Key Accounting Issues for 2017

4 Key Accounting Issues to Watch in 2017
Terry Sheridan
Jan 11, 2017
accountingweb.com

As if 2017 doesn’t promise enough drama and change already, the accounting profession is poised for a year brimming with expected regulatory issues and scrutiny.

Bloomberg BNA recently released its 2017 Tax & Accounting Outlook report that covers the gamut of legislative, state, international, and tax administration issues. But it also highlights the following four key accounting issues that could impact practitioners and companies in the new year.

1. Banks and credit losses. New rules on the reporting of loans and other credit losses portend one of the biggest changes ever in the financial accounting of banks and other companies, the report states.

Under Accounting Standards Update (ASU) No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which was issued by the Financial Accounting Standards Board (FASB) last June, banks and other lending institutions will be required to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts.

The “current expected credit loss model,” the core of the new standard, replaces the long-standing accounting model shaped around incurred losses.

This year “promises to be a period of preparing for the sweeping modifications in accounting for credit impairments,” the report states. “Companies have to assess what information must be assembled to shift to the new standard.”

Companies that file reports with the US Securities and Exchange Commission (SEC) will apply the new rules beginning in January 2020. Smaller and private companies have until 2021.

“Work that led to the credit losses rules of FASB and the International Accounting Standards Board was spurred by the 2008-09 financial crisis,” the report states. “Working in tandem for several years, the two boards sought to remedy the widely seen problem of recording loan losses ‘too little, too late.’”

2. Insurance. Life insurance and annuities are complex as it is, and a FASB proposal to change insurance accounting rules “brings hurdles, because of challenges inherent in the sector as a whole,” the report states.

Overall, the proposed ASU, Financial Services—Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts, seeks to modernize an accounting model dating back more than 35 years that doesn’t address the newest insurance products, Bloomberg BNA says. FASB contends that better and more consistent information will result.

Companies will need more data, which means more IT, internal controls, and more people in an industry that’s already faced cutbacks.

The proposal, which was issued last September, is expected to most affect traditional life insurance companies that issue long-term care policies and disability income, sell participating contracts, and sell products with market risk benefits, such as variable universal life and variable annuities, the report states.

Trouble spots include financial reporting projecting 30 years outward; how companies account for market risk benefits, like variable annuities; and disclosures.

Look for a FASB public roundtable early this year on the proposal and at least some changes to be made final later in the year.

3. Non-GAAP financial reporting. Will the SEC’s intense scrutiny of non-GAAP financial reporting continue this year? That’s the big question, according to Bloomberg BNA. A “flurry” of cautionary letters is expected, says one SEC staffer in the report.

Proponents of non-GAAP reporting indicate that its use can tell a better corporate story than GAAP, particularly in earnings reports. Whether the FASB will get involved isn’t clear, but at least one industry source in the report indicates that the board might want to begin by considering what issues lead to non-GAAP reporting.

When Bloomberg BNA recently asked SEC Chief Accountant Wesley Bricker whether the commission would continue to aggressively address non-GAAP reporting in 2017, he said, “I am confident that the commission will remain focused, as it always has, on the appropriate administration of the securities laws.”

4. Auditor disclosure rules. New requirements in audit transparency and a revamp of the auditor’s report are coming, courtesy of the Public Company Accounting Oversight Board (PCAOB).

Beginning on Jan. 31, audit firms must disclose the name of the audit engagement partner in the new PCAOB Form AP, Auditor Reporting of Certain Audit Participants. The form also will disclose other accounting firms that participated if they did at least 5 percent of the total audit hours. Foreign countries already require this.

“US auditors have vehemently opposed this requirement for liability reasons,” the report states.

Audit firms will have until June 30 to disclose the other firms’ participation.

A proposed revision to the auditor’s report will require auditors to explain “critical audit matters,” which PCAOB members initially described as “those matters that kept the auditor awake at night,” the Bloomberg BNA report states.

