Monthly Archives:June 2015

Should You Be Preparing For Next Tax Season Now?

30 Jun , 2015,
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One word: Absolutely.  If you only need personal income tax returns done, or if you will need a corporate return prepared as well, there are things you can be doing right now that can save your accountant time and save you money when April 15th rolls around.

You may receive an organizer or checklist from your tax preparer that highlights various types of income that you will need to report, and expenses that you can deduct.  Obvious forms of income related paperwork include W-2’s, 1099’s, etc.  But there are less popular types of income that you will need to report as well, and it is imperative that you include all of this in the packet that you give to your accountant, so that you can avoid penalties and interest on unreported income.  It’s also just as important that you include all of your deductions as well- and be sure to have documentation for anything that you want to deduct!  Be sure to keep in mind that some tax deductions have expiration dates, so you might want to make those specific purchases or financial decisions while you can still reap the tax benefit!

If you are involved in a corporate tax return, be sure that your financial statements are correct and thorough, and make sure to include an organized assembly of all necessary backup paperwork.  Having these papers in some sort of order will help your accountant to double check your Balance Sheet and Profit and Loss Statement more efficiently, saving you a great deal of money.  If you need help making sure your financials are in order before tax time, it might be wise to hire a bookkeeper to compile them for you.  Bookkeeping rates are much lower than rates typically charged for completing tax returns.

If your tax return preparer does not provide you with a yearly organizer, you can access some sample checklists online, and from that, you could make your own.  Or, switch to Wentworth and Associates so you can be on our mailing list of yearly, personalized tax organizers.

As the new year begins, life gets busy and filing paperwork is not a priority, so get a jump start now so you can avoid paying for it in the spring!

Contact us at kew@wentworthandassoc.com to set up your tax meeting.

Cybersecurity: How Much Is It Worth To You?

Jun , 2015,
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Cybersecurity: how much is it worth to you?  Considering the number of security breaches in the news lately, from hospitals to retailers and now schools, it’s certainly worth a great deal to small and midsized business owners.  But what’s the dollar value?  According to Businessweek, a 50 employee company spends approximately $57,600 per year on cybersecurity.  That averages about $1,152 per employee.  Therefore, it’s safe to assume that a five employee company would only spend about $5,760 per year on cybersecurity, right?  Well, not exactly.  A great deal of cybersecurity costs are billed and paid in lump sums, rather than charged per employee.  For example, a firewall costs about $1,000-2,000.  That amount doesn’t change if you hire two more people, or let go of 10 people.  The firewall will still cost $1,000-2,000.  However, security measures to encrypt email accounts may be charged on a per unit basis, so a small business would pay a significant amount less than a large company with 100+ employees.

So when businesses look to move their accounting online, what does this mean for the cost of cybersecurity?  Well, those costs for things like QuickBooks Online are built in.  With a reputable company like QuickBooks, you can be confident that your financial data is protected with measures far beyond what a typical small business could afford.  Therefore, some may argue that moving to online accounting is safer than keeping your accounting stored on a computer or server in your office.  Since most companies do not have the proper security measures in place, or do not pay to update them on a yearly basis, that may be the best option for your company.  There are so many variables within small business’ security measures that could compromise the integrity of very important data.

Think your company may fall within that category?  Call us at Wentworth and Associates and we can discuss it.  Our intent is to match companies with the option that is best for them and their needs, and bring to light new and exciting opportunities for businesses that they weren’t aware of before.