Latest News on Denver Accounting & Taxes

Tax season has arrived. As you get ready for your Denver business tax preparation, there is a lot to consider. When beginning to prepare all documents to meet with your local accountant, it will help to gather everything you need before. There have also been changes this year to be aware of. Learn more about these tips and ways to make this tax season the best one yet!

Items to Gather

One of the best ways to make this tax season a smooth one is to be prepared. Some of the commonly thought of items include receipts and all records of sales of your business, your 1099, profit and loss documents and returns. What can get trickier is gathering all other expenses and income of your business or that your business generated. Use any financial documents to be able to show everything that went in and out. If you just started your small business, a rule of thumb is to save documents for six years. Did you use a vehicle for your small business? Be sure to have all expense documentation for that, too. If you worked out of your home, you can talk to your accountant on what items you can claim there. For instance, you can claim parts of your mortgage, supplies and other areas.

New Changes

There are a few changes in 2017 that small business owners will need to know for this tax season. According to Business News Daily, Small Business Taxes: What to Expect in 2017, the due date for C-Corporations will now be April 15. Partnerships and S-Corporations will now have a deadline of March 15. This depends on the form you use, which a quality accountant can assist with. The article also mentions something new for business owners to take advantage of: Bonus Depreciation. They explain this is a tax break enabling business owners to deduct 50 percent of costs on any new capital equipment. This will be available but will decrease 10 percent each year.

Benefits of Using an Accountant

With so many factors to take into consideration, it is best to trust an accountant to help you handle your business’ taxes and finances. This will ensure tax season goes smoothly and you have the support you need all year long. Plus, a tax preparation specialists will stay on top of the latest changes and areas to take advantage of. This will ensure your taxes are done right and you do not owe more than you need to. Given the amount that it takes with taxes, you can let someone do the heavy lifting so you can focus on your business. Read more about why your small business needs a Denver accountant.

As your small business prepares for the 2017 tax season, Bloch, Rothman & Associates is your go-to tax preparation service. Our business tax preparation services will help you prepare your individual, partnerships, estate, trust, S-Corp, C-Corp ad nonprofit tax return—both federal and for the state. Call us today at 303-321-7160 to get a quote and started on your tax process for the new year.  

When it comes to your budget, how on top of things are you? Do you live paycheck to paycheck or do you make room for savings and future planning? No matter what your financial situation, there is also room for improvement! One of the best ways to handle this is to assess your certain situation and review where you would like to be. Utilize some of these tips from your local Denver accountant to transform your finances and get you back on track if you need it!

Lay it all out on the table

One of the top things you can do when making tweaks to your budget is to see how much you are spending. If you do not track each expense in a checkbook or online, set 30 minutes aside to find out what’s coming in and what’s going out. If you participate in online banking, this is an easy way to see what’s going in and out. Scroll through your entire month and document all your bills. Next, look at how much you are spending on groceries, entertainment, shopping etc. Assess your situation and see if there are any changes you can make or areas you can cut back to save? Ideally, you should have around $500 available for emergency savings.

Tools

Technology has made it easier to stay on top of your finances. Online banking allows you to pay attention to your bank account. Many banks even offer the ability to send all your payments automatically through your online checking account. Several bill sources will even provide discounts for those who choose to enroll in an auto-pay service. Regardless, it takes care of your bills for you and you never have to worry about a late payment. Just be sure to keep tabs on how much is in your account so you do not go into the red. Also, does your credit card work for you? Many credit cards offer rewards and cashback. If you primarily use a credit card, consider applying for one if you feel you have a chance to qualify. This will all factor on your credit score, debt-to-income ratio, how many places you have applied for and if you have been late on any bills. Last, check out apps that help you track all your spending.

Creating a budget

Taking all the above into consideration, it’s now time to create a budget! If you already budget and are just looking for a tune up, review all your finances and make changes. If you are new to budgeting, look into the 50-20-30 rule. Forbes’ explains in their New to Budgeting? Why You Should Try the 50-20-30 Rule, that 50 percent of your income should go towards your daily living expenses and necessities. This is your rent or mortgage, utilities, food, etc. Next, 20 percent of your income should go towards your financial goals. They explain this could be paying down debts from credit cards or loans, saving, etc. Last, 30 percent of your income can go towards anything else, whether it’s dinner out, seeing a movie or shopping for clothes.

With tax season around the corner, be sure to check out these six smart ways to spend your Denver tax return. For any of your tax needs, Bloch, Rothman & Associates is your go-to agency. With the premier quality service you will receive from us, we will help you get the most out of your return. Contact us at 303-321-7160.

