by Karla Dennis | Jan 9, 2014 | Blog
If your business is growing, you may be wondering if it would be a good idea to hire an accountant to work with you when, in fact, a bookkeeping expert is really what you need. This article will discuss the difference between accountants and bookkeeping experts so that you can find the right person for the right job. Salary and education are big differences between bookkeeping experts and accountants. Bookkeepers do not normally need a college degree and an accountant has special training in accounting practices that requires at least a Bachelor’s degree. Because of the amount of education required, a bookkeeping specialist will usually make about half of what an accountant will make. That is why it is important to hire an accountant only if you need it. The job responsibilities of a bookkeeper differ from that of an accountant. A bookkeeping specialist can take charge of payments that come into the company. He or she will also pay bills that are due, but they do not take charge of financial planning. If you are looking for someone that will manage accounts, pay employees, pay bills, and take charge of client billing, hire a bookkeeping specialist. If you want someone to forecast payments and offer strategic advice, an accountant will usually be a better fit. For many businesses the question as to whether you need an accountant or a bookkeeping specialist is actually a trick question. You probably need both. Many business owners will choose to have a bookkeeping specialist on staff full time, and then they bring in an accountant when necessary, like at tax time. Both...
by Karla Dennis | Jan 8, 2014 | Blog
Karla Dennis spoke at a Lunch Seminar event hosted by Los Anegeles area Realtor Toni Patillo recently, providing business owners with some insights regarding the new health care laws and how they will change your business and your bottom line. Please check out the video for the full seminar. It’s fill with a number of various tips and...
by Karla Dennis | Jan 5, 2014 | Blog
If you have a business, you may wonder if you should get a bookkeeper. While hiring a bookkeeper will take money from your profit at first, you will find that having your books in order can actually help your business to grow. If you still aren’t sure whether a bookkeeping expert is right for you, here are three questions that you can ask yourself to know if you have need of a bookkeeper. Do you have a basic understanding of bookkeeping concepts, but you lack the time to keep up on your bookkeeping? This is one of the main reasons that many businesses hire a bookkeeper. Most people could keep track of their books if they had time. The problem is that, most of the time, your energies are put toward other areas of the company and bookkeeping gets left on the wayside. Another question you can ask yourself is do you have limited understanding about bookkeeping? A lot of successful business owners do not know their way around their company’s finances, and they don’t have time to learn. You shouldn’t allow your books to go unbalanced. Hire a bookkeeping specialist, and you will probably see your profits rise. Finally, ask yourself how organized are you? If you are not an organized person, you may find that a bookkeeping expert can keep you from spending money you don’t have. He or she can also help you see where you are spending you money. If you own a business, bookkeeping is a necessity, and if aren’t the type that is organized enough to keep your own books, hiring a bookkeeper...
by Karla Dennis | Jan 1, 2014 | Blog
Many businesses offer employees all kinds of benefits that fit into a smart tax strategy. If you are looking to save money on the amount of money that you pay in taxes, there are a few things benefits that you should convince your employer to adopt as part of a tax strategy. First, adopt a pre-tax childcare credit. That $5,000 that you pay toward childcare can easily convert to over $7,500 when paid after taxes. By using a pre-tax childcare credit provided by your employer, you won’t have to pay taxes on money that is already an earmarked expense. It’s a tax strategy that will help you out before that return even comes in the mail. Another important tax strategy offered by an employer is your health benefits. Have you ever thought of your health benefits as a tax strategy? It’s true. All of the money that you put into health insurance comes out of your paycheck before taxes. If you have chosen to forego health insurance, you should know that it is actually cheaper to pay pre-tax health insurance than attempt to pay all of your doctor bills out-of-pocket. Finally, working with your employer to establish a Roth 401K is also a great tax strategy. In a regular 401K your savings are taken out of your check before taxes. With a Roth 401K the money is taxed at a lower rate as you put it into a savings account. It may seem like there is an advantage to putting off taxes until later, but you should know that your 401K will be charged taxes at the higher rate...
by Karla Dennis | Dec 28, 2013 | Blog
Teachers pay more out-of-pocket expenses than any other job, and they don’t make nearly enough to cover those costs. That is why having a tax strategy that accounts for the money you spend will actually save you money in the end. Read on to learn more about a basic tax strategy for teachers. First, as part of your tax strategy keep records of all of the costs that you use in your classroom. If you buy treats for your class, keep records of the cost. If you buy prizes, posters, or copies, keep records of all of your expenses. If you don’t report all of your losses as a teacher, you are paying more for any extra items that you buy because you are buying them after taxes. For example of the way this tax strategy works, say that you spend $40 on supplies for your classroom. You may think that it is just $40, nothing more. If you report the loss, the money that you spend on taxes will not figure into the amount of money that you pay on supplies. On the other hand, if the supplies you purchased were paid for after taxes, the cost of the supplies will actually take at least $50 out of your paycheck because you are paying taxes on money you don’t get to take home. One of the main parts of your tax strategy is to take solid records of anything that you use for your classroom. You should always keep receipts of anything that you buy for the classroom. With each cost you should also notes of the exact...
