Understanding Market Fluctuations

Continuing to invest in your retirement plan is sometimes difficult to do during market declines but, regularly adding to an account that's designed for a long-term goal may cushion the emotional impact of market swings. If losses are offset even in part by new savings, the bottom-line number on your statement might not be quite so discouraging.

When you regularly contribute to your retirement plan even during down times you are using a dollar-cost averaging strategy-investing a specific amount regularly regardless of fluctuating price levels-you may be getting a bargain by continuing to buy when prices are down. However, you'll also need to consider your financial and psychological ability to continue purchases through periods of low price levels or economic distress; dollar-cost averaging loses much of its benefit if you stop just when prices are reduced. And it can't guarantee a profit or protect against a loss.

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Roth's & Traditional IRA's for 2009

There are no changes to the contribution limits set for traditional or Roth IRAs in 2009. The ceiling remains as it was last year: you may contribute up to $5,000 if you're under 50 years of age, or $6,000 (using the "catch-up" provision that allows an additional $1,000 if you're over 50 or turn 50 during 2009). Current legislation stipulates that future limits will be adjusted for inflation in $500 increments.

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Helping Your Clients with Clear Concise Communications  

Taxes and Running a Business as an Entrepreneur are difficult enough without having to wonder about what to do and when. For over twenty years each and every one of our invoices to clients have detailed not only the work done but clear concise constructive communication that a client can use to stay aware of their responsibilities and duties as a business owner. The below sample client letter is indicative of the advice we might give to the owner of an S Corporation or an LLC that has legally converted to an S Corporation is presented below. If a particular client has other strategic and specific needs, these are presented first as well as highlighted for ease of review. 

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Offers in Compromise & Installment Plans

Working with the state and not against it is your best option for getting your tax issues resolved. Hiding you head in the sand will only make the situation worse and taxes and penalties are added and collection efforts are intensified. Having served as a CPA to Atlanta business owners and individual decades I have learned that good honest forthright communication is your best option for IRS Representation Success. Below is a sample collection letter we might use to set up an installment plan.

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Protecting Your Hard Earned Money

I am constantly encouraging homeowners to get "Fire Insurance" for their money. It's free and all it takes is a little initiative, a little time, a home and a bank. Banks and savings and loans have long helped homeowners finance life's little surprises by offering a home equity line on their home. This amount is a function of both the equity in your home as well as your credit score. Even though the market for loans is tight and home values are depressed setting up a line with the bank is usually free and will help ensure you have money "when you need it."

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WWJD...What Would Jesus Do if He Was a CPA

We strive to live our lives by a higher standard; not just to live by the world's but to live by God's standards. Though I am challenged to be the very best CPA I can be by helping clients keep their tax bills as low as legally possible. However I believe as a CPA and a Believer I am called to a much higher standard in helping clients develop tools and resources to plan for much more than their taxes. A CPA is the best one to begin this process and after a CPA has met with a client and determined much of their financial picture and tax issues, it is time to take the relationship to the next level and to help clients determine a multitude of issues including:

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Straight Dealings with the IRS is Your Best Opportunity to Audit Success

Working with the IRS in an honest open and straightforward basis is your best bet to ensure that your audit experience, to the extent that it can be, is an success. Frequently I see clients who are audited because they have a business and attempt to prepare their returns on their own. Tax law should never be attempted to be understood or appropriately applied by anyone other than a CPA who is well experienced and seasoned in such matters. Just as Believers we have an Intercessor to talk to God on our behalf so should clients retain a CPA to work to ensure that they pay only their lowest legal possible tax.

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Unlocking the Mystery Behind CPA Fees

A typical small business fees annually to do your corporate and personal income tax return, tax planning, miscellaneous questions throughout the year, and help get your year-end data ready to prepare your corporate return would be approximately $1300.

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Common Pitfalls When Using IRS Installment Plans

Installment plans are great options for taxpayers who are not able to either qualify to submit an Offer in Compromise or to pay the tax in full, while asking the IRS for penalty abatement. Though these are often much better financial options, as they frequently result in a lower cash outlay. These options are only for those who either meet the rules, guidelines and procedure for submitting an Offer or who have the financial ability to pay the tax and interest in full at the time of requesting a penalty abatement.

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Practicing Excellence & Serving the Kingdom

As a Body of Believers we are constantly called to do our best and to excel in all that we do. This applies to us as a husband, wife, child, brother, sister, worker, student or friend. To this end we should give back to the community in which we serve. We have long believed that we should give back by offering free speeches and initial consultations to business owners so that we might share in our knowledge and wisdom we have acquired. This allows us to give back to others, who have in turn previously given so much to us. Ten Years ago, we were blessed to have received the Accounting Advocate of the Year Award. We do what we do because of who we serve and it is only by God's grace and glory that we are able to do anything at all. Below is a letter we received the year of the Award:

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Saving Monies in Payroll Tax Penalties

One of the tax cases we personally handled involved an Atlanta Based client who had not paid almost three years of payroll tax returns, specifically IRS Forms 940 and Form 941.During this time the company collected but did not remit to the IRS the Federal Withholding Taxes, FICA, and Medicaid taxes. Also the company did not pay the matching taxes due as well as the Federal Unemployment taxes due and payable. For payroll taxes due and payable at the corporate level the IRS and Georgia both take a very dim view of business owners who will take and withhold taxes from their employees and then not remit these monies over to the taxing authorities.

