Your local Certified Public Accountant in Yuba City, Ca.
Tax Day: October 16, 2023
All financial functions begin and end with accurate bookkeeping. Accurate recording and classifying of transactions are prerequisites for minimizing tax liabilities and maximizing profits. Bookkeepers record and classify a business firm’s accounting transactions. A Certified Public Accountant (CPA) is an expert in the techniques involving the recordation of those transactions.
Small business owners either set up their own accounting systems or hire a bookkeeper to set up the accounting system. Where the bookkeeper records and classifies the financial transactions of the company, a CPA takes the next steps and analyzes, reviews, reports, and interprets financial information for the company. Businesses depend on these analyses to track their business activities, assets, liabilities, and equity.
Payroll service involves collecting wage and hour data from a business and using that data to calculate gross wages, subtract withholdings and deductions, print checks, deposit funds into various personal, state, and federal accounts, and prepare employment tax filings. The Internet has made payroll services even more convenient. However, payroll is not easy; even with sophisticated payroll software many small business owners find payroll challenging. Especially in California. California has many unique payroll circumstances:
· Reporting new employees (DE34);
· Wage garnishments for taxes (FTB) and child support (SDU);
· Mandatory sick leave accruals and payout;
· State disability insurance (SDI);
· Employment training tax (ETT) and other forms of unemployment insurance;
· Prevailing wage and certified payroll reports; and
· Report of independent contractors (DE542).
With the 2017 Tax Cut and Jobs Act came changes to employee withholdings. Employees must now complete the new and more complicated W4 and State DE4. Companies can use service providers like ADP and PayChex, but they are very expensive as compared to the services provided by Betsy Peterson CPA. While these service providers make your wage and tax payments, they are not available to answer your questions or review employee issues that may arise.
Whether you are sole proprietor or a corporation, business taxes are difficult. Small business owners have the option to prepare their own taxes or hire a professional. Hiring a professional will involve paying a fee but professional tax preparers often find deductions the average business owner will miss.
Betsy Peterson CPA specializes in preparing more complicated business tax returns but does provide tax service for personal taxes as well. We are often asked how much we charge for simple tax returns; these less complicated returns start at $400 and are adjusted upwards based upon the amount of financial analysis required to minimize tax liabilities and maximize returns. Our fee includes an in-person consultation prior to completing a return. While we realize there are less expensive options for personal tax returns, Betsy Peterson CPA takes the extra steps to know our clients and uncover all eligible deductions and credits. In addition, many of the other low-cost tax service providers charge by the form, which can add a substantial amount to their advertised “base fee.”
Betsy Peterson CPA prides itself in understanding State and Federal tax regulations and applying that knowledge for the benefit of our clients. This allows us to account for special situations in order to maximize available credits and deductions. These special situations may include: