How to build your Milwaukee Business the Nice Way | Milwaukee Small Business Advisors

How to build your Milwaukee Business the Nice Way.

I learned that business owners want us to listen to them, guide them and not surprise them with fees and tax liabilities. It's personally important to me to have a relationship with each client - and to communicate clearly in a language that everyone understands. I want my clients to reach their goals - and want to do more than just crunch numbers for them.
"People don't care how much you know until they know how much you care."
It's interesting to see how many small businesses try as soon as possible to follow the example of some large corporations to build an impersonal "corporate image."
People actually prefer to do business with people, not institutions. The last time you called an organization with a problem, weren't you frustrated and didn't you experience emotional pain while "going through voice mail hell" or being transferred until you got connected with a person who could solve your problem? Corporate leaders with good marketing sense understood this.
When we think of Hewlett Packard, we think of Bill and Dave. Lee Iacocca rebuilt Chrysler largely by being the corporate spokesperson in commercials. No advertising has been more successful for Wendy's than Dave Thomas telling us about his latest fast food offering. According to John Sculley, former president of Apple Computer, it requires 16 times the investment for an existing customer to replace the profits of one who is lost.
Keeping existing customers is a key to running a successful business.
Why we lose customers?

According to a study conducted by the Technical Assistance Research Project in Washington D.C., 3% leave for convenience, 9% because of a relationship, 15% because of product, price or delivery problems, and 5% for other miscellaneous reasons.
That leaves 68% for the most significant reason: perceived indifference. Customers want to feel important and appreciated. A key to build customer loyalty is to build a relationship with customers/clients/patients where they feel important and appreciated!
In any business, but especially a business where there is contact with a customer and a representative of the company either in person or on the telephone, the best way I know to cement that relationship is through personal notes - thank you notes!
Personalize thank you notes by hand addressing the envelope and using a real postage stamp. A hand-written note is best. But if your handwriting is terrible, be sure to sign the letter in blue ink.
When should you write thank you notes?
When you are getting started in business or in sales, you should write a note after any contact, including meeting someone at a seminar or when you exchange business cards. Learn to be sincerely appreciative and express that appreciation. If you deal with a problem, apologize personally with a personal note and be sure the problem is resolved as quickly as possible; maybe even sending another note after it's done.
You certainly will want to acknowledge major purchases and referrals with thank you notes. You can sometimes exploit or manipulate people and make a sale. But when you become an "assistant buyer," a friend who helps the customer make transactions in his or her best interest, and express your interest in the customer as a person, you are building a business or a sales career that will provide for you and your family for years to come.

We at Small Business Accounting Solutions LLC, work closely with small business owners in Milwaukee, Waukesha, Racine and Washington counties. As a "one-stop-shop", we provide our clients with complete Accounting services, Business and Individual Income Tax preparation, Payroll services, Quickbooks training and more! Small Business Accounting Solutions, LLC 1025 S Moorland Road Suite 500 Brookfield, WI 53005 Phone: (262)547-6000 http://www.sbasgroup.com

Waukesha and Milwaukee Home Based Businesses | Accounting help from SBAS Group

 Accounting help from SBAS group (Small Business Accounting Solutions) for Milwaukee Home Based Businesses.

More than 52 percent of businesses today are home-based. Every day, people are striking out and achieving economic and creative independence by turning their skills into dollars. Garages, basements and attics are being transformed into the corporate headquarters of the newest entrepreneurs - home-based businesspeople.
And, with technological advances in smartphones, tablets, and iPads as well as a rising demand for "service-oriented" businesses, the opportunities seem to be endless.

Is a Home-Based Business Right for You?

Choosing a home business is like choosing a spouse or partner: Think carefully before starting the business. Instead of plunging right in, take time to learn as much about the market for any product or service as you can. Before you invest any time, effort, and money take a few moments to answer the following questions:

• Can you describe in detail the business you plan on establishing?
• What will be your product or service?
• Is there a demand for your product or service?
• Can you identify the target market for your product or service?
• Do you have the talent and expertise needed to compete successfully?

Before you dive head first into a home-based business, it's essential that you know why you are doing it and how you will do it. To succeed, your business must be based on something greater than a desire to be your own boss: an honest assessment of your own personality, and understanding of what's involved, and a lot of hard work. You have to be willing to plan ahead, and then make improvements and adjustments along the road. While there are no "best" or "right" reasons for starting a home-based business, it is vital to have a very clear idea of what you are getting into and why. Ask yourself these questions:

• Are you a self-starter?
• Can you stick to business if you're working at home?
• Do you have the necessary self-discipline to maintain schedules?
• Can you deal with the isolation of working from home?

