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What is Tax Accounting Credits to Gary Jain 🚀, follow him for more valuable accounting content. ------ Here's the original post: Everything you need to know about TAX ACCOUNTING 👇 (and why it's important for your business) 📍 What is Tax accounting? Tax accounting is the process of tracking funds associated with individuals and entities to prepare tax returns and ensure compliance with tax laws. It is essential for everyone, including individuals, businesses, corporations, and other entities, and even those who are exempt from paying taxes must participate in tax accounting. 📍 Significance of Tax Accounting: - Helps manage cash flow by planning for tax payments. - Influences business decisions by considering tax implications. - Ensures businesses adhere to tax laws, avoiding legal issues and penalties. 📍 Types of Tax Accounting: 🔸 Individual Tax Accounting: - Refers to taxing a person's income while factoring in deductions, liabilities, and credits. - Essential for individuals who need to file their tax returns accurately and avoid penalties. 🔸 Business Tax Accounting: - It is more complex than individual tax accounting, with greater scrutiny regarding how funds are spent and what is or isn't taxable. - Involves tracking funds associated with a business to prepare tax returns and ensure compliance with tax laws. - Essential for businesses of all sizes to avoid costly mistakes and ensure compliance with tax laws. 🔸 Sales Tax Accounting: - It involves tracking sales tax collected from customers and remitting it to the appropriate tax authority - Essential for businesses that sell products or services subject to sales tax. 🔸 Payroll Tax Accounting: - Involves tracking and remitting payroll taxes, including Social Security and Medicare taxes, federal and state income taxes, and unemployment taxes. - This is essential for businesses that have employees. 🔸 Property Tax Accounting: - It involves tracking and remitting property taxes on real estate and other property owned by a business or individual. - Essential for businesses and individuals who own real estate or other taxable property Below is the comprehensive guide on all details you need to know about tax accounting! Read it and Save it, so that you don’t miss it! ------- Follow Business Infographics to learn from the best visuals.

Simplifying Tax Invoicing: KRA Introduces ETIMS Lite for Small Businesses In a move geared towards streamlining tax processes for small businesses, the Kenya Revenue Authority (KRA) has introduced a game-changing solution – ETIMS Lite. This innovative platform is set to simplify tax invoicing, making it more accessible and efficient for small enterprises navigating the complex landscape of taxation. The Need for Simplification: Small businesses often face challenges in complying with tax regulations due to limited resources and expertise. Recognizing this, the KRA has taken a proactive step to address these concerns by launching ETIMS Lite. The platform aims to ease the burden on small businesses, allowing them to focus on growth rather than grappling with intricate tax procedures. If you need assistance on ETims or Tax filling you can click here Key Features of ETIMS Lite: 1.User-Friendly Interface: ETIMS Lite comes with a user-friendly interface designed to be intuitive and accessible for business owners with varying levels of technological expertise. 2. 🌐💵⌨️🖥️Automated Invoicing:** This platform automates the invoicing process, reducing the likelihood of errors and ensuring accuracy in tax calculations. Small businesses can generate invoices seamlessly, saving time and effort. 3. 🕣Real-time Updates:🙏🙏ETIMS Lite provides real-time updates on tax obligations, helping businesses stay informed and avoid penalties. This feature empowers entrepreneurs to make informed decisions based on their financial standing. 4. Compliance Check 👇✌️:The platform includes a compliance check feature, ensuring that invoices generated adhere to the latest tax regulations. This proactive approach helps businesses maintain compliance and avoid potential legal issues. 5. 🧿Cost-Effective Solution Benefits for Small Businesses: - Time Efficiency:🕘🕣 With automated processes, small businesses can save valuable time that can be redirected towards core operations and strategic planning. -Reduced Errors: 😮 The automated nature of ETIMS Lite minimizes the risk of human errors in tax calculations and invoicing, contributing to more accurate financial records. - Financial Planning: Real-time updates and compliance checks empower small businesses to plan their finances effectively, fostering better financial stability and growth. This insightful post is authored by Joseph Gathuka, a seasoned Tax Consultant at Mirga Consultancies Kenya, KRA's introduction of ETIMS Lite is a significant step towards creating a conducive environment for the growth of small businesses. By simplifying tax invoicing and offering a user-friendly platform, the KRA is not only supporting entrepreneurs but also contributing to a more robust and sustainable economic landscape. As small businesses embrace this innovative solution, they can navigate the intricacies of taxation with greater ease, allowing them to thrive and contribute meaningfully to the country's economic development.

