Gabrielle M. Luoma, CPA, PLLC

Please join us for our 2012 open house on Saturday, January 14th from 11am to 2pm at our office to kick off this tax season!  Our office is located in Northwest Tucson, on the Northwest corner of Ina and Mona Lisa right by the Foothills Mall.  Our address is 7225 N. Mona Lisa Road, Suite 210.  For more information about how to get to our office, do not hesitate to call!

Refreshments will be provided as well as a chance to win a giftcard to the Cheesecake Factory or 4 tickets to the Casino Del Sol All Star Game on January 16th!

If you are not already a client, this is the perfect opportunity to come meet Gabby and her staff and pick up a 2011 income tax organizer to help organize your information and make the tax season as pain and stress free as possible.  If you are not familiar with Gabrielle M. Luoma, CPA, PLLC please check out the “About Us” page and see why hundreds of people a year are switching their businesses and individual accounting, tax, and consulting needs over to to Gabby and her team.

If you are planning to open a new business, there are a number of tax and accounting issues you need to be aware of. The following are some of the more commonly encountered issues a new business owner needs to cope with.

1. Entity Selection – First, you must decide what type of business entity you are going to establish. The type of business entity will determine which tax form you have to file. The most common types of businesses are the sole proprietorship, partnership, corporation, S corporation and limited liability company. This office can assist you in making that determination and setting up the chosen entity. Depending on the type of entity you choose, you may also need the services of an attorney to complete legal documents required to establish the business.

2. Taxes – The type of business you operate determines what taxes you must pay and how you pay them. The four general types of business taxes are income tax, self-employment tax, employment tax and excise tax. This office can assist you with the filings required for whichever business entity you select.

3. EIN – An Employer Identification Number (EIN) is generally used to identify a business entity. If you organize your business as a partnership or corporation, you will need an EIN. If you operate as a sole proprietorship, you will also need an EIN if you have employees or a Keogh pension plan. This office can assist you in determining your need for an EIN and help you obtain one.

4. Local Business License – Depending upon the community in which your business is located, you may also be required to obtain a business tax permit (which is sometimes referred to as a business license). This office can help you determine the need for one and assist with filing the application.

5. Sales Tax Permit – If the new business has retail sales, you will need to obtain a sales tax permit and periodically remit the sales tax collected from the sales. This office can assist you with obtaining the permit and setting up the payments. Even if you won’t be operating a retail sales business, you may need to register with the state for use tax purposes. Again, this office can help you with that registration if it is required.

6. Payroll – If you have employees, you will have to withhold and remit payroll taxes to the federal, state and sometimes local governments. We can help you set up your payroll system and register with the appropriate governmental agencies.

7. Information Reporting – If you make payments totaling $600 or more for the year to individuals who are not your employees, you will be required to issue a 1099-MISC to that individual shortly after the end of the year. This requires obtaining the individual’s name, SSN, and address prior to paying them for the first time. This requirement is extended to payments you make to corporations in 2012. This office can help you establish a procedure for collecting the required information and preparing the required filings after the close of the year.

8. Recordkeeping System – Establishing a good recordkeeping system right away can save a lot of grief in the future. This office can assist you in selecting and setting up a recordkeeping system suited to your business.

9. Accounting Method – Each taxpayer must also use a consistent accounting method, which is a set of rules for determining when to report income and expenses. The most commonly used accounting methods are the cash method and an accrual method. Under the cash method, you generally report income in the tax year you receive it and deduct expenses in the tax year you pay them. Under an accrual method, you generally report income in the tax year you earn it and deduct expenses in the tax year you incur them.

In closing, it is always easier and less expensive to set things up correctly in the first place than it is to fix the mistakes later. Even if you plan to accomplish some of the tasks listed above yourself, we highly recommend you consult with this office to ensure you are doing what is needed correctly and on time. There may also be other issues not included above that also need to be dealt with when setting up your particular business.

• Are you sick of being dazzled by your CPA and just want straight talk that you can understand?
• Do you want to work with a CPA that you like and enjoy working with?
• Do you feel frustrated by having to wait weeks or even months to get your taxes done?
• Would you like personalized attention?
• Is your CPA friendly and happy to see you?
• Do you want someone on your side? Someone who will be your advocate and trusted advisor?
• Wouldn’t it be nice if you could feel a peaceful feeling when you thought about your taxes?
• Would you like pertinent tax information throughout the year instead of only hearing from the CPA when it’s time to pay?
• Do you want to make sure you are paying less in taxes and have the right tax plan going into the future?
• Do you want to save money?

