I provide bookkeeping services for small businesses who need to know the amount of income they are earning in order to pay their quarterly estimated tax payments and/or file their year end tax return.

For estimated tax purposes, the year is divided into four payment periods. Each period has a specific payment due date. If you do not pay enough tax by the due date of each of the payment periods, you may be charged a penalty even if you are due a refund when you file your income tax return. The following table indicates the payment periods and due dates for taxpayer's who's business year starts January 1:

Income Earned During:	Estimated Tax Payment Due By:
January 1 through March 31	April 15
April 1 through May 31	June 15
June 1 through August 31	September 15
September 1 through December 31	January 15

Each estimated tax payment quarter, for a flat fee, I'll do the following things for you...

• Reconcile your bank account
• Generate an income statement for the estimated tax payment quarter and annualize that income for the full year.
• Generate a balance sheet
• Maintain a clean general ledger
• Provide an estimated tax payment amount

These tasks form a solid foundation for your small business financial and tax planning system.

Reconciling your business checking account each month allow both you and I to make sure that your business records include all income and expenses not to mention letting you know how much money you have in your account.

Having me reconcile your account each month allows you to...

• Identify lost checks, lost deposits and unauthorized wire transactions.
• Detect and prevent excess/unjustified bank charges and ensures transactions are posted correctly by your bank.
• Detect and prevent embezzlement of funds from within your company.
• Know how your business is doing. You can't really know unless all accounts are reconciled and properly accounted for on your financial statement.
• Manage your cash more effectively. Proper management of funds not only saves money, it makes money for you.
• Protect yourself. By timely reconciling and promptly objecting to your bank about any unauthorized, fraudulent or forged checks presented to your bank and paid by that bank, you can relieve your agency of responsibility for the shortfall and transfer the risk to the bank. This reason to reconcile alone should be enough. Crime exists.
• Sleep Better. You will sleep more peacefully at night knowing your bank accounts are reconciled, in balance and that all escrow funds, accounts, checks and disbursed funds are properly accounted for.

An income statement, otherwise known as a profit and loss statement, basically adds an itemized list of all your revenues and subtracts an itemized list of all your expenses to come up with a profit or loss for the period.

An income statement allows you to...

• Track revenues and expenses so that you can determine the operating performance of your business.
• Determine what areas of your business are over-budget or under-budget.
• Identify specific items that are causing unexpected expenditures. Like phone, fax, mail, or supply expenses.
• Track dramatic increases in product returns or cost of goods sold as a percentage of sales.
• Determine your income tax liability.

A balance sheet gives you a snapshot of your business' financial condition at a specific moment in time.

A balance sheet helps you...

• Quickly get a handle on the financial strength and capabilities of your business.
• Identify and analyze trends, particularly in the area of receivables and payables. For example, if your receivables cycle is lengthening, maybe you can collect your receivables more aggressively.
• Determine if your business is in a position to expand.
• Determine if your business can easily handle the normal financial ebbs and flows of revenues and expenses.
• Determine if you need to take immediate steps to bolster cash reserves.
• Determine if your business has been slowing down payables to forestall an inevitable cash shortage.

Balance sheets, along with income statements, are the most basic elements in providing financial reporting to potential lenders such as banks, investors, and vendors who are considering how much credit to grant you.

The general ledger is the core of your company's financial records. These records constitute the central "books" of your system. Since every transaction flows through the general ledger, a problem with your general ledger throws off all your books.

Having me review your general ledger system each month allows you and I to hunt down any discrepancies such as double billings or any unrecorded payments. Then I'll fix the discrepancies so your books are always accurate and kept in tip top shape.

Your quarterly estimated tax payment amount is computed from the bookkeeping that is generated above. The income statement and general ledger are analyzed for tax deductible and non-deductible items. Your expected adjusted gross income, taxable income, federal income tax, self-employment taxes, deductions and credits are determined and annualized. The annualized amount is then pro-rated for the appropriate quarter.

My fee for doing the above mentioned bookkeeping is based on the number of transactions you have per quarter, the quality of the information you provide to me and the timeliness of the information you provide me. My minimum fee for this service is $150 per quarter. Please email me regarding your specific needs and I will respond with a quote for your specific situation.

Let me take care of your books for you, so you can get back to the job of running your business and generating profits!

Can't find what you're looking for? Try my site map or email me.

All contents of this web site copyright 2006 through 2008 Gina L. Gwozdz, CPA. All rights reserved.
This page is copy protected against web site content infringement plagiarism will be detected.
Last modified: April 18, 2008