Why Small Businesses Should Outsource their Bookkeeping

We all get 24 hours in one day. But between answering texts, emails, filling staffing holes, attending meetings, networking, attaining funding and trying to have a personal life, how do business owners also run a successful company with 24 hours in a day?

Working with outsourced accounting and bookkeeping firms, you can surround yourself with experts, provides sound counsel, allows for business owners to focus and, and ultimately, increases profits. They are a trusted source of deep knowledge in an aspect of business and can quickly identify risks facing the operation and understand common pain points.  In addition to  bringing  solutions, best practices and efficiencies to quickly get to the desired solution.

Working with outsourced  accounting and bookkeeping firms also encourages owners to get answers to pertinent and sometimes not yet considered questions to prevent a sticky situation down the road. These questions also encourage decisions  to help get to a good consideration.

Most small business owners start a business to give themselves an outlet for their passion, not to meddle with bookkeeping, payroll and tax compliance. With outsourcing your accounting and bookkeeping it saves time and resources to keep your business needs rolling so you can invest in your passion.

A good accounting and bookkeeping firm will work to increase a company’s profitability.  While it’s true partnering with an accounting and bookkeeping firm requires an initial investment.  Accounting and bookkeeping firms offer turnkey services.  These add efficiencies lowering operation expenses, giving a leg up on the competition, an ultimately maximizing profits.

Ultimately, outsourcing your bookkeeping to experts is worth it.  Accounting and bookkeeping firms invest in making your business better and, in the end, provide efficiencies that add to the bottom line.  In addition, you’ll be able to grow your business, focus on what you do best, and lower your stress.

T. Williams & Associates believes when our client wins, our firm wins.  We will invest as much of ourselves to see your business succeed.  In the past 10 years, T. Williams & Associates have helped many small businesses get a handle on their accounting and bookkeeping needs by automating their back office finances, so they can increase cash flow, grow faster, and save more money on their returns.  You can use this link to reserve some time to chat: https://twilliamsassociates.youcanbook.me    Or just call us directly at 816-251-4527.

In the meantime, you can learn about our firm here: https://www.twa-accountingservice.com/

State-Funded Home Care Services – Available in Missouri

Consumer-Directed Services  (CDS)  funded through Medicaid to allow Medicaid eligible individuals with a disabling condition to choose their own attendant, aide or caregiver, including any family member (except spouse) to help with daily tasks in their homes.

Hire a qualified person (such as a family member, neighbor, or loved one, with the exception of a spouse or anyone under the age of 18) to help you with  daily living activities:

  • Dressing
  • Bowel and bladder elimination
  • Meal preparation and consumption
  • Transfers
  • Personal hygiene
  • Shopping and transportation
  • Maintenance and use of equipment and prostheses
  • Housekeeping
  • Ambulation and other functions of living

And, TWA Consumer Directed Services will pay your attendant an hourly salary to provide “hands-on” personal assistance that benefit YOU!  TWA CDS pays a premium salary from $9.20 to $10:00 per hour and up, depending on experience.

Consumer-Directed Option Eligibility Criteria

To receive TWA Consumer Directed Services all the following must apply:

  • Medicaid Eligible;
  • At least 18 years of age;
  • Able to direct their own care;
  • Capable of living independently with CDS;
  • Have a disabling condition that results in a need for assistance with daily living;
  • Meets state requirements  no cost nursing evaluation

TWA Consumer Directed Services number one goal is providing exceptional services to improve the lives of every person we work with.  We offer our clients the personal attention that will assist them in achieving their goals.   To begin services with TWA Consumer Directed Services, contact our CDS specialist today at 816-251-4529 or  click here to download our TWA CDS brochure  to learn more about TWA Consumer Directed Services and CDS. 

Tax Reform Raises the Use of The Cash Accounting Method.

The Tax Cuts and Jobs Act accounting method provisions are allowing businesses greater use of the cash method of accounting and exemption from complex tax rules. An accounting method is the set of rules that apply to determine when an item or deduction is taken into account for tax purpose. The two most common methods are cash and accrual. Once an accounting method is established, it generally must be used consistently from year to year.



The cash methods available to only small business are generally simpler than the accounting methods required to be used by larger businesses. Under the cash method of accounting, income is generally recognized in the year cash is received and deductions are generally taken into account the year an expense is paid. Under the accrual method of accounting, income and expenses is generally recognized when earned or incurred, even if payment is received in a later year. Prior to December 31, 2017, limitations applied to corporations and partnerships with corporate partners. These taxpayers were prohibited from using the cash method of accounting for tax purposes unless their gross receipts were $5 million or less.  Beginning December 31, 2017, the threshold has increased to $25 million.



The IRS guidance ,released August 3, 2018, is allowing small businesses with annual grow earning of $25 million or less in the prior three-year period to use the cash method of accounting.  Business taxpayers are permitted under the Tax Cuts and Jobs Act may obtain an automatic consent to change accounting methods starting after December 31, 2017.

Under the new law, allows more taxpayers to use the cash method of accounting.  Taxpayers switching from the accrual method to the cash method is required to complete Form 3115 to make this change. Businesses must apply the gross receipts test each year to determine whether it continues to be eligible to use the cash method.

