What is Security? How do you define its value for your Business?

Security means safety, as well as the measures taken to be safe or protected. For Business, security is the defense against financial failure; financial independence. 

Small business owners thrive on getting a product or service implemented. You hire experts to research, identify your product market or clientele and establish a focus and drive of your businesses direction. You hire experts to develop or create your ideas into something you can sell. You hire experts for marketing to bring your product or service to your audience. You hire staff to make your product or do the work to bring your services to life. 

You are creating security in the sustainability of your business. 

Why should your financial knowledge of your business be any different?

Many business owners try to “do” their own books. There is an entire market of accounting software products that says you can. They offer bells and whistles in automation to record your transactions and memorize your coding – But what do the numbers mean? 

How much do your sales cost you?
How much overhead expenses do you have to cover before you are profitable?
How do you leverage your financial outcomes to obtain lending from a financial institute and grow your business to the next level? 
What are the advantages of leasing or buying that new piece of equipment? 
How do you plan for your business to maintain good cash-flow?
How do you know if your business is financially secure?

Experts in the bookkeeping and accounting service industry offer small business owners a partnership. They are not just a resource to maintain accuracy of your business transactions, but the authors who provide the financial reporting that tells a story of your business financial health. It is this story that paves the road map to how you operate your business. It is this story that allows you to see if your business is and will continue to be financially secure. 

Hiring accounting experts who will go beyond transactional recording of your business activity and provide actionable financial information will ensure that you create security for your business being sustainable now and into the future. 

At JK Bookkeeping we take our clients financial security seriously and are dedicated to ensuring our services provide the highest level of reporting and follow through to ensure our clients financial picture is complete. 

Experience Peace of mind with our Professional Bookkeeping Services. 

Please contact us today to schedule a complimentary 30-minute consultation and learn more about how outsourcing to JK Bookkeeping can help your business. 

Understanding Auto Expense Deductions & Tracking Requirements

In today's business world, maximizing business profits is a focus for most owners. No matter how big or small your business is, it pays to be informed on how deductions are limited and the record keeping requirements to ensure they will be allowed at tax time.

For business use of auto or transportation, there are two formats: Standard Mileage Deduction and Actual Expense Deduction.   

The Standard Mileage is calculated by using the IRS standard mileage rate which is updated on a calendar annual basis and can be found at www.irs.gov. This rate is then multiplied by the number of miles driven for business use.  

Actual Costs Deductions include gas, oil, tolls, parking fees, insurance, repairs, registration costs, garage rent, tires, repairs, depreciation or lease payments.  

The benefits of each type of vehicle write offs can vary depending on your total costs verses the amount of miles driven within a tax year. Both options are limited to the percentage of business use calculation if the vehicle is also used for personal travel. If you have low vehicle costs and high mileage, you may have a higher deduction by using the standard mileage reimbursement. If you have high vehicle costs and low mileage, the actual expense method may provide a higher deduction.  

Other than the deduction calculations, there are some IRS regulations that need to be considered when choosing between these options.

⇒    Once you chose actual expense method and claim depreciation for the vehicle used for business, you cannot change back to the standard mileage reimbursement format for the life of the vehicle used in the business.

⇒   If a vehicle is owned by the Corporation/S-Corp, you can only use the actual expense calculation

⇒  Actual expense calculation is only allowed for the % of business use the vehicle is used for so these deductions can be limited if the vehicle is also used for personal use.

⇒   Selling or trading in a vehicle where the actual expense deduction for business use was allocated, can create a business taxable loss or gain calculation.

⇒   For standard mileage option, you may be able to change to the actual costs in future tax years.  

For either Auto Expense method, appropriate record keeping is Essential!

Standard Mileage Recordkeeping:

Your mileage log must include the starting mileage on your vehicle's odometer at the beginning of the year and its ending mileage at the conclusion of the year. Each time you use your vehicle for business purposes, you must record the following information:

                  The date of your trip

                  Your starting point

                  Your destination

                  The purpose of your trip

                  Your vehicle's starting mileage

                  Your vehicle's ending mileage

                        Tolls or other trip-related costs

Note, mileage from your home to office is considered commuting and is not allowable. Mileage from your home to your first client appointment may also be limited unless you meet the home office distinctions.  

Today’s technology has numerous tools that can assist you to maximize your Standard Mileage deductions. Mile IQ, Triplog, mile tracker are a few of the apps available for free.  

Actual expense must have all receipts with itemized details of the expense (insurance policies, lease documents etc.) Accurate tracking for percentage of business use must also be maintained so tracking of mileage may still be required for this deduction. If a receipt is lost the IRS may disallow this expense during an audit. 

IRS Publication 453 defines the guidelines on these and other transportation regulations in more detail.

At JK Bookkeeping we are happy to review and assist with calculating your auto expenses to help you determine the financial aspects of auto deductions for your business. Always consult with your tax preparer or CPA before choosing or changing the way you deduct for auto expense.

Experience Peace of mind with our Professional Bookkeeping Services. 

Please contact us today to schedule a complimentary 30-minute consultation and learn more about how outsourcing to JK Bookkeeping can help your business.  Your Success is Our Success!

Choosing the Best QuickBooks Online Subscription for your Business

In today’s business dynamics, online access to your financial information is valuable. QuickBooks online accounting offers many solutions with four types of subscriptions available, but how do you choose the right subscription for your business?

The first step is to review the key business needs of your financial data.

⇒    Do you have multiple outside contractors to track and report 1099 filings at year-end? 
⇒    Do you need multiple user access?
⇒    Do you always pay vendors by check immediately? Do you have Bill Pay terms?
⇒    Do you have inventory tracking?
⇒    Do you want budget tracking and reporting options?
⇒    Do you have multiple locations that you want to track financial performance?
⇒    Would your business benefit from tracking income and expenses by client or customer? 

Analyzing your business requirements and choosing the right subscription in the beginning is an important step that can save you time and money. At JK Bookkeeping we are QuickBooks Online Pro Certified. We offer clients a thorough business review to ensure the subscription you chose will best meet your business needs. Already have a subscription? JK Bookkeeping’s thorough business review can provide guidance on the value of your subscription or recommend upgrading for performance that better meets your businesses accounting needs.  

Experience Peace of mind with our Professional Bookkeeping Services.

Please contact us today to schedule a complimentary 30-minute consultation and learn more about how outsourcing to JK Bookkeeping can help your business.  Your Success is Our Success!