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.

6 Accounting Tips for Small Businesses

Small businesses can be made or ruined by their accounting. To help you master some of your business’ accounting needs, Adrian Anderson, MAcc has six accounting tips every business should be utilizing.

Allot Time To Work On Business Accounts

Many small business owners don’t enjoy working on their business accounts and tend to push off the task whenever possible. This can leave the business owner unaware of issues that only their accounts can reveal as well as other issues.

You should allot time at least once a week to work on your business accounts. Even if you aren’t sure you have anything to look at, stick to your allotted time so you stay in the habit of taking care of your business accounts.

Be Accurate And Diligent In Your Recordkeeping

As you go through your business records, you can do several things to ensure that they remain accurate.

  • Log expenses and profits regularly
  • Track and file invoices
  • Double-check payroll disbursements
  • Keep clear records of inventory

Depending on the industry your business is in, you may have different things you need to track for your records. Also, the more accurate your records are, the easier it will be to file your taxes.

Keep And File All Business-Related Receipts

Aside from keeping your regular expense receipts, be sure to keep and file any receipts which are attached to your business. Some business-related purchases you may make outside of your normal operating costs are:

  • Training seminars
  • Item replacements
  • Office upgrades
  • Business lunches

Perform Regular Profit And Loss Assessments

Beyond just tracking your profits and losses, you should make periodic assessments of your business by creating profit and loss statements. These statements will allow you to gain a broader perspective on your business and see more clearly how it is performing.

Depending on your business size and the volume of business you perform, there are different intervals where you will want to perform these assessments. Most small business owners would benefit from monthly profit and loss assessments as well as a 6-month overview.

Keep Personal And Business Expenses Separate

Some small business owners are not as strict with keeping their personal expenses and business expenses separate. This can especially create issues when you need to have your taxes done, as the tax breaks small business owners can receive do not apply to your personal needs.

Outsource Your Accounting Needs

By choosing our accounting services, you can tailor your accounting needs to suit your business without you needing to micromanage your accounts. That way, you can focus on your business operations while our accountant manages your accounting needs.

To consult with our accountant on what your business may need from an accountant, contact us today.

Cedar City Non-Profit Organizations: Donating To Chrysalis

To help our clients find the best local nonprofits to build up our community in Cedar City, UT, AA Tax & Accounting Services has chosen to highlight several nonprofit organizations. For this month, we have chosen Chrysalis as a potential nonprofit for you to support for your next tax benefit.

Tax Benefits For Choosing To Support A Nonprofit

As our accounting firm works to provide you with the best information on financial matters, a common question we receive is how supporting a nonprofit can be a tax benefit. With the recent changes to the tax laws, how this can benefit your tax preparation has changed.

Cash deductible donations to a 501(c)(3) were previously restricted to only allow 50% of your donation to be in cash. Now, you can make 60% of your donation to a nonprofit be in cash.

Another change, the raising of the standard deduction, may make it difficult to itemize your charitable donation. Be sure to consult with our accountant to ensure that your charitable donation can become tax-deductible.

Support Organizations Encouraging Self-Sufficiency

When choosing a people-focused nonprofit to support, many people prefer to support organizations which help improve the self-sufficiency of the recipients of the charity’s aid. If you are of this mindset, then Chrysalis is a nonprofit you may want to consider as a recipient for your next charitable donation.

Chrysalis’ mission is to support and provide opportunities to individuals in Cedar City, UT, who are living with disabilities, that way these individuals can become more fully integrated parts of their community. The services this nonprofit offers are:

  • 24-hour supervised home care
  • Behavioral services
  • Therapy
  • Financial management assistance
  • Personalized individual planning
  • Medical care

For more of their services, be sure to refer to Chrysalis’ services information page. Many of the services we have mentioned are on their 24-hour Residential Care page, so be sure to check through all their offered services to be sure this is an organization you want to support.

