Handling your own payroll or accounting means forming and maintaining a team of experts. Such endeavor entails high fixed costs such as office space, salaries, technology, and benefits. By working with professional bookkeeping services, you can save on costs and reduce people management issues. Interviewing, hiring and training in-house employees take money and time. Outsourcing eliminates these issues. If you have concerns regarding the cost of retraining, well, don’t worry. Hiring a bookkeeping and payroll service allows you to focus your efforts on core activities. We are aware of the latest changes in the tax code and accounting policies that apply to your situation.
1099 reports other types of revenue you earn. There are different types of 1099 form, and each variety is used to report specific kinds of income. Any 1099 payment is considered as taxable income, so you need to report your 1099 payments on your tax return.
Bank Account Reconciliation
Bank account reconciliation allows you to match distributed checks with the entry or amount entered in your bank statements. This helps expose fraudulent activities like payments transferred to unauthorized vendors or dishonest employees and payments made for illegal business purposes. Regular bank account reconciliations can also help you postpone or manage payments that may protect your business from bounced checks, extra interests, business overdrafts and insufficient funds.
You have to input the correct data in your accounting system. This means including expenses in the right account, inputting the correct amount and applying proper descriptions or codes. Simple mistakes can fail to generate a Form 1099-MISC and paying higher taxes. We use sophisticated accounting systems to ensure that all expenses are entered in the right accounts.
General Ledger Maintenance
Businesses have to constantly spend money on various items like rent, payroll, parts, and equipment. A general ledger divides your debits and credits into various account categories like liabilities, revenues, expenses, and assets. We can update your general ledger to help you monitor how much you spend and how much you earn.
Payroll Tax Deposit Calculations
Before making a payroll tax deposit, you need to compute the amount of payroll taxes to withhold from the employees’ paychecks. This includes computing your federal income tax as well as Medicare and social security taxes. You can then compute the amount of payroll tax that you need to deposit. We can perform the necessary payroll tax deposit calculations, so you don’t need to worry about anything.
Payroll Tax Filings
You have to report salaries and other compensation paid to employees by filing the necessary forms to the IRS. It is also important to report any taxes you deposit by submitting Forms 940, 944 and 941 through e-file or on paper. We can prepare and file the required forms so that you can focus on your tasks.
Financial Statement Preparation
Your financial statement shows your revenue from primary and secondary income sources as well as business expenses. We can prepare your financial statements. This includes preparing the balance sheet and statement of cash flows.