Sarah Wardle Jones, Author at Neely's Accounting

Tax Planning Strategies to Maximize Your Small Business’s Savings

No one understands the old saying “you have to spend money to make money” more than a small business owner. Running a small business does involve a lot of expenses – so finding ways to save money is key to long-term success.

One of the biggest financial obligations for small business owners is taxes. By implementing a solid tax-planning strategy, you can avoid unpleasant surprises on your tax bill and keep your business’s bottom line healthy.

Neely’s Top Small Business Tax Planning Tips

Here are eight strategies to help you develop a solid tax planning strategy for your small business.

Choose the right business structure: Whether you’re a sole proprietor or an LLC, the structure you choose can have a significant impact on your taxes. Each comes with its own tax advantages and liabilities, and it’s best to consult with the experts at a professional tax service to fully understand the implications of each.
Take advantage of deductions: Deduct expenses such as office supplies, equipment, and business travel. Don’t overlook deductions for home offices or vehicle use. And be aware that some deductions, such for a home office or for capital losses, could carried forward for use in a future year.
Hire family members: Hiring family members, especially children, can reduce your taxable income while keeping payroll in the family.
Maximize retirement contributions: Retirement plan contributions not only secure your future but also reduces your taxable income. Maximize contributions that are made pre-tax, meaning your paycheck has less taxable income on it each pay period. A tax consultant can help.
Utilize tax credits: Take advantage of available tax credits, such as the small business health care tax credit or research and development credit, to further lower your tax bill.
Stay informed about tax law changes: Tax laws are complicated and can see significant changes from year to year. Keep up with the latest rules to avoid penalties and take advantage of new tax-saving opportunities.
Employ tax-efficient business practices: Use strategies like delaying or accelerating income and expenses to reduce your tax liability each year.
Hire a professional CPA firm: We said it before: Taxes are complicated. Working with tax professionals ensures you’re maximizing every opportunity to save and avoiding surprises.

Get Tax Help for Your Small Business with Neely’s

Don’t leave your small business taxes to chance. When you need tax services in Roanoke, Neely Accounting Services is your trusted local advisor. We have a deep understanding of tax laws, small business needs and tax solutions that work. Work with the professional Roanoke CPAs at Neely’s to keep your small business tax plan on track.

Posted in Uncategorized

Financial Best Practices for Nonprofits

Nonprofits are big on heart and impact. Comprised of people dedicated to solving problems where they live, nonprofits are part of the pulse of any community. But don’t let the name “nonprofit” fool you. As anyone working in nonprofit knows, it still takes funding to carry out a mission.

Nonprofits typically acquire their funding from donors and grants who want their money to make a difference. That’s why financial transparency and compliance are critical components to nonprofit management. If you run a nonprofit or are thinking of starting one, it’s important to have systems in place that keep your finances organized, stable, and transparent. Keep reading for our roundup of best practices for nonprofit finances.

Nonprofit Finances 101

Nonprofits pull together many different stakeholders–including donors and granting organizations–to move the needle on their mission. That’s why financial stewardship is key to the long-term sustainability of any nonprofit. Here’s our top tips for maintaining transparency, sustainability and integrity for your nonprofit.

Create a Budget

Develop an annual operating budget that accounts for revenue and expenses. Regularly review budget and compare it to actual financial performance to stay on track.

Keep Accurate and Consistent Records

Maintain detailed, up-to-date records for all financial transactions. This includes keeping track of donations, grants, and any expenses.

Use Accounting Software

A nonprofit accounting software such as QuickBooks Nonprofit or Blackbaud is a great way to track income and expenses, generate reports, and maintain donor records. These tools are designed to handle the specific needs of nonprofit organizations, such as fund accounting and grant tracking.

Generate Regular Financial Reports

Your accounting software can help you easily create a statement of financial position (similar to a balance sheet in for-profits) that tracks your organization’s assets, liabilities, and net assets and cash flow.

Comply with IRS Regulations

Nonprofits are required to file IRS Form 990 annually, which provides financial information to the IRS and the public. Keeping strong records will help you stay accurate and timely when filing to maintain tax-exempt status.

Conduct Regular Audits

Hire an independent auditor annually or biannually to review financial statements and internal controls. Many nonprofits are required to have external audits depending on state laws or donor/grant requirements.

Transparent Financial Communication

Publish annual financial reports and share financial information with stakeholders like board members, donors, and the public to build trust.

