Author: Complete Controller

Preparing tax returns is a difficult task that demands specific accounting knowledge and skills. Every firm must submit a federal income tax return during tax season, and those who fail to do so face significant penalties and fines. The cost of tax preparation varies greatly, from DIY tax software to professional tax preparers. With so many alternatives, you’ll need to prioritize them based on your tax circumstances if you want to keep your tax filing record clean. When you come across and develop an excellent company idea that you are confident will work for you, it may be quite a feat. Your commercial acumen and foresight have resulted in a venture that will undoubtedly return large profits at some point in the future. In the mid of all this excitement, you will be required to file a federal income tax return during tax season, and you may have no idea how to go. True misery begins, and businesses start to lose consciousness and disintegrate. Companies should either engage a tax professional to complete their tax returns or use DIY tax preparation software to determine how much they owe the government.

Interpreting The Law

The general practice of interpreting the law is not applied as a mandatory assessment of the Tax and Customs Board regarding the taxation of a particular transaction related to a specific taxpayer. Tax liabilities also arise when an imaginary situation is created in which services are allegedly provided between business associations to evade labor taxes or reduce the amount of taxes paid. Compliance of the contract with the actual content of the work or service ensures equal taxation of all persons and fair competition. In the cases reflected in the decisions, labor tax evasion consisted of the fact that the wages of an individual employee were transferred to the bank account of a commercial partnership in which this individual was the sole owner or member of the board. At the same time, the employer did not have to withhold taxes from wages when transferring funds. Instead of an employment contract concluded between the employer and the employee, you drew up a contract to provide services between two commercial partnerships. Thus, at the disposal of his business partnership, the employee received for the service rendered an amount greater than he would have received wages, the difference being taxes on wages.

Law on Employment Contracts

The Law regulates employment relations on Employment Contracts, which also defines the employment contract concept: based on an employment contract, an individual (employee) performs work for another person (employer), subject to his leadership and control. The employer pays the employee remuneration for work. In other words, an employment contract is an agreement between an individual employee and an employer, according to which:

1. The employee is required to perform the work under the direction and control of the employer, and
2. The employer is obliged to pay the employee remuneration for work and guarantee him the working conditions provided by the employment contract, collective agreement, or law.

The criteria that the courts relied on when monitoring the compliance of legal relations with labor relations are as follows:

1. Who, according to the contract, manages the work process and organizes it
2. Who determines the time, place, and method of doing the work
3. Who pays for the tools
4. Who faces the risks associated with the performance of work
5. Who receives income or profit
6. Does the person organizing the work consider the composition of the employees of the organization
7. Whether the employee obeys the internal regulations of the organization

You should consider all these criteria together. When finding out whether there is an employment relationship, one should, first, weigh the relationship between the employee and the employer: to what extent is the employee subordinate to the employer, or, in other words, what is the degree of independence?

Conclusion

You can use tax preparation software for relatively easy tax calculations. Hiring tax pros to create your tax returns, on the other hand, is a good choice for complex financial activities. Before deciding whether to use tax preparation software or hire a tax professional, it’s critical to assess your software’s efficacy and measure its tax preparation worth against the cost. Without question, a well-organized and error-free tax return may save you money and time.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

To hire a bookkeeper or not

The next step is an online accounting program. These are now built to work with even a self-employed person without accounting knowledge. Many entrepreneurs use this to invoice themselves and only engage the accountant for checking and tax returns.

Are you looking for an accountant? Compare costs of accountants from your region? Request a free and non-binding quote online and compare yourself.

It is also not mandatory. So, you can do the entire bookkeeping yourself. You indeed save the costs of an accountant, but if you miss out on tax benefits because you are insufficiently aware of the rules, you will, of course, cut yourself. In addition, an accountant can automate things. Think of salary administration or other time-consuming matters for an entrepreneur to set up entirely independently.

With complex accounting, an accountant quickly pays for himself

Many entrepreneurs quickly outsource the income tax return and any salary administration, and in this area, a good accountant usually earns back his costs rapidly. As soon as the company is profitable and the accounting becomes too time-consuming, many entrepreneurs outsource VAT returns. Invoicing or matters such as journey or time registration are, of course, less easy to outsource. For that reason, accounting is often an interaction between an accountant and the entrepreneur himself.