The board also wants experienced or “lead” auditors to supervise inexperienced auditors instead of simply signing off on their work.

The report cites an email from Larry Shover, a member of the PCAOB’s Investor Advisory Group, in which he states that the supervision of other auditors is the most significant of all the board’s projects to investors.

New Year's Payroll Resolutions

We want to help you start off the New Year right with your payroll services.  Having served Richmond’s small business community for over 10 years, we have seen a demand for affordable accounting services, including payroll, and have decided to fill it.  Beginning in 2017 we are offering competitively priced, comprehensive payroll services that are tailored specifically to your small businesses’ needs.

Through our platform, business owners and employees alike can log in through a website to easily view payroll periods, expenses and reports. Employees can download pay stubs and W2s.  Payroll advances, garnishments, and before and after tax deduction reports that any other full-service payroll company can provide, including:

-Year-to-Date Reports
-Check Register
-Taxable Wages
-Cash Requirements Report
-Generate checks
-Worker’s Comp Audits
-Direct Deposit

We are offering flat-fee rates for businesses with 10 or fewer employees and have a variety of flexible solutions for over 10 employees.  We want to save you time, money and headaches by filling your payroll needs.

Payroll Complaince Update

As Accounting Works rounds out the rest of the year, we will be turning our focus to offering comprehensive and competitively priced payroll services to our clients in 2017!  With an easy to use platform, we will be offering a flat rate for businesses with 10 or fewer employees and only a small fee for any additional employees! Of course, we'd like to work with any size business, so if you have a larger company we'd be happy to work out a plan that fits your needs.

That being said, it can be hard as a small business owner to keep up with changing regulations, especially if you're doing payroll yourself.  As a reminder, these payroll changes will take effect December 1, 2016!

Final Rule: Overtime
From the Wage and Hour Division (WHD) of the US Dept of Labor

Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales and Computer Employees under the Fair Labor Standards Act

On May 18, 2016, President Obama and Secretary Perez announced the publication of the Department of Labor’s final rule updating the overtime regulations, which will automatically extend overtime pay protections to over 4 million workers within the first year of implementation. This long-awaited update will result in a meaningful boost to many workers’ wallets, and will go a long way toward realizing President Obama’s commitment to ensuring every worker is compensated fairly for their hard work.

In 2014, President Obama signed a Presidential Memorandum directing the Department to update the regulations defining which white collar workers are protected by the FLSA's minimum wage and overtime standards. Consistent with the President's goal of ensuring workers are paid a fair day's pay for a hard day's work, the memorandum instructed the Department to look for ways to modernize and simplify the regulations while ensuring that the FLSA's intended overtime protections are fully implemented.

The Department published a Notice of Proposed Rulemaking (NPRM) in the Federal Register on July 6, 2015 (80 FR 38515) and invited interested parties to submit written comments on the proposed rule at www.regulations.gov by September 4, 2015. The Department received over 270,000 comments in response to the NPRM from a variety of interested stakeholders. The feedback the Department received helped shape the Final Rule.

Key Provisions of the Final Rule

The Final Rule focuses primarily on updating the salary and compensation levels needed for Executive, Administrative and Professional workers to be exempt. Specifically, the Final Rule:

1. Sets the standard salary level at the 40th percentile of earnings of full-time salaried workers in the lowest-wage Census Region, currently the South ($913 per week; $47,476 annually for a full-year worker);
2. Sets the total annual compensation requirement for highly compensated employees (HCE) subject to a minimal duties test to the annual equivalent of the 90th percentile of full-time salaried workers nationally ($134,004); and
3. Establishes a mechanism for automatically updating the salary and compensation levels every three years to maintain the levels at the above percentiles and to ensure that they continue to provide useful and effective tests for exemption.

Additionally, the Final Rule amends the salary basis test to allow employers to use nondiscretionary bonuses and incentive payments (including commissions) to satisfy up to 10 percent of the new standard salary level.

