Keeping Accurate Books for your Business
Bookkeeping is one of the most essential tasks of any business. Without proper bookkeeping, your business could very quickly and easily crash into a wall. Small business owners can do their bookkeeping on their own, but many invest in a bookkeeping services that will save them not just precious time but the risk of making very costly financial mistakes.
However, bookkeeping alone will not create a business. You have to produce and sell a saleable product and service at a price that makes a profit. Do not have those who effectively sell and produce for your business bogged down in bookkeeping that distracts from sales and production. This especially applies to the owner himself.
Bookkeeping is the process of recording all the financial transactions and events that occur in your business. Purchases, sales, earnings, receipts, and payments are all meticulously recorded so that all the money that flows in and out of your business is accounted for. Bookkeepers organize and track receipts and checks, and make a note of purchases as soon as they are made. They record all the data chronologically into designated books, or computer bookkeeping software.
Proper bookkeeping allows for accurate tax preparation. It also allows you to see where your income comes from and where it is going.
At Torchlight Tax, we can do your bookkeeping for you. If you are not good at bookkeeping, you are probably wasting a lot of time for a mediocre result. Your time would be better sent selling and producing. Let a pro handle it.
We can take your bank records and do your books, create a profit and loss statement, and file your taxes. Yes, you will have to answer some questions. But that is far easier than doing all the books yourself.
It is usually far more viable, if you are a professional or business owner, to have a skilled bookkeeper do your books. Your time is usually too valuable to waste on doing bookkeeping yourself.
Payroll - Getting it right
Federal social insurance taxes are imposed on employers and employees, ordinarily consisting of a tax of 12.4% of wages up to an annual wage maximum ($118,500 in 2016) for Social Security and a tax of 2.9% (half imposed on employer and half withheld from the employee's pay) of all wages for Medicare.
What is 'Payroll Tax'?
This is the amount of tax that an employer withholds on behalf of his employees, which is based on the wage or salary being earned. This is performed in the USA and in most countries worldwide.
Deducted payroll taxes are likely to be itemized on an employee's pay stub. The itemized list typically notes how much was withheld for Medicare and Social Security payments as well as state or municipal payroll taxes. If Payroll services are something you cannot do or prefer to focus on the front end of your business, it is wise to outsource as this keeps your finger on the pulse of your business.
Governments use revenues from payroll taxes to fund programs such as Social Security, health care, unemployment compensation and workers compensation. Sometimes local governments collect a small payroll tax to maintain and improve local infrastructure and programs including first responders, road maintenance, and parks and rec programs.
In the United States, federal payroll taxes cover Social Security and Medicare contributions. As of 2016, employers must take 6.2% of their employees' earnings for payroll taxes. Employers must also match the amount withheld from their employees' checks and submit the total to the Internal Revenue Service (IRS).
Individuals who are self-employed, including contractors and small business owners, do not have employers to remit payroll taxes on their behalf. As a result, they must pay their own payroll taxes. These taxes are called self-employment taxes, but they function like payroll taxes.
Taking the Frustration out of Bookkeeping & Payroll
Torchlight Tax takes the pain out of doing Bookkeeping & Payroll taxes and allows you to function best in the area you know the best - production, delivery, sales and marketing and getting new business in.