inner-header1

7 Questions You Should Ask When Choosing Your Cedar City Accountant

Cedar City Accountant

Finding a Cedar City accountant who you can work well with can be a process. To help you determine who will be a good fit for your needs, you should ask these seven questions of any accountant you consult with before you enter into a business relationship with them.

1. What Industries Are You Familiar With?

Some accountants offer services that are more tailored to personal finances, from divorce mediation to tricky tax filing. Other accountants have more experience working with businesses.

If you are a business owner looking for an accountant, you should determine whether or not the accountant has experience working with other enterprises like yours, since they will be able to help you avoid common accounting pitfalls for your industry.

2. Who Are Some Of Your Clients?

This question serves two purposes. First, you can get a clear idea of what size of business the accountant commonly works with and see how well those clients are faring.

Second, you can ask if any of their current or former clients are willing to act as referrals. That way, you can see from a client perspective what it is like to work with that accountant.

3. How Accessible Will You Be For My Business?

Some accountants will charge for responding to communication or have restricted hours. But all business owners know that work issues can arise at any time. So, it is important for you and your accountant to be on the same page when it comes to communication.

It is also worth asking what their preferred communication style is when talking to clients. Some accountants will prefer email or to be left urgent voicemails. If your styles do not mesh, you may have difficulty working with that accountant.

4. What Ways Can You Improve My Company?

If you are looking for a proactive accountant who can help you grow your company, this question is vital. It will give you clear insight into how the accountant perceives their role as part of your business. An accountant who will help you develop further will often recommend some the services they offer that may benefit your business, such as:

  • Tax preparation and filing
  • Bookkeeping
  • Entity restructuring
  • Revenue recognition strategies

5. How Will You Protect My Financial Information?

Data miners are only becoming more creative, so it is critical that your accountant protect your financial information. Do they use secure communication methods to transmit financial information? What cloud services do they use to store your business details? You should feel free to ask an accountant any other security questions applicable to your particular industry.

6. What Are Your Rates?

There are multiple ways an accountant may charge for their services. It is essential for you to completely understand what it will cost you to work with them before engaging in business. Some common methods are:

  • Hourly billing
  • Flat fee for services
  • Monthly retainer
  • Billed per piece

7. What Other Things Should I Know About Working With You?

While this sounds like a throwaway question, it actually is one last assessment of the accountant. They should not say things like “That pretty much covered everything” or just give you a sales pitch. There is certainly more to know about working with an accountant than you can learn from the six questions above, and any good accountant will be able to tell you more about dealing with them.

If you want to take your search to a reliable accountant in Cedar City, contact us. AA Tax & Accounting Services is ready to answer all your questions and help your finances improve.

4 Tax Preparation Tips for Small Businesses

Tax Preparation

Hiring a professional accountant to prepare your taxes can take a huge weight off an entrepreneur’s shoulders. Here at AA Tax & Accounting services, tax preparation is one of our primary services, and it’s one we do with enthusiasm and efficiency.

If you decide to go it alone, here are some tips that will some of the uncertainty out of tax time.

1. Don’t fail to file your taxes

It seems elementary that a business owner should file taxes. However, every year entrepreneurs of every ilk set up their shingle, following their dreams and becoming their own bosses.

Some of these let their tendencies toward disorganization and procrastination get in the way of making their tax deadline. If you’re in this boat, filing your taxes late is better than not filing them at all because any penalties you rack up for filing late or not filing will keep accruing until you fix the problem.

Some people fail to file taxes because they’re afraid they can’t pay the money they owe. Individuals and business owners alike often owe less than they think, and may even have a refund coming their way. If you fail to claim a refund, however, it goes away after a few years.

It’s best to push through your trepidation and file to avoid penalties. If you do owe more than you have on hand, the IRS offers installment plans to help you get back on the right foot.

2. Familiarize yourself with the forms you’ll be using

There are many different forms you may need to fill out, based on the nature of your business. Do you operate a sole proprietorship? Then you should be filling out a Schedule C form. Other forms apply to a partnership, a corporation or a limited liability company (LLC).