When to Hire a Professional Accountant for Your Nonprofit

Running a nonprofit requires flexibility, resourcefulness and creativity. Employees often have multiple areas of expertise and wear a lot of different hats. The work is never boring, but the demands can make finding time and space for healthy financial practices a challenge.

If you’re struggling to stay on top of your financial tasks while running your nonprofit, it might be time to reach out to a professional accounting firm for help. At Neely’s we specialize in helping individuals, small businesses and nonprofits with their accounting needs. Our friendly team of experts brings over 20 years of experience to each project and delivers professional results every time. We have a variety of solutions to work with your unique needs and budget:

Outsourced Accounting: Get support with account reconciliation, expert advice, tax preparation, payroll, and bookkeeping all for a fixed monthly rate at a fair price.
Bookkeeping: We can provide a full menu of services including daily transaction classification, expense tracking, payroll, bill payment and invoicing, tax planning and prep, and reporting.
Payroll: Let us handle your payroll so you can focus on running your nonprofit. Our Roanoke CPAs will take care of everything including, scheduled payrolls, filings, employee setup, time tracking, W2 and 1099 processing, and more.
Business Taxes: Don’t go it alone during tax season. We offer customized and convenient services to make tax time a breeze.

Let Neely’s support you while you cultivate a better world through your nonprofit. Give us a call or visit us today to learn more about how we can help.

Posted in Business Finances

The Benefits of Year-Round Tax Planning

The speed of modern life can make your days feel hectic. Between school drop offs, deadlines, and getting dinner on the table, taxes are the furthest thing from your mind. Until the deadline that is.

We get it, you have a lot on your plate. It’s tempting to wait until the last minute when it comes to taxes. But doing some year-round planning can actually relieve pressure. And when you work with a trusted Roanoke CPA firm, planning doesn’t have to be stressful at all. In this article, we cover how to plan and the ways year-round tax planning can boost your financial well-being and make tax-time easier.

How to Plan for Taxes Year-Round

Planning for your taxes year-round may seem intimidating, but it doesn’t have to be. Setting up good habits will make tax planning a breeze. And, having professional tax services on your side means you’ll always have someone to go to for advice if you get stuck. Here are some top tips from our Roanoke CPAs for year-round tax planning.

Maintain Detailed Records: Don’t keep your receipts and paystubs in a shoebox. It’s important to know how much money you’ve earned and how much you’ve spent on items that are eligible for deductions. Take advantage of technology: there is software that track and organize your finances automatically and apps that help you track deductible expenses.
Adjust Your Withholding and Estimated Payments: If you’re employed, be sure to review your tax withholding to ensure that the amount being withheld aligns with your projected amount owed. If you’re self-employed, it’s a good idea to pay estimated quarterly taxes to avoid huge and surprising bills at tax time.
Maximize Tax-Advantaged Accounts: When it comes to taxes, tax advantaged accounts like IRAs, 401(k)s and Health Savings Accounts (HSAs) are your friend. If you can, it’s excellent practice to max out your contributions to these accounts as it helps you save for the future and lowers your taxable income.
Keep Records of Deductions & Credits: Keep track of your donations to qualified charities, money you spend on your business and any education expenses. These can all qualify for deductions and it’s important to know how much you could claim.
Prepare for Filing Early: This tip will make tax time so much less stressful: Know what tax documents you’ll receive and begin gathering and organizing them as soon as you receive them. Once you’ve received all your documents, you can file taxes. The sooner the better because then it’s off your plate.
Schedule Quarterly Reviews: We all need a little help sometimes. It’s a good idea to sit down with your tax advisor on a quarterly basis so you can review your financials and stay on track.

Advantages of Year-Round Tax Planning

Year-round tax planning offers a host of advantages. With a little bit of planning, you can ease tax-time and financial stress. It helps you banish uncertainty around what deductions you’re eligible for and how much you might owe. Here’s some of our favorite benefits of year-round tax planning:

Strategic financial planning: You’ll have a great picture of your financial health now and strong projections about your future financial state.
Maximizing deductions: Stop guessing about whether you took the maximum deduction. When you plan, you’ll know!
Avoiding last-Minute stress: Tax time stress will be a thing of the past. You can file quickly and efficiently because your ducks are in a row.
Investment and retirement planning: Tax planning can double as financial planning. If you’re maximizing your tax-advantaged retirement accounts, your golden years might look bright!
Proactive risk management to avoid tax-related risks like audits: When you keep good records, your chance of being audited is low. And in the event that you are audited, you’ll be prepared with excellent records!
Financial education to make informed decisions: Year-round tax planning keeps you on top of your financial situation. So, when you have a big decision to make you can make it with firm data!

