Tag Archives: Accounting

Why Your Company Needs an Outside Business Consultant

Business owners are constantly having to deal with making tough decisions. However, with the help of a business consultant, they can guide you and your company through any financial or business decision you may need. Read on to find out more about the benefits of hiring a business consultant.

What is a Business Consultant?

Business consultants can assist companies of any size to improve their performance and efficiency by providing management services. These consultants have the experience and expertise to help a business make difficult decisions and help identify and solve problems, while they continue to grow. Consultants can provide businesses with a wide range of services and take care of the hard decisions.

Benefits of a Business Consultant

1.     Having an Outsider’s Perspective

For small and mid-size companies a lot of times an owner’s attention and resources are focused on other priorities.  A business consultant will have a new perspective on the company and can easily identify problems within an organization that might be blind to the company’s employees.

2.     Help with the Hard Work

Business consultants are sometimes hired to do the “dirty work” in a company and make tough decisions, including firing staff and making salary cuts. Decisions like these can be difficult for business owners to make on their own. Hiring an outside consultant that is trained to handle these difficult tasks within an organization will make the process easier.

3.     Help Create a New Business

Consultants don’t just work with well-established businesses but also with start-up companies. These experts have the skills needed to assist owners with hiring and teaching employees, finding clients, and helping with finances.

4.     Accomplish Short-Term Goals

Short-term goals are just as important as long-term goals, but sometimes business owners are only thinking about the long-term success of their company that they forget to focus on short-term goals. It can be difficult for employers to enforce these goals; experienced consultants can help determine what a company’s short-term goals should be and work with employees to implement them.

If you’re considering outsourcing a business consultant the business experts at Calabrese & Associates, P.C, is exactly what you need. For more information or to schedule a consultation, visit our website today!

 

5 Tax Tips You Need to Know for This Tax Season

Insurance agent presentation and consultations with a lawyer or insurance agent. Law and insurance.

Tax season will be here before we know it and this is the perfect time to get a head start and begin preparing. It’s important to pay your taxes on time to save money and avoid paying tax penalties. Here are a few tax tips you should follow to plan for the upcoming tax season to make the process easier.

5 Helpful Tax Tips

1.     Organize Important Tax Forms

Gathering all your important tax documents should be the first step you take. Deciphering which documents you’ll need in order to file your taxes can get confusing, that’s why printing a tax checklist beforehand can help take some of the guessing away. A few of the forms and documents that would be included on this checklist include:

  • W-2 Form
  • 1099 Form
  • Receipts from the past year
  • Mortgage interest statements
  • Documents of what you paid for any stocks you have sold

2.     Review All Forms

Make sure to double-check all your forms. It’s common to make errors and miss sections when filling out these documents. Having incorrect information on your tax forms can cause delays and lead to penalties. If you need more help, the IRS website has more information on where you can get these forms.

3.     File and Pay on Time

It’s important that you stay on top of tax due dates to make sure you don’t miss filing and late-filing penalties. Taxes need to be filed by April 15, 2021 to avoid consequences, but if you have an extension the filing deadline is October 15, 2021.

4.     Itemize your Tax Deductions

Everybody wants to save money when it comes to taxes. One way to achieve this is by itemizing your standard tax deductions, especially if you are self-employed, live in a high-tax area, or own a home. This tax tip is worth following if your qualified expenses the 2020 standard deduction.

5.     Decide if you Need Help

Finally, the most important tax tip is deciding if you’re overwhelmed or not sure where to start. If so, consider hiring an accountant to assist you throughout the process. A tax professional will make sure all your forms are completed correctly and submitted before the deadline.

Looking for qualified and experienced accountants that can guide you through this tax season? The accounting professionals at Calabrese & Associates, P.C., are exactly what you need. Visit our website today to get started.

 

Everything You Need to Know and More About Tax Season 2021

2021 Tax Season

With the ups and downs of the past year, believe it or not we are rapidly approaching a new Tax Day, Thursday, April 15, 2021. That means that we are currently in the midst of tax season 2021. So, if you’re wondering about some of the changes from the past year, our accounting experts have all the information that you’ll need to know and more.

Important Information about Tax Season 2021

The Start of Filing Season

One of the first things that everyone should know about tax season 2021 is that it’s start will be later than usual. In fact, that the IRS will start accepting and processing tax returns on Friday, February 12, a bit later than previous years that started in January.

Tax documents, money and calculator on a table

Recovery Rebate Credits and Economic Impact Payments

If you’re one of the taxpayers that received an Economic Impact Payment, make sure that you hold on to your Notice 1444 with your records for the year.

