Mellor & Co http://mellor.co.uk Happy People are Properly Accounted People Tue, 02 Feb 2016 20:39:05 +0000 en-US hourly 1 http://mellor.co.uk/wp-content/uploads/2016/02/Charted-Accountants-Copy-150x150.png Mellor & Co http://mellor.co.uk 32 32 How Do I Know I Can Trust My Tax Preparer? http://mellor.co.uk/how-do-i-know-i-can-trust-my-tax-preparer/ Sun, 17 Jan 2016 05:36:51 +0000 http://mellor.co.uk/?p=2972 Read more]]> It ‘s hard to find a tax preparer if you have never used their services before. It doesn’t mean there are not plenty to be found. You will see as tax season draws near many small storefronts and ads in local papers regarding tax preparation. You will be doing yourself a favor if you set some guidelines as to what to look for when shopping for this type of professional service.

Is this tax preparation firm known?

If the name of the tax preparer is a well known one, then they have built their credibility. You may see them set up in small temporary locations, which is fine. Their area of expertise is taxes, and they only require business space during that time. It makes good sense that they would utilize temporary locations.

Does this tax preparer have a good reputation?

Many people use these types of tax preparation services. Word soon gets around as to who is professional and who isn’t. If you are finding that an established tax service is not busy, yet it is getting close to the tax filing date, you should be a little concerned. The good firms are extremely busy almost right up to the deadline.

Cheaper is not always better?

Looking for the cheapest tax preparer is not always a sure thing that you are going to get a bargain. If the tax preparer has no experience or training, you could end up losing far more on your taxes than what it would cost for reputable tax preparation services.

Privacy of Information

You need to be able to trust your tax preparer with your documents and personal information. If your neighbor happens to be a formal tax preparer, then he should be professional enough that he does not disclose your personal information. If possible, you are better to have someone that is not affiliated with you complete your tax return, even if your friend is a professional tax preparer.

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Getting all The Documentation to Your Tax Agent http://mellor.co.uk/getting-all-the-documentation-to-your-tax-agent/ Sun, 17 Jan 2016 05:30:57 +0000 http://mellor.co.uk/?p=2974 Read more]]> One of the biggest mistakes individuals make at tax time is to be disorganized. As tax documentation begins to accumulate, it becomes a habit of many to tuck these important pieces of information away in a drawer and forget about them.

Many taxpayers rush off to their tax agent in a panic as the tax deadline is drawing near. Then they soon discover that they are missing documents necessary to prepare and file their taxes. A tax agent cannot prepare a tax return with missing information. You will find that they will put your return on hold until you can provide them with what is missing.

There are occasions where you simply did not get all of the required documentation or you have lost it. You then need to explain this to the tax agent. His option is to prepare the taxes as completely as he can with what he has got.

Then a letter of explanation will need to be attached to the return, explaining the reasons for the missing documents and what steps you are taking to rectify the issue.

It is better to take this course of action then not file at all. Otherwise, you run the risk of paying a late penalty fine. If you have not received your necessary documents from your employer for example, then this can be explained in your letter.

The tax agent should be able to explain the laws concerning this, and may be able to give you specific instructions on what to do about it. Employers are compelled by law to give the necessary paperwork to their employee by a specific time for them to be able to prepare their taxes.

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Why Businesses Need Quality Bookkeeping http://mellor.co.uk/why-businesses-need-quality-bookkeeping/ Sat, 02 Jan 2016 01:49:06 +0000 http://yeget.com/?p=2642 Read more]]> Bookkeeping is an absolutely essential part of operating a business. The business’s financial information needs to be accurate, complete and detailed for several reasons. Poor bookkeeping could lead to serious problems and could ruin a company’s chances of remaining successful. Here are a just a few reasons why a business needs quality bookkeeping.

Accurate bookkeeping allows a business to properly plan for tax season

In order to properly document their financial transactions, apply for tax exemptions and avoid being audited a company needs to have accurate financial records. Maintaining these records over the course of the year rather than just before tax season hits will ensure that the business is always ready and prepared to handle the tax it has to pay. Good bookkeeping skills help protect a business against tax audits and allow the business to get through any such audits unscathed.

Quality bookkeeping allows a business to plan for its future

Managers of business need to know a lot about their current financial situations in order to properly prepare for the future. For example, a manager needs to know whether or not their current pricing structures are meeting the needs of the company’s expenses. They need to know the company’s financial trends to see if their management business plans are working or if they need to be altered. Future expansions, taking on new employees and acquiring new funding all requires detailed and accurate financial account information.