Contact Neely’s for Year-Round Tax Support

Our friendly, Roanoke CPAs have helped Roanoke tax payers since 2007. With Neely’s you’ll get customized solutions for your unique financial circumstances including help with year-round tax planning! If you’re ready to take the stress out of tax-time but need some help, contact us!

Posted in Taxes

Tax Scams and How to Protect Yourself

Have you ever gotten a phone call or email from someone making claims about your taxes but something just felt… off? If so, you could have been the target of a tax scam. Sadly, where there are taxes, there will be attempted scams so it’s important to stay vigilant.

In 2023, the IRS received 294,138 complaints of identity theft, the second highest in history. From email to social media, advances in technology provide new ways for scammers to target people. It’s a good idea to stay aware of the most common threats so you know how to protect yourself. We’ve rounded up three of the most popular tax scams to watch out for this year.

Top Three Tax Scams to Avoid

A tax scam is categorized as fraudulent activity or scheme designed to illegally obtain money or sensitive personal information from a taxpayer. They’re usually perpetrated by someone posing as a tax authority, financial institution or even the IRS. There are a multitude of ways that someone might try to steal money or information but here are three of the most popular.

Phishing Scams: Phishing scams involve fake emails or websites that mimic legitimate IRS communication to steal personal information. Scammers may send emails claiming to be from the IRS, requesting your sensitive information like Social Security numbers, bank account details, or credit card information.
Phone Scams: Phone scams, also known as IRS impersonation scams, involve callers pretending to be IRS agents. They may threaten arrest, deportation, or license revocation if you don’t make an immediate payment. These scammers often demand payment via prepaid debit cards, gift cards, or wire transfers because they are hard to trace.
Identity Theft: Tax-related identity theft occurs when someone uses a stolen Social Security number to file a tax return and claim a fraudulent refund. Victims typically discover the theft when they try to file their own return and it gets rejected because a return has already been filed under their SSN.

How to Protect Yourself from Tax Scams

If you are contacted by someone you don’t know claiming to need information regarding your taxes, here are some important things to keep in mind:

The IRS will never initiate contact via email or social media to request personal or financial information.
The IRS will not call to demand immediate payment using a specific payment method or threaten with law enforcement action.

It’s important to verify the identity of anyone claiming to be from the IRS of other tax-related entity before providing any information or money. Another way you can project yourself is to use strong passwords and keep sensitive documents in safe places. Be sure to keep a close eye on credit reports and tax accounts for suspicious activity as well. If you notice something strange, contact your bank or trusted tax professional right away.

Work with Tax Professionals You can Trust

Working with a local, reputable accounting firm can give you an extra level of protection against scams by providing a reliable advisor you can go to with any questions. Neely’s Accounting Services has been providing tax services to Roanoke, VA since 2007 and is a trusted resource for tax payers across the valley. Let Neely’s help you with all your tax needs. Contact us today.

Posted in Uncategorized

8 Tax Deductions Every Small Business Owner Should Know About

Running a small business takes a lot of time, effort, and the ability to juggle multiple responsibilities—often including bookkeeper. While owning a small business can be rewarding and creatively fulfilling, the extra work of tax time can feel daunting.

Keeping detailed records, knowing the latest laws and regulations, and understanding which deductions you’re eligible for on top of keeping operations running is no small feat. To help you navigate your small business taxes, we’ve compiled a list of 8 deductions so you can maximize your efforts and keep more of your hard-earned money.

8 Tax Deductions for Small Business Owners

The US tax code is notoriously complex and there are so many deductions it can be hard to know where to start. Here are 8 tax deductions that every small business owner should be aware of:

1. Home Office Deduction If you use a portion of your home exclusively for business, you may be able to deduct related expenses such as a portion of mortgage interest, insurance, utilities, repairs, and depreciation.

2. Using Your Vehicle for Business

If you use your car for business, you can deduct the costs related to that use. This can be calculated using either the standard mileage rate or actual expenses. Be sure to note that this does not include commute time from your home to place of business as that is considered a personal expense.

