Small Business Payroll – Part 2

How to Do Payroll

Do it yourself: If you have more time than money, this might be your only choice. This is the most time consuming option and also most like to result in penalties.

Do it yourself (with help): Most commercial accounting software offers a payroll add-on. The time saved on calculations and tracking and reminders about deadlines should more than offset the fee. You still have to make sure the forms get filed on time, but the software should at least complete them for you.

Outsource: Pay someone else to do it for you. This is the option I recommend (and use myself). It will cost a little more than the other choices, but the time savings and peace of mind is definitely worth it. All you do is submit time or salary information and the payroll company does almost everything else. If you offer direct deposit, you don't even need to pass out checks!

Catch Mistakes Early

Because of the serious and complex nature of small business payroll, you should double check everything on a quarterly basis. This is an example of the spreadsheet

I use: Quarterly Payroll Worksheet.zip (right click to download)It compares the payroll related general ledger balances with the payroll and unemployment tax returns. If your books match the tax returns, then you are probably in good shape. If not, then go back and find the difference. Another nice thing about outsourcing is that you can usually assume the tax returns are accurate and that you are either missing a transaction or need to reclassify something on your books.

• Additional Small Business Payroll Resource
• Be sure to keep these on hand for each of your employees

West Midlands Accountants LTD offers you different accountants services in reasonable package like payroll service, Bookkeeping service, online Personal taxation, Business start ups, Self assessment and more

Read More

Small Business Payroll – Part 1

Small business payroll is a very important and potentially time consuming task.

Why is small business payroll so important?

Employees don't stay very long if they aren't being paid on a timely basis

Payroll tax penalties can be substantial

The penalties on federal payroll taxes are especially harsh. If your employees don't get paid on time, they'll probably just quit, but the IRS doesn't mess around when they go after unpaid Social Security and Medicare taxes. They'll go after the owner personally and anyone else who was a signer on the checking account, and the penalties can sometimes be as much as the taxes owed in the first place. If money is tight, federal payroll taxes are the one bill you don't want to miss. Employee turnover can be expensive too when you consider the cost of recruiting and training a new employee. Since you have to pay them anyway, you might as well make sure they get their checks on time.

Why does it take so much time?

Small business payroll services aren’t technically difficult, but there are A LOT of moving parts and that's where people get in trouble. Here is a list of things you have to do for each employee every payday:

• Calculate gross wages
• Calculate federal income tax withholding
• Calculate state income tax withholding (if applicable)Calculate employee Social Security and Medicare withholding
• Write a check for the net pay (Gross wages - Withholding)Prepare a legal pay stub that shows year to date wages and taxes
• Calculate employer Social Security and Medicare
• Calculate employer federal and state unemployment taxes
• Track all off these items for government reporting
• Then...Pay the FICA and federal withholding taxes (either monthly or semiweekly depending on your assigned deposit schedule)
• Pay state withholding (usually monthly - check with your state for details)
• Pay state unemployment taxes (again, check with your state for payment frequency, but this is probably a quarterly tax)
• Pay federal unemployment taxes (annually, unless you owe more than $500, then you pay quarterly)File Form 941 for federal payroll taxes every quarter
• File your state unemployment tax return every quarter (and possibly a wage detail report as well)
• File the annual Form 940 for federal unemployment taxes
• Prepare annual W-2's for you employees
• Mail copies of the W-2's with Form W-3 to the government
• If you withhold state income tax, there is probably an annual form that too
• Once you have the appropriate tax tables, forms and a calculator, none of these items are difficult or time consuming on their own. The challenge is tracking everything over the course of year and keeping the deadlines straight, and when you add them up, you can easily spend over an entire working week on payroll compliance every year.

For more detail about Small Business Payroll click part 2 article

If you are looking Payroll service for medium or small business in West Midlands then contact us

Read More

How to Be a Tax Prepare

When tax season comes around you may find yourself stressed by the idea of having to manage your taxes and all that tax preparation entails. Particularly if you are self-employed or a Sole Proprietor.

But don’t worry West Midlands Accountants LTD is highly experienced and proficient with all of the Canadian tax rules and all of its nuances. We will help you and your family gets all of the tax credits that you deserve. And we don’t just know small businesses, we know families! We understand all of the tax issues surrounding children and dependents, students and loans, caregivers, RRSP’s, medical expenses, pensions and investments, employer deductions, foreign income, rental income...