Costs accountant

Is desired. The costs of an accountant for a sole proprietorship are on average between $500 and $1,500 per year, depending on the contact, how the figures are provided, and to what extent advice is given. These are averages, though. Rates of a bookkeeper can sometimes differ per region, office, or bookkeeper. Therefore, it can pay off to request a few quotes online and compare them.

But on the other part, you should consider whether a low-cost bookkeeper is the best. Hiring a good bookkeeper may cost a lot of money, but it can also pay off if he finds the right tax benefits for you. Many bookkeepers have different hourly rates per service.

Duties of a bookkeeper

He helps with bookkeeping, but what exactly does a bookkeeper do? It can differ per company. Many entrepreneurs do the invoicing themselves, but apart from that, many administrations are outsourced to an accountant. It then keeps the books of all financial transactions, verifies the accuracy of all financial-related documents, and prepares financial reports for specific periods, such as the annual accounts or the annual report.

Traditionally, a bookkeeper also collects the incoming and outgoing invoices and keeps track of which of them have been paid. Nowadays, these activities are often taken over by a digital accounting program mainly aimed at entrepreneurs themselves. As a result, the duties of the bookkeeper change to a controlling function. In addition, many entrepreneurs hire him for the turnover and income tax returns.

Differences between bookkeeper, accountant, and tax specialist?

In the past, accountants did all the tasks that came with the administration. Nowadays, accounting programs ensure that entrepreneurs can enter invoices themselves, which automatically updates overviews. The rise of internet banking also has simplified administration tasks, enabling entrepreneurs to do this themselves. As a result, accountants increasingly present themselves as specialists.

Previously, the accountant was often the specialist, but nowadays, more and more accountants call themselves acquisition advisers, tax advisers, or tax specialists. These positions existed before the advent of automation but mainly consisted of consultants for large companies. Nowadays, more and more medium-sized and even small companies use tax specialists. Therefore, a tax specialist is an accountant who has specialized in a particular part of his work. A specialism can not only convince customers; it also sometimes justifies a higher hourly rate.

Bookkeeper engaged? You remain responsible yourself!

Are you hiring an accountant because you don’t feel like delving into the administration yourself? You are certainly not alone! Few entrepreneurs enjoy getting to know all the tax regulations well. Of course, you can expect an accountant to be knowledgeable, but it doesn’t hurt to keep an eye on yourself.

It has a lot of influence on how you provide the figures yourself, but you also remain legally responsible for the accounting. Are you unsure about a specific choice? Do you regularly doubt? Then it is probably wise to look for another accountant! Then it never hurts to ask for a second opinion from the tax authorities themselves.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Work in progress for own account and risk

Work in progress is part of the stocks (Article 2: 369 of the Dutch Civil Code), whereby the economic risk lies with the entrepreneur. These works in progress are the legal entity’s property because they have not yet been sold. This work in progress is valued at manufacturing cost or a lower net realizable value.

The manufacturing price includes:

• Direct material consumption
• Direct labor and machine costs
• Other costs are directly allocated to manufacturing

Sometimes also with storage for indirect manufacturing costs. The net realizable value is based on an expected sale price, fewer costs to be incurred for completion and sale.

Projects in progress commissioned by third parties

When we talk about contracted projects with a third party to construct an asset (or a combination of assets) – where execution usually extends over more than one reporting period – we talk about work in progress. Because the start date of the project and the date on which the project is completed often do not fall in the same reporting year, the allocation of the result per calendar year is an essential factor in determining the projects in progress. It is necessary to correctly allocate project costs and revenues to both the duration of the project and the degree to which the project has been realized.

Projects in progress are subdivided into (DAS B5.303):

• Contracting contracts: execution takes place at a fixed price, often supplemented with additional or less work.
• Cost-effectiveness contracts: the execution is based on reimbursement of all costs related to the project, increased by a surcharge or a profit percentage.

Processing project costs and revenues

With a contract (RJK B5.309), the following conditions must be met:

• You can reliably determine the total project revenues.
• The project’s economic benefits in progress will probably flow to the legal entity.
• You can determine the project costs required to complete the project in progress and the extent to which the project has been completed on the balance sheet date reliably.
• The costs to be allocated to the project are distinguishable and can be determined reliably. It can compare the actual expenses incurred with the preliminary calculation or earlier estimates.

