Our Clients – Spear CPA

Spear & Company’s clients typically range in size from $50,000 to $5,000,000 in annual revenue. Because of our extensive experience with a wide variety of small businesses, we can address all of your accounting needs. We pride ourselves in helping our clients deal with problems and questions impacts their business. As a client of Spear & Company, you will be assigned an accountant and a bookkeeper and they will probably stay on your account as long as we work together. We are adept at helping this transition go smoothly. Accounting and tax services to small and medium size businesses is our middle name! Feel free to browse our LinkedIn Profile – we’d love to connect with you!

Please check http://www.linkedin.com/profile/view?id=31852705&trk=tab_pro for more info…

2011
01/12
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History of Accounting

Any business needs to have a proper accounting so that it can not only estimate its expenses and gain but also determine the progress and place in the market. Calculation and accounting have been an integral part of any business since old days. With the first accounting system, known as fiscal system, to today’s accounting methods, there have been a lot of changes in the methods but one thing remained the same and that is the reason behind all these calculations, knowing the actual place in the market and plan new strategies according to it.

During the Mesopotamia period, accounting first emerged in the form of fiscal system. This practice was done to keep a record of all the agricultural trades and development. After this, accounting got some changes in the methods and was done through mathematical calculations. Luca Pacioli, who was a well known Italian writer and mathematician, developed a new way of teaching calculations to young children so that they can start learning accounting from the beginning.

With the span of time, the ways of keeping accounts have been modified. Earlier, there were no facilities like external help or accountants. Now, there are so many financial management services and CPA firms which can help your business in keeping a proper record of all your accounts. If you own a small business, you can have an accountant for doing all the accounts related work. All this can help you in keeping a track of the growth of your business and providing you a better vision for it.

2011
01/10
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So Just How Important Is Bookkeeping?

Small business owners are often looking to save money and tend to do bookkeeping themselves. I would say without hesitation that this is not a good idea. Most business owners are field operatives and by that I mean they are good at running their businesses but don’t have the savvy when it comes to balancing books and looking/understanding figures. However some will still insist on going it alone, and after a few years of compounded bookkeeping errors, find themselves ready to file for bankruptcy. These are not exaggerated statements because it happens every day. In fact poor monetary planning is a common reason some small businesses fail within their first 5 years of operation. In this article, I will show you why proper financial records are important and why it’s a good idea to outsource your accounting to a professional.

1. Proper business planning
When the books are done right, you can easily see the direction your business is heading. The figures will tell you which ventures are performing and which are becoming liabilities; making any problems easier to correct when they first arise. When the books are on track, the business will be on track.

2. Auditing required by law
You cannot run from the long arm of the law. No, I don’t mean you intended to, but when the time comes to be audited, you will realize the importance of having your invoices organized. In some countries, the law requires that invoices be kept 5 years after the transaction occurred. Dealing with government agencies can be a total nightmare if you do not keep a clean audit trail.

3. Bank loans for extra funding
If you are a small business, you will eventually incur loans for extra funding. Today’s banking institutions require financial statements as part of their loan approval process, and presenting messy financial statements is good enough reason for a refusal.

4. Easy exit
Don’t get me wrong, I want you to prosper, but there may come a day when you wish to throw in the towel. When you want to sell your business, clean financial statements presenting the details of the last few years of operation are always well received by prospective buyers.

5. Easy tax returns
When tax season rolls around, you will have an easy time if your books are organized. You don’t need to rush to find bills or reconcile expenses you thought you had committed to memory. Clean books are also an incentive to your tax advisor who can now focus on reducing your tax liability instead of trying to clean up messy financial statements.

By now, I think you are already convinced of the importance of proper bookkeeping; if you can’t do it yourself, it’s also a good idea to outsource your accounting to a professional accountant. It will not only save you time and money, but you can rest assured your books are being maintained by professionals who make it their business to keep your financial statements clean.

To learn more about professional accountings services click here.

 

2011
01/04
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Special REMINDER from Spear CPA

REMINDER: Now at Spear & Company CPAs we are offering a free consultation to go over your business’s tax returns, a value of $500. What better way to save YOU time and money? Please mention Free500 when calling for a free consultation. We look forward to meeting with you!