𝙎𝙩𝙖𝙮 𝙐𝙥 𝙩𝙤 𝘿𝙖𝙩𝙚 𝙬𝙞𝙩𝙝 𝙏𝙖𝙭 𝙇𝙖𝙬𝙨 𝙖𝙣𝙙 𝙍𝙚𝙜𝙪𝙡𝙖𝙩𝙞𝙤𝙣𝙨: 𝙔𝙤𝙪𝙧 𝘽𝙪𝙨𝙞𝙣𝙚𝙨𝙨 𝘿𝙚𝙥𝙚𝙣𝙙𝙨 𝙤𝙣 𝙄𝙩 In the ever-changing world of finance, staying informed about tax laws and regulations is not just a recommendation—it's a necessity. Ignoring this crucial aspect can lead to severe consequences, including hefty fines, legal challenges, and, in extreme cases, the demise of your business. Why It’s Important? Think about a thriving small business that failed to comply with updated Tax/VAT regulations. The result? They faced penalties that wiped out their profits for the year, forcing them to downsize drastically. Another example is a mid-sized firm that neglected to take advantage of new tax deductions available for R&D expenses. By realizing their mistake, they had already missed out on significant savings that could have fueled their growth. Remember the Tyco scandal in the early 2000s? It involves egregious financial misconduct, accounting fraud, insider trading, and lavish executive spending. CEO Dennis Kozlowski was enjoying the time of his career, but his downfall started when US prosecutors indicted him for a minor sales tax offense. Tyco paid a heavy price for this later in a lawsuit from shareholders. Another example is Satyam Computer Services. Known as “India’s Enron,” Satyam’s management falsified revenues and profits to evade taxes and inflate stock prices. The scandal led to a massive decline in the company’s stock value, legal penalties, and a loss of business credibility. These examples are stark reminders of the importance of tax compliance. Being proactive, rather than reactive, can be the difference between success and failure. How to Implement This in Your Business? To ensure your business remains compliant and takes full advantage of available deductions, consider integrating digital tools into your accounting processes. Software like QuickBooks, Xero, and FreshBooks offer real-time updates on tax regulations and provide automated features to keep your records accurate and compliant. These tools also help you stay organized, making it easier to manage deadlines and avoid costly errors. Common deductions include costs related to business travel, office supplies, employee benefits, and even home office expenses if you operate from home. For example, if your business invests in new equipment or software, you may be eligible for deductions that reduce your taxable income. Creating a Simplified SOP for Tax Compliance Developing a Standard Operating Procedure (SOP) for tax compliance is simpler than it sounds. Start by documenting all key dates for tax submissions and filings. Assign responsibilities within your team for regular monitoring of tax updates. Ensure that your accounting software is always up-to-date and that all transactions are accurately recorded. #tax #compliance #deductions #taxloophole

