Nevada Financial Advice

A Certified Public Accountant in Reno Reminds Business Owners to Seek Help

[youtube]http://www.youtube.com/watch?v=HG7zHl1L6Nk[/youtube]

As a small business owner you may find yourself overwhelmed and distracted with tasks that are necessary to run your business, but may not be your specialty. I thought I would take some time to talk about the help that a CPA can provide. At some point in time, it becomes necessary for most business owners to call in a certified public accountant to provide small business financial consulting. However, when should this be done? There are certain things or red flags that should prompt such action. These include spending too much time on the accounting side of the business, making mistakes that will lead to an audit, declining assets, draining resources, stagnating revenue and missing productivity.

Failing to Focus on Your Passion

Small business financial consulting services in Reno need to be sought whenever the time spent on the accounting side of the business is greater than the time spent on the business. Chances are that the passion of the owner is really the specialty of the business. For example, a landscaping business probably loves being outside and the creative side of the business. Spending more time hunched over a computer spreadsheet is a sure sign that a certified public accountant in Reno is needed.

The Dreaded Audit

It is a well-known fact that the IRS targets small businesses. If that isn’t enough to get audited, perhaps filing late or other things that the IRS looks for will warrant that dreaded letter from the IRS. Since an audit strikes fear in the heart of every small business owner, this is sure to elicit a call to a certified public accountant in Reno. However, it is a good idea to make the call whenever you realize that the books are a mess and forms are being filed late.

Declining Assets

Another problem that may cause an owner to seek small business financial consulting is what to do with declining assets. Tangible assets like furniture and vehicles can cost a business a small fortune. Plus, there are also intangible assets that may decline such as franchise rights or leases. These can become a complicated issue that can drain a company of valuable resources. Most owners may be aware that these can be tax write-offs, but how to calculate them is another matter.

Stagnant Revenues

No business can stay in business if it is not making money. However, the owner may be scratching his or her head trying to figure out where the problem is. The products or services are excellent and in demand. The advertising seems to be adequate. There just doesn’t seem to be a reason for the lack of success. That’s why many small businesses need to seek the help of a certified public accountant in Reno. They may be able to supply the answers that can really turn the business around.

Lack of Employee Productivity

Every small business owner knows that payroll can be one of the largest expenses facing their business. However, that doesn’t have to be the case. It shouldn’t drain the business of all of its valuable resources. That’s especially true if the work can be done more efficiently or could potentially be outsourced. If it can then a certified public accountant may be able to help guide some of these decisions or find how to make the work more efficient.

So if you are small business owner, you may want to ask these questions. Is the passion being drowned by the drudgery of accounting? Are mistakes being made that can lead to an audit? Are declining assets draining resources? Are revenues stagnant? Do employees seem to lack productivity? If the answer is yes to any of these, consider consulting a certified public accountant in Reno for financial advice.

Reno’s Best CPA,

Tim Nelson

A Certified Public Accountant in Reno Reminds Business Owners to Seek Helpencpaswp2016-09-22T21:01:13-07:00

A CPA in Reno Reminds Business Owners to Seek Help (Part 2)

[youtube]http://www.youtube.com/watch?v=jU_uTG2WA_A[/youtube]

In part one of this series (A Certified Public Accountant in Reno Reminds Business Owners to Seek Help), the signals that should drive small business owners to seek financial advice from a CPA in Reno were discussed. These include spending too much time on the accounting side of the business, making mistakes that will lead to an audit, declining assets draining resources, stagnating revenue and missing productivity. However, don’t despair because a certified public accountant can usually resolve each of these situations easily.

Shifting Focus

The first thing a CPA in Reno can do for business owners is help them put the emphasis back on their passions. It is frequently said that if you want to be successful, do what you love. The problem is that most owners don’t love doing payroll, accounting, or tax preparations. The certified public accountant can take care of all of that. For someone like a landscaper, this allows the owner to put their focus back on their business.