In the case of a coordinated contract, you must meet the requirement:

The project’s economic benefits in progress will probably flow to the legal entity.

Whether based on a contract, the costs attributable to the project are distinguishable and can be reliably determined.

Small legal entities can choose from these two valuation methods for the processing of project costs and revenues (DAS B5.308):

• Profit-taking in proportion to the performance performed
• Profit-taking upon delivery/completion of the project

With pro-rata profit-taking, it is essential that project progress can be reliably determined. If that is the case, the profit can be allocated to the financial year to the extent that the performances performed during the financial year accounted for their share of the total performances performed for the project. This concept of profit is in line with the concept of profit for tax purposes, which means that no passive or active deferred income must be determined and presented in the annual accounts.

There are situations where profit cannot be measured responsibly. In those cases, you must fully recognize the profit in the financial year the project is delivered or completed (DAS B5.308).

Presentation in the annual accounts

The project in progress item consists of the balance of the realized project costs, increased by the allocated profit and less the installments already declared and any recognized losses. This balance (kept per project) can be a debit or a credit balance on the balance sheet date. This item is included separately under current assets (between inventories and receivables/deferred income) if it concerns a debit balance. In the case of a credit balance, the item is included under current liabilities. It is also permitted to process the balance of the projects in progress as one total and present it on the balance sheet. The realized project revenues are shown as net sales in the income statement.

Change in work in progress if the project is not yet completed

If the latter method is used, the total project revenues should be presented as net sales in the year of completion of the project in progress. In addition, the cumulative project revenues up to and including the previous periods must be presented as changes in work in progress.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

As an entrepreneur, you probably know all about it: accounting. It is often not the most excellent entrepreneurship job, but it must be done. The tax and Customs Administration is your best friend, and of course, you don’t want to get into trouble with this. Are you good with numbers? Or do you have a small business? Then you can take up the administration yourself. Do you not know much about accounting? Then choose to outsource the entire task.

Do your accounting

When you start a business, you can choose to do the entire bookkeeping yourself. You must understand numbers, but you can do it yourself. You get a good insight into your company’s finances, and it also costs you no money at all. In addition to the advantages, there are also several disadvantages:

• It costs you a lot of time, and you would prefer to spend this time on the company itself.
• It would help if you had a lot of knowledge to do the bookkeeping yourself. There are various laws and regulations that you should be aware of.
• Always a chance of a mistake. Everyone makes mistakes from time to time, but this can cost you dearly.

Outsource to a pro

The second option is to outsource the bookkeeping to a professional. It can be a good choice if you don’t know much about the administration or don’t have time. Many entrepreneurs choose to outsource their accounting partially. For example, the entrepreneur himself does the accounting and sales tax return, but the bookkeeper, in turn, checks everything and does the income tax. This way, you know for yourself how your company is doing financially.

You can also choose to outsource the entire accounting. It is often done when the entrepreneur is very busy and does not have time. We recommend that you occasionally make an appointment with your accountant and be informed about the situation. This way, you stay informed of your current finances.

Backlogs in accounting

Have you fallen behind in accounting? Accounting backlogs are annoying, but this can happen and isn’t the world’s end. You can try to clear the backlog yourself, but hiring a professional can sometimes be more sensible. A professional can help you communicate between you and the tax authorities, and you will also be satisfied with the tax returns. Of course, you do not want to receive a hefty fine from the tax authorities, and it is better for everyone if the backlog is quickly cleared.

As an entrepreneur in the initial phase of your business, it is logical that you want to do a lot yourself to save money. Accounting or administration is a classic example of this. You can easily do it yourself with an online program. It does take time. As an entrepreneur, you must consider whether the time is worth it or whether it is better to leave it to a professional, so looking for an accountant is not bad.

Maintaining an overview of the financial field is essential for your company. You know precisely how much turnover has been made, which costs have been incurred and from whom you still have money in credit. If you do not want to worry about this, you can also outsource the administrative tasks. A good accountant can earn himself back easily. Although the online software often also gives tips about taxes, an accountant can often give tips specifically for your situation and possibly save tax due to the experience. That doesn’t sound wrong.

