Build a Relationship and Business will Grow

A few months back, I received a call from a potential client. She had recently purchased a coffee farm and required an Accountant. After our initial clarity call, I was intrigued to know more about her business and her goals for her business. We scheduled a time to meet again later in the week; this time on the actual farm. 

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As my client gave me a tour around the property, my Accounting wheels began to turn. I could see how this type of farmland was a mixture of all the great things real estate had to offer, and I was ready to help my client receive proactive, actionable advice that could exceed her business goals.

Side note: One of the reasons I have so many long-term clients is because I not only get to know my clients, but I also get to understand their business and why they’re excited to get out of bed each day to pursue their endeavor. Here are 3 traits you should consider when identifying an Accountant.

 1. A Friendly Professional

Most Accountants are not looking for a  one-time service. Instead, they want to establish an ongoing relationship. Accountants can also help with monthly and yearly business accounting services and paying quarterly taxes. If you are audited, you can rely on your Accountant to represent you and your interests.

2. A CPA who is Up-to-Date on Accounting Best Practices

Your Accountant should know the best ways to establish your bookkeeping and accounting needs. You should feel confident that your Accountant will create the proper controls and procedures for managing your revenue streams. Additionally, they should also be able to develop the types of reports that will enable you to know exactly where you are financially.

 3. A professional and experienced Accountant can help your business operate in the most tax efficient way possible.
I feel confident in saying that no one wants to give the government any extra hard-earned dollars than is required.  Without proper guidance and counsel of a competent Accountant, you could pay significantly more in taxes than was required by law, simply out of a lack of knowledge. 

As a business owner, you should be seeking the very best service to suit your needs and budget, and that may not come from a local business. Thanks to technology, companies can meet with clients who are hundreds or thousands of miles away and still easily meet their needs. If you are seeking a virtual Accountant, contact Essential Accounting Consultants. 


Two Tax Deduction Tips that will save you Money and Stress in 2019

Congratulations on your thriving small business (inserts applause). As your business grows, so will the  need to meet, engage and convince clients to use your product or service. Securing a client may mean picking up the tab for business related meals and entertainment; and countless phone meetings.

Here's a quick rundown on when entertainment expenses and cellphone usage count as business or pleasure and what percentage may be deducted.

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Let’s do Lunch

When the Tax Cuts and Jobs Act (TCJA) rules were released, lawmakers implied that businesses could not deduct 50% of business meals with current or prospect anymore. However, that was not the case. In fact, the IRS stated that businesses could continue to do business over lunch – and deduct 50% of the cost. However, if you aren’t conducting business over lunch, and the goal of the meeting is for purely entertainment; The IRS is clear: You cannot include those expenses as tax deductions under any circumstances.

Additionally, all food and beverages that are provided during entertainment events will not be considered entertainment if purchased separately from the event or if the cost of the food and beverages are separated from the cost of the entertainment on one or more bills, invoices, receipts, etc.

Can you hear me now?

Let’s face it; landlines are almost extinct. Smartphones play a considerable role in the way people communicate; especially businesses. So, it’s no surprise that cellphone use for your company is a legitimate, deductible business expense. However, the distinction between personal and business use when it comes to cellphones is closely intertwined that the IRS thoroughly examines deductions to ensure personal cellphone use is not being claimed as a business expense. If 30 percent of your time on the phone is spent on business, you can legitimately deduct 30 percent of your phone bill.

Cellphone depreciation

Listen up; it pays to have old things. Well at least in the case of older cellphones. New tax law allows you to write off cellphone depreciation—the loss in value from everyday wear and tear—over a seven-year schedule, in addition to making it easier to claim bonus depreciation.

Bottom line:  Make sure you keep audit-repellent documentation of all of purchases with adequate notations as added proof. If you are armored with solid proof of payments and receipts with notations, you should have a productive and no-stress tax-filing experience.

Essential Accounting has been rated the Three Best Accounting Firms in Cleveland. Read the full article here. For help with you tax services contact us today!