Klein Hall CPAs proudly makes a difference in the community, offering our support by serving in director positions and supporting volunteer roles for a variety of local organizations impacting our community. Klein Hall CPAs partner, Scott Klein, is actively involved in the Rotary Club of Naperville Sunrise and their mission of service and has been elected to their Board of Directors to serve as Treasurer, effective July, 2015.
The Rotary motto, Service Above Self, highlights the organization’s goal to provide members with strong community connections through participating in meaningful service projects in local communities and internationally. As part of Rotary International, the Rotary Club of Naperville Sunrise focuses on the mission of improving the health and well-being of Youth and Young Adults in the Naperville area and around the world.
Through community service projects such as the school backpack program, clean sweep, the annual coat drive and holiday gift program, Naperville Sunrise works to improve life in our community. Their Naper Lights event brings holiday cheer to the community by featuring thousands of festive holiday lights at Naper Settlement during the holiday season. Klein Hall CPAs has supported the club’s Naper Lights event each year since its inception by sponsoring a display.
The Rotary Club of Naperville Sunrise is hosting their annual St. Paddy’s Day 5K Race, Run or Walk on Saturday, March 14, 2015 at 8:00 a.m. The race course flows through the heart of downtown Naperville on the St. Patrick’s Day parade route. Proceeds from this fun event will benefit those in need by providing health-related services. To learn more about the 5K and all the inspiring work the Rotary Club of Naperville Sunrise is doing visit napervillesunrise.org
Tax preparation is a huge responsibility for millions of American taxpayers every year. Research shows that people in the United States spend a cumulative 7.6 billion hours preparing taxes annually, paying an average of $140 billion during this time period. Of these people, nearly eight out of 10 taxpayers will receive refunds. However, a number of businesses and individuals will have to undergo an additional step in this process: an audit. Defined as an official, often randomly-selected review of the submitted tax records, many people and organizations will turn to audit accounting services to help them through this process. However, to help you through this stressful moment in professional or personal finance, your audit accounting services will need several documents. Read on to make sure you and your accountants are ready for the road ahead.
Your General Ledger–Whether you use a computer program like QuickBooks or prefer to stick with the traditional paper route, your audit accounting services will need this to determine how much activity actually needs to be audited.
Your Trial Balance–All of the numbers in your financial statements are traced back to your trial balance, making it an important document for your auditor. Look for it in your accounting software.
Copies of Loans, Leases and Material Contracts–Accounting standards require individuals and organizations to disclose all loans, leases and, sometimes, material contracts. The latter might include long-term agreements with suppliers or customers, officer employment contracts, and buy-sell agreements. Your auditor therefore needs copies to make sure these disclosures are complete and accurate.
Loan Statements–This will help your audit accounting services confirm your current amount of debt and basic information with your creditors.
All Fixed Asset Purchases With Invoices–A listing of your assets is a basic requirement during an audit. Don’t forget to include any significant fixed asset purchases prior to the years under audit.
Depreciation Schedule– Many tax methods are acceptable under generally accepted accounting principles, or GAAP: seven years and 200% double declining balance is a common tax method for equipment. However, you are not allowed to take Section 179 bonus depreciation and other basis reductions that occasionally allowed under the tax rules in a GAAP statement. Fortunately, if your depreciation schedules are in a good fixed asset software program, it is usually pretty easy to compute GAAP depreciation.
Board Minutes–These documents often include important information related to financial statements, making them an important resource to auditors.
Payroll Reports–Not every business (or individual) may have a bookkeeping payroll service, especially if the process is concerning a non profit company audit. However, auditors need them to test wage expense and look for any unrecorded payroll tax liabilities.
Stock Information–If you offer your employees stock option plans or have strategies in place to issue stock to key investors, your auditing account service needs this documentation. You’ll also need to include the contact information for any attorneys or agents that helped with the proceedings.
Merger Agreements–These agreements have a significant impact on your finances and are therefore an important part of any commercial business audit.
Bank Account Information–Your auditor will need to confirm your bank balance by balance sheet date. Fortunately, many banks now have processes and systems to make this easier.
Do you have all of these documents in order? If not, start collecting them today so that your audit accounting services can get to work helping you through this process.
IRS and Illinois Department of Revenue audits are becoming increasingly common for both businesses and individuals. The tax authorities are expanding efforts to audit taxpayers using a targeted method of return selection. Computers “score” tax returns and crosscheck information from various sources such as 1099’s and K-1’s; this allows the government to identify missing, inconsistent or suspicious information. That means simple mistakes can result in an increased chance of being audited.
Taxpayers are often overwhelmed by confusing documents and unfamiliar terms, increasing the risk of making a small error that could result in a red flag to the tax authorities’ computer systems. If you’re concerned about filing your taxes and the possibility of an audit, having a tax professional prepare your returns is a great option. But if you do decide to prepare your return yourself here are several important things to remember:
Pay close attention to detail. Make sure you check and re-check all numbers and information on your return. Errors, even as simple as a missed digit, can result in inaccuracies.
Report your income. Even if it’s tempting to leave off small amounts of secondary income, say on a 1099 for some freelance work and just report your W-2’s, the IRS is already aware of all your income and by omitting it you’re creating a potential for figures that don’t match up. Make sure to report all your income sources, including interest earned, and stock and bond sales.
