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Q. Why should I choose a monthly accountant vs. less frequent methods of accounting?

A. Monthly accounting services provide substantially more value than only an annual service. If an accountant only sees your numbers once a year, it is too late to offer advice that would have helped to make that year more profitable. And it's definitely too late to lower your tax liability for a year that is already over with. There are at least five ways monthly accounting pays for itself:

Q. Do you have tax issues that have accumulated over the years, i.e. delinquency in paying taxes, or your return is under examination?

A. If so, you are not alone. Our advice is unwavering: do not, under any circumstances, approach this situation without the advice and assistance of a seasoned professional with a strong track record of dealing with the IRS. The senior staff at Expedient Accountants will represent you before the IRS and negotiate on your behalf to reduce your outstanding balance and arrange for the optimum resolution (for example, an Offer in Compromise, or OIC).

Q. How do I tell if I've outgrown my current accounting firm?

A. As your business expands, your financial needs and concerns will likely change … often dramatically. There are three tell-tale signs you've outgrown your firm:

As your business continues to grow, your accountant should be someone you check in with about any major decisions. They should always be ready and available with quality advice that addresses your unique concerns. The right accountant will both save you money and set you up for long-term financial success. Our monthly accounting services offer true financial partnership for your business that includes ongoing support and profitability guidance. Contact Expedient Accountants to learn more @ 732-390-5333.

Q. Why should I consider an outside accounting service?

A. If your business is too small to hire an in-house accountant or you simply don't have the desire to do it yourself, you should consider outsourcing the task. While QuickBooks is used by many small-business owners, the software can be more complicated than first realized. By outsourcing your accounting, you free yourself to focus on other aspects of your business.

Additionally, the right accountant partner can offer you an outside perspective based on years of experience with other businesses like yours. In this way, you may hear fresh new ideas or constructive criticisms that generate immense amounts of revenue in the long run.

Q. Employee or Independent Contractor? Which is it?

A. If you hire someone for a long-term, full-time project or a series of projects that are likely to last for an extended period, you must pay special attention to the difference between independent contractors and employees.

Why It Matters

The Internal Revenue Service and state regulators scrutinize the distinction between employees and independent contractors because many business owners try to categorize as many of their workers as possible as independent contractors rather than as employees. They do this because independent contractors are not covered by unemployment and workers' compensation, or by federal and state wage, hour, anti-discrimination, and labor laws. In addition, businesses do not have to pay fe

Caution: If you incorrectly classify an emp loyee as an independent contractor, you can be held liable for employment taxes for that worker, plus a penalty.

So What Is The Difference Between Employees and Independent Contractors?

Independent Contractors are individuals who contract with a business to perform a specific project or set of projects. You, the payer, have the right to control or direct only the result of the work done by an independent contractor, and not the means and methods of accomplishing the result.

Example: Sam Smith, an electrician, submitted a job estimate to a housing complex for electrical work at $16 per hour for 400 hours. He is to receive $1,280 every 2 weeks for the next 10 weeks. This is not considered payment by the hour. Even if he works more or less than 400 hours to complete the work, Sam will receive $6,400. He also performs additional electrical installations under contracts with other companies that he obtained through advertisements. Sam Smith is an independent contractor.

Employees provide work in an ongoing, structured basis. In general, anyone who performs services for you is your employee if you can control what will be done and how it will be done. A worker is still considered an employee even when you give them freedom of action. What matters is that you have the right to control the details of how the services are performed.

Example: Sally Jones is a salesperson employed on a full-time basis by Rob Robinson, an auto dealer. She works 6 days a week and is on duty in Rob's showroom on certain assigned days and times. She appraises trade-ins, but her appraisals are subject to the sales manager's approval. Lists of prospective customers belong to the dealer. She has to develop leads and report results to the sales manager. Because of her experience, she requires only minimal assistance in closing and financing sales and in other phases of her work. She is paid a commission and is eligible for prizes and bonuses offered by Rob. Rob also pays the cost of health insurance and group term life insurance for Sally. Sally Jones is an employee of Rob Robinson.

Independent Contractor Qualification Checklist

The IRS, workers' compensation boards, unemployment compensation boards, federal agencies, and even courts all have slightly different definitions of what an independent contractor is though their means of categorizing workers as independent contractors are similar.

One of the most prevalent approaches used to categorize a worker as either an employee or independent contractor is the analysis created by the IRS, which considers the following:

Minimize the Risk of Misclassification

If you misclassify an employee as an independent contractor, you may end up before a state taxing authority or the IRS.

Sometimes the issue comes up when a terminated worker files for unemployment benefits and it's unclear whether the worker was an independent contractor or employee. The filing can trigger state or federal investigations that can cost many thousands of dollars to defend, even if you successfully fight the challenge.

There are ways to reduce the risk of an investigation or challenge by a state or federal authority. At a minimum, you should:

If you have any questions about how to classify workers, please call Expedient Accountants @ 732-390-5333 to discuss.





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