Working under the same roof that your family lives under may not prove to be as easy as it seems. It is important that you work in a professional environment; if at all possible, you should set up a separate office in your home. You must consider whether your home has the space for a business, and whether you can successfully run the business from your home.

Compliance with Laws and Regulations

A home-based business is subject to many of the same laws and regulations affecting other businesses and you will be responsible for complying with them. There are some general areas to watch out for, but be sure to consult an attorney and your state department of labor to find out which laws and regulations will affect your business.

Zoning

Be aware of your city's zoning regulations. If your business operates in violation of them, you could be fined or closed down.

Restrictions on Certain Goods

Certain products may not be produced in the home. Most states outlaw home production of fireworks, drugs, poisons, sanitary or medical products, and toys. Some states also prohibit home-based businesses from making food, drink, or clothing.

Registration and Accounting Requirements

You may need the following:

• Work certificate or a license from the state (your business's name may also need to be registered with the state)
• Sales tax number
• Separate business telephone
• Separate business bank account

If your business has employees, you are responsible for withholding income, social security, and Medicare taxes, as well as complying with minimum wage and employee health and safety laws.

Planning Techniques

Money fuels all businesses. With a little planning, you'll find that you can avoid most financial difficulties. When drawing up a financial plan, don't worry about using estimates. The process of thinking through these questions helps develop your business skills and leads to solid financial planning.

Estimating Start-Up Costs

To estimate your start-up costs, include all initial expenses such as fees, licenses, permits, telephone deposit, tools, office equipment and promotional expenses.
Business experts say you should not expect a profit for the first eight to 10 months, so be sure to give yourself enough of a cushion if you need it.

Projecting Operating Expenses

Include salaries, utilities, office supplies, loan payments, taxes, legal services and insurance premiums, and don't forget to include your normal living expenses. Your business must not only meet its own needs, but make sure it meets yours as well.

Projecting Income

It is essential that you know how to estimate your sales on a daily and monthly basis. From the sales estimates, you can develop projected income statements, break-even points and cash-flow statements. Use your marketing research to estimate initial sales volume.

Determining Cash Flow

Working capital--not profits--pays your bills. Even though your assets may look great on the balance sheet, if your cash is tied up in receivables or equipment, your business is technically insolvent. In other words, you're broke.
Make a list of all anticipated expenses and projected income for each week and month. If you see a cash-flow crisis developing, cut back on everything but the necessities.
If you think a home-based business is in your future, then don't hesitate to give us a call. We'll set up your business and make sure you have the proper documentation system in place to satisfy the IRS.

We at Small Business Accounting Solutions LLC, work closely with small business owners in Milwaukee, Waukesha, Racine and Washington counties. As a "one-stop-shop", we provide our clients with complete Accounting services, Business and Individual Income Tax preparation, Payroll services, Quickbooks training and more! Small Business Accounting Solutions, LLC 1025 S Moorland Road Suite 500 Brookfield, WI 53005 Phone: (262)547-6000 http://www.sbasgroup.com

Last Minute Tax Advice | Waukesha Accouting and Milwaukee Accountants

Are you one of the millions of Americans who haven't filed (or even started) your taxes yet? With the April 15th tax filing deadline less than two weeks away, here's some last minute tax advice for you.

1. Stop Procrastinating. Resist the temptation to put off your taxes until the very last minute. Our office needs time to prepare your return, and we may need to request certain documents from you, which will take additional time.
2. Include All Income. If you had a side job in addition to a regular job, you might have received a Form 1099-MISC. Make sure you include that income when you file your tax return because you may owe additional taxes on it. If you forget to include it you may be liable for penalties and interest on the unreported income.
3. File on Time or Request an Extension. This year's tax deadline is April 15. If the clock runs out, you can get an automatic six-month extension, bringing the filing date to October 15, 2013. The extension itself does not give you more time to pay any taxes due. You will owe interest on any amount not paid by the April deadline, plus a late-payment penalty if you have not paid at least 90 percent of your total tax by that date.
Call us if you need to file an extension and we'll take care of it for you. If you need to file for late-penalty relief, we can help with that to. See Late-Penalty Relief for Late Filers under Tax Tips below)

4. Don't Panic If You Can't Pay. If you can't immediately pay the taxes you owe, consider some alternatives. You can apply for an IRS installment agreement, suggesting your own monthly payment amount and due date, and getting a reduced late-payment penalty rate. You also have various options for charging your balance on a credit card. There is no IRS fee for credit card payments, but the processing companies charge a convenience fee. Electronic filers with a balance due can file early and authorize the government's financial agent to take the money directly from their checking or savings account on the April due date, with no fee.
5. Sign and Double Check Your Return. The IRS will not process tax returns that aren't signed, so make sure you sign and date your return. You should also double check your social security number, as well as any electronic payment or direct deposit numbers, and make sure that your filing status is correct.

