Prescott Tax and Paralegal explains why outsourcing your bookkeeping will help prepare your Prescott business for tax season

As business owners, we tend to think we can do it all ourselves. Bookkeeping is one of those tasks that oftentimes gets dumped on the business owner and unfortunately, may be done wrong. Saving money is the goal, but if the bookkeeping is done incorrectly - or not done at all - it can cost your company a lot more money than it saves. Prescott Tax and Paralegal explains how outsourcing bookkeeping services for your Prescott business can prevent costly errors when tax season arrives.

Are you really utilizing your time and resources wisely?
You are an expert in your business. Taking precious time and resources away from operating and maximizing your business to do bookkeeping can spread you too thin and have a negative impact on your bottom line.

Taxes
Many small businesses get into tax trouble because owners are too busy running their business to do the bookkeeping required for accurate tax preparation. Outsourcing will not only save you unneeded stress, but it also ensures an accurate tax return - often resulting in paying less in income taxes. And no one wants to end up paying penalties and interest to taxing authorities.

Budgeting
A professional bookkeeping firm like Prescott Tax and Paralegal will be able to help you budget properly and find areas where perhaps you are spending too much money.

Experience & Expertise
One of the main benefits to outsourcing your bookkeeping to us is the benefit of many years of expertise and knowledge. Improving financial performance is and should be a goal to all businesses, and outsourcing gives you an edge to help you reach that goal.

Contact Us
Compliance with tax laws is a must, and outsourcing to a professional bookkeeping service is in your best interest. The experts at Prescott Tax and Paralegal can help by handling your bookkeeping needs, preparing tax returns and financial reports for your Prescott small business. To set up an appointment, give us a call at 928-778-3113. Learn more about all the services we offer at http://www.PrescottTax.com.

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Prescott Tax and Paralegal, your bookkeeping experts in Prescott, share why small businesses are likely to attract audits

Those dreaded audits! Why do small businesses seem to attract audits by the IRS? Prescott’s accounting experts at Prescott Tax and Paralegal, understand why small businesses are likely to attract audits and what you can do to help prevent them.

Fear not
There should be no unreasonable fear. In reality, an audit is simply a “second look” by the IRS on a business’ tax return. In an audit, the auditor compares the return to the business’ books, ensuring there are no errors or discrepancies. Many audits are completely random. As a compliance check, the IRS selects a certain number of returns every year.

Missteps to avoid
While most audits are completely random, there are some things you can do that increase the chances the IRS will pull your return aside for a closer look. Here are some missteps you can readily avoid:

• High meals and entertainment expenses. Here is where it can get kind of tricky. Meal expenses are legitimate business deductions, but you need to be able to prove that the expenses are ordinary and necessary. Don’t let fear of an audit stop you from deducting these expenses, but make sure you keep good records. detailing every expense: include the names of the people or group in attendance and the business relevance of the meal, or travel expense. Entertainment expenses are no longer deductible.
• Home office deductions. Home office deductions are legitimate tax deductions, but your home office must be used “exclusively and regularly” for business. Your home office needs to be a designated area in your home for your work, not just a kitchen counter or table in the bedroom. Also, be honest about the square footage when you do your calculations for your tax return.
• Vehicle expenses. Unless your vehicle is owned by your business, don’t claim that 100% of your automobile expenses are for business use. In most cases, you are better off recording and claiming your mileage at the standard mileage rate the IRS publishes each year instead of claiming your actual automobile expenses. It is important to keep detailed mileage records as required by the IRS.
• Not keeping receipts. If you do not have the receipt to prove the expense, the expense will be disallowed by the IRS.

Your accounting experts at Prescott Tax and Paralegal understand why small businesses are likely to attract audits and what you can do to help prevent them. Prescott Tax & Paralegal is here to help. To set up an appointment, give us a call at 928-778-3113. Learn more about all the services we offer at http://www.PrescottTax.com.

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Your local Prescott paralegal experts, Prescott Tax and Paralegal, explain the importance of powers of attorney, including mental health powers of attorney

Often as parents age, children become concerned because the parent may become forgetful, or worse, be diagnosed with dementia or Alzheimer's. Both dementia and Alzheimer's fall under the umbrella of ailments that may require a Mental Health Care Power of Attorney. Being prepared to help loved ones who are suffering from dementia is often easier when they have properly prepared their Estate Planning Documents prior to being diagnosed.

A Durable Mental Health Care Power of Attorney is a legal document that names someone as the “agent” to take care of these matters. Having this power of attorney in place will save your loved ones money and difficulty down the road.

The first step is choosing an “agent” to care for you if you can no longer make decisions for yourself. You need to make sure whoever you choose to act on your behalf has your best interest at heart. This person(s) has the authority to decide if you need to be in a facility or if you can live outside of care, so it is very important.

