Those with a four-year degree in accounting may think that their job involves nothing but accounting and number crunching in Tax Professionals. While this is true much of the time, there’s much more to it than that. An accountant’s day-to-day tasks probably focus on money, but many people don’t realize that accounting is more than just math. Most people overlook that a tax professional can be an invaluable resource beyond the numbers. Of course, a tax accountant has to know things like tax laws and legal aspects, but they can also provide advice on sales tax and VAT exemptions, as well as be a valuable resource in planning tips. However, another aspect that many people should consider is an accountant’s client service. A tax accountant will help companies and individuals to stand out from the competition by providing such advice. For this reason, they must always maintain healthy relationships to keep loyal clients Here are six tips tax professionals should follow to provide better client service: 1.   Be Available Even if a tax accountant doesn’t answer the phone every time it rings, they should be available to provide a certain level of service to their clients. This is especially true when it comes to accounting. Tax professionals face pressure to be available 24/7, and those that aren’t may not be taken seriously. Clients are likely to go elsewhere with the myriad options available if they can’t reach their tax professional. 2.   Be Familiar With Your Client’s Business A tax professional needs to know their client’s business from top to bottom. It’s also vital to keep up to date with changes in the industry. To be helpful and provide good customer service, tax professionals need to know what’s going on in the business world, especially in their client’s industry. 3.   Keep Your Clients Updated To maximize the relationships a tax professional has with their clients, it’s important to keep clients updated about what’s going on. This is especially true for taxes. Keeping clients in the loop about tax-related developments lets them know that tax professionals have their best interests at heart and will not let them down. It’s also an excellent way to make them feel like they are a part of the process, rather than just a number. 4.   Make Your Client’s Life Easier A tax professional can help clients make their lives easier, particularly when it comes to tax-related situations. When a tax professional is aware of a client’s financial situation, they can make suggestions that lead to better outcomes. People who do taxes will become more than just valuable resources if they develop ways to make their clients’ lives easier. 5.   Make Clients Feel Like a Priority You can make tax professionals more than just helpful resources in the long run if you keep your clients up to date and find ways to make your life easier. People want to feel like someone is looking out for them, and a tax accountant can provide that for anyone working within the financial sector. 6. Get the Best Professional Tax Software While some people may think that tax professionals are responsible for doing all the work, a good tax accountant will use the best tax software available for their clients. A good tax professional knows that picking the best tax software for their clients can go a long way toward helping them to be more efficient and effective. A tax pro software can help accountants stay on top of their client’s taxes, which can make them very effective in their role. Conclusion It’s important to remember that many people who don’t work in accounting or finance think tax experts are just people who do the math. There’s more to it than that, however. To be successful and make clients feel valued, tax professionals need to add value to their clients’ lives, not just money-making assets. Tax professionals can build a solid reputation, attract new clients, and grow their businesses by adhering to these tips. The benefits are sure to be plentiful. If you want to make work easier with the best professional tax software, Keystone Tax Solutions is a leading provider of affordable tax pro software and business management services with 15 years of experience helping thousands of tax professionals jumpstart their businesses through technology-driven tax software. We offer huge discounts and impeccable customer service to help you every step of the way. Contact us today!

Word-of-mouth marketing is regarded as the most trustworthy method of promotion due to this high level of trust. Today, personaly requesting referrals are trusted by 83% of consumers. Word-of-mouth advertising is the most efficient and cost-effective technique of marketing. You will lose leads if you do not request client referrals. As such, you must find the best method to ask for what you want without appearing aggressive or needy. If you employ these strategies, you will boost your chances of receiving referrals. Read on to discover these tips for requesting referrals from your clients. Mind Your Timing Before approaching a client for a referral, you should first build a rapport with them and gain their trust. If you move too quickly, people may believe you are looking for work or that you do not value them as a customer. Tax return preparers must be aware of seasonality. Prospective clients may have filed their taxes with a different preparer up until the conclusion of the tax season. Before the tax season begins, send an email to prior clients who found your services useful. Give them a tax season discount or gift card for every new customer they bring in. If you are new to the tax preparation industry, you might ask prior clients for referrals. Requesting for Referrals When you have good relationships with your clients, it is time to implement these referral techniques. Mix and match the information to determine what is true. – Do it Face-to-Face If a consumer is delighted with your work, you should urge them to tell their friends and family about it (or any of your other services). Give them your business card as a memento of your visit. Even if the cards are never distributed to the recipients, seeing them will serve as a reminder to contribute. – Send an Email A call to action can be included in ordinary emails; however, it is more productive to send a separate email requesting advice. To avoid coming out as unpleasant, express gratitude for the customer’s patronage and mention how much you’ve liked doing business with the individual in question. – Offer Incentives Customers may be enticed to promote your firm if you provide them incentives. When you offer a minuscule incentive to your clients’ contacts, they will believe they are assisting their close buddies. – Provide Materials Provide promotional items such as business cards, email templates, or social media posts to your consumers if you want them to help spread the word about your company. Generosity is proportionate to one’s level of effort. Mistakes to Avoid Avoid these pitfalls if you want your firm to thrive and preserve your consumers’ trust. Don’t try to obtain referrals from new customers. To begin, demonstrate both your work and your persona. Don’t beg. Be accurate and courteous, but avoid pestering clients. Don’t over-ask. Don’t try to insert your referrals at every chance encounter. Don’t make promises you can’t keep. The expense of word-of-mouth promotion is relatively inexpensive. Offering exceptionally steep discounts may increase referrals but decrease income. Conclusion Knowing how to request referrals appropriately is all a part of running a business and becoming successful. So, if you have never done this before, you should start doing it right now. By asking the right questions, referrals may aid in the income of your company or your business. Are you looking for the best professional tax software? Keystone Tax Solutions has over 15 years of experience helping tax professionals in the US start their own businesses, and thousands more obtain access to cheap technology-driven professional tax software. We offer quality and excellence with unrivaled rates and services to help you develop a profitable tax practice. Get a FREE demo today!

As a new tax preparer, it’s important to understand the different stages you need to go through when growing your business. By taking the time to plan and set goals, you can ensure that your business grows at a healthy pace and reaches its full potential. There are four main stages that a tax preparer business will go through as it grows: startup, growth, maturing, and decline. Each stage has its own challenges and opportunities that need to be taken into account in order to ensure the success of the business. Here are a few tips to help you get started. The Steps it Takes to Grow Your New Tax Preparer Business Step #1: Pre-Startup In the pre-startup phase, you may feel overwhelmed because there are many things to do, and it’s hard to know where to start. It’s important to have a plan and work on building a strong foundation so you can avoid failure and achieve the results you want. The main tasks for this stage are to first understand the problem that you are trying to solve and then to develop a plan or strategy for solving that problem. This will involve breaking the problem down into smaller pieces that you can then work on one at a time. Once you have a plan, you can then start to implement it and test it to see if it works. This means that you should build the basic infrastructure for your business in a timely and effective manner, but try not to get too bogged down in the details. Many entrepreneurs get stuck at this stage because they get caught up in the details and lose sight of the big picture. To that end, this is the stage when you need to find a way to make money so you can pay your bills and do the work required to get everything set up. Step #2: Early Startup You are beginning to make some money, but you are still very anxious about whether or not this will be successful. This can lead to feeling like you have to work hard all the time without seeing any results. In this phase, you have some clients, but you are still doing everything yourself. You have no team, no contractors, or maybe one VA or an administrative assistant. Before you start spending money on marketing, it’s important to have a basic framework in place. This will help you determine which marketing strategies are the most effective for your business. Once you have a framework in place, you can start testing different marketing strategies to see what works best for your company. Step #3: Late Startup The Late Startup phase is when you start to focus more on your business and delegate tasks to other people. You also start to create systems and processes to make things more efficient. In order to maintain a consistent income and see continued growth, you need to put systems in place. By creating systems, you can streamline your process and ensure that everything runs smoothly. This will allow you to focus on other aspects of your business and continue to see success. Step #4: Growth New Tax Preparer This is about you moving into more of a visionary or CEO role and scaling your business by growing your team, big time. If you want to be successful, you need to keep hiring talented people and learn how to manage them effectively. There is no one-size-fits-all solution when it comes to building a team, so you need to figure out what works best for you and your business. It’s all about taking the next steps to make a real difference in the world. This means moving away from a one-to-one model and into something that is much more sustainable and has the potential to make a lot more money. This will also have a greater impact on the world as a whole. The Bottom Line: Building Your New Tax Preparer Business from the Ground Up As a new tax preparer, you have the opportunity to build a thriving business from the ground up. However, before you can do that, you need to understand the ins and outs of the tax preparation industry and how to start and grow your business. The key to success in the tax preparation industry is hard work and dedication. With enough effort, you can build a thriving business to help you achieve your financial goals. How Can We Help? Dealing with taxes can be challenging for anyone, even an expert tax preparer. If you’re looking for innovative solutions that can streamline your tax preparation process, our professional tax software for CPAs can help simplify matters for you. Our affordable technology can empower tax preparers and help you start a tax business with no EFIN, so get in touch with us today at 1.800.504.5170 to see how we can ensure your tax business is booming.

The American Rescue Plan essentially modified Form 1099-K reporting requirements for third-party payment networks (such as Cash App), which previously had been based on credit and debit card payments. Now, it actively includes electronic payment transfers as well. These networks process payments and have exploded over the last several years. This means you’re going to have multiple clients that have Form 1099-Ks. It’s important to be consistently up-to-date on the way reporting requirement changes will affect 2022 taxes. Form 1099-K: A Review Every single payment received by way of payment settlement entities (PSEs) is detailed on a Form 1099-K. “Entities” includes payment credit cards like debit and credit cards, alongside payment networks from a third party, such as Venmo. The form can be sent to businesses (using their Tax Identification Number or TIN) and individuals (using their Social Security number). Clients should get a separate Form 1099-K from every PSE where the client’s number of transactions or gross payments went beyond the reporting threshold. Changes in Form 1099-K For the Year 2022 The most notable 1099-K requirement change involves the de minimis threshold for payment networks that are third-party. During tax years prior to 2022, networks only had to send a Form 1099-K if a business or individual had over 200 transactions and got more than $20,000 in gross payments. For this year onwards, however, third-party payment networks now have to send out 1099-Ks to anyone who has any number of transactions alongside over $600 in gross payments. Given the major downturn in the reporting threshold, filing 2022 tax returns will involve a lot more Form 1099-Ks coming in. The new laws also attempt to ensure more accurate tax returns from smaller businesses or individual taxpayers who were not previously subject to 1099-K reporting requirements. It should be noted that the changes apply to third-party payment networks only. Card payment reporting requirements, on the other hand, are still the same. Payments that come from debit or credit cards have never been subject to a de minimis threshold. As a result, a Form 1099-K must be sent by PSEs to anyone and everyone that gets them. Individuals will need to file a Schedule C (Form 1040) while businesses should file Form 1065, 1120, or 1120S (depending on the structure of their business). Will 1099-Ks Be Sent Out To Clients for Personal Transactions? Personal transaction reports should not be a concern. If a client receives over $600 in reimbursements through an app like Cash App, for example, but it’s all from family and friends and linked to events such as eating out, don’t fret. That transaction and others like it are excluded from the reporting requirements. Clients should not be receivers of a 1099-K in that case. Typically, third-party payment networks are able to differentiate personal and business transactions based on short questionnaires asking if the transaction is for the service or good. Another solid basis often used for this is user agreements. Conclusion Form 1099-K is a crucial document that previously only covered debit and credit card payments. For 2022, it’s been updated to include third-party payment networks like Cash App and Venmo. It should be noted that personal transactions do not require 1099-Ks. Need the best professional tax software? Keystone Tax Solutions has you covered. We have professional tax software for tax preparers. Get in touch with us today!