There are employment tax forms to be taken care of and, if you work with contractors, you’ll want to utilize 1099-MISC forms. There are also forms to help you catalog myriad aspects of your company, including business expenses.

If you’re not sure how to decode the whirl of letters and numbers to make sure you’re filing correctly, it’s best to consult with a company experienced in business tax preparation like AA Tax Accounting And Services.

3. Keep clear records of your business deductions

Running your own business isn’t a free-for-all. There are, however, many expenditures that can be deducted including:

  • Advertising
  • Business car
  • Cost of office space
  • Insurance
  • Internet and phone service
  • Office supplies
  • Transportation
  • Travel

If you keep accurate records of these expenditures as you go along, writing them down and saving receipts, it’ll be easier to add them up and include them when you file your taxes.
In the off-chance you are audited, your clear record-keeping will allow you to prove your tax deductions are legitimate.

4. Look for the most common tax errors made by small business owners

You don’t have to reinvent the wheel when it comes to filing your small business taxes. We encourage you to learn from the most common mistakes by the many entrepreneurs who have gone before you.

There are certain pitfalls small business owners tend to succumb to when it comes to tax preparation. You can find some of these in our small business tax preparation checklist.

Here are a few quick tips. Avoid:

  • Claiming an excessive amount of expenses
  • Failing to report income as stated on 1099s
  • Falling short on record-keeping
  • Mixing business and personal finances
  • Overlooking self-employment taxes

If you have any tax or accounting concerns, contact us today to meet with our accountant.

Cedar City Non-Profit Organizations: Donating to Iron County Care and Share

Contributing to a local charitable organization is good for your community and good for your soul. Because donations to nonprofits are tax-deductible, they can also be great for your financial bottom line.

Your contributions can make a marked difference in the size of your tax return, particularly if you are under the guidance of tax specialists like the one at AA Tax & Accounting Services.

Why Choose Iron County Care And Share?

Once you decide to include giving in your financial plan, it can be hard to choose a cause. Iron County Care and Share is a terrific option for those who want to help struggling individuals and families by offering them the proverbial hand-up rather than just a handout.

Founded in 1984, Iron County Care and Share starts with the basics—emergency food and shelter—and then aims to foster self-sufficiency among clients. The nonprofit serves people in Iron County living below the poverty line as well as the chronically homeless in Beaver, Washington, Garfield and Kane counties. Many clients are among the most vulnerable of Americans, including those who are:

  • Elderly
  • Physically or developmentally disabled
  • Mentally ill
  • Veterans
  • Iron County Care and Share Offers Emergency Shelter To Homeless Individuals And Families

    One of the most important services offered by this ambitious nonprofit is the Iron County Care and Share Emergency Shelter. The 34-bed shelter houses some 400 individuals and families every year.

    The staff aims to provide more than a band-aid for those who walk through their doors.
    They help clients apply for benefits like food stamps, health insurance and Social Security.

    Anyone who stays more than three days meets with a case manager, who works with them to identify the challenges that brought them to a financial crisis. They can then craft a plan to help the client overcome identified hurdles.

    Clients who receive help getting into housing are mentored by a case manager who helps them search for employment and, if needed, receive counseling for mental health or substance abuse issues.

    Iron County Care And Share Helps Feed Hundreds of Families

    Another invaluable service provided by Iron County Care and Share (ICCS) is their food pantry. Each year, the pantry supplies more than 850 households with perishable and nonperishable food as well as necessities like toilet paper, cleaning supplies and hygiene items.

    Iron County Care and Share also welcomes financial contributions. They always go straight to people in your area in desperate need, and your donation can be deducted from your taxes.

    Our accountant at AA Tax & Accounting Services is familiar with many excellent nonprofits throughout Southern Utah. If you’d like advice on other nonprofit recommendations to help with preparing your taxes, contact us to make an appointment.

    Unique Tax Filing Situations Accountants Can Help You Resolve

    There are a number of unique tax filing situations that can be challenging to navigate without the help of an experienced accountant like you will find at AA Tax & Accounting Services. A couple of the most tricky situations are:

    • What to do when you haven’t paid taxes for a year or more
    • How to file taxes as a U.S. expatriate

    If you find yourself in any of these situations, our accountant Adrian Anderson can help you resolve them.

