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It All Add$ Up September News
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Greetings!
In this month's issue of It All Add$ Up, we address important tax and filing implications that you need to know. Small businesses are favorite targets for IRS audits, so be sure to take a look at the tips on how to avoid an audit. Also, there's a new required form for any company with an EIN. We also review the implications to you and your decisioning ability based on a cash versus accrual basis accounting system. And last but not least, we're excited to announce our new referral program and hope you are too.
We put the AX to your TAX worries!
Lauri
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TIPS TO AVOID AN IRS AUDIT
 No one wants to receive that dreaded letter from the IRS telling them they are being audited. Now more than ever before, small businesses and self-employed persons are favorite targets of IRS audits. Appropriate deductions, dividends, and keeping good records are all part of the equation. Why chance guessing about a particular deduction when there are tax professionals that study the tax code and ensure you are receiving the deductions that you're entitled to. Read on to see what the IRS will target for small businesses.
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NEW FORM 8822-B FOR BUSINESSES
Beginning January 1, 2014, any entity with an EIN must file Form 8822-B, Change of Address or Responsible Party - Business, to notify the IRS of a change in business mailing address, location or the identity of a responsible party. Form 8822-B must be filed within 60 days of the change. If the change in the identity of responsible party occurred before 2014, file Form 8822-B before March 1, 2014, reporting only the most recent change. Generally, it takes 4 to 6 weeks to process an address or responsible party change.
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CASH BASIS ACCOUNTING VS. ACCRUAL ACCOUNTING
 We've all heard the phrase Cash is King...money in and money out. What type of accounting system is right for your business - Cash Basis or Accrual Accounting? Your net income number can change depending on which method your books are set up for. Timing can play an important role in how you account for income. Understanding the difference between the two can also impact purchasing and pricing decisions that can leave you in the red or the black at the end of the year. Learn more about these two systems and see if you're falling into the pricing trap when pricing your services.
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Our best source for obtaining new business is a satisfied client. Effective October 1st, we are launching a customer referral program for business referrals that turn into new Paxton Bookkeeping clients. This program applies to small business bookkeeping services only. For each new client referral that becomes a Paxton client, we will either credit your monthly bill or provide you with a $25.00 gift card. We appreciate the referrals and rest assured that we will treat each new account with the same dedication to detail as you receive.
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