It’s that time of year again. Tax Season. The holidays are over and the new year is here. By Tuesday, January 31, your employer (and any past employers) will have your W-2 out in the mail. Shortly after, you can file your taxes and learn how much your tax refund will be. You have by Tuesday, April 18, 2017 to file. Here are some tips to think about and best practices when filing your 2017 tax return.

Income Files Needed

When filing your taxes, you will need specific documents that disclose where your sources of income came from. One of the top forms needed to file taxes is the W-2.  This is the form employers must provide their employees that shows all wages earned and what taxes were withheld. Independent contractors will receive a W-9, which will also share all wages earned. The contractor is responsible for covering the taxes as the person or company they were contracted with do not withhold taxes. For individuals who are self-employed, you will need to turn in a 1099-MISC. In addition, gather up all receipts and other bills and documents of money spent for the business purposes. From here, you may have had sources of income from other sources, such as retirement, 401K, investments, health savings accounts (HSA), prizes or lotteries won sometime within the year or alimony post-divorce. There are tax forms that need to be filed for these methods of income. Have questions? Talk to your local tax specialist to see exactly you might need.

Maximizing Your Refund

There are a variety of ways to get the most out of your tax refund. Did you buy a new house? Did you move over 50 miles away for a new job? Did you make monetary and/or in-kind donations to charity? You can deduct these type of items from your taxes so it’s important to keep track. What about tools or office space for work—did you purchase your own? That can be deducted too. What about supporting a friend or family member? In the International Business Times’ Get a Bigger Tax Refund By Claiming These Credits and Deductions, says if someone stays with you for at least a year and makes less than $4000 in that year can be claimed on taxes.

If You Owe

There could be a variety of reasons you might owe on your taxes. If you work for a company and receive a W-2, you may not have had enough money withheld to cover your taxes. For others, such as independent contractors, you will owe the taxes you made throughout the year. In other instances, errors filling out forms may lead you to owe. The deadline to pay the taxes back is April 18, so the sooner you file, the better to give you time to create a plan. If you are unable to make your tax payment by the deadline, there are options available. You can apply for an online payment agreement, whether you are an individual or business owner. It is important to create a plan and pay the money back as soon as you can to avoid penalties.

When it comes to all your 2017 tax needs, Bloch, Rothman & Associates is your go-to tax preparation team in Denver. Be sure to factor in these energy efficient tax credits on your Denver tax return and let us help! Fill out our contact form or call us at 303-321-7160 to set up your free consultation for quality service and be on your way to a worry-free tax season.

Credit cards offer a convenient way to pay for items and services without worrying about having cash on hand, especially while you’re traveling. They can also help you keep track of your expenses while building good credit. One of the pitfalls of using credit cards is that revolving credit can lead you to spend beyond your means, and the fees can build up quickly as your balance and monthly minimum payments increases. If your credit card debt has spiraled out of your control, there are some immediate steps you can take to mitigate the problem. Besides offering tax and bookkeeping services, your local Denver accountants can also provide debt counselling to help you get back on track.

1. Make a list

The first step is to write down everything you owe to all of your creditors. Seeing exactly how much you need to pay and to who makes the process easier to visualize and manage. Also make note of the interest rate for every card you have.

2. Organize your debts

Figure out which debts have the highest priority and need to be paid off first. Credit cards with high APRs (annual percentage rates) should be dealt with immediately, as you’re getting charged more each month on what you owe. Focusing on aggressively paying down the top-priority cards, while continuing to make payments on the others, gives you a clear and attainable financial goal. Debt counselors can help you devise an effective action plan so you don’t feel overwhelmed.

3. Create a budget

Tally up all of your expenses and compare it with your income. This will help you decide how much you can afford to repay on each credit card every month. Use the Bankrate credit card payoff calculator to calculate how long you think it will take until you’re debt-free to get a reasonable sense of your timeline. Paying attention to where your money goes on a weekly basis will show you where you can reduce spending to save money. Looking over your bank and credit card statement from the last year or so will give you an accurate feel for what your main expenses are.

4. Talk to your creditors

Once you’re organized and know how much you can reasonably pay on your credit cards, contact each of them to explain your situation. It’s possible to negotiate a lower-interest-rate card or to decrease your current interest rate. Debt advisors can assist with this step to streamline the process.

5. Get advice from a professional

There are several avenues you can take to resolve your credit cards debt, including bankruptcy, debt consolidation, and debt settlement. An accounting expert can walk you through each process and explain the benefits and disadvantages of each. Knowing and understanding all of your options will help you take the wisest course of action for your particular situation.

Even just having a professional offer guidance and advice on how to manage your payments and create a budget is helpful. Contact Bloch, Rothman, and Associates at 303-321-7160 for a free initial consultation on how to begin resolving your credit card debt.