Accurately report charitable donations. Making donations to charitable organizations is an excellent way to reduce your taxable income. But never report false donations. Make sure to accurately represent your donations and ensure you have proper documentation to substantiate itemized donations taken.
A significant rise has come in the form of correspondence audits. Because it’s cost effective, the tax authorities are creating substantial amounts of tax notices through correspondence audits or “nuisance mail” as we refer to it. We believe the amount of nuisance mail will only continue to increase due to the IRS’s role in complying with the Affordable Care Act.
Any audit can be cumbersome and alarming for the taxpayer. If you do receive a letter in the mail from the tax authorities it may be best have a tax professional review the information requested and the tax return. Klein Hall CPAs is pleased to offer a new Audit Prepayment Plan with our preparation of tax returns this year. If you are selected for an audit or need to reply to IRS or state tax notices, with our new Plan we will represent you in any audits related to these returns up to the appellate level and reply to tax notices you receive at no additional charge. In an effort to support our clients and keep our services affordable, the Audit Prepayment Plan is available for only an additional 10% of your regular tax preparation fee (minimum $75). More information about this Plan is available by clicking here and will also be shared with all tax returns through the client portal.
Klein Hall CPAs proudly makes a difference in the community, offering our support by serving in director positions and supporting volunteer roles for a variety of local organizations impacting our community. Naperville CARES is one of these organizations.
Naperville CARES helps local families in financial crisis meet their essential needs by providing emergency financial support and resources. Naperville CARES’ car program is unique as it donates cars to families or individuals in need, instead of selling or scrapping them for cash. Naperville CARES also collaborates with other local organizations to leverage resources and coordinate positive outcomes for their clients.
Klein Hall CPAs principal, Shannon Bachara, serves on the board of directors for Naperville CARES and Co-Chairs the auction committee for their main upcoming fundraiser Cuisine for a Cause, which takes place on April 25, 2015 at Navistar. If you are interested in donating an auction item to help Naperville CARES visit their website to learn more at napervillecares.org
As we get into tax season, Klein Hall CPAs would like to remind you of several Affordable Care Act-related tax issues (ACA, also known as Obamacare). With this new Act your 2014 health coverage may affect your income taxes. Here are some useful tax reminders based on your health coverage in 2014.
Your 2014 health coverage was obtained through the Health Insurance Marketplace
If anyone in your household enrolled in a health plan through the Health Insurance Marketplace in 2014, you’ll get a new form, 1095-A, in the mail by early February. We will need this form to file your 2014 federal income tax return.
Make sure to confirm all information on the 1095-A form is correct, including coverage dates and number of people in your household.
Your health coverage for 2014 was from another source
If your health coverage was from another source such as through your employer, college or university, Medicare, Medicaid or if you purchased it outside the Marketplace you’ll simply check a box on your federal income tax form to report this.
There are no additional forms necessary.
You had no health coverage in 2014
If for 3 months or more you were without health coverage during 2014, you will need to qualify for a health coverage exemption or you’ll be required to pay a fee based on your income and the number of months you were without coverage when you file your 2014 federal income tax return.
One of the best features of QuickBooks is that it keeps track of the money coming in and out of your business in one place, no matter how many bank accounts or credit cards you have. It can connect to over 2,000 financial institutions to download and categorize your transactions for you.
QuickBooks is easily adaptable to most small businesses because it allows you to customize income and expense accounts as well as tailor reports to your business needs. Additionally, QuickBooks Premier allows businesses to expand into industry specific editions. It’s compatible with many different market applications, including payroll (ADP, Paychex), point of sale (Square, PayPal), and accounts payable (Bill.com, Tallie). By exporting data from these applications into QuickBooks, transactions can be tracked in one central location without any transactions getting lost or overlooked. QuickBooks Online allows you to put your business on the cloud and access your file from anywhere, anytime – or if you are more comfortable using the QuickBooks Desktop version, your QuickBooks file can be uploaded to the cloud using a private cloud-based server, such as Cloud9, that will allow you to securely access your file from any computer.
The extensive features and user-friendly functionality of QuickBooks make it a great value for small businesses.
Klein Hall CPAs’ own Jessica Hall and Marty Morris are featured in the new “Inside the Chamber” interview currently airing on Naperville’s NCTV 17, Channel 17. The Naperville Chamber of Commerce, in partnership with Naperville Community Television, Channel 17, showcases area businesses in this informative series.
“We make a living by what we get. We make a life by what we give.” ― Winston S. Churchill
When I started my career in accounting, I never imagined having the ability to give back to the community would be part of my job description. I was lucky enough to become part of the Klein Hall family, which held the belief that we should all be actively involved in the community. Being encouraged to give back has allowed be to grow personally and professionally and to find myself in public accounting.
This realization also allowed me to focus my career growth on the non-profit arena, where I can continue my professional work and help those less fortunate. It has allowed me to volunteer for a wonderful not-for-profit, Naperville CARES, where I’m currently serving as Board Secretary. Before working at Klein Hall I always tried to give as much as I could, but struggled with fitting it in when working the daunting public accounting hours. Now I’m pleased to say that I have the ability to incorporate giving back into my career.
Klein Hall CPAs encourages all organizations to include some type of community involvement in their business activities…the rewards will be great!
Some of the ways we at Klein Hall enjoy giving to our community include:
– Volunteering for local organizations
– Offering support by donating food, clothing, towels and other needed items
– Providing services for not-for-profits organizations
– Attending client events
– Making personal contributions