Tax reform has dramatically changed US federal income tax rules. Consult your accountant or tax advisor to develop a tax strategy to determine whether a change in accounting method is consistent with that strategy.


Disabled or Ill Missourians Can Choose Their Own Care Providers

Most ill or disabled Missourians can remain in their own homes and avoid or delay institutionalization with the help of Consumer Directed Services. Consumer Directed Services (CDS), administered by the Missouri Division of Senior and Disability Services (DSDS), are available to eligible persons at least 18 years old who have Medicaid or potentially Medicaid eligible and in need of support.

The whole point of the Consumer Directed Services program is so the person receiving services can  hire the person of their choice to provide care and assist with daily tasks such as bathing, dressing, cleaning, meal preparation,  and shopping, and be in charge of when and how most of their personal needs will be met. That’s the beauty of the Consumer Directed Services program — the person who gets the care controls the care.

The attendant may be a friend or family member, at least 18 years of age, but cannot be a spouse or legal guardian.

TWA Consumer Directed Services will pay your personal attendant salary is available to assist consumers with enrollment support, training and managing their caregiver, perform and process payroll, emergency back-up plans, criminal background checks, and helping find non-family workers.

TWA supports the consumer in directing their CDS program, and services as a liaison between the individual and the CDS program, assisting individuals with whatever is needed to sustain them as they direct their own services and supports.

TWA Consumer Directed Services number one goal is providing exceptional services to improve the lives of every person we work with.  We offer our clients the personal attention that will assist them in achieving their goals.   To begin services with TWA Consumer Directed Services, contact our CDS specialist today at 816-251-4529 or download our TWA CDS Brochure  to learn more about TWA Consumer Directed Services and CDS. 

How To Get Services Started?
Please contact TWA and talk with our CDS coordinator by calling 816-251-4529 to get more information about the CDS program.  Our CDS coordinator will discuss your current needs and gather the necessary information to get you enrolled with the CDS program.

Church and Non-Profits Record Keeping Requirement

All tax-exempt organization, including churches and religious organization (regardless of whether tax-exempt status has been officially recognized by the IRS) are required to maintain books of accounting and other records necessary to justify their claim for exemption in the event of an audit and accurately file tax and information returns that may be required.

Every church should adopt and implement a records management and retention policy that reflect its unique circumstances.

Books of Accounting and Other Types of Records
There is no specific format for keeping records. However, the types of required records frequently include organizing document such as bylaws, minute books, property records, general ledgers, payroll records, and banking records. The extent of the records necessary generally varies according the type and size of the organization.

Length of Time to Retain Records

7 Years

  • Bank Statements, checks and reconciliations
  • Acquisitions and disposition of property
  • Contributions records
  • Accounts Payable and Account Receivable records
  • Payroll tax records and registers

Permanently

  • Articles of Incorporation
  • Tax-Exempt Documents
  • By-laws
  • Annual Corporate reports
  • Corporate Seals
  • Minute Books
  • Signed Minutes of Board and all committees
  • Insurance Records and Payments (property and worker’s compensation)
  • W-2s, W-3s, 1099s, and 1096s
  • Financial Statements
  • General ledger detail

Most documents are kept 7 years mostly because IRS audits can go back a maximum of 7 years. There is no accepted standard for record-keeping, it’s totally up to the organization. Right now, the best way is with an electronic backup in PDF format.

Deciding What Business Structure Is Right For You

When you start a business, there are endless decisions to make. Among the most important is how to structure your business. Why is it so significant? Because the structure you choose will affect how your business is taxed and the degree to which you (and other owners) can be held personally liable. Here’s an overview of the various structures.


Sole Proprietorship

This is a popular structure for single-owner businesses. No separate business entity is formed, although the business may have a name (often referred to as a DBA, short for “doing business as”). A sole proprietorship does not limit liability, but insurance may be purchased.

You report your business income and expenses on Schedule C, an attachment to your personal income tax return (Form 1040). Net earnings the business generates are subject to both self-employment taxes and income taxes. Sole proprietors may have employees but don’t take paychecks themselves.


Limited Liability Company

If you want protection for your personal assets in the event your business is sued, you might prefer a limited liability company (LLC). An LLC is a separate legal entity that can have one or more owners (called “members”). Usually, income is taxed to the owners individually, and earnings are subject to self-employment taxes.

Note: It’s not unusual for lenders to require a small LLC’s owners to personally guarantee any business loans.


Corporation

A corporation is a separate legal entity that can transact business in its own name and files corporate income tax returns. Like an LLC, a corporation can have one or more owners (shareholders). Shareholders generally are protected from personal liability but can be held responsible for repaying any business debts they’ve personally guaranteed.

If you make a “Subchapter S” election, shareholders will be taxed individually on their share of corporate income. This structure generally avoids federal income taxes at the corporate level.


Partnership

In certain respects, a partnership is similar to an LLC or an S corporation. However, partnerships must have at least one general partner who is personally liable for the partnership’s debts and obligations. Profits and losses are divided among the partners and taxed to them individually.