    Resolve Back Taxes With AA Tax & Accounting Services

    Once you skip a year of filing your taxes for fear that you can’t pay for the amount you owe, it can be difficult to resolve those back taxes. For those who find themselves in this situation, it is much better to address the issue rather than avoiding it.

    The IRS penalty for late payment is not as harsh as the fines for those who fail to file altogether. Those attempting to avoid paying their taxes can have their:

    • Credit score lowered
    • Tax bill sent to collections
    • Passport removed if they owe over $51,000 in tax penalties
    • Driver’s license revoked
    • Loss of business license

    Instead of undergoing these grim consequences, our accountant can help you. He will sit down with you to determine if you even owe as much in taxes as you assumed. From there, he will help you structure a payment plan that will allow you to regain good standing with the IRS and avoid these severe penalties.

    Properly File Taxes As U.S. Expatriates

    Citizens of the United States who are living abroad can have a number of unusual circumstances when they go to file their U.S. taxes. Depending on their situation, there are several ways in which our top-notch accounting service can help U.S. expatriates.

    Dual citizen – Generally, U.S. citizens who have dual citizenship have been born abroad, sometimes born to a parent who is a citizen in another country. Someone in these circumstances might not know that they have a U.S. tax obligation if they grew up in another country.

    It is possible to revoke the U.S. citizenship to be released from the tax obligation. But if you want to retain that citizenship, it is important to work with our accountant. That way, he can find you exclusions such as the Foreign Earned Income Exclusion, Foreign Housing Exclusion, and Foreign Tax Credit.

    Non-resident alien spouse – For U.S. citizens who marry a foreign national who is not seeking permanent residency or a Green Card, there can still be a tax obligation which the spouse must meet. For instance, if the foreign spouse is claimed as a resident on the U.S. expatriates taxes, the spouse will have to disclose their worldwide income or face penalties. It becomes even trickier when children are involved, and their tax-deductible status depends on their connection to the U.S. expatriate.

    U.S. resident abroad – If you are a U.S. resident living abroad, you have the opportunity to file your taxes two months beyond the original file date of April 15. Our accountant can help you organize your taxes in a timely manner and help ensure you are not double-taxed, much like the dual citizen example.

    If you have found yourself in any of these unique tax filing situations or have other accounting-related concerns, contact us to meet with our accountant today.

    5 Ways An Accountant Can Help You Organize Your Business Finances

    Filing Your Business Tax Return for 2016

    As a small business owner, it is important to prioritize which area of your business requires more of your direct attention. Many times, this means you need to switch between being a marketing manager, salesperson, customer support representative, bookkeeper, and more. Business owners have limited time, and understanding the many laws and regulations surrounding business finances takes more time that business owners can devote. This lack of time and understanding can create difficulties later.

    To help you avoid these difficulties and improve the organization of your business finances, an accountant can help you in multiple ways.

    1. Work With AA Tax & Accounting Services To Develop An Efficient Bookkeeping System

    Having an effective bookkeeping system is the lifeblood of any business. Without one, vendor payments can be missed, expenses unaccounted for, and other disasters which can easily topple a small business.

    An accountant can significantly improve your bookkeeping by providing:

    • Bookkeeping software – Our accountant can advise you on which bookkeeping software would best suit your business and help you set up your account. However, this solution still requires a significant amount of oversight from you, to track to ensure things are recorded correctly and to upload various expense reports.
    • Outsourced to accountant – Many business owners choose to outsource their bookkeeping to our accountant to ensure an experienced eye is watching their accounts. You can also choose to hire an in-house bookkeeper, but often, this expense can be hard on a small business, while outsourcing your bookkeeping is significantly more affordable.