Remember: Get your documents to us as soon as you can, and we'll help you take care of whatever comes up.

Small Business Accounting Solutions LLC, works closely with small business owners in Milwaukee, Waukesha, Racine and Washington counties. As a "one-stop-shop", we provide our clients with complete Accounting services, Business and Individual Income Tax preparation, Payroll services, Quickbooks training and more! Small Business Accounting Solutions, LLC 1025 S Moorland Road Suite 500 Brookfield, WI 53005 Phone: (262)547-6000 http://www.sbasgroup.com

Waukesha Accounting | Five Ways to improve your Finances

If you are having trouble paying your debts, it is important to take action sooner rather than later. Doing nothing leads to much larger problems in the future, whether it's a bad credit record or bankruptcy resulting in the loss of assets and even your home. If you're in financial trouble here are some steps to take to avoid financial ruin in the future.
If you've accumulated a large amount of debt and are having difficulty paying your bills each month, now is the time to take action--before the bill collectors start calling.
1. Review each debt. Make sure that the debt creditors claim you owe is really what you owe and that the amount is correct. If you dispute a debt, first contact the creditor directly to resolve your questions. If you still have questions about the debt, contact your state or local consumer protection office or, in cases of serious creditor abuse, your state Attorney General.
2. Contact your creditors. Let your creditors know you are having difficulty making your payments. Tell them why you are having trouble-perhaps it is because you recently lost your job or have unexpected medical bills. Try to work out an acceptable payment schedule with your creditors. Most are willing to work with you and will appreciate your honesty and forthrightness.

Tip: Most automobile financing agreements permit your creditor to repossess your car any time you are in default, with no advance notice. If your car is repossessed you may have to pay the full balance due on the loan, as well as towing and storage costs, to get it back. Do not wait until you are in default. Try to solve the problem with your creditor when you realize you will not be able to meet your payments. It may be better to sell the car yourself and pay off your debt than to incur the added costs of repossession.

3. Budget your expenses. Create a spending plan that allows you to reduce your debts. Itemize your necessary expenses (such as housing and health care) and optional expenses (such as entertainment and vacation travel). Stick to the plan.
4. Try to reduce your expenses. Cut out any unnecessary spending such as eating out and purchasing expensive entertainment. Consider taking public transportation or using a car sharing service rather than owning a car. Clip coupons, purchase generic products at the supermarket and avoid impulse purchases. Above all, stop incurring new debt. Leave your credit cards at home. Pay for all purchases in cash or use a debit card instead of a credit card.
5. Pay down and consolidate your debts. Withdrawing savings from low-interest accounts to settle high-rate loans or credit card debt usually makes sense. In addition, there are a number of ways to pay off high-interest loans, such as credit cards, by getting a refinancing or consolidation loan, such as a second mortgage.

Tip: Selling off a second car not only provides cash but also reduces insurance and other maintenance expenses.

Caution: Be wary of any loan consolidations or other refinancing that actually increase interest owed, or require payments of points or large fees.

Caution: Second mortgages greatly increase the risk that you may lose your home.

You can regain financial health if you act responsibly. But don't wait until bankruptcy court is your only option. If you're having financial troubles, don't hesitate to call us. We can help you get back on your feet.
We at Small Business Accounting Solutions LLC, work closely with small business owners in Milwaukee, Waukesha, Racine and Washington counties. As a "one-stop-shop", we provide our clients with complete Accounting services, Business and Individual Income Tax preparation, Payroll services, Quickbooks training and more! Small Business Accounting Solutions, LLC 1025 S Moorland Road Suite 500 Brookfield, WI 53005 Phone: (262)547-6000 http://www.sbasgroup.com

Milwaukee CPA | Small Business Accounting Solutions LLC

Milwaukee  CPA Dan Milos knows what is important to you and your business because.....

I had an accountant... then I became an accountant...

My name is Dan Milos, and here's what's important to know about me...

Before I became a CPA, I owned a small business.  We designed complex tooling and machinery and what often kept me up at night was worrying about cash flow and tax liabilites. It seemed like every time I turned around my bank account was being emptied out by the IRS. I hired good accounting firms, but often felt that I didn't understand their language. Consequently, I was often surprised with my tax position - and often watched as my bank account drained unexpectedly.

My trade moved overseas to China so I decided to reinvent myself. I was great with numbers and really thought I could help others understand what I didn't as a small business owner. I worked for very successful CPA firms in Southeast Wisconsin before opening my own business. I watched carefully, paying attention to what each of them did well - and finally opened my own practice using the best of what I learned.

I learned that business owners want us to listen to them, guide them and not surprise them with fees and tax liabilities. It's personally important to me to have a relationship with each client - and to communicate clearly in a language that everyone understands. I want my clients to reach their goals - and want to do more than just crunch numbers for them.