The Dreaded Audit

As long as a certified public accountant is consulted before the IRS targets the business for an audit, the CPA can often avoid them completely. That is because they can avoid those red flags like little or no sales with high expenses. Something like that will catch the attention of the IRS every time. A CPA in Reno can also help avoid late filings and all of the late fees associated with them. Plus, if an audit is called, the accountant will be invaluable during the process.

Declining Assets

Business owners also need the financial advice of a CPA for things like declining assets. These often drain the resources of a company, but that doesn’t need to be the case. Certified public accountants can carefully analyze all of the assets. By doing so they can track each asset and how much it declines. They can then plug this info into a formula and take the depreciation off as a tax-deductible expense over the lifetime of the assets. This can be a substantial savings.

Stagnant Revenues

Stagnant revenues can also be an area that a CPA in Reno can provide valuable advice. Accountants can help the owner create a system so that revenues and expenses can be tracked. Using this system and analysis gleaned from tax returns, they can identify trends and create reports that the owners can use to guide future decisions. They are also able to help the owner understand the reports so that the most can be made from the information.

Lack of Employee Productivity

While employee productivity may not seem like an area where a certified public account can provide financial advice, they can. Think of the reports that are generated through payroll and the tale those reports can tell. Tax returns and payroll can yield a wealth of information including comparing hours worked with the amount of sales. In addition, an accountant might be able to suggest jobs that could be outsourced.

So if any of these situations apply to your small business, do not worry. A CPA’s services can help free up your time so that you are able to return to your passion. He or she can also help prevent an audit or provide expert backup in the event of an audit. The accountant can also carefully analyze reports on assets, revenue, and productivity to provide the business owner with a complete picture of the business. Plus, the accountant in Reno is there to help the owner understand just how those reports can guide the business.

Reno’s Best CPA,

Tim Nelson

A CPA in Reno Reminds Business Owners to Seek Help (Part 2)encpaswp2016-09-22T20:55:55-07:00

Public Accountant in Reno, NV Provides Financial and Tax Organization Tips

[youtube]http://www.youtube.com/watch?v=huppUvExtI8[/youtube]

It is important to keep finances organized, whether for an individual person or a business. Many people do not organize their finances until tax time comes. They often find they have a mountain of information to sift through and no idea where to start. Here are some tips on better financial and tax organization from a public accountant in Reno, NV.

Bank Accounts

Bank accounts are crucial money-management tools. Single people should have both a personal expenses and a savings account. Families should have a family account, which wage earners can deposit money into for household bills. They should also have individual accounts for personal spending, plus a family savings account. A self-employed person or small business owner needs to keep their company’s expense separate. This will keep personal and business matters from mingling. A public accountant in Reno, NV can help set up a plan for how to contribute to each account.

Keep or Throw Out?

Many financial records can be thrown away after a time. Any papers about major expenses (a vehicle, appliance, investment, etc.) should be kept forever, or at least until the item is no longer in use or needed. Anything about taxes and personal or investment income should be kept for at least 3 years, although six is advisable in the event of an audit. Credit card and bank statements, receipts, and utility and other bills can be thrown away annually once taxes have been filed with a public accountant in Reno, NV. Streamline your life and save paper by scanning and saving these papers.

Paper Organization

An individual can use a simple, low-tech paper filing system. Set up files according to the area of expense: loans (mortgage, car, etc.), bank and credit card statements, insurance, household expenses (groceries, gas, clothing, etc.) and bills. Public accountants advise that certain tax-deductions need their own files, like education, health care spending, travel, charitable donations, investments, etc. Keep a box in a visible place to put all receipts and bills into when you empty your purse or briefcase. Reconcile the box’s contents weekly when balancing bank statements.

Computer Organization

Self-employed people and small businesses should organize their financial records with a computerized system. This minimizes missed payments and keeps the volume of paperwork down. Important items can be scanned into the computer and saved onto a disk for your public accountant to use at tax time. Dates such as quarterly tax payments and payroll can be set ahead of time. Linking a business’s bank account with the software can result in payments being automatically deducted. All these measures reduce hassle and increase efficiency.