The effective date of the final rule is December 1, 2016. The initial increases to the standard salary level (from $455 to $913 per week) and HCE total annual compensation requirement (from $100,000 to $134,004 per year) will be effective on that date. Future automatic updates to those thresholds will occur every three years, beginning on January 1, 2020.

Do You Qualify for the Earned Income Tax Credit?

As a small business owner, you could qualify for the Earned Income Tax Credit!  It's different than itemized deduction and available for those that qualify with or without children.

What is the Earned Income Tax Credit?
By Maurie Backman on Fool.com

Taxes can be a huge burden for low-income Americans who need every penny they can get to pay the bills. Thankfully, there are tax credits available to help lower earners make ends meet. One such credit is the Earned Income Tax Credit. The Earned Income Tax Credit, or EITC, is a federal tax credit that can save eligible low-income Americans money on their taxes. You must meet certain criteria to file for the EITC, but if you qualify, you could receive up to $6,318 for 2017. Best of all, the EITC is refundable, which means that if it reduces your tax liability to $0, you'll actually get a check for the difference.


Tax credits versus deductions

Some people use the terms "tax credit" and "tax deduction" interchangeably, but in reality, they're not the same thing. A tax deduction reduces your taxable income, while a tax credit is a dollar-for-dollar reduction of your tax liability. If you're eligible for a $3,000 tax deduction and your effective tax rate is 25%, that deduction will save you $750 in taxes. But if you get a $3,000 tax credit, it'll save you $3,000 in taxes.

Now many tax credits are non-refundable, which means that if they reduce your tax liability to $0 with money left over, you won't be eligible to receive the difference. The EITC, however, is refundable, which means that it has the potential to put even more money back in your pocket. Let's say you owe $2,000 in taxes but are eligible for an EITC credit in the amount of $3,400. Because the EITC is refundable, you'll actually get a check for $1,400.

How do I get the Earned Income Tax Credit?

There are certain criteria you must meet to be eligible for the EITC. To qualify, you must have earned income from a job or business that you own. Furthermore, your tax filing status must be single, married filing jointly, head of household, or qualifying widow. Additionally, for 2017, your investment income for the year can't exceed $3,450.

There are also income limits that determine your eligibility to receive the Earned Income Tax Credit, and they depend on the number of qualifying children you have in your household. The following table shows what the 2017 EITC income limits are based on your tax filing status and number of qualifying children:

How much can I get from the Earned Income Tax Credit?

The amount of money you get from the EITC depends on your income and number of qualifying children. For 2017, the maximum you'll receive from the EITC is:

• $6,318 if you have three or more qualifying children
• $5,616 if you have two qualifying children
• $3,400 if you have one qualifying child
• $510 if you don't have any qualifying children

Don't pass up free money

To benefit from the Earned Income Tax Credit, all you need to do is claim it on your tax return. Surprisingly, an estimated 20% of eligible tax filers fail to claim the EITC and lose out on much-needed money each year as a result. If you're a low earner, it pays to see whether the Earned Income Tax Credit could lower your taxes or, better yet, put extra cash back in your pocket this year.

The $15,834 Social Security bonus most retirees completely overlook
If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $15,834 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after.

Charitable Donations for Small Business

As the year comes to a close, many small business owners and individuals look for ways to make deductions on their taxes.  Contributing to your favorite cause is a great way to minimize your bottom line.  Here's how to make those charitable donations count!

Small Business Guide to Deducting Charitable Donations
By Bonnie Lee

Businesses can make tax deductible donations to bona fide nonprofit organizations. But you may be surprised to learn how it is deducted on your tax return. In fact, the only entity able to deduct a cash charitable contribution as a business expense is a C Corporation.

If you are a sole proprietor and you make a donation of $100 to a dog rescue society which is registered as a 501(c)(3) with the Internal Revenue Service – all bona charities must be registered as such for your gift to be tax-deductible – and your business received no goods or services in return, the deduction is listed as an itemized deduction on Schedule A of your tax return. This provides a tax benefit only if you are able to itemize deductions.

