Why do I need an audit?
An audit could:
- Strengthen your Internal Controls by Identifying Redundancies and Bottleneck Processes. ·
- Strengthen Controls around your Cybersecurity Environment.
- Reduce Risks associated with your firm.
- Improve your compliance with laws and regulations.
- Provide Goodwill or a Morale Booster for Current Stakeholders or donors and raise Interest for Potential Investors or donors.
How long will the audit take and how much of my time will be required?
The length of each audit depends primarily on the scope of the audit. On average, an audit last for 90 days. We appreciate the time devoted to this process and will work with you, so the audit does not negatively interrupt daily responsibilities. Typically, there is a central point of contact for the audit whom the auditor works with in order to obtain any documentation or schedule meetings. Our time with your company will not necessarily be continuous. We will keep you updated about the status throughout the process.
What should I expect from the basic audit process?
The typical audit process at Premier is broken down into four phases – Planning; Preliminary/Process Review; Fieldwork; and Reporting/Follow-up. Our Audit Process will be detailed in our proposal to your firm. During our kickoff meeting, we would explain the audit process and could address any questions at that time.
Why is it essential to complete a monthly bank reconciliation?
Reconciling your bank statements means comparing your internal financial records against your bank statement. This process is vital because it will ensure no errors are made in your financial software. It also helps you keep accurate financial statements which will be necessary during tax season.
What Accounting Software is recommended for start-up businesses?
QuickBooks online is a top recommended accounting software to organize your finances in one place. QuickBooks Online, also called QBO, is user-friendly and offers phone support and live chat with all of their plans.
What records should I keep?
Some typical records you should file and have handy is: Financials Statement (Income Statements, Balance Sheets, Cash Flow Statement and Retained Earnings), Business Tax Returns, Bank Statements, Business Agreements (ex. operating agreement), Insurance Documents, to name a few
What do I need to file taxes for my small business?
As a small business owner, the key to preparing for tax time is maintaining accurate financial records. Keep meticulous track of income, cost of goods sold, expenses, fixed assets, and relevant loans for the current tax year. Working with a qualified bookkeeper or accountant trained in tax laws can make tax time easier.
Are Meals 100% tax deductible?
From Jan. 1, 2021, to Dec. 31, 2022, business meals purchased from a restaurant are 100% tax deductible under the Consolidated Appropriations Act of 2021. Qualifying meals must involve an owner or employee of the business and be consumed with a business contact (e.g., customer, employee, vendor, consultant). Travel-related meals also qualify. However, personal expenses like morning coffee or in-town lunch pit-stops between clients are not tax deductible. The IRS requires qualifying expenses to be "ordinary and necessary," and the meal should not be considered "lavish or extravagant."
Do I need to keep receipts if I pay for things with the business debit or credit card?
Generally, you can use various documentation types beyond paper receipts for certain expenses. Bank statement line items suffice for gasoline purchases and software subscriptions. However, for fixed assets, travel expenses, and items related to your Cost of Goods Sold, keeping detailed receipts indicating how they were used in your business is essential. Paper copies are not necessary; you can use apps or your phone's camera to record receipts and dispose of the originals. Though IRS rules may appear complex, careful receipt tracking helps business owners maximize deductions.