“Get an IP PIN” tool has returned to IRS.gov

The Internal Revenue Service announced that the “Get an IP PIN” tool has returned to IRS.gov with a stronger authentication process to help protect taxpayers.
The Identity Protection Personal Identification Number (IP PIN) is given to taxpayers who are confirmed identity theft victims and to certain taxpayers who opt into the program. The six-digit IP PIN adds an additional layer of protection for the Social Security number.
The re-launched tool uses a multi-factor authentication process that will help prevent automated attacks.

Courtesy of IRS

For more information contact Neikirk, Mahoney and Smith at 502-896-2999

Five bookkeeping tips for entrepreneurs

Entrepreneurs keep a lot of the financial details of their business in their heads.
But when you don't have a system and some processes in place, unpleasant surprises can pop up, goals can be easily missed and important paperwork forgotten. Getting a better handle on your money can help you to make and keep long-term goals, smooth out the seasonal ups and downs of your cash flow and maybe improve your profits.

1. Plan for major expenses.
You're less likely to miss business opportunities or have to scramble for a loan when the expenses become unavoidable.
2. Track expenses.
You otherwise might some miss tax write-offs and may lose out on others.
3. Record deposits correctly.
You may be less likely to pay taxes on money that isn't income.
4. Set aside money for paying taxes.
The IRS can levy penalties and interest for not filing quarterly tax returns on time.
5. Keep a close eye on your invoices.
Late and unpaid bills hurt your cash flow. Assign someone in your organizations to track your billing.

Courtesy of Entrepreneur

For more information contact Neikirk, Mahoney and Smith at 502-896-2999

Accounting tips for Small Business

When running a small business, you have to make sure you stay focused on accounting. If you don’t manage debt, receivables, and marketing expenses accurately, your company will sink before it grows.

You can save your company by implementing simple bookkeeping strategies.

Weigh the options of bookkeeper vs. DIY accounting.
Though entrepreneurs might feel ready to act as head of accounting, sales, and marketing at the same time to cut costs, it may help to hire a bookkeeper. It can help you to know someone with experience and deeper understanding is working on your books.

Keep accounts receivable payments separate from borrowed funds.
Small business owners need financial backing and/or loans for startup capital, marketing campaigns, and other initial things in the early days. To make sure the loans don’t appear in the receivables, use software that separates income from borrowed funds. Don’t lose sight of what is yours and what needs paying back.

Don’t allow clients to get away with not paying balances.
Seeing a large amount in the receivables column is a good thing, but the money doesn’t really count until it is in your bank account. Don’t let clients avoid regular payments.

Detail daily expenses so you can budget for the coming weeks.
It’s a good idea for business owners to keep records of everyday expenses they incur in the company. Instead of calculating expenses every two weeks for payroll purposes, focus on every day or every week.

Calculate a minimum monthly profit.
When planning how much it takes to keep a small business running, the numbers can get complicated. Devise an accurate system of expenses and regular obligations so you know exactly the minimum income you need every month.

Courtesy of BusinessBee

For more information contact Neikirk, Mahoney and Smith at 502-896-299

Tips to Get Your Small Business Accounting in Order

Bookkeeping is a necessary chore of all businesses, helping you manage your operations and prevent an audit by giving the IRS what they need. To keep moving toward your long-term goals and improve profits, get your small business accounting in order with these essential tips:

Separate Business and Personal Expenses – Having a dedicated business bank account, including checking and a credit card, saves you precious man-hours when it’s time to tally up deductible expenses.
Track Every Expense – Label and categorize each expense, and track your cash flow.
Accurately Record Deposits – Loans, revenue from sales and other cash infusions are easy to lose track of, and that can lead to paying unnecessary income taxes.
Understand When It Pays to Pay – Hiring a professional bookkeeper or accountant, even for just a few hours a week or month, can make a big difference.
Dedicate Time to Update Your Books – Block out weekly time in your calendar to get necessary paperwork in order and avoid letting receipts and invoiced receivables pile up.
Keep Tabs on Labor Costs – Paying employees, including yourself, may be your largest expense. Take note of overtime, perks and other benefits you offer to prevent over- or under-paying.
Expect Major Expenses – Computer upgrades, equipment replacement and tax deadlines shouldn’t come as a surprise.
Maintain Inventory Records – Avoid misplacing merchandise – or theft – by noting dates purchased, stock numbers, purchase prices, dates sold and sale prices.
Follow Up on Invoices and Receivables – Avoid overpaying on taxes and hours spent sifting through your revenue account and receivables listing by circling back with vendors who owe you money.

