Tax Tips that Might Surprise You

Doing your taxes is one of the most important things that you can do in terms of finance throughout the year. AS a result, it pays to be careful when it comes to doing your filing and in terms of finding every way to reduce what you owe as possible. You may be able to find many extra tips in places like your favorite accounting blog, or with a accounting firm, but here are a few to get you started.

Pay Attention to Timing

It might seem strange, but looking carefully at the calendar will increase your chances of getting the best tax return. For example, you can pay the mortgage before the end of the year and the added interest will reduce your liability even more than what would happen otherwise. You can also schedule treatments and exams that are related to your health towards the end of the year so that you can get a much bigger deduction for medical expenses.

Check for Tax Credits

It turns out that 20 percent of eligible Americans don’t take tax credits that they could take, such as the Earned income tax credit. A lot of people might just think that they’re not eligible and disregard it. But even if you’re single and don’t have any children, as long as you worked this year you can be eligible for the credit. Your taxes go down on a straight one to one basis when it comes to credits, so this often makes them much better than deductions when it comes down to a dollar to dollar basis. As a result, you end up with a much lower amount of money that you owe.

Use Programs to Help

One great way to make sure that you don’t miss out on many possible deductions or credits is to try out a program like TurboTax. It’s usually not that expensive and it will make sure that you’re completely covered in terms of what you could possibly get off for a particular year. They will list all of the changes from year to year, and take you through each part of the filing step by step so that you don’t miss anything and so that everything is in order at the end of the day. This is a good way to be sure that you’re doing the best possible job.

2 Common Issues and Sense Solutions in Franchises

Franchising is considered as one of the most effective and efficient ways for business growth. By its very nature, however, both the franchisor and the franchisee must deal with issues unique to the arrangement, many of said issues requiring the professional expertise of reputable Rochester consulting firms like Rizzo, DiGiacco, Hern&Baniewicz (www.rizzodigiacco.com)

Fortunately, most of these issues can be resolved in many ways that will work for the mutual benefit of both parties in the business arrangement. Such ease in resolving conflicts and meeting challenges in franchise agreements is the main reason for the growth of the franchise industry in the United States and elsewhere in the world.

Here then are the top 2 common issues and their common sense solutions in franchise agreements, said solutions of which may also require the expertise of the best Rochester accountant in town.

1) Compliance Issues

Arguably, one of the major irritants on the part of the franchiser is the failure of the franchisee to comply with the agreed standards set on the franchise contract including related documents like the manual of operations. Such failure can also become the headache of any Rochester consulting firm hired for the purpose of troubleshooting compliance issues including their causes and effects.

For example, the franchisee will take the liberty of implementing its own food production system including the choice of suppliers for reasons like cutting costs. This leads to issues related to quality of the food itself, sanitation and hygiene, and overall profits, among others.
The solution: Refer to the contract and other related documents for the appropriate actions including sanctions such as penalties for non-compliance with the agreed terms. Keep in mind that unilateral changes to the contract cannot be made by either party lest it is rescinded.

2) Franchise Fee Issues

Yet another issue that the best Rochester consulting firm can provide expert assistance on is the payment of the fees. The issue can take several forms including habitual tardiness in the payment of the full franchise fees, partial payments made against the full franchise fees, and complete non-payment of the franchise fees agreed upon.

The reasons can range from low sales coupled with high expenses especially at the formative phase of the franchisee’s branch to the low value attached by the franchisee on the franchise itself.

The solution: Instead of issuing demand letters and withdrawing certain franchise privileges to the franchisee, the best Rochester consulting professionals will suggest amicable discussions between the franchiser and the franchisee. Letting both parties air their concerns and grievances can often shed light on problems that can be solved by their cooperation, thus, resolving many issues simultaneously.

The franchiser should also make it clear to the franchisee that the payment of the franchise fees is mainly designed to ensure that viable and valuable support systems provided by the former to the latter will continue. The fees are used for the maintenance of these systems instead of being used primarily to fatten the franchiser’s bank account. The franchiser, after all, gets his profits from his main operations, too.

Ultimately, the franchiser and franchisee should iron out their differences for their mutual business benefit while the role of the Rochester consulting professionals remains just that – as expert consultants on matters related to franchising arrangements.

Even in Gifts and Deaths, Taxes Apply

If you live in the United States, you already know the truth behind the modern-day adage that the only certain things in life are debts, taxes and death. It’s a fact of life that the best Rochester accounting firm - Rizzo, DiGiacco, Hern&Baniewicz are well aware of because of their dealings with clients involved in these things.

One of the trickier matters that accountants must deal with as part of their job is combining taxes and death. Combining two of the inevitabilities of life results in debts that the concerned individual must pay in full lest the taxman cometh and enforces the law’s long arm into your affairs.

Here then are a few must-know things in relation to death and taxes as well as the debts that arise from their combination. Ask for the professional opinion of a reliable Rochester accounting professional in case a few things require clarifications.