In addition to taxes, you can, of course, also save a lot of time with this. Your time as an entrepreneur is perhaps the most important because you can always make more money, but time cannot. Therefore, consider whether it is not much better to outsource the entire administration to professionals. The prices charged are, of course, important. But it is even better to have a good click with the accountant Redmond. You will probably have regular contact with these people, and then it would be better to click between the two parties.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

The Power of Self-Care: How to Make It a Habit and Transform Your Life

Self-care is essential for both our emotional and physical well-being. By making conscious choices in our daily routines, we can develop self-care habits that enhance our quality of life. While the idea of incorporating self-care may seem overwhelming, it doesn’t have to be. With small, intentional changes, you can create a lifestyle that prioritizes your well-being without disrupting your daily responsibilities.

The first step: Identifying what you need

The journey to self-care begins with recognizing what behaviors need to change for you to feel better mentally and physically. Start by making a list of habits you’d like to adopt and prioritize. Then, work on implementing these habits one at a time until they become second nature.

A little tip: Take care of yourself before taking care of others. When you prioritize your well-being, you improve your self-perception, your overall happiness, and your relationships with those around you.

Why Self-Care is Crucial for Success

The benefits of prioritizing yourself

No matter how hard we work, if we neglect our well-being, we won’t be able to enjoy the rewards of our efforts. Self-care isn’t selfish; it’s necessary for maintaining our physical and mental health. Moreover, it serves as a powerful way to show our loved ones that we value ourselves and, in turn, them. When we feel our best, we exude positivity, influencing those around us to do the same.

Beyond pampering: A holistic approach to self-care

Many people associate self-care with indulgent activities like spa days, long baths, or enjoying a cup of tea. While these are excellent ways to relax, self-care encompasses much more. It’s about understanding your personal needs and making choices that nurture your mind, body, and spirit. The foundation of a stress-free life starts with self-care, and self-care starts with you.

So, what do you need to feel your best? How can you make your daily routine more fulfilling and enjoyable?

7 Easy Ways to Make Self-Care a Habit

Forming a habit doesn’t have to be complicated. Self-care can be seamlessly integrated into your daily routine with a few simple adjustments. Here are seven strategies to help you get started:

Listen to your body: Eat, drink, and nourish yourself

It sounds simple, yet many of us neglect basic needs like eating and staying hydrated due to our busy schedules. Have you ever found yourself skipping meals or delaying bathroom breaks just to finish a task? These small compromises take a toll on your well-being.

Prioritizing a balanced diet and staying hydrated gives your body the energy it needs to function at its best. Plus, taking time for meals creates natural breaks in your day, allowing you to reset and refocus.

Set daily intentions and boundaries

Creating clear intentions and boundaries sets the tone for a productive and balanced day. This can mean limiting time spent on social media, defining your working hours, or setting small goals to accomplish.

A helpful practice is writing down three priorities for the day. At the end of the day, review them to see what you achieved and how you can improve moving forward.

Move your body and prioritize rest

Physical activity and rest are directly linked to mental well-being. Exercise releases endorphins, boosting your mood and energy levels, while sufficient rest allows your mind and body to recover. Even if your schedule is packed, small movements like stretching, walking, or dancing can make a difference.

Balance is key—don’t overexert yourself. Allowing rest days is just as crucial for recovery as exercise itself.

Set personal self-care goals

Self-care is personal, so tailor it to what makes you feel good. Not everyone finds relaxation in meditation or yoga—maybe a run, painting, or playing music brings you joy. Identify what works for you and start small. If jogging is your goal, begin with short runs and gradually increase your distance. Progress, not perfection, is the goal.

Make time for yourself daily

Taking time for yourself should be a non-negotiable part of your routine. It doesn’t have to be extravagant—even 15 minutes of uninterrupted time can make a difference. Use this time to do something enjoyable, whether it’s reading, listening to music, or simply doing nothing.

If you struggle to make time for yourself, schedule it like an appointment. You wouldn’t skip a meeting, so why skip time for self-care?

Practice self-compassion

Self-compassion involves treating yourself with kindness and understanding, even when you make mistakes. It’s different from self-pity, which focuses on feeling like a victim. Instead of beating yourself up over setbacks, recognize them as learning experiences.

Next time you catch yourself being overly critical, reframe your thoughts. Acknowledge what went wrong, but also highlight what you did well and what you can improve.