Accurate bookkeeping displays a company’s solvency

Many businesses will rely on outside financing to help them expand and grow. In order to receive this financing, the company will have to show accurate and detailed financial records. Quality bookkeeping ensures that the business can properly display its financial solvency to its lenders, who are not going to give out any money without first seeing such records.

Good bookkeeping frees up more cash flow

Cash flow is the bread and butter of many small businesses. A qualified bookkeeper will find ways to free up more cash flow so that it can be used in other ways to benefit the business. In addition to freeing up more cash, an efficient bookkeeper will also free up the efforts and time of the company’s other employees, so they will be better able to serve the business.

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The Advantages of Hiring a Professional Bookkeeper http://mellor.co.uk/the-advantages-of-hiring-a-professional-bookkeeper/ Sat, 02 Jan 2016 01:45:03 +0000 http://yeget.com/?p=2638 Read more]]> With online programs and software programs like Peachtree and Quickbooks out there, it is certainly possible for you to manage your business’s bookkeeping duties on your own. After all, professional bookkeepers cost money and if you do the books yourself you will be saving that money, right? This is not always the case. There are many benefits to hiring a professional bookkeeper to manage your company’s financial accounts, some of which involve saving money. Here are a few advantages to choosing a professional bookkeeper:

Accuracy

Accurate financial records are absolutely essential to avoiding problems with the IRS. A qualified professional bookkeeper will be able to ensure that all of your business’s records are accurate and true. This will not only help prevent IRS tax audits, but if they do happen the company will be armed to defend themselves. If you do your own bookkeeping how will you be sure that everything is 100% accurate?

More efficient use of your time

It takes the average small business owner more than 10 hours a week to manage their own bookkeeping duties. Is this time that could be better spent on manage other aspects of the business? It could just be 10 hours a week that you get to spend outside of the office. If you are a small business owner then your time is probably precious to you. Hiring a professional bookkeeper will give you more time to manage, expand or ignore your business.

Money saving exemptions

A qualified professional bookkeeper understands the various tax exemptions for your business’s industry, which can end up saving your business more money during tax time.

More cash flow

A good bookkeeper makes the business more efficient financially. They should be able to find ways to improve the business’s cash flow situation. This in turn will free up more cash for other aspects of the business.

Preparation for the future

If you ever plan on expanding your business or seeing reach its future goals, then you must have a detailed and accurate picture of its current financial standing. This is also true if your business ever wants to receive a loan. Lenders also want to see an accurate financial record of the company before they lend out any money. Accurate bookkeeping allows you to better plan for your company’s future.

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Does Your Business Need a Professional Bookkeeper? http://mellor.co.uk/does-your-business-need-a-professional-bookkeeper/ Sat, 02 Jan 2016 01:41:18 +0000 http://yeget.com/?p=2636 Read more]]> The bookkeeping aspect of running a business is the most commonly overlooked aspect. It is also one of the most important. A bookkeeper is around to make sure that a business’s financial information is organized, classified and accurate. This allows the business to determine their current financial security and plan accordingly for the business’s future. Proper and accurate bookkeeping also ensures that the company is ready to go when tax season rolls around. Accurate tax and accounting information not only helps prevent IRS tax audits, but if they do occur the business will be properly prepared to handle it. So, does your business need a bookkeeper? The answer is yes! Does your business need a professional bookkeeper? Maybe, but maybe not.

Professional bookkeepers cost money. For many small businesses, where money is tight, this expense is considered to be extra. It is certainly possible for you to manage your businesses books on your own. There are lots of do-it-yourself bookkeeping software programs out there. These programs handle all of the organizing parts of the accounts, all you have to do it to enter the data on a regular basis. Handling your business’s books by yourself will probably save you money- but not always.

A  business owner will spend on average 10 hours a week managing their own books. While you may not be paying someone else to do it, you are spending 10 hours of your time to manage the account information. Could these 10 hours of your time be spent in a more efficient manner? Would it actually be more efficient for a professional to handle the books, freeing you up to run other parts of the business?  And what about mistakes? How confident are you in your ability to properly manage the books. Remember that any mistakes could lead t tax problems down the road. How familiar are you with the various tax exemptions for your industry? These tax exemptions could end up saving your business money.

So as you can see, spending the money on a professional, efficient and qualified bookkeeper may end up saving you and the business money, effort and time.

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