One Combo Tax

The good news for would-be heirs and gift-givers: Most estates will not be required to pay for federal estate or gift tax. Why? Because you can leave or give away considerable amounts of property on a tax-free basis!

Under the present laws covering the unified gift and estate tax, individuals can give away to their recipients or leave to their heirs up to $5.25 million in cash and non-cash assets before paying for applicable taxes.

The bottom line: You can stop worrying about the unified gift and estate tax when you fall under the non-wealthy (i.e., multimillionaire and billionaire) set. You are, nonetheless, well-advised to ask for the professional advice of a reliable Rochester accountant to maximize your generosity to your heirs and recipients while minimizing your taxes.

Personal Exemption

Since gift and estate taxes change from one year to the next, you are well-advised to always seek the expert guidance of an experienced Rochester accounting and tax professional on these matters. This includes the issue of personal exemption, which permits for non-taxable transfer of assets as gifts or inheritances within set dollar amounts.

Keep in mind that the set amounts are indexed for inflation so increases in future years are always a possibility; ask your Rochester accountant for any possible changes. For deaths in the following years, the personal exemptions are:

• 2011 - $5 million
• 2012 - $5.10 million
• 2013 - $5.25 million

If your estate is worth less than the above amounts at the time of your death, then you and your heirs will not owe federal taxes. If you have made taxable gifts while you were alive, on the other hand, the amount of your individual exemption will be reduced by the amount of taxable gifts made.

If you belong to the non-super wealthy set, as are 99% of the population in the United States, then you can leave your estate to your heirs without the IRS dipping their hands into it. Well, at least at first but by then you have become wiser about the ways of the taxman, thanks to the expert assistance of the best Rochester accounting and tax professionals.

But as always there are exemptions to the rule so ask us for further information. This is especially true in the State of New York where the state government collects on estate taxes even when the federal government cannot.

Cash Flow: Sometimes It Takes an Expert to Advise on It

Cash flow woes can be a major problem for a business as any Rochester accounting firm will note. Without a decent level of cash flow, a business will end up suffering from quite a bit up upheaval. Working with CFO outsourcing services may be able to curtail problems associated with cash flow woes. This is a must because a business does need to have enough cash coming in so as to effectively remain in operation and not suffer from resulting financial limitations. There could also be issues with Rochester taxes that might arise when not enough cash flow is generated to cover them.

Understanding why cash flow is so important begins with defining what exactly cash flow is. First, it is critical to point out that cash flow is NOT the same thing as profits. There may be profits found in monthly cash flow, but the cash flow itself is not solely profitable. Similarly, a business doing $35,000 a month in cash flow could be operating at a major loss. A Rochester CPA could point out numerous examples such as these.

How is this so? Basically, cash flow can be defined as the amount of money that comes into the business through revenues. A commercial gym, for example, may gain its cash flow through memberships combined with the sale of food and beverages along with merchandise. When all of the revenue is added up, the end result would be the figure for cash flow. Cash flow can be broken down into daily, weekly, monthly, quarterly, and annual amounts. Upon doing so, steps must be taken to determine whether or not the cash flow is contributing to profits or losses. A good Rochester accountant will tell you where you stand in this regard.

Obviously, the goal of the examination of the cash flow would be to maximize profits while also trying to cut down on any losses. This might all seem very basic, but there are complexities involved with the process. Many business owners can be good with the product or service they offer, but when it comes to actually managing their finances, they can only do so when they make enough profits to cover their expenses. And even this can actually be done from the wrong perspective.

What that means is the cash flow might be low due to not properly managing the expenses of the business. Money could end up being wasted because it is being overspent on areas that could easily be cut. Outsourcing CFO services could lead to recognizing what areas could benefit from budget reductions. It could also contribute to better tax planning.

And then there may be more complicated steps to take such as increasing funding to a particular area so that it might contribute to boosting revenues and cash flows as a result. An experienced eye may be able to locate such things, make suggestions, and then follow through on any affirmative decisions made from those running the company. Often, management will be quick to agree to what the CFO or a Rochester consulting firm is is suggesting. All they needed was the proper insights to be pointed out to them to make the necessary changes.

Tax Planning: A Way You Can Reduce Your Burden

Costs can drain the life out of a company. For those who live on a month to month basis with their business, not a lot of effort goes into such things as tax planning. Either those in charge of the business are not well aware of what is required to effectively engage in tax planning or they simply do not prioritize it. The former is somewhat understandable, but the latter is really nothing more than a path to getting into serious fiscal woes. Businesses do need liquidity in order to survive if not thrive. Cash flow and cash in reserve accounts allow a business to immediately access funds. Yes, it is true that a line of credit can do so as well. However, borrowing from a line of credit is exactly that: borrowing. When money is saved in reserve, it contributes to the overall net assets of the business. Also, the funds can be placed in a conservative investment where it can draw interest. Interest, of course, increases the value of the money saved in it.