Many of us know that changes to interest rates occur after significant tax reforms, but how do these changes occur? And what are the impacts on your clients? This post explores the complex relationship between tax policy and interest rates to help you understand. How Tax Policies Affect Interest Rates Economists often recognize the relationship between the federal budget and interest rates. When tax policies change, like lowering them, businesses and individuals typically have more disposable income. This encourages companies to spend more and causes individuals to borrow more, especially from banks. As a result, banks must compete for customers, increasing demand for loans and causing the interest rate to rise. If the reform bills lead to increased economic activity and a larger national deficit, the Federal Reserve may choose to raise interest rates. The Federal Reserve may also consider raising interest rates due to potential inflation caused by tax cuts and the likely inflation caused by the larger national deficit. Both of these examples are based on the premise that lower unemployment rates lead to increased wages, which leads to inflation. Other Factors That Affect Interest Rates While major tax reform will probably influence interest rates, it’s far from the only factor that affects them. Most of the time, higher rates result from an increase in inflation because lenders want to maintain their profit margins. Since recipients of loans must pay back more dollars due to inflation, lenders charge borrowers higher interest rates to make up for the difference. Since the supply and demand for credit have a strong influence over interest rates, the economy’s strength will also affect them. Typically, high-interest rates are a sign that the economy is doing well. How Interest Rates Affect Tax Policies No one knows how tax policies affect interest rates. Changes in interest rates due to new tax policies are relatively easy to spot. However, figuring out how current interest rates influence policymakers’ decisions is harder than you might expect because tax policies are influenced by the state of the larger economy and other political factors. Economists have said that sustained low-interest rates could significantly impact tax policy. These low rates have likely led to a change in preferences—instead of income taxes, people are paying more attention to their consumption taxes, i.e., sales tax. These effects on tax policy are theoretical and don’t occur immediately, unlike the immediate impact of tax policy on interest rates. However, there are also some short-term impacts on tax policy. Under a low-interest policy, fewer investors are willing to take on the risk of long-term investments. This can decrease the amount of capital available to businesses and lower competitiveness. Conclusion Tax policies have an immediate impact on interest rates. These changes can then have a lasting impact on the direction of tax policy because they influence the economy. And the direction of tax policy then changes the interest rates, which then changes tax policy, and so on. The federal budget is an immensely complex system that’s difficult to measure and predict. So, when it comes to interest rates and tax policy, we’re still trying to figure out how the different parts affect each other. Hopefully, this article will help you understand how tax policy and interest rates are related, but you’ll still have to do your own research to figure out how they affect your clients. Keystone Tax Solutions provides professional tax software for tax preparers who prepare taxes for other people. We are a professional tax software industry leader with more than 15 years of experience offering 100 percent web-based tax software while helping thousands of tax professionals start their own tax business and thousands more gain access to affordable technology-driven professional tax software. If you need software for tax preparers, get in touch with us now! Let us know how we can help.

Using any types of audits is important for tax preparers when it comes to investigation. It is a process that’s usually conducted by a government agency and designed to examine the tax returns of an individual, business, or organization. If you are working as a CPA or an accountant and are facing an IRS audit, then you need to have a good understanding of the process. Here are eleven different types of audits that may help you gain a better understanding of what you are up against. External Audits An external audit is done in order to ensure that various business operations are following the law. It is to ensure the accuracy of financial statements. External auditors typically verify that a business’ financial transactions have been processed correctly. They are focused on business practices and making sure that laws are not being broken. Internal Audits Internal audits are typically performed by the business itself. They are performed in order to ensure that the business is adhering to certain standards and laws. They are often used to comply with state regulations. Internal audits are also used to make sure that the company is following best practices and that employees are doing their jobs correctly. Performance Audits A performance audit is performed in order to examine the operations of a government agency. It is usually done in order to make sure that the agency is using tax money effectively, following the law, or using the maximum amount of tax breaks. Financial Statement Audits Financial statement audits are a standard form of an audit. A financial statement audit is the most common type of audit. Audits that are performed by an independent entity to verify that an individual or business’s financial statements are accurate, including the proper tracking of a company’s revenues, liabilities, and assets. Operational Audits An operational audit is a type of audit where the purpose is to examine an entity’s internal controls. An operational audit is done to ensure that an employee’s or company’s procedures are being carried out correctly. This type of audit is separate from the financial audit that’s required by law. Single Audits A single audit of the financial statements is also known as an audit of federal awards. This type of audit is designed to make sure that auditing requirements are met. It is a type of audit that’s completed by a single entity. Employee Benefit Plan Audits An employee benefit plan audit is a type of audit where the purpose is to examine a group health plan, pension plan, or other types of employee benefit plans. The audit is designed to make sure that the plan is being funded correctly and that the government is receiving its full amount of tax credits. Compliance Audits A compliance audit is a type of audit that’s performed after a major event occurs. For example, if your company is facing a merger, then you can have a compliance audit performed in order to make sure that all legal issues have been handled correctly. The audit is a way of making sure that all legal issues have been handled correctly. Information System Audits Information system audits are a type of audit that’s performed by an auditor who is examining a company’s information technology resources in order to ensure that the IT is being used correctly. This type of audit is mainly performed by the company itself, with assistance from the auditor. Forensic Audits A forensic audit is a type of audit where the intent is to uncover any fraud. It is meant to determine whether any financial misconduct or irregular behavior has occurred. Payroll Audits An internal payroll audit is a type of audit that’s performed by an individual who is examining the company’s payroll records. The audit is meant to make sure that the payroll records are accurate and that the company is following the U.S. Department of Labor (DOL) and IRS guidelines. Conclusion Navigating the tax code can be complicated if you don’t have the right tools and understanding. As a tax accountant, it’s your job to make sure that your clients are receiving the maximum amount of deductions and credits that are legally allowed. By having a working understanding of the tax code and the audit process, you can ensure that you can easily pass an audit and ultimately help your clients. Keystone Tax Solutions is the best professional tax software that will help you give your client peace of mind while gaining additional revenue through audit protection. Let us help you handle the stress of doing taxes and easily pass an audit. Contact us today to get started!

One of the main reasons people don’t start their own In-Demand Tax Service businesses is because they’re not confident they can sell their services. But you can’t just leave it up to chance whether or not you’ll get customers. There are ways to test your idea before fully launching your business. Create an In-Demand Tax Service with These Quick Tips 1 – Listen to Customer Complaints What do your customers say when they’re not happy with your services? How do they say it? If you’re great at what you do, it’s inevitable that you’ll receive some complaints. But if customers are taking the time to let you know what they don’t like, that’s a great sign of opportunity. If you hear something like “I wish I knew there was something else I could do to help myself with taxes,” or “I didn’t know I could do it myself,” or “I wish I had known there was an easier way to get my taxes done,” then you’ve heard customers say “Tell me more about this.” This is a great sign that your customers are looking for some extra help, and it may be an opportunity to expand your business. 2 – Research Your Competitors If you don’t know if your services are in demand, you can learn a lot from the competition. One of the best ways to learn is to go to a competitor’s website and look at the testimonials they have there. There are many people you can learn from, including those in your competitors’ testimonials. These can be people who have been successful or people who have not. What are they saying about the services you provide? If you were to tell your customer the same story, what would they say? These examples of success or failure will help you know how to better position your services. 3 – Ask Potential Customers The easiest way to test if a service is in demand is to ask potential customers. First, you’ll want to find people who are looking for your services and get their contact info. If you offer a service that helps people find and hire freelancers, for example, you might find people who need help in that area by going to freelance job sites online. You can also ask people on social media. Once you have contact info for your potential customers, send them a message. Tell them you will be offering a service in a particular area, and you’d like to get their thoughts on it. This can be done through email, over the phone, or in person. They will likely give you some valuable feedback on what they would like to see in your service, and it will help you know if there is demand for your product or service. Conclusion Starting your own tax business is something that you can do if you have the right plan. If you’re just not confident you have the right plan, but you know you have the right skills and services that would help people in this area, you may want to look elsewhere. Before you start your own tax business, you should learn how to sell your services, and you should listen to your customers to know if you’re offering what they need. If you are looking for the best professional tax software, start using Keystone Tax Solutions! Let us help you meet your clients’ needs today!