You cannot deduct this contribution on Schedule C. It is not a business expense; it will not reduce your self-employment tax. The IRS views it as a personal expense paid from business funds.

But now let’s say you want to support young athletes and therefore donate $100 from business funds as a sole proprietor to the local soccer league. In exchange, they run a small display ad for your business on their program. This is no longer a donation. This is an advertising expense; you received something in return which can be classified as an “ordinary and necessary business expense,” and therefore the cost is deductible as such on Schedule C.

If as a sole proprietor you donate your services to a bona fide 501(c)(3), you have no deduction whatsoever. Doesn’t seem fair, does it? But the IRS places no value on your time or expertise. A manicurist donated her time to do nails for women clients at a shelter who were preparing for job interviews. While she was not allowed to deduct the $35 per manicure she would normally charge, she was able to deduct her mileage to and from the shelter, and the cost of all supplies and materials used in the performance of the manicures. She gave away bottles of nail polish to be distributed by the nonprofit to their clients. These were a write off for her as well.

By the same token, if this manicurist were to give away a nail care set of polish and files and other products to a poor individual who needs help, she would not be able to write off the donation. This is simply because the IRS does not allow the deduction of gifts to individuals, or for that matter to political organizations or candidates.

If your business is incorporated as an S Corporation or formalized as a partnership filing Form 1065, the same rules apply. In fact, any donations made at the S Corporate or partnership level flow out as a special line item on your Schedule K-1 and end up on Schedule A of your individual income tax return. Again, this is a tax benefit only if you are able to itemize deductions.

A C Corporation may take the deduction on Form 1120 but must follow all of the IRS rules regarding donations.

Remember to acquire and retain the acknowledgment letter from the nonprofit for your donation. Your canceled check is not enough documentation and the IRS may disallow the deduction if you cannot provide this document. It must be obtained before filing your tax return. You cannot request it later during an IRS audit.

To view the original article, click here.

Celebrate National Wine Tasting Day @ Secco Wine Bar

Did you know that November 5, 2016 is National Wine Tasting Day?  As an avid wine drinker, I was delighted to learn of the event and excited that it gave me an excuse to visit one of my favorite clients in Richmond serving my favorite beverage— Secco Wine Bar! Having recently moved to their new location (something we both have in common...) they've been able to expand their menu as well as their seating with a heated patio outdoors and more space inside.  Celebrate this holiday with me and go to your favorite local wine bar...as if you needed the excuse.

Tax Planning for Small Business

It’s fairly common knowledge that when you plan ahead, things generally cost you less money.  You have more time to shop around for the best deal and you aren’t paying exorbitant fees for last minute convenience.  While it comes to mind that this rule is especially true for travel expenses, it is also very true when it comes to tax planning for your small business.  The more you plan ahead, the more likely you are to find a strategy or that new tax law, that saves you hundreds.

Cash flow is incredibly important for small businesses, and minimizing your tax liability means more money for growth and investment.  Money saving strategies like making contributions at end of year are also beneficial to your bottom line.  Further, knowing your bottom line months in advance can give you more time to plan on making that payment.  Would you rather learn about a $10,000 bill a week in advance or 4 months in advance? Exactly.

Tax Planning for Different Business Forms

SOLE PROPRIETORSHIPS AND PARTNERSHIPS Tax planning for sole proprietorships and partnerships is in many ways similar to tax planning for individuals. This is because the owners of businesses organized as sole proprietors and partnerships pay personal income tax rather than business income tax. These small business owners file an informational return for their business with the IRS, and then report any income taken from the business for personal use on their own personal tax return. No special taxes are imposed except for the self-employment tax (SECA), which requires all self-employed persons to pay both the employer and employee portions of the FICA tax, for a total of 15.3 percent.

