Elk Grove, CA Accountant for Small Business Tax Return
Are you up to date with the latest tax regulations? Our expert accountants can help you ensure you're filing your taxes properly. Learn more.
Stockholders, creditors, and private investors often need assurance that the financial statements accurately represent the true financial position of a company.
Your stockholders, creditors, or private investors have different levels of risk tolerance, so we provide three levels of assurance to meet your needs.
Audit – Highest Level of Assurance
An audit provides the highest level of assurance. An audit is a methodical review and objective examination of the financial statements, including the verification of specific information as determined by the auditor or as established by general practice.
Our work includes a review of internal controls, testing of selected transactions, and communication with third parties. Based on our findings, we issue a report on whether the financial statements are fairly stated and free of material misstatements.
An Audit allows you to…
- Satisfy stakeholders such as employees, customers, suppliers and pressure groups, as well as the investing community, as to the credibility of published information.
- Facilitate the payment of corporate tax, goods and services tax, and other taxes on-time and accurately, thereby avoiding interest, penalties, and investigations.
- Comply with banking covenants.
- Help deter and detect material fraud and error.
- Facilitate the purchase and sale of businesses.
Here’s what you get…
You get the highest level of assurance because we go outside your company to obtain more information. Typically, we’ll have written communication with:
- Your customers, to check outstanding receivable balances,
- Your banks, to confirm cash or debt balances and terms,
- Your vendors, to verify outstanding payable balances, and
- Your attorneys, for information on pending or threatened legal action.
We also perform physical inspections by observing your inventory counting methods and perform test counts. We document and test each operating cycle, including sales and cash receipts, expenses and cash disbursements, and payroll. Our audit papers include a detailed work program to document the examinations and testing performed, as well as the client’s supporting work papers.
Audits Not Just for Public Entities
All public companies are required to have an annual audit, but some nonpublic entities must undergo an annual audit as well. These include local governments, not-for-profit agencies and other organizations receiving government grants.
Moreover, some financial institutions require audits of nonpublic companies based on the financing amount and/or the bank’s assessment of the company’s risk. Also, companies with absentee ownership (such as those owned by investment firms, or individuals who no longer run the business) may order audits as checks of their management teams.
Review – Limited Assurance
Less extensive than an audit, but more involved than a compilation, a review engagement consists primarily of analytical procedures we apply to the financial statements, and various inquiries we make of your company’s management team. If the financial statements or supporting information appear inconsistent or otherwise questionable, we may need to perform additional procedures.
A review doesn’t require us to study and evaluate your company’s internal controls or verify data with third parties or physically inspect assets. Rather, a review report expresses limited assurance in the form of the statement: “We are not aware of any material modifications” for the financial statements to be in conformity with the Generally Accepted Accounting Principles (GAAP). Reviewed financial statements must include all required footnotes and other disclosures.
Why might a business request a review engagement? It can be a good middle ground, providing the advantages of a CPA’s technical expertise without the work and expense of an audit.
Compilation – Lowest Level of Assurance
In compiling financial statements for a client, we present information that is the “representation of management” and expresses no opinion or assurance on the statements. Compilations don’t require inquiries of management or analytical procedures. Instead, we rely on our knowledge of accounting principles and a general understanding of your business.
Banks often require compilations from an independent CPA as part of their lending covenants.
Which Report Should You Use?
Each type of financial statement report may suit specific circumstances, depending on requirements from your client’s bank or other parties, as well as meet budgetary needs.
Understanding each report’s unique strengths and weaknesses can help you choose the most appropriate one. Please call if you have questions about which type of report is right for you.
Tax season can be a stressful time of the year for a business owner. As many tax regulations frequently change, it can be difficult to successfully operate a business while ensuring the company is compliant with federal, state, and local tax laws. Fortunately, you do not have to handle this ordeal alone. If you need assistance filing a tax return for your small business, you should speak with an experienced Elk Grove accountant for small business tax returns as soon as possible.
The Cook CPA Group understands the many responsibilities of a business owner, and we are here to help you file a tax return for your small business. Our team of accountants has years of experience handling complex tax returns for businesses in a number of industries, and we would be pleased to work with you. To schedule a free consultation to discuss your small business tax returns, contact the Cook CPA Group at (916) 432-2218. You may also contact us online to schedule an appointment.
Small Business Tax Return Accounting Tips
Whether you have just started a small business, or you have been a business owner for several years, tax season can be troublesome for many business owners. Fortunately, you do not have to become stressed every tax season if you have the help of an experienced accountant. The Cook CPA Group is here to discuss tax return accounting tips that can aid you when filing taxes.
Recordkeeping is one of the most effective ways to prepare to file your small business tax return. You should have thorough records on the following:
- Income and losses of the business
- Payroll information for employees
- Acquiring real estate and other property for the business
This is not a comprehensive list. Proper record keeping will ensure that a serious error is not made when filing a tax return for your small business. Failing to file an accurate tax return could mean that your business will be subject to a tax audit, which can be extremely troublesome.
Claim Your Tax Deductions
Working with an experienced CPA can also help you when claiming tax deductions for your business. There are a number of tax deductions that you may claim depending on the details of your business. For example, if your business has made contributions to a charitable organization in the last year, you can deduct this from your taxable income. There are other tax deductions that you can claim:
- Deducting taxable income for property purchased for use by the business
- Tax credit for providing your employees with childcare expenses
- Pension plan startup costs
- Work opportunity tax credit
- Healthcare tax credit
Business Structure Tax Liability
A business owner should understand that their business structure will affect their tax liability. Specifically, your tax liability will depend on the type of business structure you selected for your company. For example, if you opted to create a corporation, you will have to deal with double taxation on income. Alternatively, other business structures may allow you to have pass-through taxation in order to claim business expenses on your personal return.
Our firm can help you select a business structure that meets your unique business goals.
There are many other tax services that our firm provides. If you wish to know more about our accounting and tax services, you should speak with an experienced California tax accountant.
Unfiled Small Business Tax Return Penalties in Elk Grove, CA
The owners of a small business should ensure that all tax returns are timely filed. If a business owner fails to file a tax return for their company, they welcome a large number of tax issues to their doorstep. For example, if a business owner evades taxes for a long period of time, the IRS may issue a tax lien on property owned by the business.
If a tax lien is issued on the property of a business, this will affect the business in many ways. For instance, the owner may be unable to secure a loan with a bank, and other creditors may be placed on notice of the lien. For this reason, a business owner should work out a plan to pay their taxes with the IRS before they move on to seize the property through a tax levy.
A tax levy will allow the IRS to seize all property of a company that is named in a lien, which can be devastating for any business. Fortunately, the IRS rarely wants to escalate to this level before working with a taxpayer.
If you have one or multiple years of unfiled taxes for your small business, our skilled accounting team can help get your company back on track. We recognize the burdens faced by a small business owner, and we can help you ensure your business taxes are timely filed.
Consult with Our Experienced Elk Grove, CA CPA for Small Business Tax Returns
If you need accounting services to manage tax returns for your small business, you should consult with an experienced Elk Grove accountant for small business tax returns. The skilled accountants at the Cook CPA Group are here to address any concerns you may have with tax returns for your business. You may also use our online submission form to schedule your free consultation.