    2. Receive Tailored Business Consulting

    One of the many services accountants offer is business consulting. Depending on your accounting needs, this consultation can cover a range of topics. Some of what AA Tax & Accounting Services, LLC, can consult with you on are:

    • Business planning and development
    • Ideal entity structure for your organization
    • How to structure business finances (i.e., choosing a bank, separation of business and personal finance, etc.)
    • Revenue recognition strategies

    3. Allow Our Accountant To Organize Your Payroll

    Having even one employee on your payroll can increase the difficulty level of your bookkeeping, as payroll is not merely paying your workers on time, though that is important. You will need to:

    • Track payroll for your employer taxes
    • Liability insurance payments to cover your business in case something happens to your employees
    • Sick and vacation pay accrual
    • Payroll disbursement
    • Hourly and salaried employees hours tracking
    • Workman’s compensation
    • Unemployment payments

    This payroll list will become more complicated as your business grows. Our accountant can be an invaluable asset, as he can organize and set up your entire payroll system to work seamlessly behind the scenes and ensure you and your employees are satisfied with your payroll.

    4. Review Regular Reports With AA Tax & Accounting Services

    With the help of an experienced accountant like Adrian D. Anderson, you can see real-time reports of all work-related financial standings. Outsourcing this time-consuming portion of running your own business frees you up to manage more enjoyable aspects of working for yourself.

    Of course, you will not be cut off from how your company is doing financially. Adrian will supply a variety of reports to help you maintain an organized view of how your business is operating. Some of the reports offered by our accountant are:

    • Income statements
    • Balance sheets
    • Expense reports
    • Audits

    Our accountant can also create customized reports to suit your business’ financial needs. Both the reports listed above and customized reports will greatly aid in your ability to make more beneficial decisions for the growth of your company.

    5. Confidently Delegate Tax Prep And Filing

    Organization is vital when it comes to filing your business taxes. Our accountant often acts as a tax consultant for small businesses. With his help, businesses can have their taxes calculated, have all their eligible deductions applied to their taxes, and have their taxes filed on time by our accountant.

    Also, AA Tax & Accounting Services stands by its accounting work. If your taxes are audited, Adrian will work with you to resolve any issues and work with the IRS to correct your taxes.

    If you feel you may need an accountant for your business or personal taxes, contact us to set up an appointment with our accountant and see how he can organize your finances.

    Other services AA Tax & Accounting Services, LLC offers:

    Bookkeeping Services For Your Southern Utah Business

    “Deciding what not to do is as important as deciding what to do.” – Jessica Jackley, founder of the global micro-lending company Kiva.

    The hallmark of a flourishing business is delegation. It’s about reserving your time for what you do best, maintaining the big-picture vision and day-to-day workings of an enterprise, while handing off other responsibilities.

    If you’re ready to take some financial gruntwork off your plate but don’t have the budget for an in-house bookkeeper, you don’t have to look far for help. With offices in the Southern Utah cities of St. George and Cedar City, accounting professional Adrian D. Anderson, MAcc at AA Tax and Accounting Services is ready to crunch the numbers and attend to the paperwork piling up on your desk.

    Whether you’re at the helm of a small startup or burgeoning corporation, a professional bookkeeper can assist you with a number of operational functions. These include

    • Accounts Payable
    • Accounts Receivable
    • Balance Sheets
    • Bank Reconciliations
    • Bookkeeping Cleanup
    • Customized Bookkeeping Reports
    • General Ledger Management
    • Income Statements

    A Bookkeeping Service Can Help Business Owners Let Go

    If you’ve founded your own business, chances are you’re a creative type rather than the proverbial “bean counter.” Unless you majored in accounting, your educational and life experiences may not lend themselves to the legal and organizational intricacies of business bookkeeping.

    It’s all too easy to make errors in your calculations, miss paying bills or lose track of invoices. Over time, even small missteps can harm your business through consequences like late fees and loss of credit or income.

    Even if you manage largely error-free bookkeeping, you may be investing an inordinate amount of time and worry into the job. Few things have a greater negative impact on your family life than spending all your time at work or carrying job stressors home with you.

    Some people avoid sharing the financial responsibilities of their business out of mistrust or a fear of losing control. The greatest way to lose control, however, is through the chaos that ensues when you are over-extended.