3. Supplies and Equipment

Did you buy anything this year that helps you run your business? Supplies and equipment necessary for running your business, including computers, software, and office supplies, can be deducted.

4. Salaries and Wages:

The same rule applies to the valuable people who make running and growing your business possible. The cost of their salaries, wages, bonuses, and other forms of compensation given to employees can be deducted.

5. Professional Services:

Did you hire a professional to assist you with your business this year? Fees paid to lawyers, accountants, consultants, and other professionals directly related to your business operations are deductible.

6. Rent Expenses:

Great news: if you rent space for your business, the rent paid is deductible. This deduction encompasses both office space and equipment rentals!

7. Utilities and Internet:

You do everything you can to keep the lights on and that electricity is tax deductible. If you use any utilities such as electricity, water, heat, internet service, and phone lines for your business, they are deductible.

8. Travel and Meals:

Do you travel for work? Business travel expenses such as transportation, lodging, and meals can be deducted. Be advised thought that meals are generally limited to 50% of the cost.

Get Every Deduction You’re Eligible for With Neely’s Accounting Services

These deductions can significantly reduce your taxable income, but it’s essential to maintain detailed records and receipts so you can show proof of your activity and business expenses throughout the year.

The best way to ensure you’re maximizing your deductions while remaining compliant with tax laws. is to work with a tax professional. At Neely’s our knowledgeable Roanoke CPAs have been helping small business owners with their taxes since 2007. We pride ourselves on offering big city services with a hometown feel. And, as a small business ourself, we’re experts in small business taxes. It’s never too early to start preparing for tax season. Contact us to get help with your small business taxes today.

Posted in Business Finances, Taxes

Enjoy Your Summer Break but Remember: Tax Planning is a Year-Round Adventure!

Now that the April filing deadline has passed, most people are happily shifting their focus from taxes to summer vacations. However, summer is actually a great time to review your withholding and see how your warm-weather plans might affect your tax return next year.

If this feels overwhelming, don’t worry. We’re here to help! At Neely’s Accounting Services, we want you to enjoy your summer AND set yourself up for financial success. We’ve compiled some common summertime tax situations and tips to help you stay prepared stress-free.

Summer Wedding = Tax Implications

Getting married? Congratulations! Enjoy your wedded bliss while you add a few important items to your to-do list. If you have name or address changes, it’s important to report it to the appropriate entities. Alert Social Security Administration of name changes and update your address with the United States Postal Service, your employers, and the IRS. To change your address for federal tax purposes, simply complete Form 8822, Change of Address, and send it over to the IRS. This way, you’ll make sure to receive all the necessary documents for filing your taxes smoothly.

Day Camp for Kids = Possible Tax Credit

If you’re sending your kids to summer day camp, it’s good to know that unlike overnight camps, the cost of summer day camp may count towards the child and dependent care credit. That means you could potentially get a nice tax credit to help with those expenses.

Part time Work = Filing a Return

Are you working part-time during the summer? Even if you don’t earn enough to owe federal income tax, don’t forget to file a return. Filing early next year will actually allow you to get a refund for any taxes withheld from your paychecks this year. It’s like a little bonus!

Seasonal Work = W2s

Ah, the gig economy! If you’re earning some extra cash this summer by providing on-demand work, services, or goods through digital platforms like apps or websites, we’ve got some great news. You can head over to the Gig Economy Tax Center at IRS.gov to learn more about how participating in the gig economy can affect your taxes.

Employees usually receive a Form W-2, Wage and Tax Statement, from their employers to keep track of their summer work. You’ll need this form when preparing your tax return, and you should expect to receive it by January 31 next year. And remember, if you’re an independent contractor, you won’t have taxes withheld from your earnings, so you’ll be responsible for paying your own income taxes, as well as Social Security and Medicare taxes. Even if you’re no longer working for your summer employer, they should still send you the W-2 so you (or your local CPA) can prepare your taxes properly.

Tax Extension = More Time to File

For those of you who requested an extension or missed the April deadline, you still have a chance to file your return. If you’re not sure where to start, reach out to us! Our individual services are tailormade to help you fight disorganization and overwhelm and get your taxes filed correctly and on time. And we’re local, which means we’re always available to help answer questions and guide you through the process. Which leaves you more time to enjoy your summer.