Notice the positive impact

The more you prioritize self-care, the more you’ll notice its benefits. Your mood will improve, stress levels will decrease, and tasks that once felt overwhelming will become more manageable. Taking care of yourself allows you to show up as your best self for others without feeling drained.

Final Thought: Start Small and Stay Consistent

Developing a self-care routine isn’t about making drastic changes overnight. Like climbing a mountain, it takes small, steady steps. Some days will be easier than others, and that’s okay. The important thing is to start—even if it’s just dedicating five minutes a day to something that brings you joy.

Step by step, self-care will become a natural part of your life, improving not just your well-being but also your overall happiness and success. So, what’s one small self-care habit you can start today?

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

The investor’s goal is to recoup their initial investment and make a profit. Alternatively, you can generate an infusion of passive income to cover your regular expenses.

Do not assume that this information is solely relevant to “cool men” in suits from financial television networks. Investing can and should be a big part of our life. If you give the article a half-hour, you will convince yourself.

If you’re interested in personal finance and want to save money, you’ve come to the perfect place. After all, this is how financially successful individuals live:

• Try to spend less money than they make
• Pay off your obligations and loans
• Set some money away

To begin, all of these are critical. However, saving is not a goal in and of itself. Saving won’t get you very far for the following reasons:

According to the Trading Economics database, inflation is associated with the economic progress of 75% of the world’s countries. Money eventually depreciates under its influence.

“Everything has gone up in price, including furnishings and construction supplies!” It was required to make a buying decision right away! ” – you consider.

And you are entirely correct! It’s not going to get any better. Time is on your side when it comes to inflation. The longer money lies dormant, the fewer goods and services you will be able to purchase in the future. There’s also the issue of inflation. Other economic forces have the potential to devalue money further.

But don’t be concerned. The recipe for financially successful people includes a fourth ingredient: they invest.

Let money work for you

 

Return on investment might come to you in a variety of ways. The first and most obvious:

The gain in asset value: purchased shares for $25 apiece, sold for $60, and earned a profit of $35 per share—regular payments, such as interest on a deposit.

Stocks will be discussed later, but let’s concentrate on bank deposits for now.

According to the National Bank, the United States has more than 9.6 trillion tenges on deposits. Another ten trillion dollars are kept in the company’s banks. It’s safe to mention that most people are aware of this instrument.

On the other hand, a deposit is the most basic investing option. It is even considered a necessary investment condition known as ” compound interest.”

It is when you only get interested in your assets for the first month. The bank’s interest is then applied to the entire amount, resulting in a new reward that is higher. As a result, the longer the funds are in operation, the more income they generate – automatically.

Do you have a down payment? You’ve made it to the stage of being an investor!

That’s simply a deposit; it’s not the only or most profitable tool available. Foreign currency deposit rates are often too low to be considered profitable. Yes, at 2% per year, you won’t make much money. Furthermore, tenge deposits do not always cover the same inflation, and there is a possibility of the national currency depreciating. In recent years, we’ve seen devaluations on multiple occasions.

Where to invest

We can recall real investments to cover the complete range of our issues. These are some of them:

• Land plots are being purchased
• Addition of residential and commercial real estate for rent or selling
• Precious metals and gemstones as investments
• Looking for antiques and treasures
• Creating and growing a business, as well as purchasing ready-made franchises
• Copyrights, patents, and licenses may be purchased or registered

All these options have advantages and disadvantages. Many of the items on this list necessitate specialized knowledge, talents, and commercial savvy. It may also necessitate a significant amount of effort and time. No one warned about the dangers: a collector may be “cheated” or robbed, and business could “go bad.”

Financial investment is another and more beneficial sort of investment in many ways. It is when you purchase massive company securities on international stock exchanges.

The main types of securities and how they work:

Shares: You invest in a firm by purchasing a percentage of its stock. You profit from the increase in the value of your securities as the company grows and develops. In addition, about 4,100 corporations in the US stock market pay dividends to shareholders regularly.

Bonds: Bonds are financial instruments that enable you to lend money to a business. The corporation regularly compensates you with a percentage fee and is obligated to refund your investment after a set period. Bonds can also appreciate and sold profitably.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

If you’re a business owner, you’re aware of how hectic and time-consuming managing your company’s operations can be. There is plenty to do and so many things to take care of. The last thing you want to consider is bookkeeping when you have so many duties to complete and so many clients to attend to. With a mountain of spending receipts, invoices, and other paperwork piling up, you may be inclined to postpone your bookkeeping duties until tomorrow or next week. Instead of hiring a professional bookkeeper, many small business owners try to cut costs by doing their bookkeeping. There’s no reason you can’t do it yourself if you have the time and knowledge.