We Listen...

It's important to really listen to someone if you want to help them. We need to understand each Client's unique goals if we're really going to help them succeed - so we listen carefully. We encourage our Clients to communicate with us as often as they'd like - and don't bill them for their phone calls and questions. 

We Guide...

We guide our Clients once we understand their goals. We help them develop a plan for profit using simple budgeting tools.  We also help them understand their tax position throughout the year by reviewing their financial statements - to avoid surprises at tax time.

We at Small Business Accounting Solutions LLC, work closely with Individuals and small business owners in Milwaukee, Waukesha, Racine and Washington counties. As a "one-stop-shop", we provide our clients with complete Accounting services, Business and Individual Income Tax preparation, Payroll services, Quickbooks training and more!
Click here for a list of services

Small Business Accounting Solutions, LLC 

1025 S Moorland Road Suite 500 Brookfield, WI 53005 

Phone: (262)547-6000 http://www.sbasgroup.com

Milwaukee Tax Accounting | Affects Of Fiscal Cliff Deal

By now, everyone has heard about the "fiscal cliff" bill signed into law on January 2, 2013, but what you might not understand is how it affects you. With that in mind, let's take a closer look.

What is the "Fiscal Cliff"?

The term "fiscal cliff" refers to the $503 billion in federal tax increases and $200 billion in spending cuts (according to recent Congressional Budget Office projections) that took effect at the end of 2012 and beginning of 2013--before Congress passed ATRA. It is the abruptness of these measures and possible negative economic impacts such as an increase in unemployment and a recession that has resulted in the use of the metaphor "fiscal cliff".

What Could Have Happened?

According to the Tax Policy Center the arrival of the fiscal cliff would have meant that nearly 90% of all households would see their taxes rise. The top 20 percent of Americans would see their effective tax rate rise about 5.8 percentage points on average, while the bottom 20 percent of Americans would see their tax rate rise about 3.7 percentage points as a result of the Bush-era tax cuts to income, estate, and capital gains tax.
Further, in addition to a rise in tax rates, middle class and the lower-income working families are affected by the fiscal cliff in other ways--among them child-related credits and deductions for dependent care and education, and the EITC.

What Actually Happened: The "Fiscal Cliff" Deal

On January 1, 2013, Congress passed the American Taxpayer Relief Act of 2012, which President Obama signed into law the following day. The "fiscal cliff" bill, as it's referred to, extended a number of tax provisions that expired in 2011 and 2012, as well as increasing taxes on higher income individuals.

All Wage Earners

Personal tax rate. Marginal tax rates remained the same for most taxpayers (10%, 15%, 25%, 28%, 33%, and 35%) except for those taxpayers with taxable income greater than $400,000 (single filers) or $450,000 for married filers, whose rate increased to 39.6%.
Payroll taxes. The payroll tax holiday expired at the end of 2012 and was not extended. This means that you'll see 6.2% taken out of your paycheck for Social Security for the first $113,700 in wages for 2013 instead of 4.2%. For the average family making $50,000 a year, this amounts to $1,000 less in their pocket. The self-employed tax rate reverts to 15.3% up from 13.3% in 2012.
Unemployment Insurance. Federally funded unemployment insurance (UI) benefits, scheduled to end on December 29, 2012, were extended for another year, through December 29, 2013.

Middle Income Families

Child-Related Tax Credits. Child-related tax credits, used by families to offset their tax burden, have been extended under ATRA. The child tax credit remains at $1,000 and is still refundable. It is phased out for married couples who earn over $110,000 and single filers who earn more than $75,000. The dependent care tax credit is equal to 35% of the first $3,000 ($6,000 for two or more) of eligible expenses for one qualifying child.
Education. The American Opportunity Tax Credit, which was scheduled to revert to the Hope Credit ($1,500), has been extended through 2017. The credit is used to offset education expenses and is worth up to $2,500.
EITC. The EITC or Earned Income Tax Credit, which benefits low to middle income working families, is extended for five years through the end of 2017. In 2013 the maximum credit is $5,981.

Higher Income Earners

AMT. The AMT (Alternative Minimum Tax) “patch” (exemption amounts) was made permanent and indexed for inflation for tax years beginning in 2013 and made retroactive for 2012. In addition, nonrefundable personal credits can be used to offset AMT liability. For 2012, the exemption amounts are $78,750 for married taxpayers filing jointly and $50,600 for single filers.
Marriage Penalty. The larger standard deduction for married couples filing joint tax returns is retained ($12,200 in 2013) as is the increased size of the 15% income tax bracket. Generally, each spouse would need to earn income in excess of $80,000 (with no itemized deductions) in order to be hit with the marriage penalty; however, the higher your income, the harder you get hit with the penalty. Despite this, it usually makes more sense to file joint tax returns and not married filing separately. If you're not sure which filing status to use, give us a call.