There are two different POAs in the state of Arizona. One deals with mental health issues and the other deals with health care. Just having a Health Care Power of Attorney will not be enough if the person needs to make mental health treatment decisions. In that case, they will also need a Durable Mental Health Care Power of Attorney. In the Durable Mental Health Care Power of Attorney, you can authorize your trusted agent to give you treatment that you say you don't want, and to place you in a level 1 facility which is a locked facility. 

Those two choices frighten many people. However, the reality is that when a loved one is diagnosed with dementia at some point it may become necessary to place that person in a locked facility to keep your loved from wandering and dying from exposure. As the condition of a person with dementia worsens, so does troubling behavior such as agitation and paranoia. Patients are often prescribed anti-anxiety medication to relieve the symptoms, however because of the paranoia, they believe that someone is trying to poison them and state that they don't want the necessary medication.

The implications of not preparing with a Durable Mental Health Care Power of Attorney would be putting your family in a position to secure treatment through an emergency guardianship which can be very expensive and a hassle, at the least.

Rememberyou must create the Durable Mental Health Care Power of Attorney while you are still able to make decisions. A big mistake people make is trying to do it after a diagnosis of dementia, which is generally too late. The best thing to do is to have one, and hope it is never needed.

If you believe it wise to look at your estate planning and make sure that a Durable Mental Health Care Power of Attorney is included, Prescott Tax & Paralegal is here to help. We are your local paralegal experts in Prescott, we prepare legal documents for any legal matter, and offer assistance in filing documents with the appropriate agency. We also provide procedural information for our clients, and can refer you to an attorney when needed. To set up an appointment, give us a call at 928-778-3113. Learn more about all the services we offer at http://www.PrescottTax.com.

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Prescott Tax & Paralegal, your paralegal experts in Prescott, reviews Arizona divorce proceedings

Everyone plans on living happily ever after on their wedding day. Unfortunately, sometimes things don’t work out the way we plan and the discussion turns to divorce. Because the legal procedure for divorce varies from state to state, Prescott Tax & Paralegal, your paralegal experts in Prescott, would like to share some information about divorce in Arizona.

• In Arizona, the legal name for a divorce is Dissolution of Marriage. The time that it takes to get a dissolution or divorce varies from case to case. State laws require that you wait 60 days from the date of service before a final decree can be entered. . After the 60 days from the date of service passes, the steps necessary to obtain a divorce will greatly depend on your situation.
• The person filing for the divorce is called the Petitioner. The person responding to the divorce is called the Respondent. If both parties agree to all issues within the case, the case may proceed by the parties filing a consent decree.
• The divorce may be less complicated if the parties have been married for a relatively short period of time, have no children, and have little property or debt. In a case where the parties have been married for a lengthy period of time, have minor children, or where there is a significant amount of property or debt to be divided - and the parties are in disagreement - the process may take much longer.

If the Petition for Dissolution has been filed and served on the other party and a response has not been filed within the allotted time period, the filing party may apply for a default.

Making sure the necessary paperwork is filed in a complete and timely manner, and in the proper order is important. If you find yourself in this situation and need help filling out forms or understanding the divorce process, Prescott Tax & Paralegal, your paralegal specialists in Prescott, are here to help. We prepare legal documents for any legal matter, and offer assistance in filing documents with the appropriate agency. We also provide procedural information for our clients, and can refer to an attorney when needed. To set up an appointment, give us a call at 928-778-3113. Learn more about all the services we offer at http://www.PrescottTax.com.

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Prescott Tax and Paralegal helps you see the value in outsourcing the bookkeeping and accounting work for your Prescott business

Maybe you have thought about outsourcing some or all of your bookkeeping and accounting, but have yet to determine how cost effective outsourcing this area of your Prescott business really is. Let Prescott Tax and Paralegal help you realize some of the value in outsourcing your bookkeeping and accounting.

Freeing up your valuable time
Freeing up your valuable time to do what you do best is one reason to outsource your bookkeeping. Growing your business is what you do best.

Cutting overhead
When you outsource, you are only paying for work done, as opposed to paying a wage, payroll taxes, vacation, sick leave, training and recruiting costs when it is time to rehire.

Getting the very best
Outsourcing companies work for many businesses, so their staff gets trained by doing work for multiple firms. When you outsource, you get the advantage of this learning curve, which gives your firm the best that is out there. Basically, that is a competitive advantage for you.

Adjusting to your business cycles
Workload fluctuates, and that is true for accounting and bookkeeping, too. When outsourcing, during times when the workload is heavy and you need additional help, you will be able to adjust the work and your costs upward. This is not as easy to do with your own hired staff.