On the other hand, small business owners must realize that poor bookkeeping will cost them a lot of money in the long run. Bookkeeping does not have to be complicated. Small and mid-sized business owners, according to experts, should reconcile their books on a weekly or even daily basis. It will prove to be far more profitable in the end.

Tax Deductions Decrease

Based on the practice itself, there are several reasons why an accountant should not neglect this measure. We suggest starting with the nature of the assets and liabilities for which reconciliation is carried out with counterparties and then moving on to the event itself and its consequences for accounting and tax accounting. Any debt during entrepreneurial activity is associated with accepting certain obligations by persons: to take some action or to refrain from it. By agreeing, each party acts not only as a debtor but also as a creditor, who has the right to demand a counteraction from the other party. Obligations may arise both from a contract and for different reasons, such as causing harm. Accounts receivable give the organization the right to claim against third parties for obligations that they have not fulfilled, and accounts payable, on the contrary, imposes on it the obligation to fulfill its obligations. The table on the page provides examples of receivables and creditors that may be on the balance sheet of autonomous institutions. As a rule, obligations that have arisen are terminated by their execution. If this is not possible, you can remove the obligation:

1. By agreement of the parties – the execution of the compensation, replacement by another obligation (novation).
2. By decision of one party – debt forgiveness, set-off of a homogeneous counterclaim.
3. Due to circumstances beyond the parties’ control – due to the impossibility of fulfilling the obligation, based on an act of a state body and due to the liquidation of a legal entity.

In addition, the debt can be sold or transferred to another person with the latter’s consent. The accountant needs to pay attention to all cases, in each of which the termination of the obligation is the basis for writing it off the register. If none of these cases has occurred and the duty has not been fulfilled, you can write the debt off after the expiration of the limitation period established by the Civil Code and is three years. Its beginning is determined by the deadline for fulfilling obligations, which is indicated after the contract. Suppose the date of fulfillment of obligations is not specified in the contract. In that case, it is necessary to proceed from a reasonable period after which the debtor is given seven days to fulfill the claim made by the creditor.

How To Reconcile Accounts?

Unfortunately, there are few indications in the regulations for this event. We would single out reconciliation as part of the inventory regulated by the Guidelines for the inventory of property and financial obligations. It follows from them that the primary purpose of the inventory of calculations is to confirm the reliability of accounting for debts and obligations and establish their occurrence and repayment timing. The validity of the amounts of debts for settlements with suppliers and customers, the budget and extra-budgetary funds, employees and accountable persons, other debtors, and creditors are checked. The inventory commission, through documentary verification, must also establish the correctness and validity of the amounts of receivables, accounts payable, and depository debts, including the amounts of accounts receivable and payables for which the limitation period has expired.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

In 2017, considerably more than one million taxpayers had their tax returns audited by the Internal Revenue Service (IRS), but this counted for less than 1% of all files.

If you received a dreadful IRS audit notice, keep calm, and realize that the investigation is a professional process that may be handled by simply delivering the proper papers.

Understanding what to expect will help you fix issues quickly, handle numerical disparities, communicate with IRS agents appropriately, and complete the process with only a tiny amount of stress.

Why the IRS May Contact You

Taxpayers should always be mindful that an audit does not imply that unlawful conduct is suspected. Tax filings are complex documents that contain financial information that you must examine for accuracy.

The auditing procedure is referred to as an evaluation, and it does not infer that you have got it wrong on purpose. The IRS contacts individuals for several reasons.

According to the IRS, taxpayers are chosen through some “spontaneous classification and computer screening” procedure based on analyzing the economy. The Internal Revenue Service analyzes tax returns to “norms” for similar returns.

If you have operations with other taxpayers, such as business contacts or shareholders, and they have been questioned, you may be evaluated.

Other indicators, such as revenue reported or odd deductions, are used to select some returns.