The tax season is always a busy time for tax preparation firms. In 2022, the challenges of tax season will be more of a hassle for many. The new tax laws and regulations will require tax preparers to be even more diligent in their work. Additionally, the increased use of technology in tax preparation may create new challenges for firms. Here is a rundown of the top issues confronting tax preparation firms: The Endless Tax Season as a Result of COVID Relief As the COVID-19 pandemic continues to wreak havoc on the economy, tax preparation firms are bracing for another tough tax season. The pandemic has caused widespread job losses and business closures, significantly decreasing tax revenues. The federal government has enacted relief measures, including stimulus payments and expanded unemployment benefits. While these measures have provided some relief to taxpayers, they have also created a significant burden for tax preparation firms. The increased complexity of the tax code as a result of the relief measures has made it difficult for firms to keep up with the latest changes. Collaboration with the IRS As the 2022 tax season approaches, tax preparation firms in the United States are preparing for potential changes in collaborating with the Internal Revenue Service (IRS). In recent years, the IRS has been working to modernize its systems and processes, and it has been increasingly focused on electronic filing and collaboration with tax preparation firms. In 2022, the IRS is expected to continue this trend, and tax preparation firms must be prepared to adapt. The e-Services platform is not yet fully operational, and the IRS has not released all of the information tax preparers will need. This lack of information has caused confusion and frustration for many tax preparers, and it is a significant challenge that tax preparation firms will need to address in 2022. The Importance of Tax Preparation Software As the 2022 tax season approaches, many Americans wonder whether they should use tax preparation software or hire a professional tax preparer. While both options have pros and cons, there are compelling reasons to use tax preparation software with assistance from a tax preparation firm. One of the most significant advantages of using tax preparation software is that it can help you maximize your deductions and minimize your tax liability. Tax preparation software can help you identify beliefs that you may not have been aware of, and it can also help you ensure that you are taking advantage of all the deductions and credits to which you are entitled. Another advantage of tax preparation software is that it can help you save time. These apps can automate many of the tasks of tax preparation, such as calculating your tax liability and preparing your tax return. This can save you significant time, which is especially valuable if you have a complex tax situation. Conclusion The challenges of tax season for tax preparation firm in the USA for 2022 are numerous. They include the need to comply with new IRS regulations, the challenge of preparing tax returns for a complex tax code, and the need to keep up with the latest changes in the tax code. In addition, tax preparation firms must also deal with the increased demand for their services during tax season. While the challenges of tax season may seem daunting, tax preparation firm can take steps to ensure a successful tax season. If you are looking for the best professional tax software, Keystone Tax Solutions is here to help. We are here to provide award-winning professional tax software to our clients at the most affordable prices in the industry, thanks to our purchasing power and relationships. Contact us today!

Tax software is easy to use, but it’s hard to choose between all the available software. Some software helps with state income returns, while others help with filing your federal tax return. It’s important to reflect on which program you need. In this follow-up article, we’re listing other questions that should also be considered before signing up for a tax software service: 6. How Much Tax Software Support Do You Need? Some tax prep software packages offer more support than others. When shopping around for tax software in its current form, you might want to look at whether or not there’s a free demo or free trial version to help you explore the software and make sure it’s right for you. In addition, most tax softwares offers email support; some offer phone support, and a few provide live chat support. More support options can be found on the websites of tax softwares products. It’s essential to choose a program that offers support convenient to you. 7. Does the Tax Software Have a Guarantee? Finding the right tax softwares can be a challenge. Some software products offer a money-back guarantee, but others don’t. Before choosing a tax package, it’s good to find out if the company offers a money-back guarantee. If the tax softwares makes an error, generally, you can get a refund. However, some companies may require you to use the software to file a tax return before you can get a refund. Different refund policies depend on the tax softwares company’s terms and conditions. 8. Do You Want to File Electronically? Some tax softwares programs file electronically while others don’t. The IRS and state governments don’t charge to file your taxes electronically. This is the easiest and safest way to file your taxes. Electronic filing comes in two ways: Electronic filing of federal returns Electronic filing of state returns Electronic filing of both federal and state returns is also referred to as e-filing. Some tax softwares programs will help you file a federal tax return electronically. These programs will also help you file a state tax return electronically. Many folks prefer to file federal and state returns electronically because it’s faster, easier, and more convenient. 9. Does Your Computer Meet the System Requirements? Before installing tax softwares on your system, you should make sure your computer has the proper hardware and operating system to run the software. Some tax softwares programs need a high-speed Internet connection to access the IRS and state tax systems. Most tax softwares programs come with system requirements that you need to follow before installing the program on your system. System requirements are usually listed in the tax software’s user guide. 10. Is the Software for the Correct Tax Year? Application dates on tax softwares packages are essential to be aware of. Many tax software packages are released in time for the next tax year, which means they’re out in early January. If you wait until the end of January to look for tax software, you may not find one right for you. It’s essential to find a tax softwares that allows you to file your taxes for the current tax year. Conclusion Finding the right tax softwares that fits your individual needs can be challenging, but it’s not impossible. Taking these questions into consideration will help you navigate through the sea of information that’s out there. Do you have any suggestions to help people find the right tax softwares? We’d love to hear from you. Keystone Tax Solutions provides professional tax softwares for tax preparers who prepare taxes for other people. We are a professional tax softwares industry leader with more than 15 years of experience offering 100 percent web-based tax softwares while helping thousands of tax professionals start their own tax business and thousands more gain access to affordable technology-driven professional tax softwares. If you need software for tax preparers, get in touch with us now! Let us know how we can help.

Taxes and Cryptocurrency has been gaining popularity in recent years, and with that popularity has come increased scrutiny from tax authorities. Cryptocurrency is still largely unregulated, and as such, there is no uniform approach to taxing it. This can create confusion for taxpayers, who may not be sure how to report their cryptocurrency transactions on their taxes. Given this, we thought it would be useful to put together a brief article on this subject. If this is something that you’re interested in learning more about, read on as we break down everything you need to know about cryptocurrency and taxes. What Is Cryptocurrency? A cryptocurrency is a type of digital or virtual currency that is secured by cryptography. Cryptography is a process of using codes to protect information from unauthorized access. Cryptocurrencies are decentralized. This means they are not subject to government interference or manipulation. Cryptocurrencies use various encryption algorithms and cryptographic techniques to secure their transactions. “Crypto” refers to the various encryption algorithms and cryptographic techniques that safeguard these entries, such as elliptical curve encryption, public-private key pairs, and hashing functions. How Is Cryptocurrency Taxed? While taxing cryptocurrency may seem complicated, it’s actually more simple than you think. Despite the IRS’s limited guidance around this, cryptocurrency can be taxed under two frameworks. Cryptocurrency is subject to capital gains taxes if it is bought and sold as an investment. If cryptocurrency is paid or received as income, it will be subject to regular income taxes. If someone buys cryptocurrency and doesn’t sell it or trade it for another cryptocurrency, they don’t need to report it for taxes. Also, if they transfer their cryptocurrency from one personal digital wallet to another, that’s not a taxable event. This means that if someone moves their cryptocurrency from one personal digital wallet to another, they don’t have to pay taxes on it. However, the exchange or platform they use might give them a Form 1099-B, which they need to keep track of to prove that the currency wasn’t sold for a profit or loss. When Is Cryptocurrency Taxable? When you exchange one cryptocurrency for another or sell cryptocurrency for regular currency, you are making a taxable event. This means that you will need to keep records of each exchange. For every taxable event, you should have a record of the cryptocurrency’s fair market value in U.S. dollars on that day. So, if you purchased one Bitcoin when it was valued at $25,000 and sold it when it was valued at $30,000, you would have a capital gain of $5,000. Take note that you have to subtract fees associated with the transactions. Keeping records shouldn’t be that difficult as most crypto exchanges will automatically keep records of these transactions, but if you use multiple platforms or personal virtual wallets, you will need to be more careful about keeping your own records. Conclusion We hope this article proves to be useful when it comes to helping you figure out how taxes work when it comes to cryptocurrency. While it may seem complicated at first, the information that we’ve laid out here should help you navigate this process. Feel free to refer back to this article if you need a quick refresher on this subject. If you’re looking for professional tax preparation software to streamline and optimize your processes, our products at Keystone Tax Solutions are just what you need. Get in touch with us to begin your free demo today!

Over the years, business Fraudulent Activities has happened more often. Why is this so? Well, while the advancement of technology has enabled businesses to fight back against these frauds better, it has also equipped scammers with tools to take their scamming efforts to the next level. As such, staying on top of the latest fraud trends and the like will enable you to keep your business safe from falling prey to such unfortunate events. That being said, what else can you do to help prevent fraud in your business apart from simply knowing the trend? Here are a few things you can do: 1. Know Your Team Members This is perhaps the most important thing you can do to prevent fraud in your company. Why? Because fraudsters often use the trust employees have in them to get access to your accounts. This can be a particularly easy feat if you do not know your team members well. Take the time to get to know your employees, look into their backgrounds to see what they are capable of, and check how honest they are. Having a background check on them will also help you know whether they can be trusted. Inquiring about their previous jobs is also a good way to ascertain whether they have something to hide. 2. Educate Your Employees This is perhaps the second most important thing you can do to prevent fraud in your company. Investing in proper training for your employees will allow them to understand the ways fraudsters operate and will arm them with the right skills to overcome such threats. 3. Look Into Third-Party Vendors Besides conducting a background check on your own employees, you should also do the same for your third-party vendors. This is because fraudsters often hide behind the guise of a third-party vendor to reach you and your employees. Having a background check on them will also allow you to ensure that they can be trusted. 4. Set Up Fraudulent Activities Detection Systems There are many Fraudulent Activities detection systems you can set up to help prevent your business from falling prey to scams. For example, having a system that can detect any suspicious activities in your accounts will help you ferret out scammers. These systems can also be useful in the prevention of employee and vendor fraud. 5. Implement a Security Policy This is another thing you can do to help prevent Fraudulent Activities in your business. Having or implementing a security policy for your business will allow you to ensure that only people who should be privy to information such as passwords and such are people who can be trusted. 6. Conduct Regular Audits It is important to conduct regular audits to make sure that all your employees are following procedures and policies. This will allow you to catch employees who are trying to commit Fraudulent Activities. It will also help you see if there are any holes in your security policy or other policies. 7. Keep an Eye on Your Accounts This is something you can do yourself. All you need to do is ensure that you regularly check your accounts. This can be done through regular sweeps of your accounts or by simply keeping an eye on the daily activities of your employees. If you notice something unusual, do not hesitate to get someone to help you check it. Conclusion Knowing the latest fraud trends and taking the necessary steps to prevent your business from falling prey to such frauds is a must. With this knowledge and the steps outlined above, you can keep your business from falling victim to scams. That being said, be wary of everything that you do and anyone you work with. It never hurts to double-check anything that catches your eye, as that might just reveal a sinister secret behind it! Keystone Tax Solutions offer professional tax software to help tax preparers carry out business better! Get in touch with us today and enjoy tax software that you can rely on!