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Choosing an Accounting Software for your New Business

Recently I received the below question on my web-site asking "My dad wants to start a small business. What accounting/bookkeeping software would be appropriate?"

As a general rule I would suggest QuickBooks HOWEVER that is akin to diagnosing a patient without seeing them. Please feel free to give me a call and we can give you a more directive response as you may have very particular needs that need to be addressed in making an informed decision such as:

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Utilizing Key Business Operating Statistics

Checking your business credit worthiness is not for the meek of heart and can be done without ever leaving the office, calling your bank or logging on to the Internet. All you need to do is to print out your internal financials and utilize a few basic mathematical calculations and you are well on your way.
Entrepreneurs often feel they need outside professional advisors and CPA's, which frequently they do for many of the more complex tax and management issues they face. However, there are a few key internal management statistics each and every owner should be well apprised of and able to put their hands on at a moment's notice. Ownership of these statistics will set you well ahead of your peers and give you key operating information which when used properly will grant you a competitive edge in the marketplace.

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Sample Installment Agreement Cover Letter

Most states like Georgia, and the IRS, allows both corporate and personal/individual taxpayers, who cannot pay their taxes in full, to set up an installment agreement to pay the taxes over time. Though this is a good plan for many, it is often the most expensive as during the time period, when the payments are being made, both penalties and interest continue to accrue adding even more monies to be due and payable that would otherwise be due.

Often paying the taxes and interest in full while asking for penalty abatement or an Offer in Compromise are frequently good options to consider and evaluate when dealing with Tax Representation Issues and Tax Advocacy. Frequently these options are the best when dealing with a wage garnishment, levy, lien, back taxes or the filing of old past due tax returns. Cover Letters should tell a story leading to the taxing authorities leaning toward agreeing with the particular position you have claimed. If there are any substantive other tax for financial issues that would be important it would be prudent to cover them in the Cover Letter. If you were to submit an individual request to Georgia, for example, here is a Sample Installment Agreement Cover Letter you might use. Read more

Being Ever Diligent...While Collecting Unpaid Invoices

The Apostle Paul Commands us to be ever diligent as Satan is always seeking for those he might devour. It is by our readiness and putting on the very armor of Christ that we are able to do God's bidding. When we are addressing collection issues, it is easy to fall into righteous indignation as others fail to live up to their end of the bargain, after we have strived to be Christ-like in the services that we have provided. It at these times, when the devil as the opportunity to gain a foothold and to encourage us to judge others, and to sin in our anger.

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Following Christian Precepts...While Collecting Unpaid Invoices

God guides us, throughout the Bible, to be good stewards of our time, money and resources. To this end, there are many variables to be explored when making collection efforts that I have detailed below of situations and circumstances where we tried to go the extra mile in being a Christian and a Believer on both collection issues and difficult economic times. These principles will do much to guide and direct you as you handle the collections of your business.

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Keeping Your Christian Principles...While Collecting Unpaid Invoices

I am frequently asked as well as challenged myself in ensuring that all of the collection procedures of my business are performed in a matter, that is conducive to the Body of Christ and is according to God's word. Certainly there are times when we should give our time away, just as Jesus modeled, as others have needs that far outweigh our own. It is when the Holy Spirit prompts us to be obedient to help out others in their time of need that we must comply and serve. However, this article is geared towards working with the clients well beyond what the world would consider the breaking point. That is where our teachings meet reality and our principles are put to task to ensure that we look to help others in all the ways that we can. Of course, if we did free work for all of our customers we would soon be the most popular persona in town as well as its most bankrupt.

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Collection Issues for Your Christian Based Business...New Series Starts Today. ...The Christian Collection Series

The Christian Collection Series is for business owners who are seeking both to emulate and honor God with their actions and deeds in all of their regular business activities. Often when reading both the Bible we are left to consider for ourselves that the words mean, as well as their successful implementation. At His CPA PC (where we serve God, by serving you) we strive to make not only tax law understandable and applicable but also the words of Jesus Christ, Our Lord and Savior. To this end we beginning a new series today to help Christian Believers work to keep God at the center of their business and their collection procedures.

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Serving God by Serving Others...Taking Christianity Into the World

Though I have worked hard over the decades of experience serving as a CPA to Atlanta are business for decades. It is our faith in Jesus Christ alone that gives us strength and the encourage to go one. When all fails, it is in our weakness and in our supplication to Him alone that we are one with him. All that I am and all that I will ever be is from the Saving Faith of God.

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