This is where effective tax planning comes into play. There can be quite a number of misunderstandings about what tax planning entails. On the simplest of levels, tax planning refers to putting the proper effort through the year to be sure the lowest amount of taxes is paid. This is not as easy as some assume. Most do realize that taking deductions will greatly cut down on the amount of taxable income a business presents. A good accountant can definitely maximize the amount of deductions that a business can employ. Being able to do so would be the sign of a truly excellent and helpful accountant. However, there is far more to tax planning which can be done here.

One other effective component of tax planning would be to take advantage of tax credits. Tax credits are simply bonus deductions offered as incentives. One example of a tax credit could be taking a certain percentage of the costs to purchase alternative, green energy systems in an business. In some instances, a business might already have invested in making such purchases but does not take the tax credit because management simply does not know the credits are available. Professional who work in tax planning can invest a huge amount of time in research so they can locate the tax credits which could prove hugely helpful to a business.

There is also a strategy of replanning which a tax consultant can put effort into. For example, a business may be interested in starting down path A, but scores of tax credits could be gained by traveling down path B. Qualified tax planners and accountants just might be able to help devise more logical and business friendly paths for those interested in saving money and doing better with the operation of their business.

The Affordable Care Act: You May Need to Work with a Rochester Accounting Firm

The Affordable Care Act has been a topic in the news for well over three years. As the law begins its implementation, there are rules and requirements that must be adhered to in order to remain in compliance with the act. While some business owners may wish to try and figure things out on their own, they likely would be making a huge mistake. Granted, the employer mandate has been recently waived buying businesses more time to learn how to comply with the law, there is only so much a novice will be able to figure out. As such, it is absolutely necessary than anyone running a small business speak with a tax professional discuss matters with an qualified Rochester accounting tax specialist who is able to offer the proper guidance and advice. Anything less runs the risk of turning into a major problem for a business owner.

Most are likely aware that the law requires businesses with 50 full-time employees to offer health coverage or pay a penalty. Those who have heard this might not have looked closer at the wording of the law or read any of its related statutes. There is likely a good reason why they would not think to do so. The owner of a business is not involved with accounting and does not follow such matters closely. Be that as it may, the law is the law and there will be requirements which must be followed.

For one, the 50 employees refers to the total amount of employees among all the businesses owned by someone. In other words, if you owned 5 businesses with 10 employees, providing healthcare is required. As skilled Rochester accounting professional will be able to advise you about matters such as these.

Also, the delineation of 50 full-time employees could mean the equivalent of the total of the hours worked by 50 full-time employees. If a host of part-time employees end up equating with the number of full-time hours, requirements to cover benefits or pay fines kicks in. Timelines also exist for a business to comply with the law. Has your business down what is required to stay on top of its timeline? If not, then there could be a number of troubles coming down the road.

Once again, since the law is new and business owners are not versed on how to deal with it, hiring a professional accountant is a much better plan than filing messed up tax returns. If you do that, the risk of an audit increases exponentially. Even if you do not get audited, the tax return will have to be changed. How could it not be? The figures on it were wrong. When a tax return has been adjusted, you will usually find a bill showing up in the mail not too long after you have filed it. Rather than deal with such unexpected and annoying financial woes, it would be much better to have a Rochester accounting tax professional handle your business' ability to implement the program the right way.

Dealing with Late Deposits on 401(k) Plans

As the plan sponsor for your employees’ retirement benefits plan known as the 401(k), you have the fiduciary responsibility of ensuring accurate and timely deposits of the contributions, loan repayments, and other withheld deductions related to the plan. But what happens when you have been remiss in your fiduciary responsibility? Here are tips from a trusted Rochester CPA in dealing with said late deposits.

Know the Requirements

The first step is to know the general requirements for 401(k) plans in terms of the timing of their deposits. The date of deposits depends on the number of participants such that:

• If you have fewer than 100 participants in the plan, the employees’ contributions and loan repayments should be deposited by the 7th business day after the pay period pertaining to the amounts withheld.
• If you have 100 or more participants in the plan, the deposit must be made either on these two dates, whichever is earlier - (a) the date when the withheld amounts can be segregated from the assets of the business; or (b) the 15th business day of the month after the pay period pertaining to the withheld amounts.

Ask your trusted Rochester CPA about possible exceptions but the above mentioned rules apply to most plan administrators. Keep in mind, too, that a few 401(k) plan vendors will send reminder about late plan deposits but said reminder are usually worded in such a way as to exclude all fiduciary responsibility on their part. You, as the plan administrator, must assume said responsibility.

Keep Records

In most instances of late deposits, you have the option of self-correcting the issue by making the deposits and then calculating the lost earnings caused by the late deposit not being invested in a 401(k) plan. You will not be required to file the necessary paperwork with the Department of Labor and/or with the Internal Revenue Service especially when the late deposits pertained to just one to two payroll cycles. You must, however, keep records of your actions as future reference for audit work by an independent Rochester accountant, for example.