Very few people can honestly say they look forward to virtual tax preparation. Many who attempt to handle their own business’ accounting soon realize that it’s so easy to drown in all the files and the numbers. This is one of the reasons tax preparation is a thriving industry. Many businesses are in need of reliable tax preparation services. Starting this type of business is certainly a good idea. But like all other businesses, it needs proper preparation for you to succeed in this industry. To help you out, experts behind the best professional tax software shares this quick guide on how you can start a tax preparation business: Obtain Necessary Licensing In the US, you will need to be licensed. Your virtual tax preparation business falls under the category of an accounting business. Therefore, an accountant’s license will do. In some states, you can get licensed to prepare taxes. However, you will need a certified public accountant’s (CPA) license. These licenses are available at the state level. Apart from licensing, you may need to be registered to prepare taxes. In that case, you need to go to the Internal Revenue Service (IRS) and register. Secure Your EFIN and PTIN You can only get an EFIN (Employment Identification Number) and PTIN (Preparer Tax Identification Number) when you are a registered tax preparer. Before registering, you will need to know if your state requires you to collect sales tax. If you need to collect sales tax, you will have to attend training. Apply for Business Insurance Having business insurance is not a requirement for tax preparation business. But, it will help you out in a lot of ways. You need to secure enough insurance to cover all your assets. You should also have liability insurance to cover the damages in case of an accident. Understand Your Lawful Standing Since tax preparation is not only a business but an industry, you need to understand your lawful standing. This is to make sure you are not taking advantage of the law. The IRS regulates tax preparation. As a tax preparer, you must abide by the law. Create a Business Plan You must always have a business plan in place. This is to make sure your tax preparation business is on the right track. Writing a business plan is a very simple process. You will need to include information like you are doing this business, what your target market is, how you will reach your target market and how you will increase profitability. Get the Best Tax Preparation Software Tax preparation software can turn your tax preparation business into a highly lucrative venture. And it helps to take care of the number crunching. This software can be used by both small and large businesses. This is the best way to help out businesses in need of reliable tax preparation services. Tax preparation software is the perfect solution if you are planning to start a tax preparation business. It helps to take care of high-end tax preparation tasks. It will lower your stress level and make tax preparation a hassle-free process. Build a Website Your website is your online marketing platform. You can use this opportunity to attract more customers to your business. You will also be able to establish a strong brand identity. This is important because you can use this identity to reach more customers. Conclusion Starting a tax preparation business is not easy. But with the right plan, you can make it happen. A professional tax preparation software can help you create the ideal tax preparation business. It guides you in preparing the right plan so that you can start your tax preparation business. Keystone Tax Solutions is the best professional tax software that you can use for your tax preparation business. Try our packages today!

A lot of small enterprises are run by families. If you prepare tax implications for small business clients, you should expect to come across a variety of family enterprises and assist them in navigating the tax ramifications of hiring relatives. This post will look at one of the most popular family businesses: two spouses working together and how the best professional tax software can help them. Here is the info to help them handle their taxes correctly, whether they’re business partners or employees—and where to find a professional tax preparers software. When Married Couples Run the Business Together When couples run a business together, the way tax implications are handled depends on their business structure and whether they file as a partnership or a qualified joint venture. Partnership In most cases, they will be considered partners, even if they have never signed a formal partnership agreement. They should file Form 1065 U.S. instead of Schedule C (Form 1040) and name one spouse as the sole proprietor. Partnership Income Return Note that partnership revenue is considered “pass-through” income, which means that the partnership will not pay income taxes. Instead, the revenue is distributed to each partner responsible for reporting and paying taxes. As a partnership, they must follow federal record-keeping rules for partnerships to ensure that each spouse receives the Medicare and Social Security benefits they are entitled to. However, if they wrongly filed as a sole proprietorship, only one spouse would receive credit for Medicare and Social Security taxes, resulting in substantially lesser Social Security payments for the other spouse when they retire. Spouses can choose to treat their business as a Qualified Joint Venture rather than a partnership in some situations. Qualified Joint Venture in Tax Implications A couple does not need to file as a partnership if they opt to be deemed a qualified joint venture, and both spouses will earn enough Medicare and Social Security tax credits. To be regarded as a qualified joint venture, it must meet the following criteria: If you’re looking for a unique way, a married couple who files a joint return is the only member. Both spouses have a material stake in the business or trade, and Both spouses choose not to be treated as a couple. The business must be co-owned and run by spouses rather than a state-law organization (such as a limited partnership or limited liability company). Both spouses are classified as sole owners for tax purposes in a qualified joint venture, and each must file their Schedule C for their part of the business’s income and losses. The spouses should not utilize the business’s EIN when filing individual taxes. Instead, each spouse should file under their own Social Security number, with the partnership’s EIN intact. It will only be used to file when the company does not meet the requirements of a qualified joint venture. When One Spouse Hires The Other The tax scenarios above apply if the couples are equal company partners, but what if one spouse manages the business and employs the other? The employed spouse will be considered virtually like any other employee for tax reasons. Their earnings are still subject to income tax and Medicaid/Social Security taxes. The business-owning spouse is still responsible for all payroll taxes, including the employer component of Medicaid and Social Security. Individuals hired by their spouses have one key tax advantage: their wages are not subject to Federal Unemployment Tax Act (FUTA). How Do You Know If Your Spouse Is A Partner Or An Employer/Employee? When spouses work together, the distinctions between a partnership and an employer/employee relationship can become fuzzy. The IRS provides recommendations to assist you and your clients in appropriately determining their duties. The spouses should be deemed employer and employee if the first spouse primarily controls the firm regarding management choices and the second spouse is under the direction of the first spouse. Suppose the second spouse has an identical duty in the business’s activities, provides practically equal services to the firm, and contributes capital. The spouses should be considered partners rather than employers/employees for tax purposes. Conclusion After reviewing the tax advantages and unique laws that apply to employing family members in your small business, you may conclude that working alongside your kid, spouse, or parent is not only a fantastic way to keep the business in the family but also a great way to reduce your tax burden. Of course, as with anything tax-related, specific laws, exceptions, and principles apply to every circumstance. As a result, seeking a tax pro software before proceeding is always smart. For tax preparers, Keystone Tax Solutions offers the best professional tax software to improve accuracy and streamline the process. Request a free demo now!

Tax planning strategies is a critical part of ensuring a business is successful and profitable, no matter the size. There are several different strategies a company can use to minimize its tax liability and maximize its profits. Small Business Tax-Planning Strategies Here are a few small business tax planning strategies business owners might implement: 1. Consider a Tax Status Change Sole proprietors might be able to save money by switching to a limited liability company (LLC) or S corporation tax status. LLCs and S corporations have more tax benefits than sole proprietors, so switching can help protect the owner’s personal assets. To switch the tax status, the owner will need to file a new tax return using the new tax status. They might also need to file additional paperwork with the state tax agency. 2. Loss Carry Back Scheme If the small business has suffered a loss, it might be able to carry the loss back to offset profits in previous tax years. This can help the business get a refund for taxes it has already paid. To claim a loss carry back, the owner will need to file an amended tax return for the previous tax years. They might also need to file additional paperwork with the state tax agency. 3. Leverage Coronavirus Tax Relief If the small business has been affected by the coronavirus pandemic, it might be able to take advantage of tax relief measures put in place by the government. The Coronavirus Aid, Relief and Economic Security (CARES) Act and the American Rescue Plan Act both provide tax relief for small businesses. The CARES Act provides a payroll tax deferral, while the American Rescue Plan Act provides a payroll tax credit. 4. Deduct Assets to Charity If you’re looking to reduce taxable income, you might want to consider donating assets to charity. You can deduct the fair market value of the assets you donate from your taxable income. To claim a deduction for asset donations, you’ll need to itemize the deductions on your tax return. You’ll also need to keep records of the assets you donate, such as receipts or appraisals. 5. Set Up or Contribute to a Retirement Accounts The business owner can set up a retirement account for themselves or their employees. Retirement accounts can help the owner and the workers save money on taxes. There are several types of retirement accounts, such as 401(k)s and IRAs. The type of retirement account you set up will depend on the business’s structure and your employees’ needs. Owners can deduct contributions they make to the employees’ retirement accounts from their taxable income. The employees can also deduct their contributions from their taxable income. 6. Track Every Receipt With Professional Tax Preparation Software Keeping track of the business expenses can be time-consuming and tedious. But it’s important to keep track of your expenses to deduct them from your taxable income. One way to keep track of the business’s expenses is to use accounting software. The best professional tax software can help you track the company’s expenses and prepare its financial statements with ease. There are many different accounting software programs available, so you’ll need to find one that meets your needs. Conclusion There are a few key tax planning strategies that small businesses should keep in mind to minimize their tax liability. These include staying up to date on tax law changes, knowing which deductions and credits are available, and planning for estimated taxes. By taking these steps, small businesses can save themselves a lot of money come tax time. Dealing with taxes can be challenging for anyone, even as an expert tax preparer. If you’re looking for innovative solutions that can streamline your tax preparation process, our professional tax software for CPAs can help simplify matters for you. Our affordable technology can empower tax preparers and help you start a tax business with no EFIN, so get in touch with us today at 1.800.504.5170 to see how we can ensure your tax business is booming.

Millions of taxpayers rely on tax professional return software and apps to help them prepare their returns. While these tools can be helpful, they also have some pros and cons. What are they? The Advantages of Using Tax Professional Prep Software or Apps With the technology we have today, it’s not surprising that there are software programs and apps that can file your taxes for you. If your situation is simple, you can submit your return to the IRS with just a few clicks or keystrokes. Here are some of the advantages of tax prep software: – Affordability Most tax prep software programs are reasonably priced, and many offer free filing for federal returns. This can be a big saving over paying a tax preparer to do your return. – Convenience Using tax prep software is a convenient way to file your taxes. You can do it from your home computer, and you don’t have to worry about finding a preparer and making an appointment. – Accuracy Software programs are extremely accurate, and they are updated each year to reflect the latest changes in the tax code. This can help ensure that your return is filed correctly and that you receive all of the tax breaks to which you are entitled. – Ease of Use Most tax prep software programs are easy to use. They walk you through the filing process step-by-step and provide help if you have questions. If you are considering using a tax prep software program, be sure to do your research to find the one best suited to your needs. The Disadvantages of Using Tax Prep Software or Apps There is a greater chance of mistakes. The IRS can look at your return more closely if it is done using software. You will still be responsible for making sure the information you enter is accurate. You will not get a professional to ask questions and help you figure out your return. There is a risk the software will not work with new updates to the tax code. When Should You Hire a Tax Professional Instead If your tax situation is complex or you’re not comfortable filing your own taxes, you might want to hire a tax professional. There are a few key indicators that suggest it might be time to hire a tax professional instead of preparing your own taxes. If your financial situation has changed dramatically in the past year, you’re self-employed, or you have rental properties, for example, you might want to consider professional help. Other times when it might be beneficial to hire someone include if you’re dealing with an IRS audit or if you have questions about the tax law that you need answered. Ultimately, if you don’t feel confident in your ability to prepare your own taxes, it’s probably best to seek professional assistance. To Sum Up There are pros and cons to using tax return apps and software. On the pro side, they can save you time and money. On the con side, they may not be as accurate as you would like, and you may have to pay a fee to use them. Ultimately, the decision of whether or not to use tax return apps and software is up to you. Keystone Tax Solutions is a reliable tax return software for tax preparers. Get started now!