Tax Time

Individuals can pay their taxes once yearly on or before April 15. Businesses should make quarterly or bi-annual contributions to a tax account. This keeps the amount owed from becoming unmanageable. Any time taxes are paid, a payment for work or a service or a money gift is received, or a life insurance or other investment dividends report arrives, the paperwork should go right into the tax file for the public accountant in Reno, NV. They should get all the information you have well before tax time, in order to get the best tax deductions possible.

Careless record keeping can result in missed deadlines and payments. A certified public accountant in Reno, NV can give valuable advice on how to streamline your tax and financial organization. Everyone should review their own procedures periodically and see how they can improve them.

Reno’s Best CPA,
Tim Nelson

Public Accountant in Reno, NV Provides Financial and Tax Organization Tipsencpaswp2016-09-22T18:27:40-07:00

A Reno Accountant Talks About the Different Types of Businesses

[youtube]http://www.youtube.com/watch?v=H7nvxJzKtqc[/youtube]

There are many things to consider when starting a business. One of the first concerns should be organizing the business itself. There are many ways to organize a business in the United States. Each type of business has its advantages and disadvantages for taxes and operations. Here is some business tax advice from a Reno accountant about making the right choices for your company.

Sole Proprietorships

The Sole Proprietorship is the most common kind of business in the US. In this type of business, one person is responsible for everything. This includes daily tasks, owning assets, profits, losses and taxes. The owner would need an accountant to give business tax advice. The advantages of a sole proprietorship are that it is easy to set up and run, the profits do not have to be divided, and the owner calls all the shots. Disadvantages are that the business and its owner are inseparable according to the law. This means that if the business gets into legal or tax trouble, your personal property could be forfeit.

Partnerships

Another common business type is the partnership. Partnerships involve two or more running the company and sharing responsibility. As in proprietorships, the partners’ personal property can be forfeit if there are problems with taxes or lawsuits. Partners need to have clear legal agreements, to prevent disagreements about profit sharing, personal contributions, and inheritance. An accountant will tell you that partnerships’ advantages are that the work and troubles of running the business are shared, as are the taxes. Partnerships are usually short-lived, ending with the death or departure of one partner.

Corporations

The corporation is a more complex way to organize a business, but it has many advantages over other models. A corporation is an “entity” that is formed and registered in its home state. A business charter sets forth the corporation’s purpose, as well as whom its shareholders, or owners, are. The shareholders elect a corporate board, which directs the company’s operations. A Reno accountant is needed to give corporate business tax advice and to ensure that state and federal tax laws are followed. Taxes are generally higher. Corporations allow the owners limited legal and financial responsibility in lawsuits, debts or even bankruptcy.

Limited Liability Companies (LLC)

The LLC is a newer business class that works like a hybrid of a partnership and a corporation. LLC owners are listed as “members” and organizational paperwork is filed that sets out its purpose and terms. The main tax benefit for an LLC is that it is taxed at individual rates instead of higher corporate rates. Members also have limited legal and financial liability. An LLC cannot have more than two corporate features, like continuity of the agreement, management centralization, asset ownership, and ownership transferability. If it has more than two of these, it is re-classified as a corporation.

Before starting a business, talk to a Reno accountant about how to begin. Get good business tax advice and figure out your goals. If you have modest goals and do not want to share profits, a sole proprietorship is best. If you and someone else share the desire to make a business work and are committed to it, a partnership could benefit you. More upward-minded businesses should organize into corporations or LLC’s, depending on how they want to structure operations. Remember to ask about taxes, as each method’s tax liability varies.

A Reno Accountant Talks About the Different Types of Businessesencpaswp2016-09-22T18:11:52-07:00

A CPA In Reno Discusses Cost Behavior

[youtube]http://www.youtube.com/watch?v=BjKMH9ozhAw[/youtube]

Cost behavior is an important tool for businesses to examine their success and actual profits. It can be used for many purposes, including strategic planning to determine effective price points that are above the break-even point. A qualified CPA in Reno can help a business use this principle to manage budgets more effectively.

What is Cost Behavior?

