Latest News on Denver Accounting & Taxes

No matter the size of your business, understanding the details of finances is an important step in determining overall success. While many small business ventures fail within the first couple of years, knowing precisely where the monies generated are then being used and getting a firm grasp on profit margins can help elevate your business practices, in addition to providing a foundation on which to build your organization.

For general accounting purposes, there are three levels of review - audit, review, and compilation - that are utilized in order to generate a report on business finances. Often completed by an outside agency, this provides a second opinion and unbiased look at the financial records to ensure a number of different factors. Locating any discrepancies or fraud is always a possibility, but many times these reports are created to allow for owners and stockholders of an organization to keep track and make necessary changes in an effort to optimize their business.

The major difference between these three options involves the depth of the review process. Audits are the most extensive and compilations the least invasive but they still can provide the following benefits. 

Internal Revue

Compilations provide business owners with a general report that can be utilized in-house to check on the financial health of a company. These figures are typically not reported to outside sources and can provide those who see them a better understanding of precisely where the company stands.

Manage Expenses

These reports can provide effective feedback on the day-to-day operations of an organization. Seeing first-hand if the income is covering the cost of areas that can be adjusted to increase profit margins is an important step in ensuring the success of your business.

Check-Up

Utilized on a specific schedule - monthly, quarterly, or semi-annually - compilations can be compared to a physical for the human body. Just as people typically visit their physician to monitor any issues annually, compilations provide a similar service to your business.

Cost

Understanding if you need an audit, review, or compilation completed for your business and the desired outcomes will also effectively change the pricing of each service. Audits require much more in-depth research and reporting, generally increasing their cost whereas compilations can be a cheaper alternative if they coincide with desired results.

If you are in need of a particular level of support for the finances of your business then let the tax and experts at Bloch Rothman and Associates assist you or your business today. In addition, they can also take care of multiple other issues dealing with paying or owing back taxes, required audits from other entities besides the IRS, or any other personal or corporate wealth management issues. Along with providing a quality tax service, 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 of 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!

 

While not everyone may set an official resolution for the new year, there are still plenty of actions individuals may take to potentially help clean up some areas of their life. From getting out of toxic relationships, starting a diet, or taking up a new hobby, the opportunities are endless and while there’s no wrong day to begin a brand new adventure - many select the calendar turning from one year to the next for a new beginning. As this time approaches and we all look to put 2020 in the rearview mirror, consider making your financial situation a priority in the new year.

There’s no doubt COVID-19 and the US economy have been major factors in individual’s financial situations during the past year. However, as time passes people are beginning to get a better grasp on their situations and the potential any future impacts may have. While some are in a better financial situation than others, this is as good a time as any to make your finances a priority and improve your bottom line moving forward.

Assessment

An honest assessment of your current financial situation will provide a great starting point and could help to point at areas that may need some adjusting. If you notice that expenditures are piling up in entertainment or dining out, then perhaps a few dollars could be saved by making some cuts and adjusting your current lifestyle.

Budget

This analysis will also help to put the foundation on a personal or household budget for your family. Take a look at recent bank statements and see where exactly your money is being spent and then count your income and see how much is necessary to pay your necessities, while still providing some funding for other areas and potential unexpected occurrences.

Address Debt / Cash

Take a moment to address any debt being carried on credit cards or in other areas. If possible, commit to contributing a certain amount to these items to pay down some existing debt. If you attack the accounts with a solid plan, then hopefully you can free up money for another area once some existing debt is extinguished. To do so, consider spending cash or using a debit card only for future transactions.

Set Goals

Establish a plan for your finances and set up some goals for your accounts. Whether it be to start savings, eliminate the use of a credit card, or simply have more “fun” money available, check in on your goals and see where you stand periodically as the new year unfolds.

If you’re looking to get a firm grasp on your finances (no matter their current state), the tax and financial experts at Bloch Rothman and Associates are ready to help. In addition to any tax-related issues, they can also take care of multiple other financial situations dealing with paying or owing back taxes, required audits from other entities besides the IRS, or any other personal or corporate wealth management issues. Along with providing a quality tax service, 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 of helping clients with any 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 several 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!

Advances in technology have led to a rise in computer programs being sold every year promising to aid individuals in filing a tax return. While these may be helpful, there are still far too many unknown risks associated with submitting a federal and state return to the Internal Revenue Service (IRS) and other authorities without knowing that everything being reported is legitimate and accurate. If you are like most Americans, having a full grasp of the current tax laws is not something you readily track so why trust yourself to input all of the accurate and necessary figures into a return when it counts the most?

While the most common tax filing mistakes may be associated with basic demographic information and signatures, there is still too much riding on the submitted information to rely only on one set of eyes. Instead, hiring a tax professional and letting someone who has committed their lives to help others assist is a much better option for a variety of different reasons.

Personal Relationship

By utilizing a professional tax service not only do you get an opportunity to establish a working relationship with another individual, but it also opens up your return to a team of workers who can assist you. Knowing that you have someone with who you have built and established trust and that also has your best interest in mind can allow you to rest easy once it comes time to file a return.

Updated Tax Law

Tax laws change annually and especially when new administrations take over in Washington. Ensure that you don’t have to keep up with all the latest changes and trust someone else to keep you up to date. This helps to eliminate taking the risk of making a mistake on a return that only you ever review until it’s too late.

Guaranteed Return

Legitimate tax professionals will back up their work and offer to assist in the event there is ever a question about your return. Don’t risk having to stand on your assumptions or that you keyed in everything correctly if the IRS were to come calling.