Please click the link for more info http://spearcpa.wordpress.com/contact–us/

2011
01/03
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WHY SPEAR & COMPANY: The importance of finding the RIGHT accountant to work with and why SpearCPA is the right accountant for you…

We Are Client Oriented. Spear & Company’s clients typically range in size from $50,000 to $5,000,000 in annual revenue.  Because of our extensive experience with a wide variety of small businesses, we can address all of your accounting needs. We pride ourselves in helping our clients deal with problems and questions impacts their business. As a client of Spear & Company, you will be assigned an accountant and a bookkeeper and they will probably stay on your account as long as we work together. We are adept at helping this transition go smoothly.

With our fixed monthly fee, you know where your business stands financially & what your accounting costs will be. As part of our fixed monthly fee, we deliver timely, accurate financial statements to businesses on a monthly basis. We provide monthly accounting services, including consultations on tax and accounting matters, via phone or in the office.

Don’t pay accountant rates for bookkeeping services. A Spear & Company client pays well below what other CPA firms charge.  We charge bookkeeping rates for those services. A full time bookkeeper will prepare your monthly financial statements, prepare all necessary tax forms and prepare your monthly bank reconciliation. Our bookkeepers are qualified and experienced.

Avoid IRS penalties, notices & nasty surprises on April 15th. We speak plain English, not tax jargon. Sure we know all about IRC sec xxx(b), GAAP and FASB rules, but our job is to make sure you know how to make money and save taxes. We encourage each of our clients to meet with us each fall to estimate their tax liability. We will prepare your payroll and sales tax returns and make sure you know the proper amounts to pay and when and how to pay them. If you do receive any IRS notices, we will respond to them at no cost to you.

2011
01/03
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Weirdest Tax Laws of 2010

From hot air balloons to bagels, 2010 proved to be yet another year in which states and municipalities passed some strange tax laws in a desperate bid to raise revenues and close their budget gaps.Movies: DVD/VHS movie catalogs

 

The Tax & Accounting business of Thomson Reuters has compiled a sampling of some of the year’s quirkiest sales and use tax changes, emphasizing the importance of technology and expertise to help navigate the dynamic sales and use tax landscape.

A few of the “quirky” sales and use tax highlights of 2010 include:

• Candy without flour in Washington:  In June, Washington State enacted legislation that made candy without flour taxable. According to a list published by the Washington Department of Revenue, “Rainbow Whirly Pops” and “Lemon Drops” were taxable, but “Twizzlers” and “Peppermint Bark Shortbread” remained exempt. However, because the law caused so much confusion, and after push-back from voters and large candy makers, Initiative 1107 was passed, repealing the tax on candy effective Dec. 2, 2010.

• Belt buckles in Texas: Every year before it is time to go back to school, several states allow for a tax holiday on school supplies and clothing, with several oddities seemingly infiltrating the exemptions. In Texas, belts are exempt, but belt buckles are not. Cowboy boots and hiking boots are also exempt, but rubber boots and climbing boots are taxable.

• Bagels in New York:  In 2010, New York cracked down on its enforcement of the tax on prepared food, specifically targeting a New York staple: bagels. If you buy a whole bagel and take it home with you, it is exempt from tax. However, if you purchase that same bagel, but eat it at the bagel shop (even without cream cheese), bagel shops must charge sales tax on the purchase price. Apparently, the mere slicing of a bagel kicks your bagel purchase into a taxable transaction. As a result, New Yorkers are paying approximately 8 to 9 cents more per bagel.

• Cup lids in Colorado: Effective March 1, 2010, Colorado eliminated the exemption for non-essential food items and packaging provided with purchased food and beverage items. So, while cups are considered essential, lids are not.

• Hot air balloons in Kansas: On June 30, the Kansas Department of Revenue issued a private letter ruling discussing the taxability of hot air balloon rides. Kansas generally taxes sales of admissions to “any place providing amusement, entertainment or recreation services.” The question was not whether or not balloon rides are entertaining, but whether or not federal law pre-empts the imposition of state sales tax on sales of those rides. Under the Anti-Head Tax Act, 29 U.S.C. Section 40116, states and local jurisdictions are prohibited from imposing fees and charges on airlines and other airport users. The department determined that un-tethered balloon rides where the balloon is actually piloted somewhere “some distance downwind from the launching point” would be considered carrying passengers in air commerce and would be pre-empted by the law. However, state sales tax can be imposed on tethered balloon rides.