Retirees

Long Term Capital Gains and Dividends. For retirees (and others) whose investment income is at or above $400,000 (single filers) or $450,000 (married filing jointly), long term capital gains and dividends are both taxed at 20%. However, taxpayers in the lower brackets (10% and 15%) however, the tax rate is zero. For middle tax brackets, long-term capital gains and dividends are taxed at 15%.
Even if that dividend income is part of an IRA or other retirement plan (and not in and of itself subject to taxes), retirees in the highest tax bracket ($400,000 for single filers) will still be affected by higher income tax rates in 2013 of 39.6%.

Wealthier Taxpayers

Estate and Gift Taxes. The exclusion for a decedent's estate remains at $5 million (adjusted for inflation) and the top tax rate increases to 40% for taxpayers with income of $400,000 ($450,000 married filing jointly). The "portability" election of exemptions between spouses remains in effect for decedents dying after 2012. The gift tax is increased to $14,000.
Pease amendment and PEP. The Pease amendment, which enabled wealthier taxpayers to get the full value of their itemized deductions, expired in 2012. As a result, taxpayers with incomes of $250,000 $300,000 married filing jointly) will see higher taxes, especially when taking into account higher personal tax rates, Medicare tax increases (see Higher Income Earners above), and the return of the personal exemption phaseout (PEP) provision in 2013 as well. Threshold amounts for PEP are $250,000 for single filers and $300,000 married filing jointly.
If you have questions or need help understanding how the fiscal cliff impacts you, don't hesitate to give us a call. We'll help you figure it out and plan ahead for the future.

We at Small Business Accounting Solutions LLC, work closely with small business owners in Milwaukee, Waukesha, Racine and Washington counties. As a "one-stop-shop", we provide our clients with complete Accounting services, Business and Individual Income Tax preparation, Payroll services, Quickbooks training and more! Small Business Accounting Solutions, LLC 1025 S Moorland Road Suite 500 Brookfield, WI 53005 Phone: (262)547-6000http://www.sbasgroup.com

Brookfield Wi Accounting | Spend Wisely In December

3 Ways to Spend Wisely in December

While in the mode of holiday shopping, consider these 3 tax-smart purchases.
Make Charitable Contributions
Consider making charitable contributions before year-end both to obtain the maximum tax deduction and to fulfill any charitable programs or commitments you may have established for the year.
Pay Tax-Deductible Expenses
Consider paying tax-deductible expenses prior to year-end. Some common examples are real estate taxes, quarterly state or local income taxes, investment-related expenses, and dues. These must be paid by December 31 to obtain a deduction this year. Please call us if you'd like to discuss these deductions further.
Buy a New Car
If you need a new car, now is a great time to purchase or lease one. Frequently, dealers are anxious to clear out last year's inventory prior to year-end. In making your choice, consider the federal tax (and occasional state tax) advantages for buying fuel-efficient vehicles such as plug-in hybrids and electric vehicles.
Evaluate Your Spending Plan
If you're one of the rare few who are disciplined enough to create and hold yourself to a budget, December is a great time to evaluate how close your spending went compared to plan for the year. You'll learn lessons from the areas you overspent that will help you create an even better plan for 2013.
For the rest of us mere mortals, recalculate your net worth. Compare it to the value at the beginning of the year. How did you do?

We at Small Business Accounting Solutions LLC, work closely with small business owners in Milwaukee, Waukesha, Racine and Washington counties. As a "one-stop-shop", we provide our clients with complete Accounting services, Business and Individual Income Tax preparation, Payroll services, Quickbooks training and more! Small Business Accounting Solutions, LLC 1025 S Moorland Road Suite 500 Brookfield, WI 53005 Phone: (262)547-6000 http://www.sbasgroup.com