Since they do not receive an ordinary salary, the owners of sole proprietorships and partnerships are not required to withhold income taxes for themselves. Instead, they are required to estimate their total tax liability and remit it to the IRS in quarterly installments, using Form 1040 ES. It is important that the amount of tax paid in quarterly installments equal either the total amount owed during the previous year or 90 percent of their total current tax liability. Otherwise, the IRS may charge interest and impose a stiff penalty for underpayment of estimated taxes.

Since the IRS calculates the amount owed quarterly, a large lump-sum payment in the fourth quarter will not enable a taxpayer to escape penalties. On the other hand, a significant increase in withholding in the fourth quarter may help, because tax that is withheld by an employer is considered to be paid evenly throughout the year no matter when it was withheld. This leads to a possible tax planning strategy for a self-employed person who falls behind in his or her estimated tax payments. By having an employed spouse increase his or her withholding, the self-employed person can make up for the deficiency and avoid a penalty. The IRS has also been known to waive underpayment penalties for people in special circumstances. For example, they might waive the penalty for newly self-employed taxpayers who underpay their income taxes because they are making estimated tax payments for the first time.

Another possible tax planning strategy applies to partnerships that anticipate a loss. At the end of each tax year, partnerships file the informational Form 1065 (Partnership Statement of Income) with the IRS, and then report the amount of income that accrued to each partner on Schedule K1. This income can be divided in any number of ways, depending on the nature of the partnership agreement. In this way, it is possible to pass all of a partnership's early losses to one partner in order to maximize his or her tax advantages.

C CORPORATIONS Tax planning for C corporations is very different than that for sole proprietorships and partnerships. This is because profits earned by C corporations accrue to the corporation rather than to the individual owners, or shareholders. A corporation is a separate, taxable entity under the law, and different corporate tax rates apply based on the amount of net income received. As of 1997, the corporate tax rates were 15 percent on income up to $50,000, 25 percent on income between $50,000 and $75,000, 34 percent on income between $75,000 and $100,000, 39 percent on income between $100,000 and $335,000, and 34 percent on income between $335,000 and $10 million. Personal service corporations, like medical and law practices, pay a flat rate of 35 percent. In addition to the basic corporate tax, corporations may be subject to several special taxes.

Corporations must prepare an annual corporate tax return on either a calendar-year basis (the tax year ends December 31, and taxes must be filed by March 15) or a fiscal-year basis (the tax year ends whenever the officers determine). Most Subchapter S corporations, as well as C corporations that derive most of their income from the personal services of shareholders, are required to use the calendar-year basis for tax purposes. Most other corporations can choose whichever basis provides them with the most tax benefits. Using a fiscal-year basis to stagger the corporate tax year and the personal one can provide several advantages. For example, many corporations choose to end their fiscal year on January 31 and give their shareholder/employees bonuses at that time. The bonuses are still tax deductible for the corporation, while the individual shareholders enjoy use of that money without owing taxes on it until April 15 of the following year.

Both the owners and employees of C corporations receive salaries for their work, and the corporation must withhold taxes on the wages paid. All such salaries are tax deductible for the corporations, as are fringe benefits supplied to employees. Many smaller corporations can arrange to pay out all corporate income in salaries and benefits, leaving no income subject to the corporate income tax. Of course, the individual shareholder/employees are required to pay personal income taxes. Still, corporations can use tax planning strategies to defer or accrue income between the corporation and individuals in order to pay taxes in the lowest possible tax bracket. The one major disadvantage to corporate taxation is that corporate income is subject to corporate taxes, and then income distributions to shareholders in the form of dividends are also taxable for the shareholders. This situation is known as "double taxation."

S CORPORATIONS Subchapter S corporations avoid the problem of double taxation by passing their earnings (or losses) through directly to shareholders, without having to pay dividends. Experts note that it is often preferable for tax planning purposes to begin a new business as an S corporation rather than a C corporation. Many businesses show a loss for a year or more when they first begin operations. At the same time, individual owners often cash out investments and sell assets in order to accumulate the funds needed to start the business. The owners would have to pay tax on this income unless the corporate losses were passed through to offset it.