• Haunted houses in New York: According to TSB-A-10(11)S, admissions to haunted houses are subject to the New York sales tax.

2010
12/31
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Tips to avoid Accounting Troubles + IRS Penalties

Any business, whether big or small, has to essentially keep accounts of all the trade. There are some useful tips through which you can avoid the common mistakes and obtain error free accounts for your business. You can obtain the help from the professionals so that you get error free accounts for your firm. Not only for huge business but for small business as well, an expert is needed to solve all the accounts related problems.

The accountant can do all the calculations properly through computer so that there may not be any problems related to handwriting. The most common accounting troubles are calculation errors, missing signatures, and improper position of the numbers, so all these things can be avoided by hiring an accountant for preparing accounts.  Apart from this, there are certain tools like TaxCut or TurboTax which are designed to provide you good assistance in preparing tax initially. Then you can verify those accounts with an expert to make sure that they are properly constructed.

It would be better to take help from the professionals like CPA firms or financial management services, if you are finding problems in doing this task. These professional can handle this task in a much better way and can guide you for all the possible ways of getting clear accounts. Also, you can take help of these professionals for saving yourself from any IRS penalties. You should remember that delay in filing the IRS may lead to heavy penalty from 5% to 25% of the tax per month. So, save your money by being on time.

2010
12/31
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CPAs Gain Statutory Exemption From Red Flags Rule

Following years of advocacy efforts and a legal battle, CPAs received a permanent exemption from the Federal Trade Commission’s Red Flags Rule with President Barack Obama’s signing of the Red Flag Program Clarification Act of 2010 on Saturday.

The Red Flags Rule, which was released Nov. 9, 2007, under the Fair and Accurate Credit Transactions Act of 2003, requires businesses and organizations within its scope to implement a written identity theft prevention program to detect warning signs of identity theft in their day-to-day operations. Enforcement of the rule has been postponed numerous times—most recently until Dec. 31, 2010—since the original Nov. 1, 2008, effective date.

The rule applies to what it calls “financial institutions” and “creditors.” However, according to the FTC Web site, the definition of “creditor” in the rule is broad, and includes businesses or organizations that regularly provide goods or services first and allow customers to pay later. As examples, the FTC says utilities, health care providers, lawyers, accountants, and other professionals, and telecommunications companies may fall within the definition.

In August 2009 the AICPA asked the Federal Trade Commission (FTC) to exempt CPAs from certain provisions of its Red Flags Rule. When the exemption was not granted, the AICPA filed a lawsuit seeking to bar the FTC from applying the rule to CPAs. The Institute said the rule would “impose onerous and unnecessary requirements on AICPA members.”

The lawsuit, filed in U.S. District Court for the District of Columbia, alleged that the FTC was exceeding its congressionally granted powers under the Fair and Accurate Credit Transactions Act of 2003 by seeking to apply the rule to accountants engaged in the practice of public accountancy.

“The AICPA is pleased Congress passed and the president has signed into law S. 3987, the Red Flag Program Clarification Act of 2010, amending the Fair Credit Reporting Act,” said AICPA President and CEO Barry Melancon in a statement. “The AICPA, with help from state CPA societies nationwide, worked tirelessly on this issue. The bill makes clear that CPAs and CPA firms are not classified as ’creditors‘ for the purposes of the [FTC’s] Red Flags Rule. CPAs and CPA firms often do not receive full payment from clients at the time services are rendered. That is not the same as a financial transaction like bank loan or a credit card where ID theft is a risk. This legislation makes clear that a CPA’s billing cycle isn’t an identity theft risk. This legislative fix to a burdensome regulation is a positive development in Washington.”

Melancon thanked Sens. John Thune (R-S.D.), Mark Begich (D-Alaska) and Chris Dodd (D-Conn.) for their work in getting the bill passed and “making clear in Senate debate that congressional intent is the FTC’s Red Flags rule will not apply to accountants and other professional service providers.” He also applauded the bill’s authors, Reps. John Adler (D-N.J.), Mike Simpson (R-Idaho) and Paul Broun (R-Ga.), and Reps. Barney Frank (D-Mass.) and Spencer Bachus (R-Ala.) for bringing the bill to House consideration.

