Latest News on Denver Accounting & Taxes

4 Bookkeeping Tips for Small Business Owners from Premier Denver Accountants

April 6, 2016

4 Bookkeeping Tips for Small Business Owners from Premier Denver Accountants
Handling records for your small business can be hectic. It is important to stay organized and maintain a plan. By utilizing a plan for your business’ accounting in Denver (whether it is you or someone in your company), you will be able to give various expenses the attention they need to maintain things for your company.  Below are five tips to utilize for your small business:
  1. Learn the Basics: It may seem simple to assume monetary expenses will all work out - or even out. However, if you have begun to run your own business, make it a top priority to understand proper bookkeeping skills or the steps necessary to implement them. Take some time to study your company’s expenses and begin to create a plan for the future. Also, invest in learning the basic skills to ensure your bookkeeping skills are on point. Whether you find an online course or perhaps find a program to take classes, it can only benefit you to get off on the right start if you don’t have a professional to manage it for you.
  2. Future Planning: Adding to the previous tip, you need to plan ahead. You should know your current state of affairs and be aware of possibilities for the future and create contingency plans. From there, you need to budget and save money from what comes into your business for the supplies, events, emergency situations and all other related expenses.  
  3. Track All Expenses: This tip may seem obvious. You may be thinking, “I do this already.” However, it is important to track everything from business dinners to running to the store for extra printer paper. Every detail for the business needs to be recorded. According to Entrepreneur, this will also help you obtain certain tax write-offs for your Denver business tax preparation. If you plan on using anything as a tax write-off, be sure to hold on to those records and have them prepped come tax time.
  4. Create a Schedule: When putting all of the bookkeeping puzzle pieces together, in order to keep with a plan, it is best to schedule time to handle the finances for you or your small business. Depending on your field, you may need to tend to certain financial matters bi-weekly, monthly, etc. Find a pattern that works within your schedule and makes sense. Be sure to review and update your records during those scheduled times and never put it off.
Whether you are a seasoned bookkeeping pro or are new to this part of a business, Bloch, Rothman and Associates can help! Our premier Denver accountants can get you on the right track from programs to use to building a structure for all your local financial matters. From tracking expenses and what customers owe to cash flow projections and tax-related reports, our quality services have you covered. Need help with payroll? We can help you manage that as well and be sure your sales tax information is in place properly. As your go-to expert, we will relieve you of the burden and ensure you are in compliance with state and local laws. Learn about our bookkeeping services and fill out our form to initiate your free consultation.
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6 Smart Ways to Spend Your Denver Tax Return

March 23, 2016

6 Smart Ways to Spend Your Denver Tax Return
If your tax situation provides you with a refund, what do you plan on doing with it? If you do not have a plan for your Denver tax return, it is best to make one. It will enable you to spend some of it wisely, but definitely can be used to treat yourself too! Below are smart ways to handle your refund.
 
  1. Build Your Emergency Savings: How much do you have in your savings? You never know what kind of emergencies will happen, so it is important to make it a top priority to have $1000 in savings at all time. If you do not have your savings built-up, it is a great idea to use your tax return to be prepared for the unknown.
  2. Pay off Debt: As fun as it is to go spending the money you receive, if you are in debt, consider spending a portion or all of your return towards that debt. Especially if it is on high interest credit cards. Lowering your debt-to-income ratio will help your credit and peace of mind.  Plus with credit cards, check with your bank or look for other credit cards or loans that offer low interest rates or even a zero percent interest rate for a balance transfer.
  3. Invest in Your Home: Often time projects at home get put aside due to costs. A tax check is the perfect way to spend money on those home projects that have been sitting on your to-do list for a year (or even a few years!) Even if your refund will not cover the entire project, choose things you can afford and invest in them. This will create the space that you want and will increase the value of your home as well.
  4. Big Ticket Purchases: Sometimes throughout the year when we would like a new TV, couch, computer, etc., we charge it. Instead, plan to use your tax check to fund those big purchases. That way, you are not charging on credit cards with interest and can say you own it right away!
  5. Out of Sight, Out of Mind Savings: When it comes to getting extra money, spending it may be your go-to, but sometimes it is easier to use the mentality “out of sight, out of mind.” So upon receiving your refund, consider investing it into your retirement savings. Another idea, if you have children, is to invest it in their 529 college savings plan.
  6. Buy in Bulk: If you have essentials that you use all year long, why not shop for some quality deals and buy in bulk? You can easily save hundreds of dollars by investing in some of the items you use each day or week that do not go back, such as paper towels, toilet paper, cleaning supplies, trash bags, coffee filters and more! Need a plan on bulk buys? The Simple Dollar has this Ultimate Guide to Buying in Bulk to help!