Have Your Donating To Chrysalis Incorporated Into Your Taxes

It can be tricky to prepare your taxes correctly to ensure your charitable donation is properly included into your taxes, especially with the tax law changes. If you want to feel more confident in your tax filing, you will want to work with AA Tax & Accounting Services, LLC, to prepare your taxes. Contact us for an appointment so our accountant can help make sure your tax deduction is properly applied to your set of filed taxes.

Bookkeeping For Your New Business Adventure

At AA Tax & Accounting Services, LLC, we can help make your new business adventure smoother. Whether or not you have chosen to take advantage of our startup company planning service, we highly recommend you outsource the bookkeeping for your new business.

Focus Your Energy On Your Business, Not Bookkeeping

When you are in the process of building up a new business, there are so many things which require your attention. From the marketing of your services to the management of business growth, business owners have a lot on their hands.

Bookkeeping can cut into not only your valuable time but also your energy. Many business owners find it draining to sit down and struggle with their business accounts, especially when there are so many other things which need their attention.

So, instead of dividing yourself between the task you are passionate about (your business growth) and the one you feel you have to do (the bookkeeping), outsource your bookkeeping to our accounting firm and save yourself the energy you used to give to bookkeeping.

What Our Bookkeeping Services Include

Our accountant offers extensive bookkeeping services to business in Cedar City, St George, and the surrounding areas. Some of these services are:

  • Specialized finance reports – There are many specialized financial reports which can help you determine how your business is performing. We provide income statements, cash flow projections, balance sheets, and more.
  • Account reconciliations – Our accountant can monitor your various business accounts to make sure that they accurately reflect your current balance and transactions and correct any errors which may occur.
  • General ledger management – Daily monitoring and maintenance of your business’ financial state is available when you work with our accounting firm. This will ensure that your business accounts always reflect the correct financial state of your business.
  • Tax preparation and filing – Preparing and filing your business’ taxes can not only be incredibly time-consuming but also has the potential to cause difficulties for your business if they are filed improperly. Our bookkeeping includes our tax preparation service, which can alleviate you from needing to do this stressful task.
  • Accounts receivable and payable – Ensuring that not only your business is paid for its services but that your bills and vendors are paid, can be a difficult task. Instead of struggling with the invoices on your own, our bookkeeping services can take care of it for you.

If you feel like your new business venture can benefit from these bookkeeping services, then contact us. Our accountant will work with you to determine what services can best help you build up your business and you can leave the bookkeeping to the experts as you focus your energy on other aspects of your work.

Cedar City Non-Profit Organizations: Donating To Canyon Creek Women’s Crisis Center

Providing a helping hand to those in need is an act that pays on both ends. Helping others helps you value your own life more, but can be tricky if you feel you are not in a financial position to contribute. With the assistance of accountants at AATAS, you can find a way to reach out to others without risking your own financial welfare.

Give A Gift To Your Community and Receive Tax Benefits In Return

Donating to a non-profit can be a stretch if you can’t find space in your budget or time to give. Qualified accountants at AATAS in your local Cedar City community can find a way to help you serve others by filing your tax-deduction for donating. Not only will you be helping those in need right here in your community, you will also be rewarded financially for your wise investment.

The Canyon Creak Women’s Shelter Is A Great Local Charity

A worthy recipient of your donation is the Canyon Creek Women’s Crisis Center. Not only are they a strong force for good in the community, they are also a place that offers safety and security to those fleeing life-threatening situations. Their facility:

  • Is equipped to help and protect survivors of domestic abuse
  • Provides toiletries, clothing, and other essential amenities for those breaking free from dangerous and abusive situations.
  • Accepts donations put towards necessary supplies, transportation, housing, relocation and education of victims.

They provides safety, help, and education on breaking the cycle of abuse in the community. Their mission to protect those affected by domestic abuse can only be continued through your generous donation.

