FREQUENTLY ASKED QUESTIONS

These are some of the more common questions Pinnacle Accounting Solutions has received. Feel free to peruse our answers. If you need more detail, please contact us!

Do you charge a retainer?

Yes, we do charge a retainer. However, it will depend on the facts and circumstances of your situation.

What records should I keep and for how long?

Generally you should keep all records that substantiate income, expenses and all business transactions. The IRS recommends that these records are kept for a minimum of 3 years depending on circumstances.
See https://www.irs.gov/businesses/small-businesses-self-employed/how-long-should-i-keep-records

How should I prepare for tax season?

It is very important that by the end of the 4th quarter you at least begin preparing for tax season. These four steps will help you begin the process.

  1. Organize Your Tax Documents and Financial Records
  2. Gather information about dependents
  3. Double-check personal information with your employer if applicable
  4. Plan ahead if you might owe taxes
What business expenses can I deduct?

Generally to be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your trade or business. An expense does not have to be indispensable to be considered necessary.

When should I pay estimated taxes?

Generally, you must make estimated tax payments for the current tax year if both of the following apply:

  • You expect to owe at least $1,000 in tax for the current tax year after subtracting your withholding and refundable credits.
  • You expect your withholding and refundable credits to be less than the smaller of: 90% of the tax to be shown on your current year’s tax return, or 100% of the tax shown on your prior year’s tax return. (Your prior year tax return must cover all 12 months.)

For estimated tax purposes, the year is divided into four payment periods. Each period has a specific payment due date. If you don’t pay enough tax by the due date of each payment period, you may be charged a penalty even if you’re due a refund when you file your income tax return at the end of the year.

How can I better manage my cash flow?

In business cash is always “king”. Managing your cash flow properly will give you a complete picture of costs versus revenue and will ensure you have enough funds. Two of the most important things to do, to better manage your cash flow are to first regularly monitor it and secondly, ageing of accounts receivable should be avoided at all costs.

What is my break-even point?

Simply put, your breakeven point is when your total sales (revenue) is equal to your total expenses (costs). At this point you have neither made a profit or a loss.

How can you help me grow my business?

At Pinnacle Accounting, our goal is to not just have your books done, but to also help you grow your business consistently, through evaluation of your circumstances and providing a customized package to grow your business.

How should I structure my business?

The structure of your business will depend on several factors, and what you intend to achieve as a business owner, as one size does not fit all. Each business structure, has both advantages and disadvantages. What may work for one, may not work for another due to varying rules and regulations across state lines. A professional is strongly recommended to help make such a decision.

Do I have employees or contractors?

In determining how to classify workers, a business must use the control test, generally used by the IRS. This includes behavioral control, financial control and the relationship. Generally if these are controlled by the employer, then you have an employee. See https://www.irs.gov/newsroom/understanding-employee-vs-contractor-designation

What are my tax obligations?

As a citizen, your tax obligations, is to correctly calculate all applicable taxes under tax law and pay it to the governing authorities by its due date.

Podcast: Roth IRA Basics

Presenter: Robert Keeble. Learn the basics of Roth IRA.J91 From AICPA.org at https://www.aicpa.org/interestareas/personalfinancialplanning/cpeandevents/learning-library/20180921-ira-basics.html

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We are a full life-cycle accounting firm: Consulting, Bookkeeping, Financial Strategy, Compliance Services, Tax Efficiency and Resolution are core strategic services; but we do so much more!

Our mission is to understand every client’s needs and determine how we can significantly improve your financial life and grow your business. We always go above and beyond to continually identify areas of potential growth and make the appropriate recommendations accordingly. We consider it a privilege to help hard working individuals and businesses plan towards the uncertainties of the future.

Start today by leaving us a message and a representative from Pinnacle Accounting Solutions will get back to you within 24 - 48 hours. You may also call us at (571) 771-3721 for a quicker response!

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O: (571) 771-3721

F: (571) 771-3722

9720 Capital Ct
Suite 301
Manassas, VA 20110