Outsourcing your bookkeeping and accounting may be a very strategic move for your Prescott business. For help in this process, or if you have questions about outsourcing your bookkeeping and accounting and what is involved, contact Prescott Tax and Paralegal at 928-778-3113. To learn more about the services we offer, please visit our website at http://www.PrescottTax.com.

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Let Prescott Tax & Paralegal Help with Your Bookkeeping Needs

Prescott Tax & Paralegal understands the demands of owning a small business, and the difficulty in finding time to keep ledgers of payables and receivables. Accurate bookkeeping is critical to running your Prescott business efficiently, since financial transactions all lead to the bottom line. For many small businesses, hiring a full-time bookkeeper may not fit in your budget.

Many business owners handle their own bookkeeping duties in an effort to cut costs, but this could be an unfortunate mistake. Compliance with business tax laws is a must, and outsourcing to a professional bookkeeping service could prevent costly errors.

There are many ways we can help your business with its bookkeeping needs, such as:

• Keeping track of receipts, payments, sales, invoices and making sure all expenses are properly identified for tax purposes
• Reconciling bank accounts - something that is often overlooked but is a critical detail in your monthly accounting cycle
• Preparing financial reports - Not only for income tax purposes, but so that you can see a true picture of your business and be able to make better business decisions be knowing how your company is performing
• Preparing sales tax forms for filing - If you have a business that is required to file an Arizona Transaction Privilege Tax on a regular basis, you may find it is far from simple.
• Payroll including filing the tax forms - If you have employees that you pay, making sure the proper withholding is taken and the appropriate deposits and reports are made - a very important factor in your business. A professional bookkeeper can help make sure they are done timely and accurately.

Prescott Tax & Paralegal offers external bookkeeping services for your Prescott business. Using a professional bookkeeping service can mean more time for you to spend doing what you do best - managing your business. And when business hours end, you can rest knowing that you don’t have to take time away from family or other activities to take care of all the bookkeeping! Our services can be tailored to your business needs! For more information on our professional bookkeeping services, or for a free consultation to determine how we can best meet your business needs, please call Prescott Tax & Paralegal today at 928-778-3113. To learn more about the services we offer, please visit our website at http://www.PrescottTax.com.

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Prescott Tax and Paralegal Looks at Pros and Cons of a Living Trust in Prescott

Most of you have probably been invited to one or more estate planning seminars discussing living trusts. Like everything in life, one size does not fit all. Prescott Tax and Paralegal would like to look at some items that need consideration when working on your personal estate planning in Prescott.

First, let’s talk about what a living trust actually is and what it does. A trust is an arrangement under which one person, called a trustee, holds legal title to property for another person, called a beneficiary. You can be the trustee of your own living trust, keeping full control over all property held in trust. A "living trust" is simply a trust you create while you're alive, rather than one that is created at your death under the terms of your will. The main advantage of making a living trust is to spare your family the expense and delay of probate court proceedings after your death. But do you really need a trust? Let’s look at the pros and cons.

Pros:

• First of all, should you become incapacitated, you have spelled out how the trustee should manage your trust assets in the terms of the document. Managing your assets this way is far superior to relying on a power of attorney document because:

• It will be recognized in all 50 states

• If the original trustee has died or become incapacitated, it will contain detailed provisions for who should be the successor trustee and how they are to be selected

• It will be recognized by banks and brokerage houses as valid, unlike many powers of attorney (which are frequently challenged or ignored by such firms, rightly or wrongly).

• Upon your death, the trust acts like a will and spells out who gets the trust assets, but it avoids the probate process.

• This ensures privacy of your distribution choices, usually avoids dealing with the court system and saves on attorney fees.

Cons:

• If your assets will avoid the probate process as they currently stand, then this approach may be redundant for your situation.

• Many people pay thousands of dollars to an attorney to draw up a detailed living trust for them, but then they fail to transfer title to their assets into the name of the trust (called “funding” the trust), or they fail to keep up with the proper titling after they purchase new items or real estate. In such cases, they are not taking full advantage of the benefits of the arrangement.

• Trust administration can be time consuming and costly depending upon the complexity of the distributions after death.

• After the Trust creator dies, the Trust pays income taxes at a higher tax rate than individuals and reaches the highest tax bracket of 37% when the Trust income reaches $12,501 (2018 tax rates)

Successful estate and trust planning is crucial to offering your family and loved ones financial security and peace of mind during a time of loss. In order to eliminate complications and ensure your wishes are followed, it's important to have a detailed plan as to how your assets will be distributed. For help in this process, or if you have questions about living trusts and estate planning in Prescott, contact Prescott Tax and Paralegal at 928-778-3113. To learn more about the services we offer, please visit our website at http://www.PrescottTax.com.

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