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Why Regular Bookkeeping Is Crucial To Your Business Strategy

Posted on: November 7th, 2023 by masteruser No Comments

why regular bookkeeping is crucial to your business strategy                                                      November 2023

Financial information is what helps you identify whether your business has brought in profits or losses. Without accurate and up-to-date financials, it’s easy to ‘think’ your business is doing well, when in fact it really is in need of some immediate changes to help it stay afloat. Bookkeeping or financial information helps you create an effective budget for your business expenses. It also keeps you prepared for the end of the financial year, when taxes are due, and keeps your business organized.

what is bookkeeping?
Bookkeeping is a process of recording all the financial transactions of your business in a specific accounting file, regularly. The financial health of your business can be assessed by looking at one of more financial statements such as the cash flow statement, income statement, profit and loss account, or the balance sheet.

Since this is a completely factual file, that has no room for fluff, your bookkeeping data is what investors, financial institutions (such as banks, insurance agencies, etc.) and the government (to collect taxes, provide support, etc.) will look at before entering into any kind of business agreement with.

types of bookkeeping
There are two basic types of accounting systems that businesses may choose between. These are chosen on a cash basis or accrual basis.

cash basis
A cash basis of accounting includes a single entry of all business transactions to the accounts. This system works best for small businesses. Under this bookkeeping system, you will not find records of assets and liabilities, rather you find records of cash disbursements and cash receipts. It means money comes in and goes out of your business. This system archives cash sales and business expenses that get paid when incurred. It is not conventionally used for accounts payable, accounts receivable, or many capital transactions.

accrual basis
Also called a double-entry bookkeeping system, the Accrual system is a standard method of record-keeping. Most businesses, bookkeepers, and accountants use this system. The procedure of this double-entry bookkeeping system is quite detailed and complicated contrary to the cash basis of bookkeeping. It introduces the perception of debit and credit. Hence, for every transaction, something gets received (debit) or given up (credit). The recorded transaction impacts two or more accounts. The great thing about a double-entry bookkeeping system is that it provides a complete recording of the business transactions. It is a dependable source of financial information and reasonable valuation of the performance or condition of a business.

is it necessary to track all finances?
Tracking all your finances is an essential task, right down to the last penny, and should be done every day. Monitoring your expenses through each month holds you answerable for your finances in different ways. It also provides tremendous value to you in the following ways:

  • Tracking your expenses informs you about your spending (or overspending)
  • It helps you stick to your budget
  • It helps reach your financial goals for the week, month, or quarter
  • You become more aware of your spending habits.
  • Your business’ problem areas become clear along with the profit-making areas

benefits of having regular bookkeeping records
There are manifold benefits to having regular bookkeeping such as:

  • You will have complete and undisputed records
  • A business is legally required to maintain accurate accounts
  • You get to compare your company’s position against industry benchmarks and your competitors
  • Regular bookkeeping makes planning ahead a convenient process
  • Can be used for immediate reporting
  • Businesses can maintain better relations with investors and banks
  • Financial audits are easier
  • More accurate Tax estimate will be possible
  • Quick business response time
  • Efficient financial analysis

In the long run, you’ll find that you are able to make smarter and better-informed business decisions that can take your business from just surviving to thrive!

Bookkeeping need not be a time-consuming dreaded process at the end of each day. If you need help with your bookkeeping, give us a call today!

Filing Your US Taxes Late? Here’s What You Need To Know – Region: US

Posted on: October 11th, 2023 by masteruser 1 Comment

filing your US taxes late? here’s what you need to know                                                              November 2023

What if I miss the deadline for filing taxes accidentally? Well, the IRS provides you with many options to file taxes even if it’s late.

Filing taxes late is not a big deal as long as you are filing them. People file their taxes late for many reasons. But here are a few steps you should take if you delay tax filing.

request for an extension
This means you can fill the 4868 form and request more time. But the point is that you should apply for the extension before the tax deadline. Extensions will be automatically approved. You can make use of a free file for applying online. Here you will get an extension time of up to six months. The IRS can provide an extension even without asking under certain special circumstances. Citizens residing outside the US, military officers, victims of natural disasters, and some others enjoy this provision.

pay as much as you can
If you file for an extension and owe tax, it’s better to pay the full amount or at least as much as you can, and as soon as possible. A tax filing extension doesn’t mean you get more time to pay. The extension only gives you more time to calculate and review your tax benefits. You are still subject to payment and yes, you still owe interest to late payment.

are there penalties for late payment?
Unless you’ve applied for an extension, you will have to pay a penalty of 5% of your tax for every month you’ve delayed. The minimum penalty is $100 or 100% of the tax due with returns, whichever is less. The extension wipes out the penalty charge.