Cost behavior is often explained by CPAs in Reno as the study of how costs change in a business when there is a change in the activity level. Every company has a variety of costs, although there are four types that come up the most. Cost behavior analysis is used to predict costs over time and can help a business in many areas. Typically, businesses of all sizes hire a CPA to manage this aspect.

Variable and Fixed Costs

Variable costs are usually defined as those that change depending on the level of activity. A good example of a variable cost in a business is sales commissions paid to employees of the store. Because employees earn a percentage of the sales, the cost is variable based on the total sales in the store. Fixed costs, on the other hand, will not change with a difference in the level of activity. Examples of fixed costs in a business include rent and insurance premiums.

Step Costs and Mixed Costs

The step costs of a business are unique because they stay the same for a certain amount of activity. When the level of activity is surpassed the costs jump. These costs don’t apply to every business, but an example is payment to a service representative that has reached their maximum number of customer calls. At this point, a new employee must be added, and the cost of compensation jumps. Mixed costs, however, are a combination of variable and fixed costs. An example of a mixed cost is a telephone bill for the company. Generally, the charge is always the same unless the level of service is exceeded. At this point, an additional variable cost is added.

Why Cost Behavior is Important

A trained CPA in Reno can help a business fully use cost behavior for a number of purposes. Cost behavior is usually used for strategic planning in a company and is the only way to accurately predict cash flow over time. A CPA can also use this idea to determine the company’s break-even point for any cost, allowing management to create a proper selling price. Other uses in the company’s strategic planning include the determination of dividend payments and the preparation of budgets.

Every business has a variety of costs it incurs regularly. Understanding and planning for these costs is vital to ensure the company maintains profits and grows over time. All businesses should consult with a CPA to analyze the cost behavior of their company. A good analysis can lead to everything from the right selling price for goods to accurate dividend payments for stockholders.

Reno’s Best CPA,

Tim Nelson

A CPA In Reno Discusses Cost Behaviorencpaswp2016-09-22T17:42:09-07:00

An Accountant in Reno Explains Synergy In Relation to Business

[youtube]http://www.youtube.com/watch?v=3P3mdtbuaXk[/youtube]

Synergy may seem like a strange term to be thrown around in a business conversation, but it has become the focus of many small businesses and financial consulting institutions seeking to improve their total output and product quality. The basic premise of synergy is that by combining two separate companies, the positive qualities of each can be utilized to maximize potential. The concept of small business synergy further acts to increase productivity and financial profits, while also merging with a congruent and complementary business.

Small Business Financial Connectivity

Synergy ultimately acts as a connector for small businesses seeking to grow their companies. By combining two companies, the emerging company that results possesses the ability to access and service all of the combined business contacts. This connectivity not only extends to include the good will fostered between companies, but also reaches out to all of the costumers and connections previously associated with both businesses. Through the momentum of synergy, connectivity is increased and utilized to grow the newly formed business. It does this by extending the reach of its costumer pool to include new contacts, as well as more extensive financial consulting.

Collection of Skills

A major benefit resulting from synergy is the addition of new skills for workers. Through the combination of businesses, employees are introduced to new and more efficient methods of accomplishing the same old task. Overall, these combined increases most often prove to benefit the new company’s productivity and the accountant’s profit margins. Furthermore, without the combined momentum of the newly formed and improved work force each of the individual companies would be unable to duplicate the increased productivity and profits had they remained separate entities.

Elimination of Duplication

As any accountant of a small business in Reno can appreciate, the implementation of synergy enables the elimination and duplication of products and services. Often, when products and services are too readily available, prices are driven down. Through the combined synergy of small businesses, coupled with effective financial consulting, prices become fixed and steady as supply no longer out balances the demand. Accountants in Reno especially appreciate the leveling out of prices as it ensures a company’s continued existence at its current level and provides room for expected future growth.

Leadership Issues

Leadership is a major consideration before implementing synergy within two individual companies. Superiors must take into consideration issues such as rank structure and seniority. Later on, it will become necessary to establish exactly how the new hierarchy of leadership will be determined. In addition, employees and superiors should observe a grace period in which adjustments and kinks can be worked out of the new system. In any business setting, it needs to be understood that companies, which were once separate, are not just going to fall into sync with each other automatically.