Kick the Problem

As your trusted Rochester CPA will say, a late deposit should not be cause for concern but you should kick the problem, so to speak, as early as possible. Always remember that one or two late deposits are mostly inevitable considering human nature. But when such tardiness becomes chronic, remains unresolved for several payroll cycles, and/or becomes fraudulent in nature, you will have problems with government authorities on your hands.

Why? Late deposits can trigger audits by the DOL and/or IRS, which can lead to sanctions including penalties. The DOL will determine whether the 401(k) plan deposits were accurate and timely often by looking at the earliest possible date that you, the plan sponsor, could have made the deposits but did not. This is where your meticulous records come in as well as your valid explanation for the missed deposits.

Your best plan of action: Consult with your trusted Rochester CPA about the appropriate methods to kick the problem even before it becomes an audit trigger. Keep in mind that not only will your company be subjected to a DOL audit but you may be penalized by the IRS in the form of excise taxes.

Obamacare and Your Taxes for 2013

All Rochester accounting firms including Rizzo & DiGiacco have been well prepared for the implementation of the Affordable Care Act, also known as Obamacare, as soon as it was signed into law on 23 March 2010; it’s their job, after all. But it is also the job of taxpayers such as yourself to anticipate Obamacare’s impact on your taxes for 2013.
 
Here then are the most important aspects of Obamacare as its provisions apply to tax planning goals. If you have any questions, concerns and issues about the law’s impact on your taxes, you should get it right from the horse’s mouth, so to speak – obviously the best Rochester accountant from our company! (Note: We also offer CFO outsourcing services for businesses)

Medicare Payroll Tax

 

In case it has escaped your attention, Medicare has faced and continues to face major financial concerns brought by several factors including the budget crisis and the national recession. The Obamacare provision regarding the payment of the 2.5% Medicare payroll tax on earnings above the stated thresholds - $200,000 for single taxpayers and $250,000 for married couples annually – is designed as part of the plan to keep the Medicare program running as well as it should be.

Obviously, the tax will affect high-income earning households. If you belong to the category, you can expect your Rochester taxes to have substantial differences in 2013 than in 2012 because of it.
Note: Your Rochester CPA will fill in the tax under its official name of Medical Hospital Insurance (Part A) Tax for the Medicare Hospital Insurance (HI) Trust Fund. Look for it for your enlightenment’s sake.

Unearned Income Tax

Yet another way that Obamacare will affect taxes in 2013 is the unearned income tax. Keep in mind that the tax will apply to a wide range of investments and their income including but not limited to dividends on stocks, interests on deposits, and rent revenue.

Individuals with several investments in their portfolios are then well advised to get on board the best Rochester consulting firm’s roster of clients so as not to overlook items wherein unearned income tax may be levied. The more accurate your tax returns in this regard, the better your chances for staying on the right side of the law - and the accountants and tax planners of Rizzo & DiGiacco will be of valuable assistance on this matter.

As with the Medicare payroll tax, the unearned income tax will affect high-income households. Single taxpayers earning more than $200,000 and married couples earning more than $250,000 per year will be subject to a surtax of 3.8% prior to deductions.

Cadillac Health Insurance Plan Tax

Although the tax will be imposed in 2018, Americans are well advised to start looking for affordable health insurance plans before the tax takes effect. The Cadillac health insurance plan tax refers to the steep 40% penalty for individuals enrolled in health insurance policies costing $10,200 or higher and for families with health insurance plans costing $27,500 or higher.

The bottom line: Be proactive by discussing the impact of Obamacare on your healthcare plans and your tax plans with your accountant and/or tax planner.

What Should I look for in a Rochester Accountant?

Someone you can openly communicate with and that will be there for you is important when it comes to selecting a Rochester accountant. While you want to work with a company that has a good clientele, make sure they also have time for you. It can be frustrating when you feel they are too busy to answer your questions and to give you the personalized attention you need for your account. Make sure they have core values and ethics in place so that you aren’t going to compromise yourself or your business by working with them.

Not all Rochester accounting companies offer the same services. A common mistake though is just assuming that they do. Some of them offer very basic series and a broad spectrum of choices. Others though are more specialized and they handle the very complex types of tax issues or business needs that can develop. There is so much more to these businesses than just Rochester taxes that is for sure!

For example, some of them offer CFO outsourcing services. This may be a concept that could work very well for your business. Yet you weren’t even aware that it was a possibility. With the creative elements in place as well as advanced technology, it may surprise you just what they can do for you.

Your own methods of communicate and style of tax planning that you are comfortable with will also influence who you work with. While a Rochester CPA can provide you with options, in the end you have the final say. Not only about who you will work with but the type of strategy that they can implement for taking care of your account.