Another tax planning strategy available to shareholder/employees of S corporations involves keeping FICA taxes low by setting modest salaries for themselves, below the Social Security base. S corporation shareholder/employees are only required to pay FICA taxes on the income that they receive as salaries, not on income that they receive as dividends or on earnings that are retained in the corporation. It is important to note, however, that unreasonably low salaries may be challenged by the IRS.

This article originally appeared on ReferenceforBusiness.com and includes some other great resources as well!

Payroll Services for Small Business

Accounting Works has offered a variety of accounting services in Richmond for many years, working with many small business owners has made us realize that there are certain accounting needs not being met. I am speaking of Payroll Services.  Small to medium size businesses feel that the cost of outsourcing this service is not justifiable and instead opt to handle it in house, consuming both time and resources they can’t afford to lose. This has prompted us to begin a program for Payroll Services for businesses who need it.

Start your small business Spring Cleaning with payroll services at Accounting Works.  We are offering flexible and affordable payroll solutions to save small business owners time at a competitive price! Through our platform, business owners and employees alike can log in through the website. Employers can easily view payroll periods, expenses and reports. Employees can download pay stubs and W2s.  Payroll advances, garnishments, and before and after tax deduction reports that any other full-service payroll company can provide, including:

• Year-to-Date Reports
• Check Register
• Taxable Wages
• Cash Requirements Report
• Generate checks
• Worker’s Comp Audits
• Direct Deposit

For employers with 10 or fewer employees, we are offering these services for a flat fee of $155 per month, with only a small charge for any additional employees.  If you have more than 10 employees, don’t worry! We will work with you on a bulk solution to your payroll needs.

Accounting Works has been providing affordable accounting services to Small Business owners for years.  We’ve seen the need for affordable payroll solutions and we’re here to help!

Payroll Services for Small Business

Accounting Works has offered a variety of accounting services in Richmond for many years, working with many small business owners has made us realize that there are certain accounting needs not being met. I am speaking of Payroll Services.  Small to medium size businesses feel that the cost of outsourcing this service is not justifiable and instead opt to handle it in house, consuming both time and resources they can’t afford to lose. This has prompted us to begin a program for Payroll Services for businesses who need it.

Make it your New Year’s resolution to start your payroll services with Accounting Works.  We are offering flexible and affordable payroll solutions for small businesses beginning the first of the year! Through our platform, business owners and employees alike can log in through the website. Employers can easily view payroll periods, expenses and reports. Employees can download pay stubs and W2s.  Payroll advances, garnishments, and before and after tax deduction reports that any other full-service payroll company can provide, including:

• Year-to-Date Reports
• Check Register
• Taxable Wages
• Cash Requirements Report
• Generate checks
• Worker’s Comp Audits
• Direct Deposit

For employers with 10 or fewer employees, we are offering these services for a flat fee of $155 per month, with only a small charge for any additional employees.  If you have more than 10 employees, don’t worry! We will work with you on a bulk solution to your payroll needs.

Accounting Works has been providing affordable accounting services to Small Business owners for years.  We’ve seen the need for affordable payroll solutions and we’re here to help!

No Tricks, Just Treats!

Now that we're all settled in, help us celebrate our new location at 122 Granite Ave!  We are inviting all of our friends, family, clients and colleagues to stop by for some grilled burgers and dogs along with craft beer and tasty homemade treats!

Tax Extension Deadline!

If you filed for an extension, Monday, October 17th is the deadline to file your Individual Tax Return (1040, 1040A, or 1040EZ) for 2015!  

October 17th is also the date for Electing Large Partnerships that have filed for an extension (Form 1065-B).

Think Ahead:

December 15th is the deadline for Corporations to make 2016 estimated payments.