Tax Changes for Businesses | Milwaukee Accounting Tax Changes

2012 Tax Changes for Businesses

Whether you file as a corporation or sole proprietor here's what Milwaukee business owners and Brookfield Wi Business owners need to know about tax changes in 2012.
Standard Mileage Rates
The standard mileage rate in 2012 is 55.5 cents per business mile driven, 23 cents per mile driven for medical or moving purposes, and 14 cents per mile driven in service of charitable organizations.
Health Care Tax Credit for Small Businesses
Small business employers who pay at least half the premiums for single health insurance coverage for their employees may be eligible for the Small Business Health Care Tax Credit as long as they employ fewer than the equivalent of 25 full-time workers and average annual wages do not exceed $50,000. The credit can be claimed in tax years 2010 through 2013 and for any two years after that. The maximum credit that can be claimed is an amount equal to 35% of premiums paid by eligible small businesses.
Credit for Hiring Qualified Veterans
The maximum credit that employers can take for hiring qualified veterans in 2012 is $9,600 per worker for employers that operate for-profit businesses, or $6,240 per worker for tax-exempt organizations. See Tax Credit for Employers Hiring Veterans This Year (below) for additional details on this tax credit.
Section 179 Expensing
In 2012 the maximum Section 179 expense deduction for equipment purchases is $139,000 ($174,000 for qualified enterprise zone property) of the first $560,000 of certain business property placed in service during the year. The bonus depreciation is 50% for qualified property that exceeds the threshold amount.
Please contact us if you need help understanding which deductions and tax credits you are entitled to. We are always available to assist you.
We at Small Business Accounting Solutions LLC, work closely with small business owners in Milwaukee, Waukesha, Racine and Washington counties. As a "one-stop-shop", we provide our clients with complete Accounting services, Business and Individual Income Tax preparation, Payroll services, Quickbooks training and more!

 Small Business Accounting Solutions, LLC 

1025 S Moorland Road Suite 500 Brookfield, WI 53005 

Phone: (262)547-6000 

http://www.sbasgroup.com

Business Accounting Milwaukee

Small Business Accounting Solutions LLC serves Milwaukee, Waukesha, Brookfield, and Southeastern Wisconsin.  As your Business Accountant, we take care of your books for you. Call us today at 262-547-6000.

As a small business owner you have more important things to do than to keep your own books. We take care of your books for you, so you can get back to the job of running your business and generating profits!
Each month or quarter we'll do the following things for you...

• Reconcile your bank account
• Generate an income statement 
• Generate a balance sheet
• Clean up your general ledger
• Provide unlimited consultations

These tasks form the solid foundation of your small business accounting system. You can customize the package of services you receive by adding payroll, tax planning, tax preparation, or any of our other services.

Bank Reconciliation
Reconciling your business checking account each month allow us to keep your bank account, accounting, and taxes up-to-date.
Having us reconcile your account each month allows you to...

• Identify lost checks, lost deposits and unauthorized wire transactions.
   
• Detect and prevent excess/unjustified bank charges and ensures transactions are posted correctly by your bank.
   
• Detect and prevent embezzlement of funds from within your company.
   
• Know how your business is doing? You can't really know unless all accounts are reconciled and properly accounted for on your financial statement.
   
• Manage your cash more effectively. Proper management of funds not only saves money, it makes money for you.
   
• Protect yourself. By timely reconciling and promptly objecting to your bank about any unauthorized, fraudulent or forged checks presented to your bank and paid by that bank, you can relieve your agency of responsibility for the shortfall and transfer the risk to the bank. This reason to reconcile alone should be enough. Crime exists.
   
• Sleep Better. You will sleep more peacefully at night knowing your bank accounts are reconciled, in balance and that all escrow funds, accounts, checks and disbursed funds are properly accounted for.

 
Income StatementAn income statement, otherwise known as a profit and loss statement, basically adds an itemized list of all your revenues and subtracts an itemized list of all your expenses to come up with a profit or loss for the period.
An income statement allows you to...

• Track revenues and expenses so that you can determine the operating performance of your business.
   
• Determine what areas of your business are over-budget or under-budget.
   
• Identify specific items that are causing unexpected expenditures. Like phone, fax, mail, or supply expenses.
   
• Track dramatic increases in product returns or cost of goods sold as a percentage of sales.
   
• Determine your income tax liability.

Balance Sheet
A balance sheet gives you a snapshot of your business' financial condition at a specific moment in time.
A balance sheet helps you...

• Quickly get a handle on the financial strength and capabilities of your business.
   
• Identify and analyze trends, particularly in the area of receivables and payables. For example, if your receivables cycle is lengthening, maybe you can collect your receivables more aggressively.
   
• Determine if your business is in a position to expand.
   
• Determine if your business can easily handle the normal financial ebbs and flows of revenues and expenses?
   
• Determine if you need to take immediate steps to bolster cash reserves?
   
• Determine if your business has been slowing down payables to forestall an inevitable cash shortage?

Balance sheets, along with income statements, are the most basic elements in providing financial reporting to potential lenders such as banks, investors, and vendors who are considering how much credit to grant you.

Maintaining a Clean General Ledger
The general ledger is the core of your company's financial records. These records constitute the central "books" of your system. Since every transaction flows through the general ledger, a problem with your general ledger throws off all your books.
Having us review your general ledger system each month allows us to hunt down any discrepancies such as double billings or any unrecorded payments. Then we'll fix the discrepancies so your books are always accurate and kept in tip top shape.

Unlimited Consultations
We are always available to spend time with you so you fully understand how to interpret and utilize the financial information we provide. Our consultations are already included in our price, so please feel free to call us whenever you have a question or concern.