Donating To A Non-Profit Makes Taxes More Worthwhile

With tax season approaching it is difficult not to get anxious at the thought of carefully combing through your finances while trying to stay organized. Not only will your donation to a non-profit benefit your community, it will also serve you as you prepare your taxes. Seeking an accountant will allow you to finally feel confident about your tax return. Not only will you be able to smile about the service you have done, you will also get to breathe easier knowing your taxes will be deducted.

What AA Tax and Accounting Services in Cedar City Can Do For You

AATAS offers high-quality accounting services to help you get the most out of your finances. Not only will they help you file your tax-deductions for donating, they will also ensure the accuracy of your return. These accountants have served the Cedar City community as well as surrounding towns for many years. They have your best interest in mind. Donating to a non-profit, the Canyon Creek Women’s Crisis Center, will help you and those struggling in your community. Let AATAS help you find a way to donate today.

Do You Need Help From An Accountant Navigating The New Tax Reform?

Do You Need Help From An Accountant Navigating The New Tax Reform?

While the new tax reform will not affect your 2017 tax filing, it may affect some of the choices you make throughout the year. Depending on if you are filing as an individual filer or a business may change what help you need from our accountant.

Complicated Aspects Of The Tax Reform For Individual Filers

Many of the changes that came about during the tax reform were aimed at individual filers. While these changes are not permanent and are slated to end in 2025, they will affect your filing for the next handful of years. Below are some of the major changes which may affect you enough that you need to talk to our accountant to understand the full effects on your personal taxes.

Personal exemptions are gone. Your personal exemptions were deductions which allowed you to exempt some of your income. After they were applied, the IRS only taxed the remaining income. However, with the tax code change, you can no longer make these personal deductions.

The standard deduction has nearly doubled. Perhaps to balance the lack of the personal exemptions, the standard deduction for single filers, married joint filing, and head of household has nearly doubled. This move has made it less appealing to file an itemized tax return, though it will depend on your personal circumstances.

For more individual filer changes, be sure to check out our breakdown on the Trump tax reform.

Navigating Business And Corporate Tax Changes

There were not many changes to business and corporate taxes but the changes which occurred were impactful. A couple may require you to consult with our accountant to fully understand the ramifications of the change.

Pass-through business owners have a new tax break. If you own a pass-through business which you draw a salary, you will be allowed to take 20% out as a deduction. There are some stringent rules tied to this break, so you should definitely consult with our accountant to understand the full impact on your income and taxes.

U.S. companies earning overseas have new taxes. Previously, U.S. companies which earned money in foreign countries were not taxed on those earning until they were brought back to the U.S. The tax reform has changed it so that they are all required to pay 15.5% on their cash assets and 8% on all non-cash assets.

If you feel concerned about the new tax reform and are wondering how they will affect you in the next tax year, be sure to contact us. Our accountant is more than willing to walk you through the changes and help you understand what you need to know.

Tax Preparer For St George, Utah Business Owners Can Increase Your Return

For business owners in Southern Utah, working with a St. George tax preparer is one of the best ways to maximize their next tax return. If you would like to see a dramatic decrease in the taxes you pay the next time you file taxes for your business, then keep reading to see how a tax preparer can make this possible.

Ways A Local Tax Preparer Increase Your Return

There are a variety of reasons why you should entrust your business taxes to a local tax preparer and not some tax preparation software.

  • Personalized help – By working with a St George tax preparer, you can receive personalized help that is unavailable when trying to use tax preparation software. A local preparer will, for instance, be able to identify if you need to provide more paperwork, see possible mistakes, and more.
  • More experience – Even though businesses need to file quarterly taxes, few business owners will have the range of experience with filing taxes that a tax preparer will have at their disposal.
  • Deductible expense – As long as eligibility requirements are met, having professional tax preparation done can be a deductible expense that can be folded into your tax return.
  • Familiar with state taxes – Choosing to work with a local tax preparer means you are working with someone who is more familiar with the state laws which apply to your area.

How To Identify A Good Tax Preparer

When it comes to tax preparation, not all tax preparers are equal in ability. In fact, it seems when tax seasons comes around, suddenly everyone is a qualified tax preparer. Nothing could be farther from reality.