For a list of all tax deadlines by quarter click here.

Payroll Clients of Accounting Works: Compliance Updates!

To Our Payroll Clients,

As part of your subscription to HRAdvisor, we monitor labor laws and compliance requirements. Governmental regulations have changed and may require your business to display new posters.  To get the updated posters, please log in to your payroll account and visit the Compliance Center.

To maintain your $25,000 compliance guarantee, you will need to download and post the new poster.

The compliance wizard will create one packet containing all of your updated posters. On the print screen, you can always choose not to print those posters that haven't changed since the last time you printed the posters.

Thank You!

A Quality Experience with KMI Insurance

    

In classic small business owner fashion, I realized a few weeks ago (in the middle of the night) that I needed business insurance immediately.  In fact, I needed it a while back and was playing catch up. After scrolling through client and vendor contacts, I decided to go through the Richmond Business Alliance (RBA) directory.

Bingo!  I have done business with fellow Richmond Business Alliances members before with great success.  I had also chatted with Kate of KMI Insurance at quite a few of the RBA’s monthly networking events.  I vaguely knew that she worked in the insurance field, but I mostly recalled the intelligent and full of laughs conversations that we’ve had.

In less than a week, Kate and her staff coordinated to go from first phone call to executed policy. Throughout all of this communication was excellent.  When I had a question, it was answered.  When I asked for her recommendation, she gave it and then explained it.  My needs were accommodated promptly and professionally.  I cannot recommend more highly the services of KMI Insurance.  I would also like to recognize that without our membership in the RBA that this business relationship may not have been formed.

If you have insurance needs, please give Kate a call.  I’m glad that I did.

Upcoming Deadlines for Small Businesses and Self-Employed

There are some upcoming tax deadlines for Small Business and those who are Self-Employed.

September 15th

• Third Quarter estimated tax payments are due. Form 1040-ES.
• Final day to file for Partnerships that filed with Form 1065 and for a 5-month extension.
• Corporations that filed a 6-month extension file a calendar year Form 1120 or 1120S.

October 17th

• Final day to file tax return for Self-Employed if you filed for a 6-month extension in April.

For a comprehensive list of deadlines visit www.tax.gov/calendar/

How We Helped Design By E

It’s no secret that we help all kinds of businesses, big or small, reach their goals and find their individual success. We have clients from all different backgrounds and we’ve learned that no client is created equal. It keeps it interesting because we are faced with a variety of unique problems to solve and we love finding great solutions for our clients' financial future.

One of our newer clients, Design By E, is no different and they offered a new kind of challenge for us. They are a small firm who specialize in creative multimedia and marketing.  Despite being small, they experienced big growth in a relatively short amount of time. They were growing at an exponential rate and needed financial direction when they sought out the services of Accounting Works Solutions.

Having been the sole proprietor of the company, the founder, Enrique Mendez, was able to create a healthy budget for himself from the start. However, the unique and valuable services offered by the company quickly gained traction throughout the small business owner community in Richmond and he was able to acquire some pretty reputable clients in a short amount of time.

In order to keep up with their gain, Enrique hired two full-time employees and needed help organizing his company's financial future quickly as his business became more complex.

When they came to us, we were we able to analyze and figure exactly where their finances stood and write down a plan for them to budget for the future. The plan included setting money aside for taxes, savings and company growth.

We reached this plan by carefully looking at their profit margins and seeing where their strength and weaknesses lie. We asked them to pay attention to those areas where they were the most profitable and maybe adjust their strategy when it came to less profitable projects.

“Accounting Works Solutions really helped us take our business to the next level,” says Enrique.  “We found ourselves so busy with work that we often forget to pay attention to our finances. Stephen was a such a big help and crucial for our future as a company.  I feel confident going forward that we’re going to continue to be profitable!”