Marketing is essential to successful tax practice. By encouraging clients to return year after year, you’ll be able to create a stable revenue stream that ensures preserve client retention. To build your client base, develop a marketing plan around these ten simple, actionable steps. These strategies will help you create a loyal customer base that will remain with you year after year. Here are some customer service tips to help retain your client base. 1) Uphold a Good Reputation A good preserve client retention is a powerful asset. If it’s good, you will be successful. If you are known for consistently poor customer service, you will be less successful. A good reputation can motivate and attract both clients and team members. A bad reputation can destroy your business and discourage success. To build a positive business reputation, give your clients what they want. Offer them convenience, broad expertise, competitive pricing, and a great customer experience. 2) Provide Great Customer Service A good reputation is essential to growing your business. But a reputation is only as good as your customer service. Your customer service is more important than your marketing efforts and your business plan. Many small businesses focus on marketing and ignore customer service completely. Focusing on customer service will help you grow your business. Great customer service attracts new clients and inspires loyalty, which builds a growing, loyal customer base. 3) Reward Customer Loyalty Loyalty is the most important form of business reputation. Loyal customers will be brand evangelists, recommending you to their friends and family. It’s important to reward customer loyalty. Show your appreciation by offering them deals, discounts, freebies, and other perks. This will motivate them to continue making recommendations, and help you grow your business. 4) Stay in Touch All Year Round A viable business requires a continuous stream of client activity. The only way you’ll be able to achieve this is by staying in contact with past customers all year round. Send out email newsletters, make phone calls, schedule meetings, and send holiday cards. This will help you develop new client relationships and make past clients feel important. 5) Know What Makes Customers Leave Asking your clients why they left your tax practice can be a great way to tweak your business. Use whatever information you receive to improve your customer service, and eliminate unnecessary problems. A lot of businesses fail to ask their customers why they left. They don’t want to hear the truth, and they’re afraid of the reaction. But if you want your business to succeed, you have to be willing to face the truth. 6) Stay Up to Date with Taxes To keep your client base satisfied, you need to stay up to date with all tax issues and changes. There are two ways to get involved with tax changes. First, you can read tax news and information. Second, you can find simple tax software that helps you stay on top of updates. Conclusion Great customer service is the foundation of successful business practice. It will help you attract new clients, motivate current clients to come back and stay, and retain your existing customer base. Keep up to date with the latest trends in taxes with Keystone Tax Solutions. We have the best professional tax software that will easily inform you of tax changes. Get in touch with us to learn how.

Tax preparation help is a complicated process, and it can be time-consuming if you have to do it every year. If you’re tired of doing your taxes, it might be time to find a tax preparation service that can do the work for you. There are plenty of tax preparation help services out there that can help you with your taxes. When should you decide to hire a professional for tax preparation? Continue reading. What Is Tax Preparation? Tax preparation is the process of preparing your tax return, which is done by using information found on your tax return forms and adding in any additional data you may have. This additional data can include charitable donations, capital gains, income earned from a business or side job, or any other tax-related expenses. This is not the same as tax planning, which is the process of integrating your tax-related expenses into a financial plan that helps you make decisions about how to spend, save, and invest your money. Tax preparation is a process that is completed at one point in time, whereas tax planning is something you can do on a yearly basis. Signs You Need Tax Preparation Help There are many signs that you could use help preparing your taxes. If you find you are spending more time or effort on doing taxes than you feel you should, it might be time to consider seeking professional help. 1) You Are Facing Complicated Tax Returns If you have many business expenses, investments, or a complex financial situation, you may want to seek help from a tax preparation service. Tax preparation can be complicated, especially if you have trouble understanding how different expenses and investments affect your tax return. An experienced professional can help you determine the best way to record your financial information to minimize your taxes and maximize your tax savings. 2) You Have a Lot of Financial Accounts If you have a lot of financial accounts that you use to pay your bills and make your investments, it can be difficult to keep track of all the different pieces of your financial puzzle. However, the more accounts you have, the more complicated your tax return will likely be. For example, if you own a business, you will need to keep track of your business income and expenses, which may be different from how you keep track of your personal income and expenses. You also need your business bank accounts to be separate from your personal accounts. Tax preparation becomes more complicated when there are multiple parts to your finances. 3) You Have Rental Property If you own rental property, you may want to seek professional help because the tax laws have become more complex regarding rental property. There can also be additional expenses and tax-saving opportunities that you need to consider as well. If you are a landlord with multiple properties, you may want to use property management services instead of doing the bookkeeping yourself. They can help you set up a budget, manage your properties, and prepare your taxes. Conclusion Tax preparation is just one aspect of tax planning. While tax preparation can help you determine how much tax you owe, it doesn’t always help you create a financial plan that maximizes your savings and minimizes your taxes. If you need tax preparation assistance, Keystone Tax Solutions can help you out. With the best tax preparation software at your arsenal, you can manage your taxes much easier. Get in touch with us today to get started.

While the process for home sales can be rather tricky as far as taxes are concerned, it’s not something that you won’t be able to manage as long as you know what you’re doing. To help you out, here are five things that you need to know when reporting a home sale. Capital Gains May Be Excluded The IRS offers a special exclusion for certain capital gains. To be eligible, you must have owned the asset for at least five years and have used it for personal purposes for at least two of those years. The exclusion applies to gains of up to $250,000 for single filers and $500,000 for joint filers. Exceptions to Ownership and Residence Rules If your client does not meet the above ownership and residence rules, they may still qualify for the exclusion if they meet certain exceptions. Some of the most common exceptions include taxpayers who are newly divorced or widowed, and members of the military or other government services. Essentially, this means that if you are divorced or separated, you can claim any time that your former spouse owned the home as time that you owned the home. However, you must still meet the residence requirement on your own. If you are widowed, you can use the time that your late spouse owned or lived in the home to qualify, even if you do not meet the ownership or residence requirements on your own. If you are in the military or another government service, you may be exempt from the 24-month residency requirement if your duties kept you from living in the home. The IRS Publication 523 outlines different exceptions to the general rule that expenses related to the sale of a home are not tax-deductible. These exceptions include cases where the home is being sold due to a change in employment, health reasons, or unforeseen circumstances. Limits on Excluding Gains If your clients qualify, they can deduct up to $250,000 of capital gains from the sale of their home, or up to $500,000 for couples who are married and filing taxes jointly. This exclusion from the Net Investment Income Tax means more of their money can stay in their pocket. Losses on a Primary Home Can Be Deducted If your client’s home sells for a loss, they will not be able to deduct the loss from their taxes. The only time a loss can be deducted from taxes is if the property sold was a commercial property. If your client’s home does sell for a profit, they may be subject to paying capital gains tax on the sale. Special Rules Apply to First-Time Homebuyers If your client receives a federal mortgage subsidy or tax credit when buying a home, they may be required to pay some or all of it back when they sell the home. This is called recapture. Your client can use Form 5405, Repayment of the First-Time Homebuyer Credit, to see how much they may owe in recapture taxes or if they qualify for an exception. Conclusion We hope this article proves to be useful when it comes to helping you gain a better understanding of how taxes and home sales work. While it may be rather tricky at first, the information that we’ve discussed above should help make things easier for you and all parties involved. If you’re looking for professional tax preparation software to streamline and optimize your processes, our products at Keystone Tax Solutions are just what you need. Contact us now to start your free demo!

The type of business you have will play an important role as it can affect a multitude of different factors. Given its importance, you’ll want to make sure that you choose the right type of business. To help you out, we thought it would be helpful to put together a brief article about partnerships and corporations. If this is something you want to learn more about, read on as we break down the differences between these two types of businesses. What Is a Partnership? A partnership is an agreement between two or more people to run a business together. The IRS sees partnerships as pass-through businesses, which means that the business’s profits and losses are shared among the partners and added to their personal income. This means that partners have to pay personal income taxes on their share of the business, as well as self-employment taxes and estimated taxes. The business itself may also be responsible for employment taxes and excise taxes specific to its industry. There are three types of partnerships: General Partnership: A partnership is a business relationship between two or more people who agree to cooperate in order to earn a profit. In a general partnership, each partner is equally liable for the debts and obligations of the partnership. This means that if the partnership is sued, the partners’ personal assets are at risk. Limited Partnership: A limited partnership is a business structure in which one partner has full personal liability while the other partners are only liable for the amount they have invested. This type of partnership must be formed through a state government agency. This would be the best structure for a business with one partner who is active in the daily operations and can take on liability, as well as one or more less-active partners who contribute to the business but don’t want to be fully liable. The limited partners cannot be involved in the day-to-day business functions. Limited Liability Partnership: A limited liability partnership is a business structure that offers liability protection to all partners. This type of partnership is regulated by the state, and it allows partners to shield their personal assets from the business. Additionally, partners are not responsible for the actions of other partners within the limited liability partnership. What Is a Corporation? A corporation is a business entity that is separate from its owners. This means that the owners are not personally liable for the debts and losses of the corporation. The corporation is also held to a higher standard of record-keeping than other business entities, which means that the owners are required to file annual reports, conduct annual shareholder meetings, elect a board of directors to oversee the business, and follow company bylaws. How Do Partnerships and Corporations Differ? The main difference between partnerships and corporations is that corporations have a legal existence separate from their owners, while partnerships do not. This means that corporations can enter into contracts, own property, and sue or be sued in their own name. Partnerships, on the other hand, are not separate legal entities from their owners. This means that partners are personally liable for the debts and obligations of the partnership. Another key difference between partnerships and corporations is how they are taxed. Corporations are taxed as separate entities, while partnerships are not. This means that corporate income is taxed at the corporate tax rate, while partnership income is taxed at the individual tax rate. Finally, corporations have shareholders, while partnerships have partners. Shareholders have limited liability, which means they are only liable for the amount of money they have invested in the corporation. Partners, on the other hand, have unlimited liability, which means they are personally liable for the debts and obligations of the partnership. Conclusion We hope this article proves to be useful when it comes to helping you gain a better understanding of the differences between partnerships and corporations. While it may seem complicated at first, the information that we’ve discussed above should be enough to give you good foundational knowledge on this subject. Be sure to keep everything that you’ve learned here in mind so that you can make the most informed decisions for your business. If you’re looking for professional tax preparation software to streamline and optimize your processes, our products at Keystone Tax Solutions are just what you need. Get in touch with us to begin your free demo today!

