomes a reality and depending on the amount of monies involved and how or why people are receiving it, there could be some tax owed.

Fortunately, the estate tax from the Internal Revenue Service has been periodically increasing over the course of a few years. In fact, the most recent modifications enacted by the Tax Cuts and Jobs Act significantly reduces the amount of American families who will be impacted by the requirements from any estate tax. Already a limiting application, the latest changes boost the amounts and limits the families responsible for having to deal with these issues.
Amount

For 2019, estate taxes apply on amounts of gross assets exceeding $11.4 million and nothing less. The significant amount of money and inheritances immediately eliminates a vast majority of American families as these particular types of taxes are only applied to the insanely wealthy. Increased from $11,180,000 only a year prior the changes jumped roughly $6 million from 2017 and these modifications not only assisted a majority of wealthy individuals and families but also reduced the amount of people impacted by estate taxes in general.

Individuals

Those individuals who may have gross amounts exceeding the estate tax limit typically have a vast understanding, or someone who assists with their financial matters. These people also may have much of their wealth involved with unrealized gains on stocks or some other type of investment tool. This amount of wealth generally has not incurred any taxation and through the continued transfer may not until it is sold.

Couples

Another feature of the estate tax also revolves around the amounts being tied to individuals specifically. For couples, the estate tax amounts are raised to double the amounts of those applied to individuals. Two people pushes the exceeding amount to over $22.8 million in terms of assets, of which any amounts underneath can be left without those who inherit it having to pay any type of taxes on the acquisition.

Fortunately, the tax experts at Bloch Rothman and Associates are ready and willing to assist if you should fall into any of the above categories. In addition to providing a quality tax service and helping to navigate the intricacies of an estate, our group can also complete tax returns or answer any other factors associated with financial 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 Accounting Firm Payroll Assistance


May 29, 2019

When it comes to running a business there are multiple things to consider in order to keep everything moving forward and becoming profitable. Whether you are a small, one or two person operation to even a bigger franchise, the headache of payroll can be both time consuming and worrisome. 

Undoubtedly, employees want to get paid - consistently and on time but payroll challenges are a fact of small business life. Retaining quality employees obviously helps to keep the business afloat, so ensuring these individuals are compensated regularly is an important feature. Even when the issue may not be entirely related to funding, any delay in distribution is going to cause tension in the workplace. For this and many other reasons, it is important to consider adding outside assistance, who can help with the following and many more issues, for payroll purposes.
 
Direct Deposit
The ability for businesses to offer direct deposit payment options for employees saves both time and money for the organization. Workers aren’t having to spend time away from their job in order to visit a bank before closing hours and companies don’t have to calculate for uncleared checks following pay day. 

Taxes
Payroll taxes are required but the changes associated with their implementation seem to change frequently. Instead of having to stay up to date on the latest tax tables and percentages, allocating payroll to an outside organization saves time, allowing owners to focus on the operation of their business instead of chasing down figures.

Overtime
Depending on the type of payment system implemented for workers - hourly or salary, the rules of overtime may be different. As with keeping tabs on the newest tax information, a business
owner could drive themselves crazy attempting to keep up with each person's hours, time off, holiday pay, and other fluctuating details of their pay.

Garnishment
Another issues regulated by the federal government and Internal Revenue Service revolves around the issue of tax garnishment. Suppose an employee has owed taxes and the next step is taking a portion of their pay in order to clear the debt. In addition to the preceding factors, this extra step only serves to add more time, calculations, and paperwork to the payroll process.

Fortunately, the tax experts at Bloch Rothman and Associates are ready and able to assist you with all of your payroll needs. In addition to providing a quality payroll service, so that you may remain focused on running the business, our group can also complete tax returns or answer any other factors associated with financial 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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