Always take the time to make sure you have the right Rochester CPA in place. If you are looking for one, make sure you evaluate plenty of options before you make that final decision. You have too much at stake to make a rush decision. If you already have a CPA, but you feel that they aren’t really meeting your needs, it is time to change.

The process of Rochester consulting is worth looking at. This will take some time but it is a good investment overall. It allows you to talk face to face, at no charge, with various accountants in the Rochester area. There is no obligation to hire them and it is considered one of the best methods for evaluating who will rise to the top of your list.

Prepare for Rochester Consulting Sessions

One of the best ways to find a Rochester CPA that is perfect for your needs is to talk to several of them. Spend some time compiling a list of possibilities and then check them out online. You need to explore their features offered to make sure they are a good match for your personal or business needs.

Next, you need to find out their rating with the BBB and also what other clients have to say about them. Only select those businesses that have a BBB rating of B+ or higher. This means that they are excelling in their line of work and that works to your advantage. Read the various reviews from clients to find out about the pros and cons of a given business.

For those that seem quite favorable, write down their name and phone number. Then you can get in touch with them for an appointment. Ask about Rochester consulting which should always be free of charge. With the consulting, you need to be prepared for it so that you get all you can out of the session. If you go in and waste time because you don’t know the direction to take all of it, then you will get very little value out of it.

Show up with a list of questions that you have about tax planning, Rochester taxes, and other details. Use this same list of questions at each of the Rochester accounting firms you consult with so that you can compare answers. It is fine to jot down some notes too while you are in that meeting, they won’t mind at all.

It is acceptable to ask questions about their areas of expertise, experience, and their ethical behaviors. You need to know that the Rochester accountant you hire is going to be exceptional in all matters for you. Knowing you can count on them to be honest, efficient, and to be affordable will give you peace of mind.

If you are interested in CFO outsourcing, ask if they offer it. Not all accounting locations do but more of them are including it. If they get asked about it enough, they will consider adding it to keep customers happy and to help them secure new clients. The demand for services is very powerful when it comes to determining what services stay, what goes, and what is added.

You may wish to bring along some documents with you to show the CPA during the consulting session. They can even answer some specific questions about them for you. Communication is important so be open about what you need, what you expect, and don’t leave without answers to your questions.

Of course there will be those entities that talk in circles and don’t give you effective answers. Just mark them off your list because you don’t want to settle for a company that operates in such a manner. Not when there are so many better choices for you in the Rochester area that will do all they can to get your questions answered. They want to help, not make more issues for you.
Make sure you thank them for the time they gave you to talk. Take as much time as you need to make up your mind about who you will work with. When you make that call to move forward, you will already know what you can anticipate from that relationship.

Rochester Accounting Services Offer More than you Think

When most people think about Rochester accounting services, they think about taxes for themselves or for a business. They also think about tax planning services. One of the other options that you may be interested in for your business is CFO outsourcing. This is a practical solution and it is also a way to reduce the cost for the business.

It is a surefire way to do more for the business without one more body to make room for too. Perhaps you don’t have the office space. Instead of hiring someone that is at the business daily, the Rochester accountant can take care of those tasks for you. This short cut may be one that saves you money and time, but it doesn’t mean you compromise the overall importance of that position and role within any given business. It just means you are relying on an external source to take care of it for you.

While Rochester taxes are important, they are really only part of what a business is all about. That is why it makes sense to expand your needs through a CPA to what will really get you results. Such businesses have certainly expanded what they offer well beyond just the realm of tax preparation and tax laws.

For example, they can even help you with successfully identifying the right methods for ending a business. There can be serious tax repercussions and higher amounts due to the IRS if you don’t follow certain guidelines. They can assist you with creating a plan of action that is both legal and also going to offer you the best possible tax breaks available.

Spend some time with Rochester consulting opportunities so that you can find the right business to do this for you. The consulting process allows you to ask questions, get information and decide who has the right methods and experience for your CFO outsourcing to be the most efficient. Take your time finding the right link for this part of your business operations.

With so many realms of a typical business these days, including brick and mortar and e-commerce, you need to be willing to expand in new directions. Outsourcing has become a great way for a business to lower costs where they can. As a result, they can put more funding into what they must to keep the business moving forward, into research and development, and even into marketing. Perhaps now is the time for you to evaluate what benefits you can gain through such a process.

It may be the same Rochester CPA that offers you other services. If you are already working with a CPA, it makes sense to see if they can take on that additional role for you. If they don’t offer the service though you can definitely bring another entity on board to be part of the overall structure for the financial operations of your business.

Why Hiring a Rochester Accountant is a Smart Move for a Business

Most business owners or entrepreneurs are familiar with what a Rochester accountant does. They likely realize hiring an accountant can ensure issues related to their books and their taxes can be made much easier. That said, not everyone may be sure when the time is right for them to hire an accountant. There are a few factors that will come into play dictating the time to hire an accountant is on the horizon.