IF YOU ANSWERED YES TO THREE OR MORE OF THE ABOVE QUESTIONS, DON’T WAIT, TAKE ACTION TODAY! It will be the best thing you’ll do for yourself for 2010. Contact Gabrielle today and receive a free initial consultation, with free tax advice on how to save more money on your taxes specific to you. Good until May 15th. This consultation will change the way you see CPA’s and will help you stay on the right track for 2010. A $150 Value.

Savvy business owners use a Certified Public Accountant to help with their taxes, knowing that training and experience can help to dramatically boost tax savings. But a good CPA is more than just a tax advisor—he or she is a business expert who can help with a range of financial and business development concerns. If you’re interested in learning more about the types of assistance a CPA can offer, consider these tips:

• Budgets and Business Planning: Whether you’ve just launched a new business or own an existing corporation, seeking the advice of an experienced CPA can be very helpful in establishing realistic budgets and benchmarks for your business. A strategic plan can make the difference between success and failure in today’s marketplace; a CPA can help you set business goals, establish checkpoints to measure progress, and take measures to encourage growth within your company.
• Assistance with Bonding: Bonding and taxes have different objectives, and a CPA can help you navigate the two areas to achieve the consistency that is favored by bonding agents, increasing your chances of a money-saving tax return.
• Profit and Cost Assessment: In order to understand and improve upon your current business structure, it’s necessary to monitor your systems and consider the costs and benefits of various types of work. A CPA can be helpful in analyzing the profits and costs of various contracts, products, and services you offer, and can give advice on which of these services are most lucrative and which are costing more labor and overhead than they’re worth. This kind of assessment can help you streamline your work to focus on your most productive areas.
• Internal Controls: These can encompass anything from elaborate checks and balances to discourage fraud, to a simple streamlining of your company’s paperwork to make you more efficient. A CPA with experience in your industry can advise you on the best internal controls for your business.
• Technology and Software Support: Your CPA can be an important resource in advising you on any changes you need to make to the technology or software you need to run your business. He or she can suggest software that can improve your financial outlook, and may be able to tell you about compatible technology in other areas.

A CPA is an invaluable team member for any business. Tap into their diverse range of skills to support your company’s growth, stability, and success.

Believe it or not, the New Year is just around the corner, leaving many business owners scrambling to create a business plan for 2010. A sound budget is one of the cornerstones of any enterprise, large or small, and taking the time to plan ahead makes all the difference in crafting a realistic plan that will help your business grow stronger and more profitable.

If you’re a small business owner tasked with budgeting your resources for next year, keep the following tips in mind:

• Budget conservatively: It can be difficult to accurately predict income or expenses, so err on the side of caution. Assume that costs will be higher than anticipated and that income may be lower, and then craft a budget tailored to those pessimistic figures. You’ll be prepared for the worst, and if business in 2010 is as good as (or better than) you hope, it will come as a happy surprise.
• Be flexible: A budget is a plan, but it’s never set in stone. You may need to adapt or even rewrite your budget after the first quarter or half of the year. It’s important to factor in safety margins on spending. Set aside some money in an emergency fund, and try to assess each unexpected cost on an individual basis.
• Consider projected cash flow: Cash flow is the focus of your budget, and can usually be broken down into three categories:
  • Projected sales: How much income you expect to see this year
  • Direct cost of sales: The cost of each sale in terms of shipping, customer service, materials, and/or labor in production.
  • Fixed costs or overhead: These are costs that exist regardless of your sales, ranging from administrative expenses to office supplies and utilities.
• Use last year’s numbers as a basis: Last year’s figures can provide a rough scale for your 2010 budget estimates. Don’t get too attached to them, however, since costs and sales can vary widely from year to year.
• Involve the right people: Depending on the size of your company, it may be necessary to create or request budgets from each department. Even if you’re creating only one budget for the entire business, ask essential team members to contribute their thoughts and expertise. Getting the advice of a CPA or other financial expert can also help make your budget more realistic and viable.
• Be realistic: As you consider the advice of your department heads and your CPA, as well as last year’s figures, do your best to be realistic. It might be nice to assume that sales will rise by 50% next year, but it’s prudent to assume that’s not going to happen. If the unexpected occurs, either good or bad, will your business be prepared to sell more product or spend a little more than you had anticipated? Plan for as many contingencies as possible and do your best to use all the expertise and information available to you.