No one likes getting a letter in the mail that says they are being tax audit by the IRS. But here’s the thing: you shouldn’t let this fear stop you from taking action to improve your finances. In fact, you should be more willing to invest more of your hard-earned money into your future if it means lesser  audit risk. Tax audit typically only happen to the less than 1 percent of the population that get audited every year. In fact, most people will go through their entire life without ever being audited by the IRS. With that said, you should not worry about getting audited. Here are five reasons why it would be smart to stop worrying about an audit. 1. You probably won’t get audited. As we said earlier, most people will never be audited by the IRS. The IRS has much bigger fish to fry. So the chances of them focusing on you are slim. However, the chances of you getting audited increase the more money you earn. They typically only audit people who have been making a pretty large income or have been making off-the-wall transactions with their money. The same goes for inheritors of big estates or business owners who have had a lot of cash flow. As you move up the income ladder, your chances of being audited increase. 2. If you have nothing to hide, then you have nothing to fear. If the IRS is auditing you and it comes out that you have been lying, then you will probably have to pay more than the original tax you owe. The reason is the IRS will throw the book at you to make you pay for the money you still owe. There are some things you should be worried about if you are audited, but they aren’t related to the IRS. And besides, it is far better to pay more now than to be audited and pay more later. 3. If you are being audited, it isn’t because you are a bad person. It is because you probably made a mistake on your taxes. And if you did, then you will be thankful that they caught it while you can still fix it. Like we said earlier, the IRS auditors are looking to find people who are cheating on their taxes. So if you have been audited, it isn’t because you are a bad person — it is because you were just being human. You won’t be sent to jail, and you won’t have a for-sale sign put up in front of your house. 4. You can reduce your chance for a tax audit. If you want to reduce your chance for an audit, there are a few things you can do. First, make sure you are keeping The best way to reduce your chances of being audited is to keep your receipts and documentation as organized as possible. The more organized you are, the easier it will be for you to prove that you are right. Most of the time, all it takes to correct a simple mistake is to provide the IRS with the right documentation. 5. IRS only considers two to three years of audits. This means that you can keep your receipts for about three years. Once you reach the three-year mark, you don’t need to keep your receipts anymore. Thus, you can recycle that folder you are keeping them in. If you think about it, the three-year rule is a good thing. Why? Because this means that you can save money on filing fees without worrying about what will happen in three years. Conclusion So as you can see, you shouldn’t be worried about being audited. When it comes to audits, all you can ever do is to prepare for them. When you are prepared, it will be hard for the IRS to find fault.  And when you stop worrying, you will find that the process is quite easy and not stressful. Keystone Tax Solutions offers the best professional tax software designed to help you prepare your tax returns easily and on time. Let us take care of the most time-consuming parts of tax preparation. Contact us to get started!

Whoever invented the calculator, the computer, and Cloud computing deserves a million thanks. It’s so convenient to solve complex financial problems, come up with a solution, and store them online for people to review. Some of the best professional tax software in preparing clients, such as TurboTax, H&R Block, and TaxSlayer, fit the bill for empowering individuals to compute their fiscal statements. Yet even with these technologies, are these clients of the right mindset? Are they saving up or simply planning for a nest egg already? The early bird indeed gets the worm, so it’s in their best interest to prepare now instead of later. Some fundamental principles you should be mindful of include: Coaching Them to Start Early Are you noticing that your younger clients haven’t begun preparing clients with their retirement contributions? Talk to them regarding the benefits of compound interest over time and encourage them to start as soon as possible. Understanding Their Tax Scenario Regardless of preparing clients ‘ types of retirement accounts, their tax situation is likely to change once they begin drawing from them. Before you introduce anything else, you’ve got to be familiar with how the most common retirement sources are taxed, such as: Traditional 401ks and IRAs: Distributions from these funds are subject to regular income tax since retirees made the contributions on a pre-tax income. Roth 401ks IRAs: On the other hand, distributions from these sources aren’t taxed since your clients already paid the taxes on the contributions. They only need to be over 59.5 years not to be penalized for early withdrawal. But if their employers made any contributions on their behalf, those are income tax-deductible. Social Security (SS): These benefits are taxed according to your clients’ total income. Combine their yearly SS benefit amount with their other income sources to determine this amount. Your clients filing single, HOH, or qualifying widow/widower, income between $25,000 and $34,000 are taxed 50 percent of their benefits. While income above $34,000 represents an 85 percent tax on their benefits. On the contrary, couples who are married and filing jointly should add half of their Social Security benefits and other income sources. If their yearly income is $32,000 – $44,000, half of their benefits are considered taxable income. If they make above $44,000, 85 percent of their benefits are taxable. And if your clients balk at those numbers, remind them that this doesn’t mean they are being taxed at 50 percent or 85 percent. Instead, only 50 percent or 85 percent of their benefits will be taxed at the appropriate rate for their tax bracket. If they’re still unsure, this questionnaire from the IRS can help them understand how they’ll be taxed: Are My Social Security or Railroad Retirement Tier? Pension Plans: Like traditional IRAs and 401(k)s, most pension plans’ distributions are considered taxable income since the contributions were not taxed. A few states have made exceptions for residents’ pension income, so be sure to look into the rules in your state. Pay Off Debts Though starting early is beneficial, it might make more sense for your clients to pay off debts that have higher interest rates first. The earned interest from their retirement savings could be far less than the money they’d save by paying off debt early. Guide Them with the Best Professional Tax Software The best thing about early retirement projections is your clients can prepare for the life they want as early as now. They’ll know which expenses to prioritize, how to budget, where to budget, and what to put off for the meantime. Then, that’s where you come in to guide them through every step, helping them reach their financial goals. Plan for your clients’ retirements with the help of Keystone Tax Solutions! We’re the best professional tax software on the market, which offers 3-year prior access, low fee options, unlimited free e-files, and unlimited additional users! Visit our web page to know more about this fantastic technology even more!

Sure, your company’s new tax software gets the job done, but you know there’s always space for improvement. Tax season can be stressful and chaotic, but removing time-consuming processes and streamlining and automating the tax workflow can be revolutionary for you and your team. Furthermore, you’ve discovered a new software solution that you believe will provide your company with all of the powerful, time-saving capabilities it needs to operate more efficiently. Then there’s a pause: any upfront cost and onboarding necessitate careful deliberation in the boardroom. It’s no different when it comes to implementing a new software solution. So, how can you encourage your boss to join you? Outline Efficiency and Potential For Expansion Finally, all new tax software produces the same result: a finished client tax return on an IRS-approved form. The journey is the game-changer—how you arrive at that final product and what efficiencies you achieve along the route. Document all of the challenges you and your team face during tax season. Why? There’s a strong possibility you won’t recall all of the workflow bottlenecks and inefficiencies you faced once tax season is done. Keeping a log as you go through tax season can be a simple and effective technique to guarantee that nothing is forgotten. Documenting your challenges can also help you describe the most important benefits a new tax compliance software for tax preparers can provide for your company. It can help you convince your boss that change is necessary. Benefits could include how the new software will save staff time and remove manual, duplicate work, increase cooperation between staff and clients, and assist the firm in uncovering higher-margin growth prospects. Calculate The Cost-Benefit Ratio Consider how much your company could save if it implemented software for tax preparers to help your boss understand why it is a must-have for your company. To begin with, remember that time is money. Automating what would otherwise be time-consuming manual activities, such as data re-keying, is a significant cost-cutting measure. Furthermore, comprehensive data exchange capabilities and connections with third-party sources can aid in the streamlining, efficiency, and accuracy of processes. This means that employees will have more time to devote to higher-value, revenue-generating initiatives. It’s also worth noting that putting in place effective tax tools and resources might assist your company in better attracting and retaining employees. Employee turnover is not only pricey, but it can also affect morale. Staffing has long been a source of concern for many businesses, and it remains so in the wake of the “Great Resignation.” Create A Strategy For Implementing The New Technology Change can be frightening. Provide some suggestions for when and how to implement the program with the least amount of interruption to your boss’s worries. To begin, assemble a group of important stakeholders who can participate in decision-making and study the difficulties and bottlenecks that need to be solved and assess how the new tax software solution may assist. If all parties decide to move forward with the new solution, it is best to start the process as soon as possible once tax season ends so that implementation may be phased in throughout the summer. Then start using the new solution and becoming familiar with it by processing several extension tax returns. This is a wonderful strategy to ramp up during the summer and hit the ground running when tax season arrives. Support Your Tech Adoption Business Case Even More You can strengthen your case by utilizing resources given by the solutions supplier once you’ve detailed the benefits and cost reductions that new tax compliance software can provide. Obtain testimonials and chat with other businesses that have utilized the solution to learn from their experiences. Where did they succeed? Where did they have problems? How did they put the solution into action? It’s also crucial to keep in mind that each company is unique. As a result, it’s critical to engage with a solutions provider who is adaptable and can design an implementation package to your company’s specific requirements. Conclusion Are you ready to go on the path to improved tax software? Use the powerful, time-saving tools available with the best professional tax software to automate your whole business or professional tax preparation. Keystone Tax Solutions provides the best professional tax software for tax preparers to help enhance accuracy and streamline the process. Request a free demo right now!