Above list is endless but we can help!!We are also HM Revenue and Customs registered and authorized Net-Filers so we can process your tax returns efficiently on line! This includes previous years and if you are just not sure about another years filed taxes – let us review and we can prepare an adjustment if necessary! So how much does it cost? For most straightforward tax returns, such as a few T-slips and deductions our fee including net-filing will be no more than $50. 

West Midlands Accountants LTD can provide a special rate for the whole family and we offer a discount for low income earners and pensioners! For self-employed individuals, accurate bookkeeping is essential and if we are already doing your bookkeeping then the tax filing service cost would be the same! If you usually just wait until tax time to do the bookkeeping, then our normal rates would apply to the preparation, but the tax filing or regular mailing fee would be the same.

Contact West Midlands Accountants Services at 01217 665 477 or email us at info@westmidlandaccountants.co.uk

Read More

Types of Accounting Services Providers

All accountants are not created equal. This guide explains the basic types of accounting professionals so that you’ll be in a stronger position to choose a person or company for this vital role in your business. As a general guide ensures that the professional that you select is a member in good standing with a relevant professional body.

                       


Bookkeeping Services

Bookkeeping is defined by Wikipedia as the process of recording financial transactions. To this end bookkeepers are not really accountants but do play an important role in the process. Generally an accountant’s hourly rate will be higher than that of a bookkeeper so utilizing a bookkeeper for the daily recording and assembling of financial information can be quite cost effective.

Tax Agents
Tax agents provide accounting services that are predominately focused on tax issues. At the lower end, companies like West Midlands Accountants LTD can provide cost effective service to complete tax returns for simple situations.

CPAA Certified Practicing Accountant or Certified Public Accountant is a qualified and experienced professional that belongs to a recognized body. CPAs are required to maintain continuing training and development and to adhere to guidelines and standards to ensure that they offer the best possible service to their customers.

Chartered Accountant (CA)
A Chartered Accountant is also an experienced and qualified professional. The difference between a CPA and a CA is the recognized body that they belong to. Although there may be some differences to CPAs, essentially they are also held to high standards. The key when selecting an accounting service is to match the experience and expertise of the accounting provider to the needs of your business. For example if you have a small business then the expertise and approach of a top 5 accounting firm, whilst being excellent, may not be ideally suited to your needs.



West Midlands Accountants Panel of accountants offers a wide range of services whether you're a small business, partnership, sole trader or a limited company. Our panel of accountants offer Services are; Business start ups Services, Taxation advice Services, Online Bookkeeping Services, VATAnnual returns, Payroll Services, Sage accounting, Personal taxation, Self assessment and more

Read More

The 9 Common Tax Audit Triggers – Part 2

5. Claiming Business Losses Every Year

Business losses are part of the small business world. The first few years are tough and sometimes you’ll go through a rough period after enjoying profitable years. However, if you are constantly claiming losses, year after year, you’ll be on the IRSs radar. They might assume you’re taking deductions you’re not entitled to or under-reporting your income.

6. Filing a Schedule C

Most small businesses report their income and expenses on a Schedule C. This form does increase your odds of being audited but don’t let the fear of an audit prevent you from filing this form. One way to avoid filing this form is to have your business setup as a corporation. This can have its own set of issues but you won’t need to file this form anymore.

7. Excessive Entertainment or Charitable Deductions

Some business owners feel entitled to deduct entertainment or deduction expenses and if they are legitimate and fall within the guidelines of the IRS than you should absolutely take those deductions. Taking your family out for dinner or donating to your local religious organization for a purchase of a piece of art is not an allowable deduction. If your tax return has higher than average entertainment or charitable deductions, this will set off an alarm with the IRS and a possible tax audit will follow. For this reason, if you are going to be taking large deductions of the kind listed in this section, make sure you have excellent records. To take the deduction for entertainment you must substantiate where it occurred, with whom, and for what purpose. Deductions of higher than $75 must be accompanied by a receipt.