If you are seriously concerned about your own problems with errors and inaccuracies, then hiring an accountant might be among the most important steps you could take. No one is perfect and accounting can certainly be hard job to perform without error. This is true even when someone has a lot of experience with the job. Imagine how hard it can be when you lack experience. Rather than find yourself in a tough situation where you run the risk of committing pronounced errors, it would be a much better strategy to turn over such tasks to an accountant. Even if only a partial amount of the tasks are handed to an accountant, solace can be taken in the notion the work performed is done so with a lesser chance of error.


Anyone that has become overwhelmed with other responsibilities may wish to hire a Rochester accountant. When a business becomes enormously busy, this is a good thing. However, there can be certain drawbacks such as the inability to juggle all the tasks required and also the inability to be timely with every tasks. Certain responsibilities that do not seem pressing at the time can end up being passed to a later date. This can create an accounting nightmare. Rather than end up in such a position, it would be much better to hire a professional accountant to take on some of those tasks.


The business is starting to grow at a rapid pace. Again, there are quite a number of fruits to success and there are also issues of serious concern. When a business is enormously successful, this means it will be growing. More and more employees are hired. More revenues come in. More expenditures are absorbed. Nothing is inherently wrong with any of these factors. McDonald's went through the same growth process in the 1950s. Of course, such growth does lead to enhanced accounting requirements and anyone that is interested in staying on top of all growth related responsibilities is well advise to speak with a Rochester accountant.


Anytime serious changes in the tax laws occur, hiring an accountant to advise the business form that point forward would be a wise move. Often, by knowing how the law effects you from day one will contribute to avoiding a lot of unnecessary hassles when tax time actually arrives.


In truth, any time you seriously feel working with an accountant would be beneficial, it is advised to contact one. Doing so can save an entrepreneur from an enormous number of headaches.

Cash versus Accrual: Let Our Rochester CPA Assist in Your Choice

The qualified Rochester CPA we will assign to your business as an independent accountant possesses the appropriate education, training and work experience in the related fields of bookkeeping, accounting and auditing. As such, he will be able to provide his professional – read: educated and informed - opinions on various matters in this regard.

One of the most important aspects of his work is providing guidance on the best accounting method to use – cash versus accrual. All other aspects of bookkeeping, accounting and auditing as well as compliance with business laws will be affected or influenced by your final decision on it. Let’s take a closer look at the pros and cons of both accounting methods, which our Rochester accounting firm can be of valuable assistance.
Basics of the Methods

Keep in mind that the Rochester CPA assigned to your business has comprehensive knowledge of both types of accounting methods. Don’t hesitate to ask questions because the more you know about the methods, the more effective you will be able to use it in your business. Let’s start with the basics.

In cash accounting, cash outflow and cash inflows are recognized as recordable transactions as soon as the money changes hands (i.e., from your business to the supplier or from the customer to your business). As such, sales made without cash payments (accounts receivables) are not considered as income in the same way that expenses made without cash payments (accounts payable) are not recorded as expenses on the books of accounts.
In accrual accounting, the transaction including receipt of income and payment of expenses are counted regardless of whether cash and other assets actually exchanged hands. Income is recognized when sales are made and expenses are recorded when these are also made. Your assigned Rochester CPA will usually recommend this method for compliance with existing laws, rules and regulations on the United States including its tax laws.

Impact on Tax Planning

Your choice between cash and accrual method of accounting will affect your declaration of taxes. Keep in mind that you want to minimize your declared income and/or maximize your declared expenses in the year when your estimates point to the highest income. The result: You will pay lower taxes without being slapped with an IRS complaint.

Tips that the Rochester CPA may provide on this matter:

• For cash accounting - Ask your customers to pay their accounts during the year when you plant to take in the highest income. Pay your bills during the year when your estimates point to the highest income, thus, allowing for higher deductible expenses and lower taxes for the year.

• For accrual accounting - Send out the bills for your customers’ account receivables before the end of the present fiscal year or after the beginning of the succeeding fiscal year; decide the year when the income should be recorded. Ask the vendors to send you their bills for your accounts payable in the year when your financial plan demands the highest expenses.

Are you confused by now? Don’t be. That’s where you can turn to our Rochester CPA in particular or our Rochester accounting firm for professional assistance. for more inquiries please click here

Avoid Rookie Mistakes When Selecting CFO Outsourcing Services

The company you choose to handle your CFO outsourcing is going to impact your financial management system. Their goal will be to ensure that your company’s performance improves, while helping to better manage operations and funding. It is with this in mind that you should look to working with a Rochester consulting firm and ensure that they are going to be qualified to help guide you through this entire process. This may take some time, but in the end, it will help you to avoid serious rookie mistakes.