Health insurance can be costly, and some Americans look to reduce their monthly medical expenses by claiming tax deduction on their premiums. Many of us know healthcare can be expensive, so tax deductions can help you save during tax time. Here’s what you need to know about claiming tax deductions for your health insurance. Are Health Insurance Premiums Tax-Deductible? Health insurance premiums are not always deductible. Depending on your income and other factors, your health insurance premiums may be fully or partially deductible. In some cases, you must meet a certain requirement if you want to claim a tax deduction for health care costs. When Health Insurance is Not Tax-Deductible First of all, if you’re not paying for health insurance for yourself or a dependent, you can’t deduct those premiums. In addition, you can’t claim your health insurance premiums as a tax deduction if any one of the following is true: You’re a tax-exempt organization. You’re a governmental employee. You’re a member of a health care sharing ministry. You didn’t pay the premiums yourself, such as when your employer pays for all or part of them. You or your spouse is not a US citizen, and you have not received a waiver. You’re not filing a tax return because, for example, you have too little income. If you can’t claim a tax deduction for health care costs because you fall into any of these categories, you may be able to claim the health insurance premium tax credit. Conditions for Claiming a Tax Deduction for Health Insurance Premiums There are certain conditions you must meet if you want to claim a tax deduction for health insurance premiums. The Affordable Care Act requires that you must have a minimum level of health coverage or pay a tax penalty for the months you, your spouse, or your tax dependents don’t have coverage. This requirement is known as the shared responsibility payment. If you have a marketplace health insurance plan, you’re complying with this requirement. If you have coverage through a spouse’s employer, you’re also complying. However, if you’re not your spouse’s tax dependent, you’re not complying. If you don’t have coverage, you may choose to pay the shared responsibility payment (effectively increasing what you pay for insurance), or you can claim a tax deduction. If you want to claim a tax deduction for your health insurance, you must meet all of the following requirements: You itemize deductions on your tax return, not take the standard deduction. Your insurance premiums were not paid with pre-tax dollars, such as through a flexible spending account or health savings account. You have coverage for the entire year. If you don’t have coverage for the entire year, you can deduct only the premiums you paid for the months you were covered. Your employer did not pay any part of your insurance premiums. Your health plan isn’t a “health flexible spending arrangement” or FSAs, “health reimbursement arrangement,” HRAs, or health savings account. These plans must be funded with pre-tax dollars. You do not have coverage under another plan that’s not on this list. If you’re eligible for Medicare, you’re also eligible for a tax deduction. You do not qualify for other health coverage tax deductions. If you’re under 65, you can’t claim a tax deduction if your employer pays for a portion of your health insurance. If you’re over 65, you can’t claim a deduction if you have other health coverage. Conclusion Tax season can be stressful, but you don’t have to stress out over health insurance premiums. As long as you qualify, you may be able to claim a tax deduction for health care costs on your federal tax return. If you are unsure, speak with your tax professional to determine your eligibility. Keystone Tax Solutions is a leader in the professional tax preparation software industry with more than 15 years of experience. Our software packages are designed to help tax professionals become more efficient in preparing taxes for their clients. If you’re looking for the best professional tax software in the market, Keystone Tax Solutions is the answer. Contact us to get a free demo today.

So, you’ve recently filed your income tax refund and expected to get a massive refund check. Unfortunately, you find out that the refund check you planned to use for other things isn’t coming back anymore. In other words, your tax refund got seized. Why did this happen? Well, for a lot of reasons, actually. Tax refund seizure happens more often than you realize, and mostly because the IRS believes in paying themselves first for anything that you owe. Either way, here are a couple of reasons the IRS has seized your income tax refund: 1. You’re behind on Your Tax Payments One of the biggest reasons why the IRS will seize your income tax refund is because you owe taxes. In other words, when you fail to pay your taxes on time, the IRS will take your income tax refund if they can. Of course, they need to make the request first and serve you with a payment notice first before they can do it. If you don’t pay your taxes within a specified amount of time, your tax refund gets seized and applied to your outstanding tax balance. Depending on how much you owe and your tax refund, the IRS is likely to take up to 100% of your tax refund. 2. You Owe Back Child Support If you have a child support debt, you’re likely to have your income tax refund seized as well. The IRS is required to seize your income tax refund and apply it towards your outstanding child support debt. That being said, the courts actually have to order the IRS to deduct the amount of your income tax refund, which you owe on your child support debt. After that, the IRS will take the amount directly from your income tax refund and apply it towards your child support debt. 3. You Haven’t Paid Your Federal Debts If you have any federal debts, you may find that your income tax refund gets seized if you don’t pay them off. The IRS will withhold a certain percentage of your income tax refunds and apply it towards your outstanding federal debts. You may have a more difficult time repaying the debt if your income tax refunds is seized, but then again, you can’t just ignore paying off your federal debts either. If you don’t pay your federal debts, the IRS will eventually seize your income tax refunds, which makes things worse for you. So, don’t ignore your federal debts and pay them off before the IRS has to take action. 4. You Have Unpaid Amounts in Your State Unemployment Fund If you’ve failed to pay your state unemployment fund, you may find that your income tax refunds gets seized as well. Keep in mind that this only applies to certain states, so make sure to check if it applies to yours. For example, the state of Indiana will seize your income tax refunds if you owe money in your state unemployment fund. However, if you file your state income tax return and you owe money in your state unemployment fund, you’ll be notified of it, and the court may allow you to pay it off within a certain amount of time, thereby preventing your income tax refunds from being seized. Conclusion As you can see, if you have debts such as federal debts or child support you owe, you can’t simply ignore them and expect to get away with them. The IRS will seize your income tax refunds. So, if you want to enjoy that fat tax refund check at the end of your fiscal year, always be sure to stay on top of your debts. Of course, not all debts count, such as your credit card debt, but staying on top of debts nevertheless is a good thing to ensure you never run into financial challenges you cannot overcome. Keystone Tax Solutions offers the best professional tax software for tax preparers. Check out our solution today and ensure your client’s taxes are dealt with quickly and successfully!

While tax software is simple, choosing from the numerous available software options is not always easy. Specific software is designed to help you file your state income tax return, while others are there to help you file your federal income tax software . This is why it’s vital to know what digital tool will work best for your needs. Before finding the right program to assist you, consider the following questions to help you. 1. Which Version of Tax Software Do You Require? One of the first things you need to consider is which version of tax software you will be required to use. You can choose between Basic, Deluxe, or Premium software. The Basic Version This type of software is designed for people who have a low income and do not have any complicated tax returns. It is designed to simplify the filing process. The Deluxe Version This is designed for people who have more complicated tax returns. The Premium Version This tax software is intended for people with high incomes or who work as self-employed individuals. 2. Is the Price Inclusive of State Tax Returns? The price of the tax softwares you choose should be inclusive of the state tax file. If you are required to file taxes for more than one state, you need to purchase the tax softwares that can perform varied state tax returns. In many cases, your software package will only include federal returns. This means that you will require software for your state to complete. 3. Do You Need Help Organizing Your Tax Deductions? Tax deductions are the expenses you incur during the year that you can subtract from your income. Without the help of tax deductions, your assets would be greater, and so with your income tax. Also, before you can deduct any expenses from your income, you need to organize your deductions into categories. Many tax softwares programs are designed to help you manage your deductions and make it easier to complete your returns. 4. Do You Need to Report Any Investments? You need to file tax reports if you have investments and they have increased in value. Since different assets will vary in their classification as taxable property, you must ensure that your tax software program can provide the accurate computations you need. 5. Is It Advisable to Use Free Tax Software? Free tax softwares is available for people with low incomes. Free tax softwares will help you complete your federal income tax return. However, free tax softwares is not intended to help you complete your state tax return. You will need to purchase state income tax softwares to file your state income taxes. 6. Do You Prefer Online or Desktop Tax Software? There are two types of tax softwares: online and desktop. Online tax softwares is widely available and designed to help you complete your taxes online, regardless of your device. In contrast, desktop software can run solely on your computer for more advanced processes and transactions. Conclusion This simple guide will help you choose the right tax softwares for your income tax returns. Consider your income, deductions, and financial investments before you purchase tax softwares. The software you choose must be designed to help you complete your tax returns. If you are looking for the best professional tax software in the US, Keystone Tax Solutions is here to help you. Keystone Tax Solutions strives to provide exceptional customer service all year. We are here to assist you every step of the way, no matter how large or small your tax office is. Contact us today!

Boring report formats are usually more efficient because they are less likely to contain errors. Also, boring report formats are easier to read and understand, saving time and money. Tax software solutions for CPAs helps accounting and auditing firms increase their profits by making their clients happier and their staff CPAs more efficient. The reports generated by the software give clients the confidence they need to make sound decisions. 1. It’s More Consistent To have successful financial reporting, everyone must agree to use the same template for every balance sheet. This way, standardization and more accurate comparisons can be made between different companies and over different periods. Technology can help deliver more consistent results if the same accounting method is used across different companies and subsidiaries. The way something looks is important to how it is received. This is especially true for financial statements. If they are not formatted consistently, they can be confusing and hard to read. An excellent financial reporting solution will cover the formatting for you to focus on the content. This will result in financial statements that are easy to read and understand and that look consistent from one year to the next. 2. It’s More Accurate A computer program can help ensure accuracy in financial statements by keeping track of expenses and calculations quickly and correctly. By inputting data into a software program, businesses can avoid mistakes that could be made by entering figures manually. Additionally, rounding is consistently applied when using a computer program, which can help create more accurate financial statements. Additionally, a computer program can help you avoid mistakes that could be made by entering figures manually. For example, if you input data into a software program, the program will consistently round numbers. This can help create more accurate financial statements. Overall, using a computer program to create your financial statements is a smart way to ensure accuracy and avoid mistakes. This can ultimately help you make better decisions for your business. 3. It’s Cost-Effective The cost savings from an automated financial reporting solution come from the fact that it is cheaper to have the reports done by a machine than by a human. This is because humans take longer to do the reports and are more likely to make mistakes. With fewer mistakes, there are fewer chances for the client to be unhappy and the firm to lose money. 4. It Tracks Audit Trails The auditor is questioning the accuracy of a figure in the spreadsheet and is asking to see the backup documentation. The accounting clerk looks through the files and finds the figure from the last report, which is incorrect. The accounting clerk goes to the computer’s file box and finds the correct information. It is essential to maintain accurate financial records for any business. Inaccurate records can lead to financial problems and legal issues. I will continue to check the accuracy of the figures in the spreadsheet and will make sure to update the backup documentation accordingly. Conclusion There are many reasons why CPAs should use software solutions for financial reports. Software solutions can save time and money and improve accuracy and efficiency. Additionally, software solutions can provide valuable insights and analytics to help CPAs make better decisions. Keystone Tax Solutions provides professional tax software for tax preparers who prepare taxes for other people. We are a professional tax software industry leader with more than 15 years of experience offering 100 percent web-based tax software while helping thousands of tax professionals start their own tax business and thousands more gain access to affordable technology-driven professional tax software. If you need tax software for CPAs, get in touch with us now! Let us know how we can help.