So you can lower the penalty by filing your taxes earlier. If you do have a valid explanation for filing late, you may be excluded from bearing the penalty.

You are also subject to penalty if you owe taxes from previous years. Even if you have applied for an extension, you should pay the tax before the deadline. If not, you will have a penalty of 0.5% of your tax per month.

what if there are tax returns expected?
If you are expecting a tax return from the IRS, that’s great news and you will not bear a penalty, even if you do not file your tax on time.

When tax returns are expected, and you file your taxes late, the IRS gets to keep your returns until the returns have been processed! So, it’s definitely in your favor to file your tax on time.

what happens if taxes are ignored consecutively?
There may be times when individuals are not in a position to file their tax. However, regardless of the validity of the reason, if tax filing is ignored for a long time, the IRS may:

  1. File extra charges for tax evasion
  2. Seize your property
  3. Claim a notice of Federal Tax Lien.
  4. Revoke your Passport.

remedial measures and getting help:
Delaying the filing of tax is not a criminal offense but not paying the tax at all is. So if you’re in a tight spot try:

  • Using a Credit card
  • Paying in Installments – Form 9465
  • “offers in compromise” – Form 656

Taxes can be a complicated affair for many, so don’t hesitate to get professional help. We’re here to help you find the best options for you and help you navigate through your finances with the best possible outcomes. Contact us today!

Have Accountants Adapted To Covid

Posted on: August 9th, 2023 by masteruser No Comments

have accountants adapted to covid                                                                                                November 2023

The finance industry took a major hit back in 2020, with many processes being at a stand-still as the majority of businesses went into a work from home mode. 2021, brought its own challenges, with Covid-19 still not completely under control, we at DAS Accounting have had to hustle, to bring about vital transformations that help us reach each of our clients at their point of need.

The experience through the 2020 pandemic has changed the way we work. Here’s a look at the steps (and leaps) we’ve taken to ensure that you only get the best-in-class Accounting Services rendered, hands-down!

operational tools
Till March 2020 accounting firms relied on in-person meetings for a majority of its operations. Beginning with meeting prospective clients, audits, reporting, documentation and more were all moved online primarily because of Covid-19. DAS accounting saw this as a need for tools that can help us reach our clients virtually.

We’ve used collaborative platforms like Microsoft Teams, project management platforms and top-of-the line cloud-based accounting software to facilitate our operations as smoothly as possible.

At the end of the day, we’ve drastically reduced our carbon footprint (since we turned paperless)!

In fact, many reports have revealed that a shift to cloud based systems, video-conferencing and other remote work systems is the way forward in a post-Covid world.

Businesses across the world stand to gain tremendously even if they invest a small amount in remote work tools and platforms.

virtual relationships
Since the finance/accounting world has relied on in-person working for so long, it can be difficult to shift completely to Teleconferencing. However, here at DAS accounting, we’ve put our customers first by adopting Virtual Meetings as a norm, since the pandemic hit in 2020.

With virtual relationships, the challenge was not technological, rather, it was a matter of how we can build and maintain rapport with our clients, virtually! Shifting older relationships online was certainly easier than creating new relationships online. However, with a little ingenuity, clear communication, transparency of work flow, and lot of patience, we’ve started the ball rolling where creating new and lasting relationships online is concerned.

Paying attention to the little details goes a long way in building trust with prospective or new clients, who have not worked with us in the past. Embracing telecommuting, online calls and also phone conversations has enabled our DAS accounting consultants to work smarter and faster than ever before.

virtual auditing
If businesses have been operating on a paperless basis, it will be easy for them to facilitate almost all accounting services online. However audits have been largely in-person and on-site for better accuracy. So, in effect, businesses have had to fast-track their digital transformation, in order for them to be able to perform virtual audits virtually.

In many cases external vendors have been called in to help complete an audit accurately and efficiently. Some accounting firms have even gone so far as to employ drones to ensure that counting and other inspection audits are done perfectly.

our way forward
No two businesses are alike. Each of our clients have been impacted to different extents and in different ways. Each has a different business model that operates on different mode of financing. Once the incentives and support packages offered by governments and financing companies cease post-pandemic, businesses must ensure that they are strong enough to make it on their own.

At DAS accounting we have experts for every stage of a business’ lifecycle. Our experts do everything in their experience and financial know-how to get businesses to re-model themselves – to become more resilient, post pandemic. Evaluating where you stand today can help forecast where you’ll be next year or two years from now. We help businesses make good decisions that help them retain revenues or create new revenue streams that protects them from insolvency or bankruptcy.

future-tense?
Financial futures are still quite uncertain owing to the market slowing emerging from the pandemic. Let DAS accounting help you stay on top of your game with our custom service offerings. Talk to our experts today and find out how DAS accounting, the leading accounting firm can help your business make sound financial decisions.