Frequently Asked Questions
When is it appropriate to hire an accountant for my business?
You should consult with an accountant as soon as your business is established. Even if you aren’t able to actually hire an accountant at that time, having a 1-hour consultation to know how to properly handle your finances is best.
Do I need to have a business bank account for my business?
Absolutely! You MUST have a business account. This means an account in your business name, do not “convert” a personal account to use for your business. You will be asked to present your business documents (EIN number, etc.) to be able to open a business account.
What is a tax deduction?
A tax deduction is anything that is ordinary and necessary for your business to operate. An ordinary expense is one that is common and accepted in your industry. A necessary expense is one that is helpful and appropriate for your trade or business to generate a profit. An expense does not have to be indispensable to be considered necessary.
How do I track my expenses?
You should have a QuickBooks online account. QuickBooks is an accounting software to help track your business income and expenses. If you aren’t familiar with how to use QuickBooks, please reach out so we can schedule a session to get you all set up.
How do I know when I am able to hire an employee?
This is where proper bookkeeping comes into place. Your business should be profitable, and you should have a budget in place to know how much you are able to afford to hire someone to work for you. This is when you need to consult with an accountant to take that next step in your business.
Can you file my tax return if I am not in the state of Georgia?
Of course! As a licensed CPA, I can file taxes in any of the 50 states due to CPA mobility. If you would like to work with our team, schedule your free consultation.
How can I reduce my tax liability?
There are several strategies to reduce your tax liability legally. We can look at maximizing deductions, utilizing tax credits, contributing to retirement accounts, and ensuring your business expenses are properly documented. Schedule a consultation and we'll tailor a plan based on your specific situation.
What documents do I need to prepare my taxes?
You’ll need to gather all relevant documents, such as W-2s or 1099s for income, receipts for deductible expenses, records of charitable donations, and any investment or property income details. If you own a business, we'll also need your income and expense reports. We’ll provide you with a checklist to make this process easier.
Am I eligible for any tax credits or deductions?
Let’s review your situation to identify the credits or deductions you qualify for. Common ones include the Child Tax Credit, Earned Income Tax Credit, and education-related credits. For deductions, we’ll determine if itemizing or taking the standard deduction is better for you.
What’s the difference between a tax refund and owing taxes?
Your tax refund or balance due depends on the difference between what you owe in taxes and what you've already paid through withholding or estimated payments. If you’ve overpaid, you’ll get a refund. If you’ve underpaid, you’ll owe the IRS the difference. Our team will explain how we can balance this to avoid surprises next year.
How does my filing status affect my taxes?
Your filing status affects your tax brackets, the standard deduction amount, and the credits you’re eligible for. We’ll review whether filing as single, head of household, or jointly with a spouse is most advantageous for your situation.