You may be able to claim the Recovery Rebate Credit on your federal income tax return if:

  • You didn’t receive an Economic Impact Payment
  • The payment was less than $1,200 ($2,400 if married and filing jointly in 2018 or 2019), in addition to $500 for every child had in 2020

Taxpayers who didn’t receive the full amount of the Economic Impact Payment they were eligible for can claim the Recovery Rebate Credit when they file in 2021.

Calendar with the 15th highlighted

Changes to Charitable Donations

Another new wrinkle in tax season 2021, taxpayers that aren’t itemizing deductions are eligible to take a charitable donation up to $300 for 2020 cash contributions to qualifying organizations. Click here for more information about the eligible organizations.

For any other questions or concerns about tax season 2021, leave it up to the pros at Calabrese & Associates, P.C. to take care of your filing. Our team of expert accountants have the experience and knowledge to get the most out of your returns.

How to Choose the Right Tax Preparer for You and Your Needs

Tax Preparer

With the end of a tumultuous 2020 approaching, tax season is right around the corner. And with the topsy-turvy nature of that last year, it’s never been more important to get the right tax preparer services for you and your individual needs. Therefore, take it from the pros. Here are a few tips and tricks to use in order to find the right accountant for your situation and finances.

Tips for Find the Right Tax Preparer

Check the Credentials

One of the best ways to determine you’re enlisting the efforts of a qualified tax preparer is by checking their credentials and affiliations. Ideally, you want to search for certified public accountants (CPA) like Calabrese & Associates, P.C.

Likewise, it helps if, like us, they are members of the American Institute of Certified Public Accountants, the New York State Society of Certified Public Accountants, and/or the National Association of Tax Professionals. Ultimately, experience and association memberships are key as these organizations usually have a code of ethics and many certification requirements.

2021 Taxes calculator on papers

Ensure you’re Getting the Right Attention

In terms of choosing the right tax preparer for you and your needs, it’s important to consider the level of attention and care you’ll be receiving. When you enlist the services of a big, corporate firm, you might feel like just another number or account for them.

However, with an accounting team like Calabrese & Associates, P.C., you can rest easy knowing that you’ll be receiving highly personalized attention for your taxes and preparation. There will always be a real person to call or contact that will know all about your situation and be prepared to give you the right financial solutions.

Magnifying glass over a calculator

Do your Homework

Generally, you want to ensure that your tax preparer can take care of your needs in the account of an exam or audit. Whoever you research to become your accountant, you need to be able to ask these questions. And in the event they’re answered to your liking, you can begin a fruitful, professional relationship.

When you’re looking for a tax preparer, consider the hard-working, dedicated team of Calabrese & Associates, P.C. We have the knowledge and experience to take you forward into financial success. Check out our website to learn more and schedule a consultation today!

How Tax Rates May Change during the Upcoming Biden Presidency

Accountant filing taxes

No matter who is president, chances are that they will have different ideas on taxes that will change the amounts individuals and companies will have to pay. And, under new President-elect Joe Biden’s impending presidency, that doesn’t seem likely to change. Therefore, keep up with the latest changes to tax rates by checking out our quick, simple explainer blog on the topic.

Potential Tax Rates and Changes Expected under Biden

Corporate Tax Rates

One of President-elect Biden’s most touted tax rate changes includes an increase to the corporate tax rate to 28 percent. Biden reportedly intends to repeal President Donald Trump’s tax plan, which initially lowered the corporate tax rate from 35 percent to 21 percent.

However, according to the recent Q4 CNBC Global CFO Council Survey, the vast majority of corporate CFOs do not anticipate Biden’s business tax hike will go through as planned. In fact, they generally believe he will be more neutral to businesses and corporations, with more of a focus on pandemic spending and economic growth instead of changes to corporate tax rates.

Rates and money with a financial graph

Social Security

One of President-elect Biden’s most contentious proposed tax rates is an increase on payroll taxes for those earning over $400,000 a year. The plan ultimately aims to boost revenue to Social Security by imposing a 12.4 percent payroll tax on those higher earners.

Social Security card with balance sheet and cash

Deductions

Another one of President-elect Biden’s proposed changes to tax rates encompasses Qualified Business Income. If he goes through with his plan, his administration would phase out and eventually remove the 20 percent Qualified Business Income (QBI) Deduction on taxpayers making more than $400,000 per year.

Although there’s been a lot of chatter about these policies, there’s no telling what could actually happen during Biden’s administration in our current economic climate. Keep an eye on the news and our Calabrese & Associates, P.C. blog in the coming months for more information as it becomes available.

5 Savvy Real Estate Accounting Tips to Prepare for Year-End

Real Estate Accounting

As we near the end of a tumultuous 2020, many businesses, including real estate firms, are planning for the upcoming year ahead. It’s certainly been a topsy-turvy year for anyone selling or buying residential and commercial properties, so year-end preparations might be a little different this time around. Therefore, our expert team has you covered with all the real estate accounting tips you need to end 2020 strong.

End the Year Strong with Professional Real Estate Accounting Tips

1.      Check Financial Statements

Ensure that you have a complete balance sheet of all your assets, liabilities and more by verifying your financial statements. By providing your accountant with these update reports, they will be able to, if needed, point out discrepancies and rectify their accuracy before year-end.

Financial Statements

2.      Update Software

Throughout the year, there might have been new and improved software available for your real estate firm. New real estate accounting software, along with your tax team, will guarantee access to the latest tax forms, regulatory changes and other important tools.

3.      Verify Employees

With as much that has happened in 2020, you may also have experienced additions, or potentially subtractions, to your staff. Therefore, to ensure that your year-end reports have the right information, you may need to audit your employees. That way, all the right people connected to your business will be accurately represented in the system for your accounting team.

Employee Verification

4.      Plan for 2021

One of the best, most tried-and-true real estate accounting tips we can give for year-end is actually planning for the impending year ahead. Far too often businesses, especially in real estate, will neglect to do any prior planning. And, when the new year rolls around, they will have the tools and prep work needed to succeed.

With that in mind, both residential and commercial real estate companies need a trusted accounting and tax partner like Calabrese & Associates, P.C. to end 2020 on the right foot and ultimately help them get ahead for 2021.

The Top Reasons Why Businesses Should be Outsourcing Payroll

Outsourcing Payroll

Although some companies choose to handle it in-house, there’s a reason that so many businesses continue to outsource their payroll service to a trusted, local accounting firm. So, if you’re trying to decide between the two, we can help. Check out these top benefits of outsourcing payroll services to accountants like Calabrese & Associates, P.C.

The Advantages of Outsourcing Payroll to an Accounting Firm

Calculations and Payments

When it comes to paying employees, you need to be able to complete the different calculations it takes to reach a final figure. Between totaling hours, verifying them and including the designated pay rate, while accounting for the appropriate deductions and benefits, there’s a lot that goes into it.

That’s why so many companies are outsourcing their payroll services entirely. With the amount of different math and knowledge involved in the process, business owners are taking a calculated risk when they put the task in the right, experienced hands. That way, they can ensure their employees are compensated accordingly.

Accountant using a calculator

Reduced Risk

While it might seem simple, payroll is not easy. Beyond all the knowledge required, you must also be aware of different regulations.

If you do not, your business could become the victim of steep penalties and fines, which can add up quickly. So, to guarantee you steer clear of these roadblocks, outsourcing payroll is as good of a start as any.

Payroll statement on a table

Lower Costs

With all the time it takes to learn how to do payroll and actually complete it twice a month, that’s a great deal of effort. And, when you consider the old saying “time is money,” doing your own payroll can cost you a lot more than you are saving.

With outsourcing payroll, you can turn your time and attention to other tasks and responsibilities. Even when you consider all the software, training and updates of the process, the savings can be immense.

If you’re interested in outsourcing your payroll to an accounting firm like Calabrese & Associates, P.C., you’re making the right choice. For more information or to schedule a consultation, visit our website today!

The Top Benefits of Tax Preparation Services for Businesses

Tax Preparation

As the end of the year comes into focus, so too does next year’s tax filing. And when you consider the craziness of the last year, there are many details that you might not think to consider. That’s where a local accounting firm comes in. By using professional tax preparation services for your business, you will ensure that your finances are in the right hands. If that’s not enough to convince you, check out these key advantages.

Why Companies Should Use Professional Tax Preparation Services

Expert Knowledge

One thing you can count on when using tax preparation services is knowledge crafted from years of experience. Since tax rules are often complicated, a tax expert will help you locate the proper credits and deductions that you qualify for.

Not to mention, they’re also a great resource for any tax advice and for ensuring you avoid any adverse consequences from a wrongful tax filing.

Person crunching numbers with a calculator

Increased Funds

When it comes to hiring tax preparation services, naturally it’s going to cost your business money. However, when weighed against the actual tax savings they can find you, the expense is usually negligible.

By knowing your unique situation and having an up-to-date understanding of the rules, tax professionals will find you the best possible savings. Besides, when compared against the value of the hours it would take to complete your own taxes, the decision is a no-brainer.

Man presenting a clipboard with a file on it

Peace of Mind

Another one the best things about hiring tax preparation services for your company or organization is the peace of mind it will bring. You won’t have to worry or stress anymore that your taxes aren’t done right or on time. With a seasoned professional, you can focus more time and energy on doing what it is that makes your business profitable.

If you’re interested in professional tax preparation services, look no further than Calabrese & Associates CPA. Our team can give you the personalized service your company needs to succeed. Visit our website to learn more!