Synergy is a genius concept in business that allows small businesses to piggyback off another as they are merged into singular businesses. This springboard effect serves to create a profit for both companies due largely to the combined effort of two workforces coming together as one. It is important to remember that along with continued financial consulting, time is also necessary to establish a new business rhythm. However, the combined financial gains, increased productivity and overall company morale can prove exponentially beneficial in the end.

Reno’s Best CPA,

Tim Nelson

An Accountant in Reno Explains Synergy In Relation to Businessencpaswp2016-09-22T17:38:04-07:00

A Reno Certified Public Accountant Discusses Divorce and Taxes

[youtube]http://www.youtube.com/watch?v=e1SauCRh6uU&feature=relmfu[/youtube]

Going through a divorce is a very stressful time. You need to figure out child custody, child support, division of property, etc… However, there is one thing that may have not made it on your list of things to remember-taxes.

Marital Status on The Last Day Of The Year Determines Tax Filing Status

Many things come into play as far as taxes are concerned when going through a divorce. The first thing to know is that you are supposed to file based on your status on the last day of the tax year. That means if you get divorced on December 28, you file single for the entire year! Similarly, if you get divorced on January 2, you will need to file jointly (or married filing separately) for the prior year.

Don’t Forget About Alimony

Alimony may be a factor, and is governed by the divorce decree or separation agreement. Note that if you get into a situation where Spouse A owes Spouse B for alimony, and Spouse B owes child support back to Spouse A, do not NET them! The IRS only allows you to take the NET amount as alimony. If you pay the entire amount, and get a separate check back, you can take the FULL amount.

Refund Checks Can Be Tricky

Refund checks (or direct deposits) are always an exciting factor. If you are due a refund with your former spouse, make sure it goes to a neutral party who will give you ONLY the refund you are entitled to. If your former spouse gets you to sign on the back of the check and cashes it into their account, you may never see the refund! Similarly, do not direct deposit it into an account you do not have control of! My recommendation is to have a check sent to the Certified Public Accountant’s office. Then have both spouses come in to sign it. The CPA can then cash the check and remit the appropriate amounts to each spouse.

Get Help!

Even before you get divorced, it is important to get advice to determine the tax issues at hand. For example, what if he gets the primary residence and you get the rental house to live in? The tax bases are likely very different, and you will end up owing tax on a gain of a former rental that he can exclude from his residence since it qualified as a primary residence. There are many other factors to consider in divorce taxation. The IRS publication number 504, Divorced or Separated Individuals, deals with many of these issues, but it is important that you discuss all of these with your Reno Certified Public Accountant before they bite you!

Reno’s Best CPA,

Tim Nelson

A Reno Certified Public Accountant Discusses Divorce and Taxesencpaswp2016-09-22T17:23:20-07:00

Ask A Reno CPA: When Is Online Income Taxable?

Hi there,

I have seen many articles about the amount of home-based online businesses that are started up each month and there are many more articles about how big Facebook and other social platforms are getting and how people are making money on them. The problem is there is sometimes a blur between what types of online behavior are taxable and what are not.

Online Garage Sales

For example, if you are having an online garage sale, like selling some items on Craigslist or other such sites, you usually do not have to report sales. This is usually true if you sold the item for less than your cost.

Selling Appreciated Assets

However, if you are selling appreciated assets like paintings, antiques or collectibles and you are selling the item for more than your cost, you usually have to report the transaction as a reportable gain.

Online Businesses or Reoccurring Sales

There are also individuals who either have an online business or have taken the garage sale theory to the next step by buying and reselling items. Any time you may be seen as running a business, especially with how blurry the line is online, you should contact a Reno Certified Public Accountant.

The last thing you want to do is get into tax trouble because of your actions online. Remember when you are making money you should always think about the potential tax implications. When in doubt, ask a Reno CPA about the situation. They will be able to tell you whether you owe taxes and, if so, they will likely be able to help you find deductions.