8. Claiming Your Vehicle As 100 Percent Business Use

Most people get confused when it comes to properly deducting your auto expenses. Basically there are two ways to do it. The choice is based on which one gives you a higher deduction. You can use the IRS standard mileage deduction or the actual expense. You can’t deduct both of them. Finally, if you claim 100% deduction of your automobile or you’ll need to have all records on hand. This deduction is scrutinized quite a bit. When deducting for business use of a car, you’ll have to choose between the IRS standard mileage rate and actual expenses. Deducting both of these on your tax return will bring the IRS knocking. In addition, if you claim 100 percent business use on the depreciation form for your vehicle, you’ll need precise records that include mileage logs, dates, and the purpose of every trip.

9. Drastic fluctuations in income from year to year. 

This one is hard because plenty of small businesses have had an unusually good or bad year here and there. If you’re reported taxable income this year is dramatically higher or lower than in previous years it might send a red flag to the IRS. Fluctuations in income can signal that something went unreported in prior years. However, if you keep proper records and have a good bookkeeping system, you don’t have to worry. As long as you can substantiate your expenses and income, you can be ready even if the IRS does have to audit your books.

Have questions about your taxes? Contact us to discuss them. 

West MidlandsAccountants LTD, we are here to offer you support, help you save time, and ensure your records are up to date. Ultimately, we can help you save money. Contact us by phone at 01217 665 477 or email info@westmidlandaccountants.co.uk for more information

Read More

The 9 Common Tax Audit Triggers – Part 1

1. According to statistics, just 0.9 percent of people who make under $200,000 were audited last year, compared to 10.9 percent of those who made over $1 million. If your schedule C shows more than $1 million in sales, the odds of being audited increase substantially. With such increased odds of being audited, you must keep meticulous financial reports.



2. Large deductions that look out of proportion to your sales or income. Deductions that reduce your taxable income substantially are a red flag if they seem too high when compared to your income. The IRS uses tables to decide if your deductions are too high for your income bracket. But don’t go searching for these tables because they aren’t made public. We know that at times, those out-of-proportion deductions are legitimate. For instance when you’re just started your business or during times of slow growth. For this reason, you must keep track of all your deductions and have detailed records if you ever need to substantiate them.                                               

3. Reporting rounded number show likely is it that your investment returns were exactly $1500, or that your mortgage interest deduction was $12,000? Reporting too many round numbers are deemed fishy by the IRS and can trigger an audit. If you made $72,532.65 don’t report $72,500. This kind of reporting is deemed inaccurate and sloppy and if you are found to be inappropriately rounding in one area the IRS will assume you’ve done that in another area of the return. They’ll deem the entire return questionable.


4. Home Office Deductions

Because home office deductions can be so easily abused, last year, the IRS simplified how small business owners can calculate the deduction. But to take this deduction you’ll need to satisfy numerous criteria. This deduction is a big red flag so make sure you’re satisfying every requirement, one such that the home office area be used exclusively for your business.


Have questions about your taxes? Contact us to discuss them. West Midlands Accountants LTD, we are here to offer you support, help you save time, and ensure your records are up to date. Ultimately, we can help you save money. Contact us by phone at 01217 665 477 or email info@westmidlandaccountants.co.uk for more information

Read More

Should we outsource our bookkeeping?

Is your small business growing rapidly? If so, you might soon require the services of a professional bookkeeper. West Midlands Accountants LTD, Return to Reality, has been supplying top-notch bookkeeping services to clients in the West Midlands area for years!
Those who use our services find that we work tirelessly to satisfy them, and they return to us because they are always ultimately happy with how we manage their books.

We take pride in being meticulous with our bookkeeping service in West Midlands. When you put your books in our hands, we diligently record every transaction using your preferred system. 

With West Midlands Accountants LTD you get clean, tax-ready books fast! We always loved numbers and data, and jump at every chance we can to work with them. Return to Reality makes it possible for us to connect with clients who can genuinely benefit from our passion.
West Midlands Accountants LTD services are very affordable because we love our work; to a great extent, it is its own reward. If you are a business owner and prefer that your books be kept on-site, that is absolutely no problem! We will travel to you and set up shop in any space allocated to us. We want to be where we can best serve your needs.
For the best bookkeeping in the West Midlands, choose Return to Reality. We do a better, faster, and cheaper job than our competitors. Put us to work for you today!

Call us 01217 665 477 or send us detail in email at info@westmidlandsaccountants.co.uk

For more detail please visit our website Westmidlandaccountants.co.uk

Read More

Bookkeeping Online Service

If you are good with numbers and you enjoy working with people, starting an online bookkeeping business may be an entrepreneurial idea that you may want to consider. With an online bookkeeping business, you will be able to set your own hours and have some control over your income. While setting up a bookkeeping business can be very rewarding, it does take a fair bit of exertion on your part to accomplish an outstanding work that would measure up to the expectation of most discerning clientele. Here are a few things to consider when starting your own business in this field.