Adjust Withholding = Avoid Surprises

Avoid a tax surprise next filing season by reviewing your withholding now. Life events like marriage, divorce, having a child, or changes in income can all affect your taxes, and you’ll want to be prepared before tax time next year. If you need help determining how much withholding is best for you, give us a call. Our friendly, Roanoke CPAs are standing by to help.

Let Neely’s take the stress out of preparing for tax season! Our clients have trusted us with their personal income tax needs since 2007 because we deliver big-city service with hometown values. Contact us today and let us set yourself up for tax time success.

Posted in Individual Finances, Taxes

Is Outsourced Accounting a Good Idea (and How to Decide If it’s Right for You)

If you’re a small business owner, it’s likely you feel there aren’t enough hours in the day. Running a small business is demanding. It requires all your expertise, creativity, energy and then some! As you grow, the demands increase and tasks become more complicated, especially your accounting.

That’s why many small business owners opt for outsourced accounting services for their bookkeeping and accounting needs. Engaging an expert CPA company can feel daunting at first, which is why we’ve put together this guide to outsourced accounting. Keep reading to think through the pros and cons of outsourced accounting and feel ready to make the best decision for you.

Pros of Outsourced Accounting

There are many advantages to outsourced accounting, especially if you choose a trusted partner. Not only will you take a time-consuming task off your plate, but you’ll also gain peace of mind knowing that a critical part of your business is handled with professionalism and care.

Gain time: No more burning the midnight oil trying to reconcile your books before payday. With outsourced accounting, you’ll have more time to work on your business, not in your business.
Save money: This may seem counterintuitive, but outsourced accounting will save you money. Instead of hiring a full-time employee, you only pay for what you need, when you need it.
Increase accuracy: Speaking of full-time, when you work with a professional CPA, they’ll bring years of full-time experience to the job so they can easily keep your records pristine and your financial processes smooth.
Improve cash flow: With the right partner, you’ll always have financial data at your fingertips so you can understand your cash flow and make informed decisions.
Smooth tax season: Tax-time stress will be a thing of the past with outsourced accounting. Your CPA will handle it down to the last detail.

Cons of Outsourced Accounting

Most businesses that opt for outsourced accounting experience more growth and less stress. However, it all comes down to choosing the right partner. Here are a few things to watch out for as you consider hiring a CPA firm to handle your accounting needs.

Security concerns: You’ll share sensitive information with a third party so it’s essential to choose a trustworthy partner for your outsourced accounting needs. A firm with integrity will address your security concerns and share the measures they take to keep your data safe.
Less Control: Whenever you delegate tasks, you hand over some control in getting the task accomplished. This can be a challenge for some entrepreneurs who are used to having a hand in every aspect of their business. However, frequent, and clear communication usually resolves these issues.
Not Local: Choosing a CPA firm in a different area code or time zone from you can add communication obstacles create delays. Choosing a local CPA firm mostly closely resembles having an in-house expert where communication is timely and easy.

How to Decide if Outsourced Accounting is Right for You

Are you an entrepreneur who is ready to gain time, increase peace of mind, and grow your business? Those are all good indicators that outsourced accounting is a good choice for you! But if you’re like us, you’ll want to be thorough. Here are a few specific items to help you decide if outsourced accounting will help you reach your goals.

Consider your business needs: If your business has complex accounting needs, outsourcing is a great, cost-effective choice. Keep in mind that a good partner offers more than just task fulfillment, they also offer expert advice and business consulting.
Evaluate the costs: Compare the costs of outsourcing accounting functions to the costs of hiring in-house staff and investigate billing practices of the firm you’re considering. Do they charge per service or offer a flat-rate monthly billing system?
Research outsourcing firms: Look for outsourcing firms with a track record of success, industry experience, and strong security measures. Be sure to check references and read reviews to ensure that the firm is trustworthy and reliable.

Contact Neely’s Accounting for Expert Roanoke Accounting

If you’re ready to take the leap into outsourced accounting, consider Neely’s Accounting Services. We’ve been helping Roanoke area individuals and business since 2007 with our big-city services and a hometown feel. Thanks to our cutting-edge, secure online platform, you can collaborate with our Roanoke CPAs instantly and always have up-to-date views of your data. Plus, we’ll never surprise you with unexpected fees. Our services are bundled at a fixed monthly rate to give you an efficient, well-maintained accounting system at a fair price.

Let us help you find the best accounting solution for you. Contact us today to get started.

Posted in Bookkeeping, Business Finances

What’s The Smartest Thing to Do with Your Tax Refund?