If you are need of assistance to file your taxes, let us help you with your Denver taxes! As a premier tax specialist, Bloch, Rothman & Associates can help you with all of your local tax preparation and tax resolution needs. Give us a call at 303-321-7160 or fill out a contact form to get started!
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4 Things to Know about IRS Audits and Your Denver Tax Return

4 Things to Know about IRS Audits and Your Denver Tax Return
The IRS conducts audits on taxpayers to ensure they are reporting information accurately, following laws and that information reported is correct. It can be an extremely stressful situation and roughly one percent of taxpayers are audited. So while this makes your chances of getting a letter from the IRS pretty low, it is still something to think about. Those who make millions and those who report very little are some of the most common to be audited. However, it is still important to be aware during your Denver tax preparation. Below are facts about IRS audits and what you can do to avoid it happening to you.
 
  1. Contact Methods of Notification: The IRS will contact you through mail to let you know you are being audited. They may contact you via phone as well, but there is always a letter that will be sent in the mail to confirm the audit. You will absolutely under no circumstance be emailed about an audit, so be wary of that to avoid a scam.
  2. Types of Audits: Upon being contacted, there are three types of audits that can occur. You may simply be asked to further explain information that may have an amount to pay due to a calculation error. The next type of audit is via interview. This means you will have to go to an IRS office with receipts and documentation needed for the audit. The last method is a field audit where a person from the IRS will come to your home. This is more common for small businesses or those that work out of their home. Upon receiving notification, you can contact your local Denver tax specialist to help you every step of the way through the audit.
  3. Audit Selection: The IRS explains there are three ways people are selected for an audit. First is through random selection. In this instance, it is randomly selected through a computer and occasionally is pulled by a statistical formula. The second way is through document matching. When tax forms do not match information reported on your Denver tax return, which can flag you to be audited. The last way is through related examinations. The IRS explains this is when returns have issues or transactions with other taxpayers (i.e. investors or business partners), who have returns selected for an audit.
  4. Keeping Records: Audits typically are sent for the previous year or two years past. This is the top amount of time of audits sent. However, the IRS may audit an individual from the last six years. It is most likely up to three at most, but the IRS will not go over six years.   To be safe, it is best to keep your records. The IRS advises to keep records related to assets for the duration that you have that asset—then three years after. For payroll records, keep those documents for at least four years. Learn more on the IRS’ website.

In the event you are contacted for an IRS audit, your premier Denver tax preparation professions at Bloch, Rothman & Associates can help. With over 20 years of quality experience of representing clients through audits, we will be your go-to experts and you can rest assured we will get you through the experience. Fill out this form for a free consultation or call us at 303-321-7160 to get started.
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Thinking of Becoming Self-Employed? 4 Things to Know for you Denver Taxes

March 11, 2016

Thinking of Becoming Self-Employed? 4 Things to Know for you Denver Taxes
Being your own boss has many benefits. Whether you want to start your own construction company or handle marketing for nearby business needs, being self-employed can be very rewarding. Self-employment has many responsibilities that come with it, including what to know for your Denver tax return.
 
