레이블이 Hi-Tech Accounting Services인 게시물을 표시합니다. 모든 게시물 표시
레이블이 Hi-Tech Accounting Services인 게시물을 표시합니다. 모든 게시물 표시

2013년 12월 1일 일요일

About 'small business bookkeeping services'|Basics Of Small Business Bookkeeping And Record Keeping







About 'small business bookkeeping services'|Basics Of Small Business Bookkeeping And Record Keeping








When               congress               passed               the               health               care               bill,               some               of               the               country               when               up               in               arms               about               the               potential               cost               that               this               bill               would               pose               on               American               society.

What               most               people               did               not               realize               was               that               this               health               care               bill               included               a               law               on               the               books               that               had               nothing               to               do               with               health               care.

Section               9006               of               the               Massive               Protection               and               Affordable               Health               Care               Act               of               the               health               care               bill               allowed               a               law               to               be               included               that               requires               more               accountability               for               small               businesses               taxpayers.

So               the               question               is,               what               effect               will               section               9006               of               the               health               care               bill               have               on               your               small               business?

Explanation               of               Section               9006               -               Massive               Protection               and               Affordable               Health               Care               Act
               Beginning               in               2012,               companies               will               be               required               to               prepare               IRS               1099               tax               forms               for               all               purchases               exceeding               $600               from               any               vendors.

According               to               the               government,               this               bill               is               suppose               to               assist               in               paying               for               the               health               care               bill's               cost.

How,               might               you               ask?

It               is               speculated               that               the               bill               will               cut               down               on               companies,               who               have               in               the               past,               embellished               their               expenses               reported               on               their               tax               filings.

By               doing               this,               companies               are               lessening               the               amount               of               income               available               for               taxation.

So               in               order               to               solve               this               problem,               the               Internal               Revenue               Service               (IRS)               requires               companies               to               submit               an               IRS               1099               tax               form               for               purchased               products               exceeding               $600.

This               will               cause               companies               to               keep               adequate               records               and               will               cut               down               on               inflated               expenses.

The               bottom               line...more               income               will               be               available               to               be               taxed               to               aid               in               the               cost               of               health               care               reform.
               Wait...there's               more!

Beginning               in               2011,               credit               card               processing               companies               will               also               be               required               to               report               your               annual               transactions               that               exceed               $20,000               on               IRS               form               1099-K.

Therefore,               corporations               will               only               be               required               to               report               all               payments               made               by               cash               or               check               as               stated               above.
               The               Impact               that               the               Health               Care               Bill               will               have               on               Your               Small               Business
               According               to               Bonnie               Lee               who               is               an               Enrolled               Agent,               and               author               of               "Taxpertise:               The               Complete               Book               of               Dirty               Little               Secrets               and               Hidden               Deductions               for               Small               Business               the               IRS               Don't               Want               You               to               Know",               this               law               cost               small               businesses               additional               hours               spent               in               bookkeeping.

Ms.

Lee               continues               by               stating               "...purchases               that               your               business               makes               from               Staples,               Office               Depot,               and               other               vendors               are               included               as               reportable               transactions."               Therefore,               you               must               spend               additional               time               and               money               in               tracking               your               vendor's               federal               ID               numbers,               all               cost               associated               with               each,               and               finally               transfer               such               information               to               the               IRS               1099               tax               form.

On               the               flip               side               of               the               coin,               small               businesses               should               also               expect               to               receive               IRS               1099               tax               forms               from               businesses               whom               they               sold               more               than               $600               of               goods               or               services.

Ultimately,               this               is               going               to               cost               small               businesses               more               in               preparation               time,               bookkeeping               cost,               and               will               include               mountains               of               paperwork.
               On               the               other               hand,               some               argue               that               this               bill               will               cause               small               businesses               to               be               more               accountable               and               organized               in               their               record               keeping.

Lawyer               D.J.

Marcus               who               runs               a               law               office               in               Denver,               CO               stated               that               this               health               care               law               will               "cut               back               on               fraudulent               business               deductions,               which               will               ease               the               burden               on               the               IRS               to               catch               tax               cheats               and,               hopefully,               save               the               rest               of               us               honest               taxpayers               the               hassles               associated               with               overbearing               IRS               scrutiny."               Although               their               will               be               increased               preparation               and               paperwork               associated               with               this               new               bill,               Mr.

Marcus               argues               that               the               paperwork               and               preparation               will               not               be               overbearing.

Overall,               he               believes               that               this               new               law               will               create               more               accuracy               and               efficiency               in               small               business               accounting               practices.
               Finally,               we               can               argue               all               day               in               regards               to               the               pros               and               cons               of               this               new               health               care               bill,               and               it's               effects               on               small               businesses.

However,               the               issue               still               remains               that               each               small               business               will               be               forced               to               devote               more               time               and               money               towards               the               preparation               of               their               annual               tax               returns.
               Sources:
               New               1099               Requirements               for               B2B               Transactions
               Health               Care               Bill               Section               9006               and               Your               Small               Business






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