Implementing internal controls and regulatory measures for tax and accounting needs is crucial for small businesses and firms too to ensure compliance and smooth operations. Here are some key controls: Internal Controls: Segregation of Duties: Assign different individuals to handle recording transactions, approving payments, and reconciling accounts to prevent fraud and errors. Documentation and Record-Keeping: Maintain accurate records of all financial transactions, including invoices, receipts, and bank statements, to support tax filings and audits. Regular Reconciliation: Reconcile bank statements, accounts receivable, and accounts payable regularly to identify discrepancies and prevent misreporting. Approval Processes: Implement approval procedures for expenses, investments, and financial decisions to ensure compliance with budgetary constraints and tax regulations. Inventory Controls: Implement inventory management systems to track goods sold, purchased, and on hand, ensuring accurate reporting of cost of goods sold for tax purposes. Employee Training: Provide training to employees on tax compliance, accounting procedures, and internal controls to minimize errors and ensure understanding of regulatory requirements Regulatory Controls: Tax Compliance Software: Invest in tax software or engage with tax professionals to stay updated on changes in tax laws and ensure accurate calculation and filing of taxes. Regular Tax Filings: Adhere to deadlines for filing tax returns, including income tax, sales tax, payroll tax, and any other applicable taxes, to avoid penalties and legal consequences. Compliance with Accounting Standards: Follow generally accepted accounting principles (GAAP) or relevant accounting standards to maintain consistency and transparency in financial reporting. Audits and Reviews: Conduct internal audits or engage external auditors to review financial records and ensure compliance with tax laws and regulations. Tax Planning: Develop tax planning strategies to optimize tax liabilities, maximize deductions, and take advantage of incentives or credits available for small businesses. Government Reporting: File required reports with government agencies, such as annual financial statements or informational tax returns, to fulfill regulatory obligations and maintain transparency. By implementing these internal and regulatory controls, small businesses can mitigate risks, ensure compliance with tax laws, and facilitate smooth operations and growth.

Tax planning is highly crucial for effective financial management yet often underestimated. I learnt this lesson firsthand after joining the workforce when I was unprepared during year-end tax proof submissions. Reflecting on my experience, I thought of highlighting the importance of proactively planning for taxes to optimize savings. Despite having a good idea of investment opportunities and potential tax-saving avenues, the absence of a structured plan resulted in significant financial challenges and a substantial tax liability for me. Since then, I've made it a priority to initiate tax planning at the beginning of each financial year. Additionally, many workplaces ask employees to submit estimated investments and expenses every month for tax computations. I think it is useful as it also emphasizes the significance of proactive planning. So how do you unlock the benefits of tax planning? I've adopted 4 simple yet powerful practices which I think will help early career professionals like me in better financial management. 1. Documentation: Create an Excel document listing all sources of income, tax-related investments and expenses at start of the year. This aids in referencing and adhering to the plan throughout the year. It facilitates better cash flow management and fiscal discipline. Additionally, maintain all proofs of investments and payments in one place to avoid scrambling for them at the last minute. 2. Optimizing investments: Align investments with tax-saving opportunities. For eg, while Lumpsum investments in PPF, ELSS, NPS are common due to lock-in requirements. Parking funds in a liquid fund through SIP can be advantageous until the required amounts for investment are accumulated. It helps in avoiding unnecessary spending as a result of funds kept idle in bank. It can also serve in accumulating downpayment for automobile, housing loan etc 3. Maximizing deductions: Indentifying the right instruments and avenues at the beginning itself can help in massively reducing tax-liability. For eg, Earlier, I wasn't aware of an additional relief on medical bills paid for parents. Did you know about it? More importantly, it helps in choosing the right instruments that align with long-term financial goals well in advance. In absence of which, people would simply invest in anything just to save taxes. 4. Regular Review and Adjustment: Periodic reviews of your tax plan can be helpful to assess its effectiveness and make necessary adjustments. Changes in financial circumstances, tax laws, or personal goals may require modifications to your plan. Staying proactive and adaptable can ensure that your tax strategy remains optimized and aligned with your evolving needs and objectives. Feel free to add more to the list. Ritesh Sabharwal CFP® always learning from you. Any thoughts? #TaxPlanning #FinancialWisdom #Savings #personalfinance Image: CanaraHsbclife