    Outsourcing your bookkeeping can let you focus on the countless other demands of your business, including marketing, strategy, funding and employee performance and relations. You’re also free to put out the inevitable fires that crop up, dealing with the minor crises that characterize any business undertaking.

    Along with saving time, and your eyes, your professional bookkeeper can lend you an outside perspective on money matters. There are many pressing questions to consider regarding your business including

    • Is your spending threatening to exceed your earnings?
    • Are you being frugal enough, taking advantage of small ways to save that add up?
    • Are you making decisions that are “pennywise and pound-foolish”? There are many instances when a larger initial cash outlay can bring you long-term savings.
    • Are you maintaining the appearance of professionalism and fairness in your financial dealings? Clean and above-board accounting is key when it comes to maintaining the trust of business partners, vendors, clients and employees.

    Time is money, as the saying goes. Why spend your greatest asset on routine tasks that are difficult, lengthy and boring when there are skilled and efficient bookkeepers who enjoy the left-brain puzzle of making operational ends meet?

     

    Cedar City Nonprofit Organizations: Donating to The Happy Factory Inc.

    When you incorporate giving into your budget, you reap significant benefits. The greatest reward is knowing you’re making a difference. It’s important to note, however, that there are also potential financial compensations. Your donations can make a noticeable difference in the size of your tax return, particularly if you’re guided by tax accountant specialists like those at the Cedar City-based accountant Adrian D Anderson, MAcc.

    With countless nonprofits welcoming your tax-deductible donations, it can be hard to choose where to direct your resources and attention. You might want to start by taking bang-for-your-buck into consideration. Will your contribution go directly to a worthy cause or be funneled into bloated administrative salaries?

    If you’re looking for a nonprofit with a streamlined overhead and a dedicated all-volunteer staff, there’s a local charity sure to put a smile on your face.

    At The Happy Factory, Helping People Is Child’s Play

    Cedar City may not be the North Pole, but it is the site of a workshop where a merry team of “elves” oversees the construction of homemade toys to be given to the boys and girls of the world.

    Meet The Happy Factory, a Cedar City nonprofit that has shipped a staggering 1,495,481 toys to children across the globe.

    Founders Charles and Donna Cooley started by donating wooden animal toys to the Primary Children’s Medical Center in Salt Lake City back in 1995. Following an enthusiastic response and a large donation of hardwood scraps, the Cooleys increased their efforts.

    Charles started making small cars, which Donna painted. Soon the couple was also making toy deliveries to Shriner’s Hospital and the Humanitarian Center, a charitable arm of the Church of Jesus Christ of Latter-Day Saints. It was through the latter organization that they learned there are some 500 million children in the world without any toys.

    Rather than taking this heartbreaking statistic standing down, Charles and Donna created The Happy Factory, named after the joyous smiles of children who receive the nonprofit’s toys.

    Volunteers signed on to help and The Happy Factory expanded shipments to needy recipients in the United States and Beyond. The nonprofit delivers toys to young victims of natural disasters and to Native American organizations as well as to children at crisis centers, shelters, churches, schools, medical clinics and orphanages.

    Full Steam Ahead

    Next, The Happy Foundation began creating large homemade wooden steam shovels that kids can sit on, using the manual controls to manipulate the bucket. These have proven to be invaluable for disabled children, who gain motor skills and confidence through “steam shovel therapy.” To date, 2,610 steam shovels have been delivered to kids around the world.

    How You Can Help

    If you’re moved by the mission of the Happy Factory, you can help with a financial donation of any size.

    The Happy Factory is an all-volunteer organization and wood for the toys is donated. Still, money is needed for wheels and axles and to support factory operations. A little goes a long way, with a $5 donation funding the construction of roughly 10 toys.

    You may also want to offer hands-on help, joining a robust task force of volunteers who have collectively donated 82,000 service hours to the nonprofit over the years. Helpers of all ages, from kindergarteners to senior citizens, are welcome to contribute, whether their efforts include toy-making, toy delivery or organizational tasks.

    For more information on supporting this winning nonprofit, visit happyfactory.org.