Other reasons you may be audited:

• Third-party reports on income on 1099s or W-2s that contradict each other
• Deductions for home offices
• Losses on rental properties
• Use of a vehicle for business purposes
• Deductions for hobbies (also known as hobby losses)
• Bank accounts or foreign currency transactions

Three Types of Audits

There are three sorts of audits, each with a different level of seriousness. According to news sources, most audits are minor, and more than three-quarters of audits are done via mail.

Correspondence (Mail) Audit – Correspondence is frequently used to tackle routine problems such as improper math or missing paperwork.

Office Examination Audit – An office investigation is planned in a local IRS department to determine if you have reported all your earnings and that your deductions are valid.

Field Audit – The most thorough of the three is a field audit. An IRS agent will come to your home, business, or accountant’s office to look over your records and files to ensure that the information on your tax return is valid.

Preparing for an Audit

The IRS will notify you by mail or phone if you are being audited, not via email. The particular facts you will evaluate, and any other papers you may need to bring will be included in the notification.

An audit notice gives you 30 days to reply. Do not put off responding to a letter since the time you wait to respond will add to the amount you owe the IRS in interest.

Before an audit, prepare your papers, figure out the problem, and decide whether you want representation.

• Home mortgage statements are among the documents you may be required to present
• Tax returns from the past
• Receipts
• Statements of Brokerage
• Records of retirement accounts and receipt of payments

You should check your files with a tax professional to understand the discrepancy. If you file your taxes at home using an online filing service or through a tax compilation firm, the firm may charge a fee for audit defense.

During the Appointment: Know Your Rights

You can attend the appointment alone or have a representative attend in your place or beside you. A certified public accountant (CPA), attorney, IRS Enrolled Agent, or paid preparer of your return can represent you; however, it may be costly.

It would help if you were nice and compliant throughout the audit, which will occur in person at an IRS office or at your home. Show just the IRS agent documents that they have requested.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

You must first have a clear view of your cash flow before you can begin conserving money each month. You must account for all your cash inflows and outflows, including future debt repayments, monthly expenditures, and how much you save each month. Let’s break this down into a few steps.

Learn to manage your budget and understand your finances

To save money rapidly, the most important thing you can do is learn how to manage your budget. You have control over your finances if you have control over your budget. If you want to meet your short- and long-term savings goals, you must first become financially independent.

Over 30 days, keep track of your finances. It contains all your earnings and outgoings.

Calculate how much you’re saving or overspending each month by comparing your monthly income to your monthly expenses.

Sort your spending into two categories: fixed and variable. Your fixed costs include things like rent and utilities, which are tough to change. Groceries, entertainment, and subscriptions are all examples of variable costs.

Pay off your debts

You must first pay off your bills before you can begin saving. Because interest accrues over time, the longer you wait to pay off a loan, the higher your interest. Before focusing on your other savings goals, pay off your bills first.

Consider using the 50/30/20 rule for this. US Senator Elizabeth Warren developed the 50/30/20 rule while she was a bankruptcy specialist at Harvard. It is a straightforward technique to manage your budget and, as a result, pay off your debts. It works like this:

Use half of your salary to cover your fixed expenses, such as rent and utilities. Use 30% of your income to satisfy your appetites, including variable costs such as dining out and memberships.

Open a dedicated savings account

You must divide the money you utilize for your daily necessities from the money you aim to save to save money quickly. To do so, you’ll need to open a separate savings account. As a result, you reduce the danger of having to tap into your savings account to cover your everyday costs. It will motivate you to stick to your daily budget while safeguarding your savings.

Schedule your savings

If you have a consistent monthly income, consider automating your savings: you may set up an automated monthly transfer from your checking account to your savings account. As a result, the risk of using these assets to cover daily needs is reduced.

Schedule your bill payments

You can also set up a payment plan for your invoices. Companies frequently charge late fees if you don’t pay your bills on time, so paying your bills ahead of time will help you avoid any additional penalties.

Set your card spending limit

Do you want a simple strategy to save money quickly? Set a limit on how much you can spend on your credit or debit cards. It will keep you from overspending and urge you to plan time for your everyday purchases. It is a service that many banks provide. For example, via your N26 app, you may set daily spending limits and choose whether to authorize ATM withdrawals in seconds.

Use the envelope management system

Another option is to adopt Dave Ramsey’s envelope management technique to help you save money quickly. This approach entails taking your monthly income in cash (in its total) from the bank at the start of each month and splitting it into several envelopes based on your management goals.