—Matthew G. Lamoreaux

 

2010
12/28
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5 Year-end Small Business Tax Tips

The holidays are here and it’s hardly a time to think about small business taxes. But a quick look at these year-end tax tips for small business can pay big dividends for 2011.

Quick Tax Tips Before the Year Ends:

5 Year-end Small Business Tax Tips:

1. Update Your Accounting: It’s important as part of your year-end tax strategy to have a good understanding of your company’s financial situation. Spend extra time ensuring your books are up-to-date and accurate. It won’t hurt to plan time with your accountant for year-end advice, particular to your operations.

2. Defer Income: Any payments your company can receive during the first week of January as opposed to December cuts your tax bill. Every cent deferred until January 2011 will not owe taxes until April 2012. Any deferral strategy will depend on your profit and losses for the year and business legal structure (LLC, partnership, corporation, etc.)

Depending on your income tax rates in the foreseeable new year, deferral of income can make the best sense for many sole proprietors, partnerships, LLC’s, and S corporations. Ensure your cash flow can handle the deferred income.

Don’t forget to push any early 2008 charitable donations back to 2007. Make sure you get a receipt for the tax deduction.

3. Increase Expenses: Purchase items your business will require in the immediate future to maximize deductions for this year. If you can see a need for goods and services in the first quarter of the new year, buy them now, if cash flow permits. Consider the following items for expenses:

Office Supplies: Stock up on fax paper, printer cartridges, stationary, and other office items.

Pay Bills Early: Pay your bills before the new year in areas such as; cell services, subscriptions, rent, insurance, and utilities.

Equipment Purchases: If you will be buying new office equipment, consider purchasing now. You’ll have to decide whether an immediate write off is best or spread out the depreciation over years. Consult with an accountant to examine your circumstance and company structure to maximize your deductions. In addition, your equipment will have to be in your office, “in use” by year-end.

Other Items: This category includes: pre-payment of subscriptions, travel bookings, equipment repairs, and maintenance.

4. Inventory Write-Offs: Depending on your accounting methods, you may wish to check inventory for goods that have been damaged or have become obsolete. The drop in market value of the inventory can provide your company with added deductions.

5. Contribute to a Retirement Plan: Make payments to your retirement plan or set one up before the year-end to reduce your income for this year. Check the contribution limits for your type of plan. In the U.S.: 401(k), KEOGH plan, Roth IRA, or SEP’s. (For SIMPLE IRA’s the deadline is set in October, too late for year-end tax planning.) In Canada: an RRSP. Discuss the best strategy with your financial planner or accountant.

These year-end tax tips will apply differently to each business owner’s situation and accounting method. The cash method of accounting allows for deductions and income reported for the year they are paid or received. The accrual accounting method applies income and deductions in the year incurred. Take the time to review the best strategy with a professional advisor and make the most of the year-end tax planning for your small business.

2010
12/20
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US Accounting Practices: Need for Hiring a Qualified Accountant

Any business venture in the country relies on best US accounting practices that sustain and enhance the success rate of any company. Accounting, a pivotal aspect of any commercial enterprise is integral for the development and growth of big or small business initiatives. With more and more companies in Brooklyn, New York or any other part of the U.S opting for outsourcing and availing accounting services from an accounting firm or freelance accountants, the need for qualified accountants has become inevitable for business success.

Here are a few reasons for hiring a certified public accountant,

●      The functionalities of the business ventures can be stunted owing to funding problems which are consequences of inefficient accounting practices. A reputed CPA can help the company in NY or any major city to streamline its financial department.

●      The bookkeeping part of a business is vital for its growth and a qualified accountant will ensure that all the financial statements, tax papers and reports are maintained appropriately by the bookkeepers.

●      A certified accountant will monitor the financial resources of the company, the expenditure incurred periodically and ways to curb unnecessary utilization of funds.

●      US accounting practices that are extremely effective related to tax planning are followed by CPAs to ensure financial stability of the business venture. Efficient accountants will also be prompt in filing income tax to avoid late payment fees and penalties.

●      A qualified and certified accountant will also follow best US accounting practices in the field to assess the financial needs for the coming years.

Written by: Spear CPA

2010
12/13
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