Now that tax season is over, you’re probably looking forward to receiving your tax refund. In 2022, over 96 million people were refunded with an average payment of $3,039.

That’s no small chunk of change, and the last thing you want to do is absorb it by making small purchases over time. A windfall like a refund is a great opportunity to set yourself up for a better financial future. While there’s nothing wrong with spending some on a little fun, consider using the money wisely and get ahead financially. Need some ideas? We’ve put together a list of 8 smart things you can do with your tax refund.

1. Build an Emergency Fund

As the adage says, “Anything that can go wrong will go wrong.” Build a little cushion against Murphy’s Law with an emergency fund. The money in this savings account is tucked away for the day when the unexpected happens. Having the funds to address the unexpected can make a stressful situation much easier.

How much should you save? Most financial experts recommend saving between 3-6 months’ worth of expenses. However, it’s always much better to have something rather than nothing so even socking away $500 is a great start. High-yield savings accounts are a great place to keep your money until you need it.

2. Pay Off Debt

Paying off debt can feel decidedly un-fun in the moment, but it can free you up to have more fun in the future. When you pay down debt, (especially the high interest kind) you’re freeing up more of your future income and creating greater flexibility for yourself down the road. If you’re not sure where to start, consider these two popular strategies for tackling debt:

Avalanche Method: This involves paying off your debt with the highest interest rate first, so you minimize the amount of interest you pay over time and save money in the long run.
Debt Snowball Method: This involves paying off your debts in order from smallest to largest balance, using the money you save to apply to bigger and bigger balances. This method gives you some momentum to keep paying down debt.

3. Fund Your Retirement

Opening a retirement account, or maxing out your yearly contributions, is a fantastic way to invest your refund. Depending on the type of account you have, your contributions can grow tax deferred and when it comes time to enjoy your golden years, you’ll have a healthy nest egg to rely on.

4. Invest In the Stock Market

Use your money to make more money! When you invest in the stock market, whether it’s through mutual funds, stocks, bonds, or ETFs, investing in the stock market allows you to take advantage of compound interest. A disciplined approach to investing, where you tuck away funds year after year, is a great way to achieve financial freedom.

5. Invest in Yourself

You are your greatest asset. Your education, talent, expertise, experience, and work ethic all influence your rate of return through improving your earning potential on the job market.

With more skills, you can expect bigger paychecks and greater job stability. Consider using your tax return to pay for training, tuition, or professional memberships that will yield dividends as you chart your career course.

6. Make an Extra Mortgage Payment

If you own a home, you can make an extra mortgage payment or two and get one step closer to actually owning your home. Paying an extra principal payment on your house builds equity. The more equity you have in your home, the more purchasing (or saving) power you have if you choose to sell down the road. Plus, paying down the principal on a home works like paying down debt. The sooner you pay off the loan amount, the less money you’ll spend on interest.

7. Make a Major Purchase

Maybe it’s time to upgrade your vehicle, buy more energy efficient kitchen appliances, or do some home improvements. Consider using your refund to start a savings account toward these major purchases. We recommend high-yield savings accounts to keep the savings separate from your everyday spending cash.

8. Donate To a Cause You’re Passionate About

Charitable giving makes a big impact in more ways than one. Your donation benefits those in need, improves your community, and gives you the satisfaction that you’re helping make the world a better place. Charitable giving also sets you up for a potential donation deduction on next year’s taxes. When you combine your giving with volunteer work (and maybe invite a loved one to tag along!) you’ve got a solid win-win strategy.

Contact Neely’s Accounting Services

Tax season may be over for 2023, but there’s always another one right around the corner. It’s never too early to begin preparing for tax season (including smart spending). Our Roanoke CPAs are ready to help you craft the perfect tax strategy for your personal or business taxes so you can get every deduction you deserve and make the most out of your refund every year. Contact us today to get started.

Posted in Individual Finances, Taxes

What Documents Should I Bring to a Tax Appointment?

When it’s time to file your taxes, it can be overwhelming to figure out what documents and information you need to bring to your tax appointment. Neely’s Accounting Services has been providing businesses and individuals in the Roanoke area with trusted accounting services since 2007. We’re here to take the overwhelm out of tax season.

To help you get organized, we’ve compiled a list of the essential items to bring with you when you meet with your Roanoke CPA to file taxes.