However, we must admit that it is unlikely to be the most practical in 2021! It’s nearly impossible not to stay within your budget when you pay for everything in cash! As a result, you’ll have envelopes for fixed and variable costs (e.g., rent and utilities) (e.g., purchases of clothes, dining out, shopping).

Save on your rent

Rent savings is one of the quickest methods to save money each month. One of the simplest ways to achieve this if you live alone is to share a room. It will immediately decrease your rent in half, and if you opt to live with two roommates, you’ll only have to spend around a third of what you’re paying now.

If you spend $1,300 per month for a three-bedroom apartment and locate a roommate, you will save $650.

You can move into a smaller room if you already live in a shared apartment. Rents are usually calculated based on the size of the room being rented.

As a result, you can save a lot of money each month. It would also inspire you to resell your furniture, allowing you to make some money.

Of course, there are several ways to save money on rent based on your living situation, needs, and residence.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

We form a budget for the month

You need to know where you are before you can pave the route. As a result, let’s begin with reviewing actual revenue and expenses. The longer the period needed to cover – say, a year – the more the budget fluctuated from month to month.

All sources of income, including one-time ones, should be considered: salary, bonuses, freelancing, money from renting an apartment, revenue from the sale of old stuff, and interest on deposits. It is critical to consider everything, including “little” costs such as transportation, taxis, couriers, gifts to coworkers, a child’s kindergarten, or any subscriptions. Expenses should be treated similarly.

It’s also crucial to investigate whether there are any simple ways to cut mandatory spending, such as getting discount cards at your preferred businesses or paying using cards that offer enhanced cashback in various areas.

The most straightforward financial aim is to stay within your budget. It will contain the amount you save each month and your income and spending. All of this will enable you to construct a monthly budget.

Working on basic financial security

It is possible to control your budget in the present by understanding the structure of household financial flows. The remainder of the funds can be set aside for future use. But, again, awareness is required, as are clear financial objectives.

The SMART technique has already been discussed in further depth. We’ll repeat it: “I want to save $100,000 for a vacation in ten months” is an excellent financial objective. And while “I want to get rich” is an understandable aspiration, it is not a monetary aim. An economic goal should be explicit, quantifiable, attainable, meaningful, and time-bound.

Short-term, medium-term, and long-term goals are commonly split. First, it is preferable to begin by attaining short-term objectives to provide the confidence and motivation necessary to adopt a long-term strategy.

Anything you can accomplish in a few months is considered a short-term aim. The most crucial is inflating an airbag and closing modest loans and credit cards. Experts argue about the priority order: on the one hand, interest on loans devalues any savings. Thus, they must be paid off first. However, if the family does not have a stable fund, any unforeseen event, such as illness or job loss, may push it into debt. Everyone must choose which aim is essential to them, yet both are critical.

Set medium-term goals

It would be best if you continued to increase your financial security in the medium term. But now that the loans are paid off and the “rainy day” fund provides protection in the face of adversity, one can think back on dreams.

For the next 1 to 5 years, medium-term goals are evaluated. Renovations to a home, a down payment on a mortgage, studying abroad, or purchasing a new car are all examples.

At this point, it’s a good idea to incorporate stock market investment into your financial plan. The current approach to investing proposes that you should first determine the portfolio’s composition by the investor’s personal life and financial goals rather than by the most significant return. It’s one thing to wait a year or two after achieving your objective, whether buying a home or retiring. Another is the planning horizon of 30 years. The essential premise is that the longer it takes to attain a goal, the more risk the investor can take.

Planning for retirement

The construction of pension savings is the essential long-term financial goal and completing the complete financial planning process.

Consultants recommend putting 10% to 15% of your income into a long-term pension portfolio. In three steps, you can more precisely calculate the required amount for a personal pension fund:

Estimate your expected monthly expenses. The current budget will be a good guideline, but it is worth including additional costs, such as medical care.

Subtract the income by then – the state pension itself, perhaps rent, part-time jobs, etc.

The remaining amount will need to be accumulated by the expected retirement date. American sources say about the 4% rule: there should be enough pension savings to live on 4% for a year. This figure is based on data on the yield of low-risk securities in the US stock market from 1926 to 1976.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.