    5 Ways A Tax Accountant Can Make Your Job Easier

    Tax Filing for Your Small Business

    If you’re a business owner, have a complex financial portfolio or just get the jitters at the thought of Tax Day, you could greatly benefit from the services of a tax accountant.

    People who engage a tax accountant find life easier for many reasons. Let’s discuss five of the biggest benefits.

    1. A Tax Accountant Can Give You Peace of Mind

    Business owners and individual taxpayers alike tend to stress over taxes, wondering whether they’ve dotted their I’s and crossed their T’s. The combination of paperwork, math and a looming deadline can be overwhelming. And there’s always that fear. Will this be the year you get dinged?

    With stress comes procrastination. Some 20 to 25 percent of Americans put off tax preparation until the last 14 days before deadline. This last-minute cramming causes even more worry. It’s a vicious cycle, one that can be broken by bringing some fresh perspective into the picture.

    A tax accountant approaches your taxes with expertise instead of dread. While you take taxes personally, they know that processing your return is just business as usual for the IRS.

    They also have some reassuring information. Most of us owe no taxes and, in fact, eight out of ten refunds filed in 2013 yielded a refund, according to IRS data. Auditing fears are also largely unfounded. Only 1.1 percent of individuals who filed tax returns in 2010 were audited, and these were typically millionaires or very high-earning business owners.

    A good tax accountant won’t put off preparing your taxes, because they know the outcome is likely to be in your favor. They’ll certainly never miss deadline, given their work life revolves around April 15!

    2. A Tax Accountant Can Bring You Savings

    A good tax accountant, like those at the Cedar City-based AA Tax & Accounting Services, LLC, knows exactly what you can use as a tax deduction or business write-off. In fact, if you’re a business owner, you can even write off the money you pay for tax strategy or tax preparation services.

    Provide your tax accountant with thorough financial records and they’re likely to find expenses you never knew you could write off. Did you know, for instance, that you can write off any dry-cleaning fees you rack up during a business trip?

    3. A Tax Accountant Can Create Clarity

    Your tax accountant can help you navigate complex financial dealings. If you own a business or rental properties, or have a “side hustle” like driving for Uber,” you’ve likely moved beyond Turbotax territory. A tax knows how to depreciate business or real estate assets so as to decrease your tax burden.

    4. A Tax Accountant Can Help You Reach Your Goals

    Are you planning to sell some real estate? Your accountant can help you minimize the taxes you pay on the proceeds from property through mechanisms such as like-kind exchange.

    If you want to put aside money for your children, either through a 529 plan to fund their education or through a trust, your accountant can help you decide the best methods for tax-deferred or tax-free saving. As an example, your tax accountant can help you categorize expenses charged to the trust fund in a way that nets the greatest tax benefit.

    5. A Tax Accountant Can Help You Navigate Life Changes

    Filing your tax return may have become relatively easy for you over the years. Divorce, however, can change a lot. A tax accountant can help you move from joint filing to individual, and incorporate any payments or expenses like alimony and child support. If you receive an inheritance after a loved-one’s death, your tax accountant can also help you work with the intricacies of settling their estate.

    Whatever your portfolio and whatever your situation, there are countless ways a tax account can help you navigate your dealings with the IRS. Consider consulting an expert whose know-how can replace stress with success.

    Tax Code Updates: Pass-Through Entities

    The majority of business in America are structured as pass-through entities as pass-through business entities can be anything from a sole proprietorship to an S corporation. As such, these businesses need to understand how the Tax Cuts and Jobs Acts will affect their tax preparation.

    Pass-Through Business Entities And Qualified Business Income

    The most important change for pass-through entities is the 20% qualified business income (QBI) deduction that business can use while filing their upcoming taxes. However, that 20% QBI deduction is not guaranteed.

    Pass-through business can receive 20% QBI deduction if it is lower than the taxpayer’s business or trade. They potentially receive a different deduction, such as:

    • 50% of the total W-2 wages which the pass-through entity paid to employees.
    • 25% of the total W-2 wages and add 2.5% of the original purchase cost of the business’ actual property.