Maximize Deductions

Having a tax professional assist with your return could open you up to receiving better deductions or highlight something you may not have even thought about. In both instances, you could be looking at increasing a refund or minimizing an amount owed. By trusting a computer, you may be overpaying or missing out on money that you are rightly due.

If you’re ready to file a return and need help on any potential tax-related situation, then let the professionals at Bloch Rothman and Associates assist you today. In addition to providing answers to your deduction or credit tax questions, they can also take care of multiple other issues dealing with paying or owing back taxes, required audits signaled by either the IRS or an outside agency, or any other personal or corporate wealth management issues. Along with providing a quality tax service, our group can also complete all types of returns or answer any other factors associated with financial issues or concerns you may have.

Serving Denver and all of the surrounding areas for 35 years, our firm has an extensive history of helping clients with any 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, there are also several bookkeeping and payroll services offered to assist you and your business. We look forward to meeting you and providing the type of service you can rely on whatever your needs may be very soon!

Every year individuals and couples file their tax returns to report income generated during the previous year to the Internal Revenue Service (IRS). Whether you are filing for personal or business purposes, the result is a packet of paperwork that has multiple uses. Depending on if you are attempting to obtain a loan (specifically for a business), buying real estate, under audit, or for a variety of many other reasons - having your prior year’s tax return on hand can be beneficial or even required.

Unsure if you need to file a tax return? Certain parameters could deem individuals exempt from filing but these are limited. For everyone else, getting a return in on time is often the best method, even if having to use an extension, but returns may be filed for any past due dates however refunds are typically only issued back for a few years. If you owe taxes, then expect penalties and interest to be applied as well, when a return is filed. However, once you have an acceptable return in hand, how long do you keep it?

Tax Returns

Generally speaking, the IRS can audit returns for the past three years but depend on their findings or reasoning, this can be extended up to six years or beyond. Recommendations are accepted returns and backing evidence paperwork should be kept for at least four years after the return date. 

Loans

For both businesses and individuals, keeping loan information on hand until fulfilled is suggested. Depending on the type, amount, or subject of the loan, these may extend beyond the typical four-year period. If so, proper records and initial paperwork should be kept available.

Mortgage

Mortgage(s) should also be handled similarly to loans. These are likely to extend beyond four years and should be kept until completion. In addition, purchase paperwork will also come in handy if the property is ever sold as it can be used to show either a profit or loss following ownership. Depending on the property in question and other associated factors, this could have an impact on your return for the year in which this transaction takes place.

Purchases

Any depreciated purchases, especially in business returns, should have paperwork kept for the length of time the subject remains available. Just like a mortgage, any future deals or movement of the depreciable asset could have an impact on that year’s tax return. Ensuring you have the appropriate paperwork to back any figures used is important and helpful should questions arise.

The tax and financial experts at Bloch Rothman and Associates are ready to answer any of your tax questions or assist you and/or your business today. In addition, they can also take care of multiple other issues dealing with paying or owing back taxes, required audits from other entities besides the IRS, or any other personal or corporate wealth management issues. Along with providing a quality tax service, 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 of helping clients with any 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 several 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!

As technology advances and people around the world gain more access to its availability the way business transactions are handled is evolving. From a cash only system to checks, credit and debit cards to cryptocurrency and paying for items with your phone, the entire nature of making purchases is changing. However, not only is the world different for customers, but those on the receiving end of these funds are also having to make adjustments - particularly to their tax returns.

While reporting income has always been commonplace and one of the sole purposes behind filing a tax return, keeping up with non-cash transactions can be tricky. Fortunately, for many of the most commonly used programs there are available features to make tracking the income and expenses rather easy. As peer-to-peer payment (P2P) platforms continue to evolve from simple money exchanges to full on business transactions, reporting any income derived from their merit should be handled just as any similar action would have been previously.

PayPal

One of the three leading P2P companies, PayPal has been around for over a decade but during this time they have built one of the best operating platforms and most well trusted sites of any organization attempting to enter this space. Used initially for transferring funds, PayPal is now available on nearly every consumer website and can be used for businesses to conduct their sales. Keeping up with these transactions and having the ability to transfer income to your tax return has also improved with systematic tracking methods.

Venmo

Another leader in the space, Venmo is more commonly used for strict P2P payments. Out with friends and need to split the check, simply Venmo the individual who picked up the tab. Sold some concert tickets, get paid with Venmo. However, there are instances where individuals are operating boutique shops and/or selling certain merch while collecting via this method. These payments constitute as income and should be reported as such during the filing period.

Cryptocurrency

Another unique form of monetary value is cryptocurrency. While both PayPal and Venmo are leaders in the P2P exchange, cryptocurrency is an entirely different financial function. These funds are derived from encrypted exchanges and are considered a virtual currency. The process is extremely safe but the “money” is only available in a digital form - making reporting to a tax return a little more complex.

BitCoin

The leader in cryptocurrency, BitCoin may not technically be recognized as a formative way of handling transactions but they do have value. As it has grown over the past decade, the disbursement of BitCoins has increased considerably and individuals are finding methods to increase their accounts over time. Though cryptocurrencies are vastly different from paper money, the effects of virtual currencies can have an impact on your tax return when used for services, purchases, or investments and is required to be reported as such. 

The tax and financial experts at Bloch Rothman and Associates are ready to answer any of your tax questions or assist you and/or your business today. In addition, they can also take care of multiple other issues dealing with paying or owing back taxes, required audits from other entities besides the IRS, or any other personal or corporate wealth management issues. Along with providing a quality tax service, 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!