It’s no secret that small tax businesses will see a lot of trouble before they begin to grow. But in some cases, it can be too much for the small business to handle, ultimately leading to their downfall. But there is still a bright side. In many cases, problems can be mitigated, and mistakes can be avoided. So, if you own a small tax business, it’s best to be aware of these common mistakes, so your business does not end up failing. 1. Poor Understanding of Your Target Market First and foremost, before you even begin to think of your business, you need to take the time to consider your target market. If you are going to run a tax business, then you need to know that your target market will be clients in the tax field. You wouldn’t try to sell health and wellness products to people who you know have a heart condition, would you? And you don’t want to go spreading your tax advice to people who do not need your tax advice. That is a sure-fire way to ensure you are going to have a hard time finding clients. 2. Not Understanding Your Cash Flow Understanding your own cash flow is going to be one of the most important aspects of running a small tax business. Every tax advice business requires a healthy cash flow, and while most small tax businesses don’t need to worry about it early on, you need to make sure that you are doing everything possible to make sure your cash flow can support your business. This means you need to take a hard look at your business plan and ask yourself whether or not your cash flow can support your business plan. You also need to make sure that you are keeping track of your cash flow throughout the year to ensure that you are on track for meeting your goals for the year. Without a good handle on your cash flow, you could find yourself in serious financial trouble. 3. Lack of a Proper Business Plan As you are no doubt aware, a business plan is incredibly important for any business. It is especially important for a small tax business because it is the blueprint for your business. It is literally your business plan for success. You need to have a plan for every aspect of your business, and this includes every part of your business. Even if you work in a small tax business as a sole proprietorship, you need to write down your business plan. If you don’t, you could find yourself making mistakes and not even knowing it until it’s too late. So, if you own a small tax business, make sure you create a business plan. And make sure you take the time to look it over and make sure it’s right. Final Thoughts Running a small tax business is a great idea, especially if you have an interest in the tax field. But if you want to make sure your small tax business succeeds, you need to make sure you are aware of the major mistakes that most small tax businesses make. And if you avoid these mistakes, you are going to have a much easier time running your small tax business, and your success is going to be much more certain. Run a better small tax business with the help of Keystone Tax Solutions. We are a professional tax preparation software helping thousands of tax professionals start their own tax business and thousands more gain access to affordable technology-driven professional tax software. Get a free demo now!

As a small business owner, you will be forced to manage an array of different tasks. It’s important to create the proper structures and systems to help you keep track of everything and reduce the likelihood of costly mistakes. If you want to take advantage of the advanced technology that is available, you will need to invest in the right software to help you maximize your productivity. When it comes to managing your finances, tax software can be a huge asset to you and your team. The process of filing your taxes online is something that can be handled by them with minimal instruction. This is a great way to save time and minimize the need for your team to deal with this stressful aspect of their responsibilities. The Importance of Tax Software to Small Business Owners If you are unsure of how to handle the tax side of your business or are concerned about the liability and security of your information, the right tax software program can help. It will allow you to easily calculate your taxes and import your financial data so you can begin preparing for filing. With that in mind, the list below expounds on the benefits of using tax software for your small business: Benefit #1: Lower Human Errors in Your Computations Human error is one of the leading causes of accounting mistakes. If you are working with a spreadsheet or other accounting method that doesn’t use specific functions, you will have to perform your calculations manually. This can lead to errors and oversight. A tax software program can help you avoid this type of mistake by using formulas and formulas to perform calculations and process the information. This will provide you with a safer, more accurate estimate of your tax liability. Benefit #2: Easily Spot Eligible Deductions to Help You Save on Taxes Another advantage of using a tax software program is that it will allow you to search for eligible deductions in seconds. By using this program, you can easily determine if there are certain expenses that can be deducted if you are self-employed. The program will provide you with a list of expenses that have been organizationally grouped into categories. You will be able to download this information and use it to file your taxes in a manner that is both accurate and efficient. Benefit #3: Keep Multiple Copies of Your Files, Digitally and Locally This feature can also help you manage your taxes more efficiently. Since everything will be electronically saved, you will be able to access your information from any computer. This means that you won’t have to worry about losing your information if something happens to your computer. A digital copy of the information will also help prevent you from making costly mistakes. If you make a mistake with a copy of your files, it can be easily fixed or replaced. You can also easily print or email documents to other members of your team. Benefit #4: Save Time, Money, and Effort The right tax software program will allow you to save time and money by providing you with accurate and timely information. To save you time, the program can perform calculations automatically. This means that you will be able to complete your taxes faster. The Bottom Line: Why It’s Worth Investing in a Tax Software Many small business owners only concern themselves with building the financial foundation of their business. However, it is equally important to keep things running smoothly and efficiently even as your business continues to grow. Taxes are a necessary evil that every business owner must face. There is no way around them. However, you don’t have to let them take over the day-to-day operations of your business. By investing in a tax software program, you can reduce your tax liability and increase your profits. How Can We Help? Dealing with taxes can be challenging for anyone, even as an expert tax preparer. If you’re looking for innovative solutions that can streamline your tax preparation process, our professional tax software for CPAs can help simplify matters for you. Our affordable technology can empower tax preparers and help you start a tax business with no EFIN, so get in touch with us today at 1.800.504.5170 to see how we can ensure your tax business is booming.

The last thing every business owner would want is to make mistakes when filing taxes. Besides getting another pile of work to be done, making mistakes could mean penalty payments. Making one’s way through the tax season can be extremely stressful, especially when you do not know what to do. It is supposedly a straightforward process, but the proper knowledge, skills, and experience are needed to handle such a massive task. To help you out, we have picked up five common tax filing mistakes businesses and their tax preparers make so you know which ones to watch out for. 1. Wrong Business Status Choice in Filing Taxes The most common mistake businesses make is choosing the wrong business status. There are several business structures one can choose from. The most common ones include sole proprietorship, partnership, corporation, S corporation, Limited Liability Company, and C corporation. Each business structure has its advantages and disadvantages. Make sure you know what you are getting into and the tax implications that come with your business type. The consequence of choosing the wrong one is that you will have to file a separate tax return for your business and increase its costs. 2. Incorrect Submission of Forms or Payments Next, it is crucial to make sure your payments are made correctly. There are several forms and fees that need to be either paid or submitted via mail. Make sure that you have the suitable form filled out correctly. If you are filing your taxes via mail, make sure you figure out what you are mailing and when you should send it to the IRS. When it is due and where you should be sending it. If you are filing electronically, make sure you have all your information ready to avoid oversights. 3. Making Wrong Computation Calculations are an essential part of filing taxes. Make sure you know what to include. Make sure you are not overpaying or underpaying. Before filing your taxes, make sure you know what needs to be included. Your business will be required to pay taxes on its gross receipts. You need to make sure that the correct amounts are subtracted, like taxes, freight, and supplies. Make sure you are not double-counting these amounts, or you will end up with the wrong computation and more penalties later. 4. Not Getting the Right Deductions Business owners are entitled to some deductions that are not available to an individual. They get deductions for business use of their home, vehicle, and other things they need. They can claim those business deductions by using Form 2106. It’s best to ensure that they claim all the business deductions they are entitled to get. If you have deductions, you also get to deduct any expenses directly related to the business. They help decrease the taxable income and help achieve a lower tax rate. 5. Using the Wrong Accounting Method Many small businesses do not take advantage of the cash basis and accrual basis of accounting. That is because very many small businesses do not have the capability to do so. To ensure you are saving taxes, have the correct accounting methods, and keep track of the right information. Do not guess when it comes to number crunching. Conclusion in Filing Taxes Doing the tax filing correctly is not just a matter of saving time. It is a matter of saving money. Be sure to get the correct information and ensure you are not missing anything. It is better to be safe than sorry and stress about your tax filing. Mistakes can happen to anyone. Whether you are a business owner who wants to DIY or a professional accountant who handles a lot of businesses’ taxes, make sure you avoid the mistakes mentioned above. Consider utilizing the best professional tax software. Keystone Tax Solution is a professional tax software industry leader with over 15 years of experience. We offer 100% web-based tax software to help thousands of tax professionals in the US do their job. Get a free demo now.

Are you tasked with dealing with tax preparation? Regardless of whether you are dealing with simple or complex taxes, you need to focus and put a lot of time into it. That’s because a simple mistake can be costly on your end, so you should always make sure to do things properly before Filing Your Taxes! That said, to help you file properly, whether for yourself or tasked by a client to do so, here are some of the things you need to double-check before filing your taxes: 1. Double Check The Tax Rates A lot of people forget to double-check the tax rates. That’s because we can’t see what’s going on with the government. In other words, we can’t see what changes have been made. Sometimes the government may change the tax rates because of the current state of the economy. For example, if the economy is doing poorly, the government will probably lower the tax rates. Likewise, if the economy is doing better, the government will raise the tax rates. So, always double-check the tax rates to know what to expect. 2. Double Check The Tax Deductions And Credits Tax deductions are simply expenses and credits that you can deduct from your income. By doing so, you will be able to save more over time! As for tax credits, these are credits that you can use to lower the amount of income tax you have to pay. Make sure that you double-check these deductions and credits so you will be able to maximize your savings and minimize your tax burden in the best way. 3. Double Check The Tax Withholding Taxes are basically the amount of money withheld from your monthly paychecks. However, it’s not uncommon to have fewer taxes withheld than you are supposed to. This is especially true when you are a first-time filer that doesn’t have enough information yet. In this case, ask your accountant to help you out in determining the number of taxes to withhold. 4. Double Check The Accuracy Of Your Tax Return You should always make sure to double-check the accuracy of filing your taxes. If you have made a mistake and forgot to include a certain income or deduction, then that can be problematic. So, always double and even triple-check your tax return, and don’t be afraid to ask for help if you feel you need to. The last thing you want is to make a costly mistake. 5. Double Check The TINs, SSNs, and ITNs If you file the tax return for your business, then you need to make sure that the TINs, SSNs, and ITNs on your tax return are accurate. This will help you avoid an IRS audit! Conclusion Whether you’re running a business or simply dealing with your income, always double-check before you file anything. That way, you can avoid unnecessary trouble with the IRS and continue living your life smoothly! Now, if you’re a tax preparer yourself, then be sure to remember the tips above. Double-checking and even triple-checking will never hurt your efforts, as this will only allow you to check mistakes as early on as possible to ensure you are filing the right documents and information! This, of course, helps you and your client avoid trouble, keeping all parties happy! Keystone Tax Solutions offers professional tax software for tax preparers. If you are looking for the best professional tax software in the US, check out what we have to offer!