As you look for a quality tax preparer, look for these things:

  • Multiple qualifications – You should always investigate the qualifications of your tax preparer before you decide to work together. The best ones will be professional accountants who have years of training. An example of ones you may want to avoid are the ones with a sign spinner directing you to file taxes with that particular tax preparation business. Those tax preparers are likely not very qualified and only have limited representation rights.
  • Good reputation – The best tax preparers have built a good reputation that will help them rise above the less proficient tax preparer. Some ways you can go about finding a reputable tax preparer are by word-of-mouth, online reviews, and Better Business Bureau rating.
  • Answers questions – As you review your tax return before it is filed, a good tax preparer will allow you all time you need to review and ask questions. If they cannot answer your questions, you may not want to accept the filing.

Tax time can be difficult for business owners, especially if they are not receiving the proper tax return. Be sure to work with a St George tax preparer and see how much your business could be saving.

St George Accountants Offer 5 Major Bookkeeping Benefits To Business Owners

St George Accountants Offer 5 Major Bookkeeping Benefits To Business Owners

There are many demands on a business owner’s time. As much as the owner would like to be able to be completely hands-on with every aspect, the owner only has so much time in a day.

For many busy business owners, outsourcing their bookkeeping to an accounting firm just makes sense. It is one of the tasks that can be greatly time-consuming and also very expensive to bring a bookkeeper in-house.

AA Tax and Accounting Services offers top-notch bookkeeping services to St George and Cedar City business owners. Below are five of the major benefits your business with receive when working with AA Tax and Accounting Services.

Let Your Accountant Deal With General Ledger Management

Since a business’ general ledger one of the key ways a business tracks their financial transactions, it is key that it is maintained properly. However, it can be a tedious task that can cut into time which could be more profitably spent.

By allowing a bookkeeper manage your business’ general ledger, you won’t have to spend another afternoon trying to make sure all your accounts are balanced.

Bank Reconciliation Handled By Your Accountant

The work of balancing your accounts doesn’t end with your business’ general ledger. Another excellent bookkeeping service offered is bank reconciliation. An accountant will regularly audit your business’ cash statements versus your business bank account. By doing this, the accountant can:

  • Detect/prevent fraud
  • Detect/prevent embezzlement
  • Correct company records
  • Assess penalties
  • Track cash flow

Receive Accurate Income Statements

Having accurate income statements are key for business owners so they can see exactly how their business is performing.

The bookkeeper will prepare an income statement for a set period of time. In that report, business owners will generally see:

  • Revenue
  • Gross profit
  • Cost of sales
  • Expenses
  • Profit before tax

Depending on the business’ needs, this report can be created with more detail so that the owner can track the various aspects of their business.

St. George Accountants Can Manage Your Accounts

Business owners can waste hours keeping track of their account payables and account receivables. The duties surrounding these types of accounts are distinctly different, which all could be managed by a good bookkeeper.

Once you turn over the management of these accounts to a bookkeeper, you will never need to scramble to find and pay an invoice or organize another deposit receipt.

Stay On Top Of Your Bookkeeping Reports

There are a large variety of financial reports that your bookkeeper can generate. That way, you can have a quick and understandable way to see how your business is doing. AA Tax and Accounting Services is ready to customize your reports so that you can have exactly what you need to keep your business on track.

Feel free to contact us today and start enjoying more financial security by entrusting your bookkeeping to AA Tax and Accounting Services.

Is Your Business Structure Helping You Make The Most Money?

Is Your Business Structure Helping You Make The Most Money?

Your business structure has a direct impact on your revenue recognition strategy, as the structure may determine whether or not you make any money.

There are several factors involved when determining what your business structure will be going forward. As you read through, keep in mind your revenue recognition strategy to see which of these business structures is most compatible with your business.

