Aug 11, 2017
Contractors should have two primary accountants. One is the Tax Accountant the other is your Construction Accountant. Tax Accountant who does the Annual tax return for your business and your personal tax return.
It is the role of the Tax Accountant to Roll Your Numbers up into a tax return. The first (2) pages of your annual tax return is a summary of all the pages, worksheets that follow. Everything must roll up to those two pages. That means that you could have multiple numbers from multiple pages that might go on a single line. The Tax Accountant manages those numbers.
Remember when you were single and could use the EZ form?
Then you got married and maybe were still able to file using the EZ
form.
Add buying a house, and having children and things got a little
more complicated.
Now you are a business owner. You owe more taxes.
The bottom line is that every missed personal deduction; every
missed business expense costs you money.
The Tax Accountant takes all of the summary numbers from your
business return (the 1120s – S-Corp) and put them in the
appropriate places on your personal return. If you are a Sole
Proprietor or an LLC that is taxed as a Sole Proprietor than a
Schedule C is part of your personal tax return.
When you are a Sole Proprietor or an LLC that is taxed as a Sole
Proprietor, you will have the additional taxes in the form of Self
Employment Taxes. Self-Employment Taxes are payroll taxes on your
net profit.
Self-Employment Tax is a separate tax from your Federal Income
Taxes. You could owe “No Federal Tax” after all of your personal
deductions are applied but still owe Self Employment Tax. It is a
Different Line.
The Tax Accountant has one goal – Roll all the numbers up (no
matter how many pages it takes) to find the answer to How Much Do
You The Contractor Owe In Taxes?
Taxes from one year impacts the Estimated Taxes Due The Following
Year. The IRS has an expectation you will do equal to or better
than the previous year and need to pay Estimated Taxes
accordingly.
Sharie’s Nickname for
Self-Employment Tax is “sneaker tax” Almost every
Contractor knows how much their Federal Income Tax Rate is and can
project about what the tax owed is. The Self Employment Tax is
often a forgotten tax and comes as HUGE Surprise (unlike Christmas
morning – it is not a fun surprise when you owe money instead of
getting a refund to something fun).
Based on the tidiness of your paperwork how easy it is for the Tax
Accountant to do their job. The last thing any Tax Accountant knows
about let alone wants to show their lack of understanding about
what you do is to talk about is your job costing, job profitability
reports or anything else related to your numbers.
Now let’s chat about what should be the Other Accountant in your
life. We are Construction Accountants, and our role with your
numbers is exactly the opposite of the Tax Accountant.
QuickBooks is designed to serve a dual function.
Roll up the numbers for the Tax Accountant. Be able to drill
down on any number or group of numbers to give the Tax Accountant
the answers needed to be able to take every deduction allowed.
The more important part of a Construction Accountant is making the
numbers so you The Contractor can see quickly see the numbers in a
way that makes sense to you. The answers are in
QuickBooks.
The good (money in), the bad (money out), the ugly (maybe more
unpaid bills are left over than cash in the bank)
Many contractors run their accounting software like an “overgrown
checkbook, ” and this method does get most of everything the tax
accountant needs to file the annual taxes.
There are many online invoice programs and some really
inexpensive accounting programs.
Contractors call me every day and say; “I chose this program to get
me by” and now I am ready to learn more about my business so I can
make better decisions to grow.
States that allowed 1099 Contractors are now enforcing the rules
about employees.
Many Worker’s Comp Programs want details about Subcontractors
including Certificate of Insurance
Sales Tax is happening in more states. In Washington, not
Collecting and Remitting Sales Tax is by exception. Add in Sales
Tax being destination based and needs to be tracked by the city,
town, county across the entire state. And yes, the individual
cities may vote to increase their sales tax rates during the
year.
Taxes are one of the reasons to track more; be aware of more is a
way of life to Construction Contractors. If a Contractor focused on
doing everything about their paperwork perfectly 100% of the time
the paperwork would take all of their time. – And the jobs would
Never Get Done!
Professional Construction Accounting Helps
Contractors Make Every Neighborhood A Better Place To Live. As
Construction Accountants, We Focus On What You Need To Run Your
Business Better.
Looking forward to getting started.
About The Author:
Sharie DeHart, QPA is the co-founder of Business Consulting And Accounting in Lynnwood Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on how to manage the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. http://www.fasteasyaccounting.com/sharie-dehart/ 206-361-3950 or sharie@fasteasyaccounting.com
I trust this podcast helps you understand that outsourcing your contractor's bookkeeping services to us is about more than just “doing the bookkeeping”; it is about taking a holistic approach to your entire construction company and helping support you as a contractor and as a person.
We understand the good, bad and the ugly about owning and operating construction companies because we have had several of them and we sincerely care about you and your construction company!
That is all I have for now, and if you have listened to this far please do me the honor of commenting and rating podcast www.FastEasyAccounting.com/podcast Tell me what you liked, did not like, tell it as you see it because your feedback is crucial and I thank you in advance.
I trust this will be of value to you and your feedback is always welcome at www.FastEasyAccounting.com/podcast
This Is One more example of how Fast Easy Accounting is helping construction company owners across the USA including Alaska and Hawaii put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that, and a lot more valuable to construction contractors like you so stop missing out and call Sharie 206-361-3950 or email sharie@fasteasyaccounting.com
Thinking About Outsourcing Your Contractors Bookkeeping Services?
Click On The Link Below:
This guide will help you learn what to look for in outsourced construction accounting.
Need Help Now?
Call Sharie 206-361-3950
Thank you very much, and I hope you understand we do care about
you and all contractors regardless of whether or not you ever hire
our services.
Bye for now until our next episode here on the Contractors Success
MAP Podcast.
Enjoy your day.
Sharie
About The
Author:
https://www.fasteasyaccounting.com/free-one-hour-consultation-bookkeeping
Sharie DeHart, QPA is the co-founder of Business Consulting And Accounting in Lynnwood Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on how to manage the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. http://www.fasteasyaccounting.com/sharie-dehart/ 206-361-3950 or sharie@fasteasyaccounting.com
#1 EZ Step Interview inside QuickBooks Setup
#2 Asked Their Tax Accountant To Setup QuickBooks
#3 They Attended A How To Setup QuickBooks Class Or Seminar
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