If you'd like to receive a Free Consultation on our Small Business Accounting Service, please complete this form.
We at Small Business Accounting Solutions LLC, work closely with small business owners in Milwaukee, Waukesha, Racine and Washington counties. As a "one-stop-shop", we provide our clients with complete Accounting services, Business and Individual Income Tax preparation, Payroll services, Quickbooks training and more! Small Business Accounting Solutions, LLC 1025 S Moorland Road Suite 500 Brookfield, WI 53005 Phone: (262)547-6000

Milwaukee Accountant | Financial Tool

The Best Financial Tool for Business Owners

What if there were a tool that helped you create crystal-clear plans, provided you with continual feedback about how well your plan was working, and that told you exactly what's working and what isn't?
Well, there is such a tool. It's called the Budget vs. Actual Report and it's exactly what you need to be able to consistently make smart business decisions to keep your business on track for success.

Clarifying Your Plan

The more clear you are about your business goals, the more likely you are to achieve them. Creating a budget forces you to examine the details of your goals, as well as how even a single business decision affects all other aspects of your company's operations.

Example: Let's say that you want to grow your sales by 15% this year.
Does that mean you need to hire another salesperson? When will the business start to see new sales from this person? Do you need to set up an office for them? New phone line? Buy them a computer? Do you need to do more advertising? How much more will you spend? When will you see the return on your advertising expenditure?

Navigating the Ship

Once you clarify your goals, then you start making business decisions to help you reach your desired outcome. Some of those decisions will be great and give you better than expected results, but others might not.
This is when the Budget vs Actual Report becomes an effective management tool. When you compare your budgeted sales and expenses to your actual results, you see exactly how far off you might be with regard to your budget, goals, and plans.
Sometimes you need to adjust your plan (budget) and sometimes you need to focus more attention to the areas of your business that are not performing as well as you planned. Either way, you are gleaning valuable insights into your business.
It's like sailing a boat. You may be off-course most of the time, but having a clear goal and making many adjustments helps you reach your destination.

Just Do It

We often know what we need to do but don't take the necessary action. It may seem like a huge hassle to create a budget and then create a Budget vs. Actual Report every month, but as with any new skill, it does get easier.
Turn your dreams into reality. Give us a call and we'll guide you through the budgeting process.


We at Small Business Accounting Solutions LLC, work closely with small business owners in Milwaukee, Waukesha, Racine and Washington counties. As a "one-stop-shop", we provide our clients with complete Accounting services, Business and Individual Income Tax preparation, Payroll services, Quickbooks training and more! Small Business Accounting Solutions, LLC 1025 S Moorland Road Suite 500 Brookfield, WI 53005 Phone: (262)547-6000

Accounting Milwaukee | Vacations and Tax Deductions

 As a Milwaukee Business owner, you may want to take a vacation.  But did you know that you can turn your vacation into a tax deduction legally?

Turn Your Vacation Into a Tax Deduction

Tim, who owns his own business, decided he wanted to take a two-week trip around the US. So he did--and was able to legally deduct every dime that he spent on his "vacation". Here's how he did it.
1. Make all your business appointments before you leave for your trip.
Most people believe that they can go on vacation and simply hand out their business cards in order to make the trip deductible.
Wrong.
You must have at least one business appointment before you leave in order to establish the "prior set business purpose" required by the IRS. Keeping this in mind, before he left for his trip, Tim set up appointments with business colleagues in the various cities that he planned to visit.
Let's say Tim is a manufacturer of green office products looking to expand his business and distribute more product. One possible way to establish business contacts--if he doesn't already have them--is to place advertisements looking for distributors in newspapers in each location he plans to visit. He could then interview those who respond when he gets to the business destination.

Example: Tim wants to vacation in Hawaii. If he places several advertisements for distributors, or contacts some of his downline distributors to perform a presentation, then the IRS would accept his trip for business.

Tip: It would be vital for Tim to document this business purpose by keeping a copy of the advertisement and all correspondence along with noting what appointments he will have in his diary.

2. Make Sure your Trip is All "Business Travel."
In order to deduct all of your on-the-road business expenses, you must be traveling on business. The IRS states that travel expenses are 100% deductible as long as your trip is business related and you are traveling away from your regular place of business longer than an ordinary day's work and you need to sleep or rest to meet the demands of your work while away from home.

Example: Tim wanted to go to a regional meeting in Boston, which is only a one-hour drive from his home. If he were to sleep in the hotel where the meeting will be held (in order to avoid possible automobile and traffic problems), his overnight stay qualifies as business travel in the eyes of the IRS.

Tip: Remember: You don't need to live far away to be on business travel. If you have a good reason for sleeping at your destination, you could live a couple of miles away and still be on travel status.