The Four Business Structures

When it comes to structuring your business, there are four different ways you can go about it. Those ways are:

  • Sole proprietorship – You are the only owner of this company.
  • Partnership – Company is owned by several individuals. There are general partnerships, where the partners share in the obligations and debts of the company. With a limited partnership, these partners act as investors and have no control over how the company operates.
  • Corporation – Most complex business structure, it also operates on the largest scale. A corporation is a legal entity in its own right, apart from the legal entities of the business owners. The shareholding owners can direct the company.
  • Limited liability company – Blending corporate structure and partnerships, there is no limit on shareholders and any member of the LLC has a full partnership.

How Taxes Affect Business Structure

Each of the four different business structures have a different set of tax laws. Depending on your revenue strategy, one of these business structures will suit your business best.

  • Sole proprietorship taxes – Business taxes and personal taxes are inseparable with this business structure. You will need to pay self-employment taxes using your Schedule SE with your Form 1040. Your business earnings will only be taxed once with this business model.
  • Partnership taxes – The business itself does not become taxed. Instead, the losses and profits are passed to the individual partners. Each partner has to report their own taxes using the Schedule K-1 of Form 1065.
  • Limited liability company taxes – When doing taxes on an LLC, the earnings and losses go straight to the owners and are applied to their personal taxes. This is much like a sole partnership, except that the earnings and losses are split between the various owners.
  • Corporation taxes – Some significant tax drawbacks are attached to corporations. The corporation itself is taxed on the state and federal level, but also the shareholders are taxed on their earnings.

You may still not be sure if your business model is helping you make the most money. To help clear the confusion, you can work with trained accountants who can consult with you regarding your business. With an accountant’s insight on tax law and the various rewards and drawbacks these different structures present, you can make sure you are making the most money possible with your business structure.

2 Important Steps You Can Take to Ensure You Are Prepared For Dreaded Tax Season

2 Important Steps You Can Take to Ensure You Are Prepared For Dreaded Tax Season

While many Americans put off preparing their taxes until the last moment, this can contribute to the dread they feel as the tax season deadline approaches.

But you don’t need to panic as April 15 comes closer. Whether you have simple taxes or complicated ones that need an accountant to help you deal with them, there are two steps you can take to prepare yourself for tax time.

Organize Your Forms And Paperwork

Organizing all your paperwork and forms before tax time will help you skip the last minute scramble many people struggle with during tax season. Some of the key forms you will want to secure will depend on various circumstances.

Income Forms – You will want to gather all of your W-2 forms, 1040 Schedule C, 1099-MISC, and any other income forms you have received. You may need to be proactive about collecting your forms, as some companies do not mail forms anymore and simply make the information available through your employee access portal. If you are the business owner, then you will need to hold yourself accountable for acquiring the necessary paperwork.

Receipts – Depending on whether you want to file an itemized return, you will gather up your receipts for several things. Common qualifying deductions are:

  • Mortgage interest payment
  • Medical expenses
  • Investment interest payments
  • Charitable contributions
  • Property taxes.

If you run a business, you will naturally need to gather more information. Some common business deductions are:

  • Employee salary and wage information
  • Contractor payments
  • Business property rent or mortgage
  • Utility payments
  • Company supplies
  • Business insurance.

Personal – Make sure you have all the personal information you need. It is easy to remember our own personal information, but depending on your circumstances, you may need to gather personal information that is not your own. Some information you may need to consider gathering:

  • Dependants’ information (children, elderly parents, etc)
  • Assets (Traditional IRA, house, stocks, etc)
  • Federal benefits (SNAP, Social Security, FAFSA, etc)

Work With A Great Accountant

Preparing for the tax season on your own can be difficult even if all you are taking care of is your personal taxes. If you are a business owner, the difficulty level skyrockets. But you don’t have to manage your taxes on your own.

AA Tax and Accounting Services is ready to help steer you through the muddy waters of tax season. They have the knowledge and experience to ease you through tax time and alleviate the normal stress most people feel when doing their taxes. So do yourself a favor and work with them today to prepare you for the fast approaching tax season.

Call Us For An Appointment