If you have further questions about this topic you can read more on the Internal Revenue Services’ Website: http://www.irs.gov/businesses/small/industries/article/0,,id=209314,00.html or you can contact Evans Nelson & Company CPAs today. (Contact us online or call 775-825-6008)

Reno’s Best CPA,

Tim Nelson

Ask A Reno CPA: When Is Online Income Taxable?encpaswp2016-09-22T16:13:50-07:00

Business Consulting | Start Up Businesses

[youtube]http://www.youtube.com/watch?v=5iZVXM5yWz4[/youtube]

Have you recently opened a business? Are you starting to find some holes, or need help in your processes and aren’t sure how to fix them? A Reno CPA can help you find the best ways to ensure your business adapts to all rapidly changing needs a new business can go through.

Meeting with your CPA quarterly can keep you on track too. Are you aware you have to pay income taxes on an individual basis for your business earnings? What do you need to do with a person who is helping you out–should they be an employee or a general contractor? Understanding the advantages and disadvantages of both will help you make the best decision for your business—and bottom line.

Evans Nelson & Company CPAs is here to help you with these kinds of questions, decisions and choices. Our business experience and knowledge can help you ensure your new business is financially sound with smart choices that will better enable you to manage your business instead of worry about it.

Say it’s Dec 28th and you realize you have a huge tax liability. What can do you do to avoid paying this? Should you delay income, spend more income, or increase your expenditures before the end of the year to save money? Purchasing capital equipment, or a computer you need may help to actually save money, and help keep your business financially sound.

Many new business owners may not know these effective ways to save money, minimize your tax liability, and many other things that can affect the business long and short term, tax wise and financially. Certified Public Accountants can help businesses that have gotten started but really don’t have a good handle on where they can save money and avoid problems. Reno CPAs are here to help move your business forward to that next level of success.

Business Consulting | Start Up Businessesencpaswp2016-09-22T16:08:55-07:00

The Mortgage Debt Forgiveness Act

[youtube]http://www.youtube.com/watch?v=BC90YLfX6gg[/youtube]

Are you “upside down” with your mortgage? Do you know how the tax implications of walking away from your home or having short sale can affect you? How can a Reno CPA help you with these types of mortgage issues? What are the tax implications of a short sale, foreclosure and other options? The Mortgage Debt Forgiveness Act ends this year. Do you understand what the benefits can be for you?

Millions of homeowners around the country are “upside down” with their mortgages. Being “upside down” means you owe more on the mortgage than the house is worth. Real estate values have fallen dramatically, especially in Nevada.

So, many people are asking “What are the tax implications of getting rid of my house? Should I short sell it? Foreclose it? Should I stay or just walk away?”

Here’s an example. A house is worth $200,000 but the mortgage is for $400,000. The Bank will usually send a 1099 or 1099C (cancelation of debt) form for that difference of $200,000.

The IRS will normally require you to pay on the tax owed for that $200,000. But you didn’t “receive” that money, the house is still the same house, and you got rid of it. It isn’t worth $400,000 anymore, you can’t sell it for $400,000 but the mortgage is still for that amount.

The Mortgage Debt Forgiveness Act, which runs through the end of 2012 (December 31, 2012) says you don’t have to pay tax on that $200,000.

Many people are worried about that huge tax liability. They are not sure if it would be better to try to short sell or foreclose on their house before the end of 2012 to be able to use the Mortgage Debt Forgiveness Act before it expires and avoid that tax.

Nevada has had its fair share of foreclosures and other mortgage issues. It is very important to sit down with a Reno CPA to discuss the options and tax implications of walking away from the house, vs. short selling, foreclosing or simply keeping it.

A Reno CPA can help you determine the best course of action, based on the many factors of your personal situation, and can help save you thousands of dollars (along with saving you time and frustration) by helping you determine the best choice for you.

Contact Evans Nelson & Company, CPAs for more information today.

The Mortgage Debt Forgiveness Actencpaswp2016-09-22T15:44:22-07:00

Previous 123 Next