Courtesy of Fundera

For more information contact Neikirk, Mahoney and Smith at 502-896-2999

Miscellaneous Deductions Can Trim Taxes

Miscellaneous deductions may reduce your tax bill. These may include certain expenses you paid for in your work if you are an employee. You must itemize deductions when you file to claim these costs. Many taxpayers claim the standard deduction, but you might pay less tax if you itemize. Here are some IRS tax tips you should know about these deductions:

The Two Percent Limit. You can deduct most miscellaneous costs only if their sum is more than two percent of your adjusted gross income. These include expenses such as:

Unreimbursed employee expenses.
Job search costs for a new job in the same line of work.
Tools for your job.
Union dues.
Work-related travel and transportation.
The cost you paid to prepare your tax return. These fees include the cost you paid for tax preparation software. They also include any fee you paid for e-filing of your return.
Deductions Not Subject to the Limit. Some deductions are not subject to the two percent limit. They include:

Certain casualty and theft losses. In most cases, this rule is for damaged or stolen property you held for investment. This may include property such as stocks, bonds and works of art.
Gambling losses up to the total of your gambling winnings.
Losses from Ponzi-type investment schemes.
You can’t deduct some expenses. For example, you can’t deduct personal living or family expenses.

Courtesy of IRS

For more information contact Neikirk, Mahoney and Smith at 502-896-2999

Miscellaneous Deductions Can Trim Taxes

Miscellaneous deductions may reduce your tax bill. These may include certain expenses you paid for in your work if you are an employee. You must itemize deductions when you file to claim these costs. Many taxpayers claim the standard deduction, but you might pay less tax if you itemize. Here are some IRS tax tips you should know about these deductions:

The Two Percent Limit. You can deduct most miscellaneous costs only if their sum is more than two percent of your adjusted gross income. These include expenses such as:

Unreimbursed employee expenses.
Job search costs for a new job in the same line of work.
Tools for your job.
Union dues.
Work-related travel and transportation.
The cost you paid to prepare your tax return. These fees include the cost you paid for tax preparation software. They also include any fee you paid for e-filing of your return.
Deductions Not Subject to the Limit. Some deductions are not subject to the two percent limit. They include:

Certain casualty and theft losses. In most cases, this rule is for damaged or stolen property you held for investment. This may include property such as stocks, bonds and works of art.
Gambling losses up to the total of your gambling winnings.
Losses from Ponzi-type investment schemes.
You can’t deduct some expenses. For example, you can’t deduct personal living or family expenses.

Courtesy of IRS

For more information contact Neikirk, Mahoney and Smith at 502-896-2999

Fake IRS scammers are getting more convincing

Thieves who call pretending to be IRS agents seem to know a lot more about the people they’re trying to scam and create a deep fear, making it seem like the victims are really in trouble with the IRS.
Scammers are targeting middle class families.
Beware of scammers making unsolicited calls claiming to be IRS officials. They demand that the victim pay a bogus tax bill. They con the victim into sending cash, usually through a prepaid debit card or wire transfer. They may also leave “urgent” callback requests through phone “robo-calls,” or via a phishing email.

Scammers often alter caller ID numbers to make it look like the IRS or another agency is calling. The callers use IRS titles and fake badge numbers to appear legitimate. They may use the victim’s name, address and other personal information to make the call sound official.

The IRS Will Never:

Call to demand immediate payment over the phone, nor will the agency call about taxes owed without first having mailed you a bill.

Threaten to immediately bring in local police or other law-enforcement groups to have you arrested for not paying.

Demand that you pay taxes without giving you the opportunity to question or appeal the amount they say you owe.

Require you to use a specific payment method for your taxes, such as a prepaid debit card.

Ask for credit or debit card numbers over the phone.

Courtesy of IRS

For more information contact Neikirk, Mahoney and Smith at 502-896-2999