Personal Information

Before you get into the specific tax-related documents, make sure to bring some basic personal information to your appointment. This includes your social security number, your spouse’s social security number (if filing jointly), and the social security numbers of any dependents you’re claiming. Additionally, you should bring a valid photo ID and your previous year’s tax return.

Income Documents

The most critical documents you’ll need when you file your taxes are those that show how much money you made during the most recent tax year. The type of documents you’ll need depends on what and how many income streams you have and the list can look different for everyone. Take a look at the different types of income documents and see which ones apply to you:

W-2s: This form shows your annual earnings from an employer.
1099s: These forms show income from sources other than an employer, such as freelance work or investment income. These are common for self-employed people or freelancers.
Schedule K-1: If you own a business or partnership, you’ll need to bring this document.
Rental income: If you own rental property, bring a summary of your rental income and expenses.
Social Security benefits: If you received Social Security benefits, you’ll need to bring Form SSA-1099.

Deduction Documents

If you plan on itemizing your deductions, it’s important to bring documentation to support your claims. The list below outlines some of the most common deduction documents you’ll need to gather before your tax appointment:

Mortgage interest statement: This document shows how much interest you paid on your mortgage.
Property tax statements: If you own property, you’ll need to bring statements that show how much you paid in property taxes.
Charitable donations: Bring receipts or other proof of donations you made to charities throughout the year.
Medical expenses: Bring documentation of medical expenses that you paid out of pocket, including receipts and bills.
Student loan interest: If you paid interest on a student loan, be sure to bring Form 1098-E.

Additional Information

In addition to personal, income, and deduction documents, there are a few additional items you may need to bring to your tax appointment:

Bank account information: If you’re expecting a refund, bring your bank account information so it can be deposited directly into your account.
Estimated tax payments: If you made estimated tax payments throughout the year, bring documentation that shows how much you paid.
Business expenses: If you own a business, bring documentation of your business expenses.
Capital gains and losses: If you sold stocks or other investments, bring documentation of your capital gains and losses.
Alimony payments: If you paid or received alimony, bring documentation that shows how much you paid or received.

Contact Neely’s Accounting to Schedule Your Tax Appointment

Everyone has a unique financial story. At Neely’s Accounting, our friendly Roanoke CPAs get to know you and your finances to make sure you don’t overpay. We’ll help you get the credits you’re entitled to through the individual attention you deserve. Give us a call or visit us today.

Posted in Individual Finances, Taxes

Why Hire an Accountant for Your Small Business?

Owning a small business isn’t for the faint of heart. Being an entrepreneur takes courage, vision, and a strong work ethic. One of your primary goals is likely to make money and grow your company. But as your company grows, so do the demands on your time, attention, and energy. You might find yourself barely able to keep up with the day-to-day requirements much less have time for strategic planning and growth.

If this sounds like you, it’s time to hire an accountant. Many small business owners avoid hiring help, because they’re worried that they might not be able to afford the expense. But hiring an accountant is an investment toward the financial health of your business. Plus, you’ll add time back into your schedule so you can work on your business, not just in it.

Here are a few ways an accountant can help you reach business goals:

Provide Virtual CFO Services

You can rely on your accountant year-round, not just at tax time. Hiring an accountant means having access valuable professional advice and support. Essentially, your accountant can function as a CFO for your company, without the potentially prohibitive expense of a salary and benefits.

Depending on your needs, an accountant can track your financials and meet with you regularly to provide insight into the financial health of your business. Having expert guidance can help you prepare for tax season and make strategic decisions.

Improve Budget and Cashflow

Outsourcing the effort of tracking your income and expenditures can make a big impact on your business. Understanding trends in your cashflow can help you make informed predictions about the future financial health of your business. Having this information at your fingertips can help you make solid decisions about big purchases while saving you time.

Prepare And File Taxes

Of course, hiring an accountant can help you prepare and file your tax returns. Never worry about filing incorrectly or missing important deductions. With a professional accountant, you can have peace of mind that your taxes will be done right.

Neely’s Accounting Services provides expert tax preparation and accounting in Roanoke, VA. Our clients have trusted us with their business management, personal income tax, and outsourced accounting needs since 2007. We’re proud to offer a full range of professional products at a fair price without sacrificing the individual attention you deserve. Our friendly, dedicated advisors are always ready to help you with personalized solutions that meet your needs.

Let us take the stress out of running your business and filing income taxes. Contact us or visit today.

Posted in Business Finances