  1. Forms Used: When choosing to make the transition and become your own employer, each year when you file your taxes, you will need to use a Schedule C or a Schedule C-EZ. There are slight differences between the two. The IRS explains the Schedule C-EZ can be used when you are the only employee. You would also use this form if your total expenses were $5000 or less, you used cash, did not carry an inventory or have a net loss, did not claim your house for business use and did not experience depreciation on items used. If you did not meet the requirements for a Schedule C-EZ, then you would use a Schedule C. A Denver tax specialist can help you gather the proper information for your forms.
  2. Taxes to Pay: When self-employed, you will need to pay taxes. The self-employment tax covers Social Security and Medicare with a Schedule SE form. It consists of 15.3%, which the IRS breaks down as 12.4% for social security and 2.9% Medicare. In order to pay these you will need a social security number and individual taxpayer identification number. Read more about these taxes from the IRS website.
  3. Deductions: Depending on the type of company you are running, being self-employed has tax break benefits. There are many deductions you can make if you use them for your work and have the documentation to prove them as expenses for your business. A home office is one of the first deductions self-employed individuals make. You are able to include a variety of things from mortgage interest to utilities within these deductions. Again, just be sure to have the documentation—which a Denver tax specialist can help with.  Your internet and phone bill is another deduction you can make, as well as traveling in a car or for the business, reading subscriptions and education. Check out these 10 tax deductions and benefits from Investopedia.
  4. Estimated Tax: As a self-employed individual, even though you will be submitting your tax return forms each year, you will need to pay your estimated taxes on a quarterly basis. To get started, you will need to find your net profit or net loss from your business. Paying estimated tax is necessary to cover Social Security and Medicare throughout the year. There are filing dates in April, June, September and January.

If you are ready to become self-employed, Bloch, Rothman & Associates can help. We are Denver’s leader in tax preparation and tax resolution services. You can rely on us to take care of the work so you can focus on your business and customers. We’ll be there every step of the way! Give us a call at 303-321-7160 or fill out this form to schedule a free consultation to get started!
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6 Ways to Be Prepared for your Denver Tax Specialist

February 29, 2016

6 Ways to Be Prepared for your Denver Tax Specialist
It’s tax season! Whether you have a simple return or are self employed, it is important to be ready when it comes to your Denver tax preparation. It can be a stressful time but by gathering the right materials and having the right knowledge, you can have a good experience.
 
  1. Income Forms: There are many different types of forms needed during tax time. When working for a company and/or have other sources of income, gather your W-2 and any other forms such as a 1099 (for income reporting separate from your workplace, such as freelance work), K-1 or stock option (shareholder forms).  If you receive money from other areas, whether it is from pension distributions or social security benefits, gather those forms. Remember, anything over $400 must be reported.
  2. Reductions: Did you know that some of your contributions or interest paid could help boost your refund? For instance you may be paying off your student loans or contribute to an IRA. Or, you may be contributing to a health savings account. Work with a tax specialist in Denver to review your situation and see what you can use to increase your refund.
  3. Deductions and Credits: Similar but different from each other, tax credits can change your tax return. Learn the differences of deductions and credits from the Tax Policy Center. This will help you decide if claiming the standard deduction or itemizing is right for you.
  4. Charity: Giving to causes that matter to you not only helps the cause can be a deduction. When preparing, gather documentation for anything you gave the prior year. Anything done by December 31 can be used for this year.
  5. Retirement Plan: If you are enrolled in a retirement plan such as a 401K, you can reduce your taxes by claiming your contributions. You can contribute up to $18,000 unless you are 50 or older in which you can contribute $24,000. No matter what your contribution is, gather this information for your Denver taxes.
  6. Self-Employment or Small Business Owners: Whether you are currently self-employed or will be soon, you can make quarterly payments for your Social Security, Medicare and income taxes. At the end of year, you will need a Schedule C to turn into the IRS. Then for small business owners, there is much to consider for your business and employees. This checklist will help you prepare everything you need from an employee identification number to employee forms.

When it comes to any of your accounting needs, turn to Bloch, Rothman & Associates to ensure you are covered. Since 1983, we have been one of Denver’s most reputable and trustworthy firms that can work in your budget and will ensure you have a smooth process this tax season. Whether you are looking to get the most out of your return or know you will owe on local or federal taxes, they can help with it all. Contact us at 303-321-7160 or fill out this form to set up a free consultation.
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