Ariel! As a professional offering personal and business tax services, along with bookkeeping services, we play a crucial role in helping individuals and businesses navigate the complex world of finance. Let’s explore how we expertise benefits ours clients: Personal Tax Services: Individual Tax Returns: we assist individuals in preparing and filing their annual tax returns. This involves assessing income, deductions, credits, and ensuring compliance with tax laws. Tax Planning: we help clients strategize to minimize their tax liability. Whether it’s optimizing deductions or planning for major life events, ours guidance matters. Tax Compliance: Staying up-to-date with changing tax regulations is essential. we ensure that ours clients meet their tax obligations accurately and on time. Business Tax Services: Business Structure Guidance: When entrepreneurs start new ventures, we guide them in choosing the right business structure (sole proprietorship, LLC, corporation, etc.). Each structure has tax implications. Corporate Tax Returns: For corporations, we prepare and file Form 1120 or 1120S, ensuring accurate reporting of income, expenses, and deductions. Partnerships and LLCs: If ours clients operate partnerships or LLCs, we handle Form 1065, which reports partnership income and expenses. Sole Proprietors: Many small businesses operate as sole proprietorships. we assist them in reporting business income and expenses on Schedule C attached to their personal tax return. Bookkeeping Services: Accurate Financial Records: Bookkeeping is the backbone of financial management. we maintain organized records of income, expenses, assets, and liabilities. Bank Reconciliation: Regularly reconciling bank statements ensures accuracy and identifies discrepancies. Financial Statements: we generate profit and loss statements (P&L) and balance sheets, providing insights into business performance. Time-Saving: By handling bookkeeping, we free up business owners to focus on core operations. Why ours Services Matter: Peace of Mind: Clients rely on our expertise to avoid costly mistakes and penalties. Maximized Deductions: ours knowledge helps clients claim all eligible deductions, optimizing their tax situation. Financial Clarity: Clear financial records empower better decision-making. Remember, whether we’re helping a startup owner, a seasoned entrepreneur, or an individual navigating personal finances, ours role is invaluable. 🌟

Part 2- Bookkeeping and Accounting practices USA vs India vs UK 👈 Part 1- refer previous post 6. Reporting and Filing: USA: Focuses on 1099 filings for contractors, and businesses must meet various tax deadlines. India: Includes GST filing, TDS returns, and preparation of financial statements. UK: Includes regular VAT returns, payroll reporting, and statutory filings with Companies House. 7. Payroll and Employment Taxes: USA: Businesses must withhold federal income tax, Social Security, Medicare, and state/ local taxes. The USA has specific tax forms like W-2 for employees and 1099 for independent contractors. India: Payroll includes deductions for Provident Fund (PF), Employee State Insurance (ESI), Professional Tax, and Tax Deducted at Source (TDS). UK: Businesses must handle Pay As You Earn (PAYE), National Insurance Contributions (NICs), and pensions under the auto- enrolment scheme. 8. Year-End Closing and Reporting: USA: The fiscal year-end for many businesses is December 31. Reporting includes filing annual tax returns and preparing GAAP- compliant financial statements (balance sheet, income statement, cash flow statement). India: The fiscal year typically ends on March 31, and businesses must prepare Ind AS- compliant financial statements, including profit and loss, balance sheet, and cash flow. Tax filing deadlines are based on the financial year. UK: Companies can choose their fiscal year, but many align with the April 5 tax year. Businesses file annual accounts to Companies House and tax returns to HMRC, following UK GAAP or IFRS standards. 9. Depreciation and Amortization: USA: Depreciation is typically calculated using the Modified Accelerated Cost Recovery System (MACRS), allowing accelerated write-offs. Tax laws allow significant first- year depreciation deductions (eg. sec179). India: Depreciation follows the Companies Act schedule or the Income Tax Act, which typically uses the straight-line or written- down value (WDV) methods. UK: Depreciation is calculated as per UK GAAP or IFRS, often using straight-line or reducing balance methods. Tax allowances are provided through capital allowances rather than accounting depreciation. 👆👉Keep following me for the Part-3 of the same series.

