Phoenix Arizona CPA | Arizona Tax Accountant | Arizona Income Tax

Accounts receivables are the amount of money that a consumer owes a company for a service or product obtained on credit. Accounts receivables are therefore a company’s sales that have not yet been paid in cash. While accounts receivables are considered as currents assets, it remains difficult to consider a product or a service as sold or purchased unless it has been paid in cash. If your company regularly makes a sale on credit and you do not implement and maintain an efficient accounts receivable system, the cash flow in your company will be negatively affected. Read the rest of this entry »

Here’s a question I get a lot from sole proprietors: why aren’t my personal expenses deductible? Here are three ways to think about this.

1. Personal expenses are not needed to create business revenue. Some sole proprietors reason that since they need their personal expense (such as non-business car use or a vacation), that means their business needs it too, since the sole proprietor is the business. If you are a sole proprietor, ask youself this question when deciding if the expense is deductible: Read the rest of this entry »

Are you ready for a productive Tax Planning Season with knowledge and understanding of how to plan for your Tax Preparation in January? With a little planning this fall, you too can save money on your taxes in the Spring.

Recently, I had a tax client come by after she received a letter from IRS. She was understandably concerned, but her manner was rude, full of entitlement, and demanding. I responded to her rude demands with polite and courteous answers, and spent several hours on the phone researching her problem. On several occasions during the process of answering her questions, I had to call and ask for more information, each time she got ruder and more demanding. Read the rest of this entry »

Progressive taxation is defined as a form of tax that charges a bigger percentage rate on the income of high income group than it does on the income of low income group. As the income of the individual increases, the tax rate he pays also increases proportionately. So this is a sort of graduated tax. The rationale behind such a taxation principle is that those who earn more can save more and therefore, should pay more to the government. Read the rest of this entry »

The multidimensional aspects of any business, whether big or small can be overwhelming for most business owners and senior management. Ensuring that every department of the organization runs smoothly with sufficient input of resources both human and financial requires much time, energy and careful planning. In order to lighten the burden of business enterprises more and more organizations are opting for accounting outsourcing as a practical business solution.

The concept of accounting outsourcing has gained much popularity in recent times and vendors at a national and international level are offering their services to multiple clients. The process ensures that the accounting division of any firm does not involve additional resources to manage the day to day working of the company and much of it can be outsourced to vendors. Read the rest of this entry »

Every little expense or income can make a difference in the ledger books of a business. It is therefore crucial to maintain accurate accounts of the daily transactions of a business to ensure maximum optimization of resources. An organization often employs well qualified accountants to maintain the daily transactions record. This results in the firm blocking a good amount of human and financial resources in accounting regular business transactions. In these circumstances it would make practical sense for the business to employ outsourced accounting help to maintain the regular accounts. This not only helps in better utilizing the available resources but also ensures accurate maintenance of accounts. Read the rest of this entry »

It is not about the size of the business, rather it is about the efficiency with which you manage your business that counts in the end. Now if one starts a business venture whether it is a small sized business, mid sized business or a large scale business undertaking you want to earn profit and earn lots of it. The crucial element that determines the success of any business is the manner in which the accounting and other financial transaction of the business are dealt with. So if you are running a small business, you need to handle the accounting work of your business efficiently. Small business accounting may seem to be easy to handle initially, but gradually you will realize that the task is not so easy. Ultimately you will have to resort to either hiring a professional accountant to handle your small business accounting work or buy software that make the whole process easy. Read the rest of this entry »

Managing a business accurately is not at all a child’s play. In fact for successfully running a business one needs to strategize things and plan properly and to follow those strategies regularly and wholeheartedly. Bookkeeping is one such strategy and a process that includes the maintaining of records of the various transactions of a business. Bookkeeping includes looking through the total revenue, profit, loss and expenses incurred by the company, the dates of the transactions and various other minute financial details. This brings us to the conclusion that bookkeeping is one of the most vital aspects of a business whether the business is a big one or a small one. In fact small business book keeping needs to be maintained more accurately because once they know their financial status very well they can think of expanding themselves. Read the rest of this entry »

Knowing income tax law is not enough. In order to offer value to taxpayers, tax law knowledge must be combined with effective tax planning strategies in order to yield maximum benefit. What would you do if you owned a landscaping business with the upcoming facts and circumstances? I will tell what I would do.

While having a quiet night out at a local restaurant, listening to music from a local band, I am approached by a friend that has just started a landscaping business. He is married and has one young daughter, age twelve. He will have gross receipts of $48,000 and will receive a 1099 for his efforts. His first question to me is how he should go about making quarterly estimated tax payments to cover both income tax expense and social security tax (SE tax). My response to him was; “hold on there young fellow. Let’s have a discussion of the facts and circumstances before we begin”. Read the rest of this entry »