3. Make sure that you deduct all of your on-the-road -expenses for each day you're away.
For every day you are on business travel, you can deduct 100% of lodging, tips, car rentals, and 50% of your food. Tim spends three days meeting with potential distributors. If he spends $50 a day for food, he can deduct 50% of this amount, or $25.

Tip:The IRS doesn't require receipts for travel expense under $75 per expense--except for lodging.

Example: If Tim pays $6 for drinks an the plane, $6.95 for breakfast, $12.00 for lunch, $50 for dinner, he does not need receipts for anything since each item was under $75.

Tip: He would, however, need to document these items in your diary. A good tax diary is essential in order to audit-proof your records. Adequate documentation shall consist of amount, date, place and business reason for the expense.

Example: If, however, Tim stays in the Bates Motel and spends $22 on lodging, will he need a receipt? The answer is yes. You need receipts for all paid lodging.

Tip: Not only are your on-the-road expenses deductible from your trip, but also all laundry, shoe shines, manicures, and dry-cleaning costs for clothes worn on the trip. Thus, your first dry cleaning bill that you incur when you get home will be fully deductible. Make sure that you keep the dry cleaning receipt and have your clothing dry cleaned within a day or two of getting home.

4. Sandwich weekends between business days.
If you have a business day on Friday and another one on Monday, you can deduct all on-the-road expenses during the weekend.

Example: Tim makes business appointments in Florida on Friday and one on the following Monday. Even though he has no business on Saturday and Sunday, he may deduct on-the-road business expenses incurred during the weekend.

5. Make the majority of your trip days business days.
The IRS says that you can deduct transportation expenses if business is the primary purpose of the trip. A majority of days in the trip must be for business activities, otherwise, you cannot make any transportation deductions.

Example: Tim spends six days in San Diego. He leaves early on Thursday morning. He had a seminar on Friday and meets with distributors on Monday and flies home on Tuesday, taking the last flight of the day home after playing a complete round of golf. How many days are considered business days?

All of them. Thursday is a business day, since it includes traveling - even if the rest of the day is spent at the beach. Friday is a business day because he had a seminar. Monday is a business day because he met with prospects and distributors in pre-arranged appointments. Saturday and Sunday are sandwiched between business days, so they count, and Tuesday is a travel day.
Since Tim accrued six business days, he could spend another five days having fun and still deduct all his transportation to San Diego. The reason is that the majority of the days were business days (six out of eleven). However, he can only deduct six days worth of lodging, dry cleaning, shoe shines, and tips. The important point is that Tim would be spending money on lodging, airfare, and food, but now most of his expenses will become deductible.
Consult us before you plan your next trip. We'll show you the right way to legally deduct your vacation when you combine it with business. Bon Voyage!

Please feel free to call us any time to learn more...
Dan Milos, CPA

Small Business Accounting Solutions, LLC
1025 S Moorland Road Suite 500
Brookfield, WI 53005
Phone: (262)547-6000
info@sbasgroup.com

Milwaukee Accountant | Tips for people Paying Estimated taxes

If you have income that is not subject to withholding you may need to pay estimated taxes to the IRS during the year. Whether you need to pay estimated taxes is dependent upon your financial circumstances, what you do for a living (if you're self-employed for example), and the types of income you receive. Here are six tips from the IRS that explain estimated taxes and how to pay them.
1. If you have income from sources such as self-employment, interest, dividends, alimony, rent, gains from the sales of assets, prizes or awards, then you may have to pay estimated tax.
2. As a general rule, you must pay estimated taxes in 2012 if both of these statements apply:

1) You expect to owe at least $1,000 in tax after subtracting your tax withholding (if you have any) and tax credits, and 2)You expect your withholding and credits to be less than the smaller of 90 percent of your 2012 taxes or 100 percent of the tax on your 2011 return. Special rules apply for farmers, fishermen, certain household employers and certain higher income taxpayers.

3. Sole Proprietors, Partners, and S Corporation shareholders generally have to make estimated tax payments if they expect to owe $1,000 or more in taxes when they file a return.
4. To figure estimated tax, include expected gross income, taxable income, taxes, deductions and credits for the year. You'll want to be as accurate as possible to avoid penalties and don't forget to consider changes in your situation and recent tax law changes.
5. For estimated tax purposes the year is divided into four payment periods or due dates. These dates are generally April 15, June 15, Sept. 15 and Jan. 15 of the next or following year.
6. The easiest way to pay estimated taxes is electronically through the Electronic Federal Tax Payment System, or EFTPS, but you can also figure your tax using Form 1040-ES, Estimated Tax for Individuals and pay any estimated taxes by check or money order using the Estimated Tax Payment Voucher, or by credit or debit card.
Give us a call today if you need help making estimated payments.