This begins by understanding that good companies will not require you to sign a long term contract with the CFO outsourcing company. While there may be documentation that you sign to utilize the services of this corporation, you shouldn’t be required to commit to a specific amount of time. After all, you may only need the services of the company a few times and a particular CFO might not meet your needs. In the event that you do choose to stick with an individual for a long term, ensure that they are able to commit the time and understand what you will be looking for in their services. That way it will remain mutually beneficial.

It will also be important that any CFO you consider shouldn’t be a part of your company. This individual should be part time at the most and paid through a 1099 form. This allows you to avoid payroll and having to include this individual on your company healthcare. While you are securing the individual that is being recommended, ensure that their standard fees will fit into your budget. Some companies will have an hourly rate for this individual, while others may allot you a maximum of so many hours with the CFO and they receive a flat payment, no matter how many hours are spent with your company.

Above all, the goal is to choose someone who can handle this role and the challenges that come with it. Typically, young adults and those with less than 15 years of experience in an industry don’t tend to be good choices. The reason is that they might not have faced many of the issues you are going through and it will be important that the person you take on is able to deliver fast, effective results. If specific concerns or issues are going to come up, let the Rochester consulting firm that will help you with your CFO outsourcing know in advance. This will reduce the risk of you taking on someone who might not meet your needs and it can help to build a level of mutual trust and understanding about what your needs are, while ensuring that they are being met.

How CFO Outsourcing Can Boost Your Business

In today’s economy, more of the smaller companies are now being faced with the same financial challenges that were once reserved for larger corporations. Sometimes this is the struggle of shutting down doors and unloading assets. In other cases, it is a sudden growth that that needs to be capitalized on. In both  scenarios, CFO outsourcing can be useful. When hired through a Rochester consulting firm, you will have access to an experienced individual who will remain dedicated to taking your business to that next level.

One of the most common reasons people turn to a Rochester consulting firm to handle their CFO outsourcing needs is money. While these companies need the experience of this viral roll, there isn’t often enough cash flow to justify the costs that come with filling a full time position. When outsourced, the company is only charged with the time that is spent helping them directly.

With the professional in place from the CFO outsourcing company, they will begin to go over the financial statements of your business. In many cases, this person will be a Rochester CPA who will look for incomplete or inaccurate data and then fix it quickly. The result will be that your financial information is up to date, while ensuring it meets the current accounting standards that are in place. With this information done, you can move on to the financial decisions that will impact your business.

As soon as the complete financial statement is available, banks and vendors can receive copies of these statements to determine if credit can be issued for you. Knowing that the records are accurate, you are getting a realistic picture of what is available to you. Some companies may also be willing to raise your limit, as they have more faith in your bookkeeping practices, knowing that a professional is handling them.

Another benefit that can occur when you utilize these professionals is that you can determine if any theft or fraud is taking place in your company. The unfortunate truth in a small business theft of a variety of things happens all the time. This includes lists of customers, cash, inventory and everything else. With the CFO going over your records and keeping track of things, you will be able to find a problem right away and this professional can help you to tackle the concern before it becomes a bigger issue.
  
You are going to find that there are some great Rochester consulting firms that will be able to help you take your business to the next level. Just make certain you keep these essential points in mind and do what you can to motivate you to take the next steps and begin working with a professional CFO for your company.

Your Accountant Can Do More than Taxes and Crunching Numbers

When most people walk into any Rochester accounting firm, they are only interested in having their books done. This can be just basic bookkeeping, or tracking assets for several companies. In some cases, the Rochester accountant may even be hired to do a simple audit for a company.

But there is so much more that this professional can do for you. You might not realize this, but beyond your basic finances and tax planning, this professional will be able to help you with more areas of your business.

Most professionals working in a Rochester accounting firm will have a great deal of knowledge and expertise in the world of business. Since the industry standard is a Master’s in Business Management Accounting, they are going to know more than just how to run the book. In fact, the time that they have spent in colleges learning this information usually gives them a good eye that can help you through some of the other situations your business is going through.

In fact, business plans and even a business succession plan can be handled by your Rochester accountant. They can even help you to go through the process of forming partnerships, trusts, estates and other legal elements that you might not be able to do on your own. Thanks to their understanding of business and tax law, you can have some peace of mind in knowing this is being done properly.

Even when your company is face is a bankruptcy, this team of professionals is going to be able to guide you through the steps, to ensure that your best interests are kept and that your company is left with options that could result in it eventually being saved. This comes from understanding and deciphering the details of the local and federal laws and knowing what your options are. While you could do this on your own, the accountant is going to end up being your best choice.

No matter what Rochester accounting firm you choose to handle your tax planning, audits or even business assistance, it will be important that you do ensure that they are certified to help you. An example would be a Rochester CPA, as they have the right knowledge and tools available to them, to help ensure that they are giving you the best guidance possible.