    This deduction method can be difficult to visualize. To help you visualize how these deductions may affect your business, below our accountant has provided an example.


    The bolded amounts are the appropriate deduction for each of the example companies.

    Limitations For The New Tax Code QBI Deduction

    There are some limitations when it comes to what qualifies as QBI. The types of income which don’t qualify as QBI are:

    • Annuity payments
    • Capital losses or gains
    • Payments to partners for services
    • Interest and dividends
    • Foreign currency losses or gains
    • Business owner compensation

    For those pass-through entities which operate their businesses in the service industry, there are income limitations to receiving the 20% QBI deduction.

    • Consulting
    • Actuarial Science
    • Health
    • Law
    • Financial Services
    • Performing Arts
    • Athletics
    • Brokerage Service
    • Accounting

    These service-oriented businesses begin to receive less of a QBI deduction when the income hits $157,500 for an individual filer and $315,000 for joint filers. There is no QBI deduction for individual filers who earn $207,000 or for joint filers who earn $415,000.

    Another key limitation for pass-through entities to remember is that the deductions discussed above will only last until the end of the 2025 tax year.

    It can be complicated for a small business to grasp all the tax changes and appropriately apply them to their pass-through business. To receive high-quality accounting assistance for your business, contact us to work with our accountant.

    Bookkeeping For Nonprofit Organizations

    Bookkeeping for a nonprofit has different requirements than for a for-profit business. An experienced accountant can easily provide bookkeeping services to a nonprofit as well as a for-profit.

    Bookkeeping Needed For Nonprofit Financial Transparency

    As nonprofits enjoy IRS tax-exempt status, they are required to have a very high level of financial transparency. Accurate bookkeeping is necessary to achieve this transparency, which can be difficult for a nonprofit to provide as they may not have the skilled professionals on staff.

    It is not uncommon for nonprofits to outsource their bookkeeping to efficient accounting services which provide nonprofits their bookkeeping and tax return assistance.

    Tracking Expenses And Renevue For Nonprofits

    Part of the bookkeeping necessary for nonprofits is the tracking of expenses and revenue. Expenses made by a nonprofit may be reported by several different departments, such as:

    • Program
    • Fundraising
    • Management
    • Operations

    As the information is coming from various sections of the nonprofit, it can be difficult for an inexperienced bookkeeper to stay on top of all the financial information. This becomes especially difficult as a nonprofit bookkeeper attempts to track the revenue. Some sources or revenue that nonprofits receive are:

    • Membership dues
    • Investment income
    • Fundraising events
    • Donor contributions
    • Grants
    • Program fees

    Required Nonprofit Financial Statements

    Nonprofit bookkeepers need to not only perform the day-to-day tasks but they also will need to provide tax preparation support and financial statements.

    Due to the transparency requirements nonprofits have, they need to have yearly financial statements available for all to view. The key required financial statements are:

    • Statement of Functional Expenses
    • Statement of Financial Position
    • Statement of Cash Flow
    • Statement of Activities
    • Notes to Financial Statements

    Outsource Your Nonprofit Bookkeeping

    Above are just the basics of nonprofit organization bookkeeping. Nonprofits still labor under many of the bookkeeping needs of a for-profit business, such as:

    • Payroll
    • Bank reconciliations
    • Bill pay
    • Deposits
    • Invoicing

    Nonprofits organizations have a mission to accomplish and dedicating time and resources to track their bookkeeping is not always the most effective use of their valuable resources. Yet, by outsourcing their bookkeeping, nonprofits can fulfill their legal obligations for financial transparency, enjoy the professional handling of their bookkeeping, and allow the nonprofits to focus on their mission instead of financial matters.

    AA Tax & Accounting Services LLC is able to provide top-quality bookkeeping services to nonprofit organizations. Depending on your nonprofit’s needs, our accountant can tailor what services are offered. Contact us for a consultation with our accounting firm and see what we can do for your nonprofit.

    Call Us For An Appointment
    435.267.0136
    SIGN UP FOR OUR NEWSLETTER