If you want your accountant to not even be able to track their own accounting these are you people !!! Due to poor service I decided to use another tax prep. They kept emailing me about my tax prep then said if you are not using us please let us know. So I did, after that email then they sent a bill for outstanding invoice from a YEAR AND A HALF ago !!! 1. how many tax accountants release your tax return if you haven't paid them ?? NONE An accounting company that cant even keep track of their own accounting !!! I have filed a complaint with BBB to intervene I asked for a break down of account I will happily send anyone all of the emails regarding this just email me Read this email which isn' t edited. ... CEC Aug 28, 2024, 9:26 AM (6 days ago) to me, CEC, Derek, Andy Hello Clare, Thank you for your response, and apologies for not getting back to you yesterday as I was in non-stop meetings. Since it doesn’t sound like a phone call would be productive, I’ll summarize below. Andy and I did discuss the issues around your accounting services in 2022, which was absolutely not in keeping with our standards of service as you mentioned. It looks like we then halted any further payments as of July 2022, and from there we continued to provide accounting services in 2023 to help make things right. I wasn’t privy to those conversations directly, but we have about $2,000 in unbilled accounting time since then that has been written-off and was not billed to you, nor will it be. Additionally, while the $750 tax preparation balance invoice in question should have been triggered much sooner, it would have been in May of 2023, not in 2022. It causes confusion all the time, but 2022 tax year work would been done in 2023. It looks like your 2022 return was completed in May of 2023, which is when the balance payment and invoice should have been initiated in the system. Again, I fully agree that the invoice generation was a little over a year late, but that does not negate the signed engagement. We have held off on our collections policy due to the sensitive nature of this situation, and I understand this must be frustrating. However, the $750 for tax preparation services is still due under the terms of the engagement, regardless of whether you would like to file complaints as stated. I hope I have explained our perspective clearly, but if there is anything else I can clarify please let me know. Again, I’m happy to hop on a call with you tomorrow (I will be out of office most of today) if it would help to talk through anything directly. Thank you very much for your time, Chelsey Bicknell c.bicknell@jlco.co 200 1st Ave W #200 Seattle, WA 98119 Office: (425) 502-9465 www.jacobsonlawrence.com Like Comment Share

What is Tax Accounting Original Content Creator: Gary Jain 🚀 (give him a follow) ----- Everything you need to know about TAX ACCOUNTING 👇 (and why it's important for your business) 📍 What is Tax accounting? Tax accounting is the process of tracking funds associated with individuals and entities to prepare tax returns and ensure compliance with tax laws. It is essential for everyone, including individuals, businesses, corporations, and other entities, and even those who are exempt from paying taxes must participate in tax accounting. 📍 Significance of Tax Accounting: - Helps manage cash flow by planning for tax payments. - Influences business decisions by considering tax implications. - Ensures businesses adhere to tax laws, avoiding legal issues and penalties. 📍 Types of Tax Accounting: 🔸 Individual Tax Accounting: - Refers to taxing a person's income while factoring in deductions, liabilities, and credits. - Essential for individuals who need to file their tax returns accurately and avoid penalties. 🔸 Business Tax Accounting: - It is more complex than individual tax accounting, with greater scrutiny regarding how funds are spent and what is or isn't taxable. - Involves tracking funds associated with a business to prepare tax returns and ensure compliance with tax laws. - Essential for businesses of all sizes to avoid costly mistakes and ensure compliance with tax laws. 🔸 Sales Tax Accounting: - It involves tracking sales tax collected from customers and remitting it to the appropriate tax authority - Essential for businesses that sell products or services subject to sales tax. 🔸 Payroll Tax Accounting: - Involves tracking and remitting payroll taxes, including Social Security and Medicare taxes, federal and state income taxes, and unemployment taxes. - This is essential for businesses that have employees. 🔸 Property Tax Accounting: - It involves tracking and remitting property taxes on real estate and other property owned by a business or individual. - Essential for businesses and individuals who own real estate or other taxable property Below is the comprehensive guide on all details you need to know about tax accounting! __________________ Original Content Creator: Gary Jain 🚀 (give him a follow)

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