The Top Benefits of Using a Local Accounting Firm like Calabrese

Local Accounting Firm

When it comes to accounting firms, you typically have many choices, both for personal and business finance purposes. In this blog, we will spotlight the benefits of choosing a local accounting firm.

Why Go with a Local Accounting Firm?

When it comes to accounting, you are likely familiar with the “Big Four” names: Deloitte, PwC, KPMG and Ernst & Young. But what you may be unfamiliar with is your local accounting firm and how they may be more beneficial for your brand’s accounting needs.

Person typing on a laptop

Build a relationship with your accountant

When you turn to a large, corporate firm, there’s a greater chance of having to see a new accountant every time you need something handled. This creates a distance between you and your accountant, and your business dealings are never fully understood.

At a local firm, there is a shorter list of clients but a greater amount of focus on said clients. Local accountants will try to familiarize themselves with your business from top to bottom, and are a friendly face you recognize immediately when you need accounting services.

Person plugging in numbers

Flexibility

Due to the high volume of employees at corporate firms, there are usually a defined set of practices to follow. Clients cannot pick and choose what accounting services they require, or discuss a payment adjustment or plan. Instead, there are a list of packages and the client has to decide on one that is the most relevant, even if they don’t require all the services.

Local accountants can do all kinds of accounting services, or only a few depending on your needs. They can also be open to discussing different payments. Another positive is that all your services would be through one or two people, as opposed to seeing a different accountant in every department and keeping track of many people.

Chart with money behind it

Quality workers, quality work

For larger firms, quantity over quality is the end goal. They are focused on a multitude of clients and completing a lot of work at once. However, local accountants likely handpick their employees to ensure quality assurance. This, combined with less work, means more focus on your business’ needs.

Smaller firms may focus more on their hires as they need less employees – again, focusing on the quality over quantity. To be able to provide the best quality of work possible, it is important to have high quality employees willing to put in the work.

Go Local

While both local and corporate accounting firms can provide the services your company needs, there are many other details that you will only receive by choosing a local firm.

Looking for a local accounting firm based out of Long Island that will give your small business the attention it deserves? Look no further than Calabrese & Associates, CPA, P.C. We will ensure that your financial needs are fulfilled and have our full focus. Visit our website today to get started.

Payroll Tax Cut: What it Could Mean for Businesses

payroll tax cut President Trump has allegedly been urging for a payroll tax cut to be implemented. In today’s economic situation, it is important to fully understand any major decision made by the federal government. In this blog, we will cover what exactly this means and how this affects businesses going forward.

What is a Payroll Tax Cut?

This decision has had mixed reviews on whether it will help or hurt the economy in the long run. The most important step to take is to understand what a payroll tax cut would immediately do, both to benefit and to hurt those affected:

  1. There would be more money in workers’ paychecks – employees will notice more money in their paycheck, and programs such as Social Security and Medicare will not receive as much funding; however, this increase would be very gradual and not major.
  2. It creates a boost for businesses – since this tax cut reduces the amount paid by employers, there is more money for struggling businesses to stay afloat; however, COVID-19 is the reason most businesses have been struggling and it is still prevalent today, meaning eventually this money will run out.
  3. A reduction in federal revenue – when the payroll tax cut began in 2011, the government lost $112 billion, and $115 billion in 2012.
  4. Unemployment not affected – those that are unemployed will not receive any kind of benefit, as well as those that aren’t working on maternity leave and retirement; according to CNN, another stimulus payment would be more effective.

Fox Business estimated that with this implemented, the maximum amount of money that an average American could receive is $2,149.

dollar bill with three cubes one green arrow, one red arrow and a percent sign

What Will it Mean for Business?

Let’s delve a little deeper into the payroll tax cut’s effect on business. Of course, this is all still hypothetical, and it is unknown what would really happen in the event this was implemented.

However, the bigger picture shows that the real reason for the economy’s decline is the coronavirus pandemic. The pandemic jumpstarted months of economic insecurity as many lost their jobs or had to begin hybrid working situations where they either began to – and still do – work from home, or go in to the workplace some days and work at home other days.

So even with a payroll tax cut that likely wouldn’t last long, this just prolongs the life of some businesses that aren’t going to make it through an indeterminable amount of time of social distancing and forced closures. With no vaccine or promise of a return to the prior economy, the futures of some businesses are doomed whether there are tax cuts made or not.

person observing pie charts taking notes and using a calculator

Final Cut

Although there are many assumptions about what the payroll tax cut would do for employees and businesses alike, there is no guarantee until it is instated by President Trump.

For more information on payroll, taxes, or trending economic news, visit our website. Here at Calabrese CPA, we offer comprehensive financial services to suit your needs.