At Accounting Works, we not only offer accounting solutions but also financial planning for growing businesses. We’re excited to have a wide portfolio of clientele and will always do our best to help our clients be at their best. If you always find that your finances are the last thing on your list to worry about, it may be in your best interest to make sure that your business is operating the most efficient way possible. We can help you achieve those goals! It can save you hundreds and maybe thousands in the long run when you talk to an expert. So give us a call today and see if you’re the best you can be!

We're Open!

Thanks to all of our clients for their patience during our move, we are up and running at full speed! Make your appointments today!

One day to one year, how to keep accounting

From Quickbooks comes an incredibly helpful guide to your daily, weekly, monthly and annual accounting tasks to keep your small business running smoothly!

Move Update for Our Clients

We’ve moved!

If you haven’t heard by now, we made a big move last week! It has been an exhausting process but we believe this new location will better serve our customers!

However, this move has not been without some minor issues. We’re still waiting for our internet to be fully operational in the office so in the meantime we have maintained our servers offsite. As a byproduct of this particular issue, we experienced some email interruption last week, this has been corrected and we don’t expect this issue to arise again. If you have emailed us within the last week or so and have not gotten a response from us - don’t be alarmed! We weren’t ignoring you, we just may not have gotten it. We encourage you to email us again so we can promptly get back to you.

At this time, we have limited availability for appointments and expect to be fully functional on Tuesday, June 26th. If you are one of our payroll customers, don’t worry, payroll services have not been affected by our move.

To all our other customers, we appreciate your patience in this matter and please, if you have a time sensitive issue that needs to be resolved right away, don’t hesitate in calling us!

We will keep you updated throughout our transition to our new location so keep an eye out for any email updates that may come your way!

Thank you, we appreciate your continued business.

- Stephen Fishel

You can now find us at
122 Granite Ave
Richmond, VA 23226

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3 Simple Reasons to Move to Online Invoicing

Lots of small business owners like a paper trail.  It is physical "security" of your payments received, your expenditures among other things.  But, in reality, what you end up with is a desk full of papers with no apparent order by the end of the month and a lot of manual data input that you don't have time for.  Making the move to online invoicing can save you lots of time and actually enhance organization.  Many platforms offer printable or emailable receipts and not only cut your time in half but get you paid faster!

3 Ways Online Invoicing Will Help Your Business
By: John Rampton

Everyone likes getting paid, that is one thing we can all agree on in the business world. Keeping track of payments and invoices can be a nightmare but staying on top of these things are key to your keeping your business alive.

Getting set up with an online invoicing platform that's sole purpose is to make these things easier is a great way for your business to stay on top of its finances.

Here are 3 reasons why Online Invoicing will help your business:

1. Save Time

Sending out manual invoices is a not only a pain but it really is a thing of the past. Don’t waste your valuable time trying to get paid. Invoicing templates are a great way to speed up the task of creating invoices. Many businesses have clients that they invoice regularly and the ability to automatically send those on a recurring basis is a huge luxury. Getting paid should be easy and fast not a headache.

2. Know who pays and more importantly who doesn’t

The whole reason you invoice in the first place is to get paid, so there is no reason you should be unaware of unpaid or overdue invoices. With platforms like due you can always stay on top of the status of your invoices. Being able to send reminders which give your client a notification can help for situations where you have to ask a deadbeat client for money. Nobody likes hearing “the checks in the mail” type of excuses and you want to ensure you are getting paid on time.

3. Get Paid More Often

Your brand is very important even when it comes to the invoicing space. You are 3x more likely to get paid if you add a company logo to your invoice. With the ability to add your logo easily, set due dates, and add specific notes you are increasing your chances of getting paid. You don’t need to be a be a design major to make a nice looking complete invoice. The more professional your invoices look the better chance you have of getting paid, and that's a fact.

Invoicing isn’t about having large stacks of unorganized papers on your desk, it's about getting payments into your client's hands. There is no excuse to be spending excess time to be less organized and less efficient. These are just three of the many reasons online invoicing will help your business.


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