Get A Good Education
While you could potentially start a bookkeeping business without doing any research, it is usually best to get your bookkeeping education first. There are a number of different bookkeeping schools that you could attend in order to receive a top-notch bookkeeping training that you would need for this business. It is usually a good idea to go to a bookkeeping school where you can get a bookkeeping certification. Once you have an official recognition, customers will be more relax in doing business with you.

                             


Equipment

Once you are ready to start your bookkeeping business, you’ll need to invest in some equipment and supplies. You will need a computer that has Internet access, a printer, a scanner, and possibly a filing cabinet. In addition to buying a computer, you may want to invest in some bookkeeping software. There are a number of programs online that will allow you to handle your bookkeeping customers. This will make your job a lot easier, and help keep all of your customers records safe and secure. You could potentially get a computer and printer/scanner combo for $500 or less. Software packages also differ in price. Some of them will cost you around $50 a month in order to set up a number of customer records in your account.

Marketing

If you are going to start an online bookkeeping business, you may be required to market yourself with companies overseas to initially get a significant market share to burden the start up overhead cost of your business. To begin with, you may need a website to inform your potential clients of your services. If you can create your own website, your online business could be up and running soon maybe right after paying for the hosting service. Hiring a professional web designer can make your website look more strikingly good but may increase their cost significantly.

After creating a site to market all your bookkeeping services, you’ll need a number visitor to check your site to make them go up in search engine rankings and make your site more visible to among the online crowd. You may start bidding up jobs on freelance sites as a way to attract your potential customers. You may also start looking on pay-per-click ads on search engines like Google and Bing to get more people to come on your site. You could spend as much or as little as you want on advertising, depending on how much you money you are willing to invest.

Handling Customers

If your website is good enough at converting visitors into paying customers, it will have a better chance of growing them through time. For the mean time you need to provide the best service among all your customers and if way possible beat the competition so you can keep them hook up while expanding the scope of your services that will cover all the needs of your paying yet truly discerning clientele.

Find Experience Charted Accountants Services in West Midlands only at West Midlands Accountants LTD

Read More

Tax Return Preparation with West Midlands Accountants LTD

Payroll Firms Electronic Tax Services West Midlands Accountants LTD is an income Tax service company with over 17 years of experience in the area. Our office brings an exciting change to the traditional method of tax preparation and filing.

Our mission is to provide professional income tax preparation with cost effective solutions. We offer each of our client’s personal attention, speedy turnaround times, and detailed explanations of how we maximize their deductions to increase their tax return.

Income Tax Returns West Midlands Accountants Electronic Tax Services West MidlandsAccountants LTD capable tax prep help customers can get a loan on their anticipated tax returns in as little as 12-24 hours through a RAL.


         
                                       
The Refund Anticipation Loan provides taxpayers with a check in the amount of their anticipated tax refund, less suitable fees. Customers can choose to have the Refund Anticipation Loan funds deposited direct into their bank account or pick up a check at the office where they filed their return.

Tax Return Preparations Service West Midlands Accountants LTD company provides appropriate feedback and reports incorrect entries so that you get an chance build necessary changes and developments for the tomorrow progress of the organization. Many organizations make an strain to train their staff on the job, but a whole new division and recruits take up valuable business time and money in the bargain.

Accountants services West Midlands Accountants LTD Accountants and auditors keep track of a company’s money. The company’s managers and people outside the company scan their reports. Managers look at the accountants reports to see how well their companies are doing. Governments use the reports to tell how much tax a company should pay. Some people review them to decide if they want to do business with the company. Others use them to settle if they want to lend money to the company or not.

Choosing a payroll service doesn’t have to be hard. With the right facts, you can smoothly associate several payroll services and select the best one for your companionship. Bookkeeping Firms in West Midlands Accountants LTD is your location to learn how Bookkeeping services work, what services they propose, and how much you can expect to pay.

Call us for more detail 01217 665 477 or Email us info@westmidlandaccountants.co.uk

If you are looking Accountants Services in Birmingham then Visit RRAccountants.co.uk

Read More