Remember, this is your business and your life that is going to be impacted. Make sure you take a moment to ensure that you are hiring the best. What you will find is that the area offers a variety of professionals who have different levels of experience you can choose from. It is important you choose the most qualified individual that you feel comfortable around as there is a good chance you will be seeing a lot of each other.

Getting the Most Out of a Trip to the CPA

No one would ever list a visit to a Rochester CPA as being the most enjoyable experience. Seriously, not all that many people will connect a visit to an accountant's office as being something that can be deemed adventurous. Then again, we can amend that statement somewhat. The excursion to a Rochester accountant can end up being really adventurous in terms of making the entire process of making sense of your tax and business information in a veritable high seas adventure loaded will all the twists and turns of an old pirate movie.

Do you really want things to turn out like that? You probably do not and for good reason. Chaos and confusion at the office of a CPA does not exactly contribute to getting the most out of the session. Instead, it lays the foundation for creating more problems for yourself. A Rochester CPA can only do so much. You have to do your part and be responsible for making the meeting with the CPA as productive as possible. Setting Up the Right Meeting The best way to get the most out of the meeting is to set the right one up and make it targeted and focused. When you set up an appointment with a Rochester accountant to file your taxes, you should remain clearly focused on the subject of taxes. You do not want to be jumping around to other areas of business unless the meeting with the account is long enough to adequately do so. Trying to cram too many matters into one single meeting is not going to be productive. As such, setting up a single session for a single topic is well advised when traveling to a Rochester accounting firm.

Being Thorough and Prepared During the Meeting, A Rochester CPA will be at a great disadvantage when the time comes to help you if you are not properly prepared for the meeting. This means you should bring all your 1099's, receipts, ledgers, and other vital documents. Your accountant will need to have all that information in front of him in order to make accurate assessments. Of course, all of these documents must be presented in an orderly way. You cannot just throw them all in a folder and hand them over hoping the accountant will make sense of it. That is not the most helpful strategy to follow. Offering thorough and well organized documents will be the only way you can be sure your CPA can do his job to the best of his ability.

Be As Honest and Forthright as Possible A common mistake clients will make with their accountants is they will not be honest in their dealings. They might not tell their CPA the full extent of their fiscal worries, problems and woes. This is not usually done for the purpose of being deceptive. Rather, it is done because there are feeling of embarrassment over having committed fiscals errors such as not filing taxes, getting heavily into debt, and so on. Such an attitude is a really bad one to have. It would be like not telling the doctor all that is wrong with you because you do not want to be diagnosed with a disease. The truth here is you still would have the disease and you are making it impossible to be treated. Similarly, when you visit a Rochester accounting firm, it you are not being forthright with your Rochester CPA, you will not be taking the necessary steps to fix your fiscal woes.

Inherent Characteristics of A SIMPLE IRA Plan

Tax planning is a long drawn process. However, this does not mean that it has to run throughout the year. In fact, in order to avail most tax benefits, a business needs to ensure that it has everything pertinent in place well in advance. This is exactly what we, as your chosen Rochester CPA, look to do for your business. There are various instruments that we try to use to get you the maximum Rochester taxes benefits. However, which ones fit your business depends entirely on the key nature of your business.



One of the instruments that we recommend for businesses looking for tax planning is the SIMPLE IRA plan. Here are some key characteristics of the SIMPLE IRA plan that should be of use to you.

1. Size of the business matters:

The first thing you need to know about the SIMPLE IRA plan if you are in the midst of tax planning is what any Rochester CPA would tell you. This is that the SIMPLE IRA is only limited to those companies whose employee strength does not exceed 100. This means that you can only avail the SIMPLE IRA plan if your business employs 100 or less than 100 employees.

2. Adopting the SIMPLE IRA plan:

If you know that your business meets the prerequisites then all you need to do is contact a Rochester CPA like us and ask them to set everything up for you.

We would ensure that you get the Rochester taxes benefits by choosing whether a Form 5304-SIMPLE, 5305-SIMPLE or a SIMPLE IRA prototype suits your organization the best. Subsequently, we would help you establish it.

3. Two forms of contributions:

There are two ways through which you can contribute in a SIMPLE IRA plan. You should note, however, that your benefits in terms of Rochester taxes would remain the same, regardless of your choice. Your choices would be between a matching contribution of up to 3 percent of the employee’s salary and a 2 percent contribution for each employee which would be non elective.

4. Mandatory exclusivity:

Establishing a SIMPLE IRA plan means, however, that you cannot partake in any other retirement plan. Effectively, this is something that needs to be assessed. This is also a stage of tax planning where you need our help as your Rochester CPA.

Basically, in our capacity as your Rochester CPA, we would assess whether the Rochester taxes benefits you would get from a SIMPLE IRA plan would be enough for your organization by themselves or not.
If we find during the tax planning procedure that you need more Rochester taxes deductions and exemptions then we would not recommend the SIMPLE IRA for you. In either case, expert guidance from an experienced Rochester CPA is something you should look for.