The Accounting Guys - Blog

What Will Your Taxes Look Like in 2026?

Wed, 16 Jul 2025 08:56:07 -0700

Earlier this month, Trump’s “big, beautiful bill” was approved by Congress and is set to be signed into law by the president on July 18. While that bill addresses numerous topics, one of the topics that most people want to know about is tax law. How will tax rates change under the bill? What will your taxes look like next year, with this bill in place? Here’s what we know about the bill’s tax provisions, and how the changes within it might impact you.

Who Is Getting a Tax Cut?

According to an analysis performed by the Tax Policy Center, the majority of American households should get a tax cut in 2026—about 85% of them, to be exact. Of course, not all of these cuts would be permanent. For example, the bill initiates a new deduction for senior citizens that is only intended to last a few years. So, by 2030, the percentage of homes continuing to see a tax break would be about 70% instead of 85%. More than half of these tax benefits will be given to homes in the top 20% of annual household incomes; these are homes that earn about $217,000 per year or more.

Now, let’s dive a little deeper into just how much of a tax break you might see in 2026. Of course, keep in mind that these are only estimates. The exact percentages saved in each tax bracket are not set in stone, and your final tax bill will be based on far more factors than the provisions in this new bill.

Estimated Tax Savings by Income

While estimates on tax savings vary depending on which analysis you’re looking at, most analysts largely agree that the tax breaks increase with household income. So, let’s start at the top and work our way down:

Over $1.1 million: These earners represent the top 1% of annual incomes, and would see their after-tax income increase by roughly 3.5%.
$460,000 to $1.1 million: This bracket of Americans would see the biggest tax break, with an after-tax income increase of 4.4%, which amounts to about $21,000.
$318,000 to $460,000: Households in this income range would likely see their after-tax income increase by $8,900, or 3.1%.
$217,000 to $318,000: Still considered high-income earners, this group rounds out the top 20% of household incomes. Those in this group can expect a 3.1% increase in after-tax income, or about $8,900 a year.
$50,000 to $217,000: Tax breaks below $217,000 decrease significantly, with most taxpayers in this range seeing between 2.3% and 2.5% more after-tax income, or $3,000 annually.
$34,600 to $50,000: This group, considered “low-income” households, would see after-tax boosts between 1.5% and 1.9%, or around $630 per year.
Under $34,600: The lowest-income households would see the least benefit from the tax breaks, with the bottom 20% of taxpayers seeing their taxes decrease by about $150 a year, or 0.8%.

Other New Tax Cuts

Tax brackets are not the only thing that would change under the “big, beautiful bill.” A number of other tax deductions will start this year—some temporary, some permanent—and will apply on your next tax return. These changes include:

A permanent increase in the child tax credit to $2,200.
A permanent increase of $750 in the standard deduction.
A $6,000 deduction for seniors over 65, which will expire in 2029.
A $25,000 deduction designed to eliminate taxes on tips, which also lasts three years.
A $12,500 deduction to cut taxes on overtime, also lasting through 2028.
An increase in the SALT cap (amount deductible for state and local taxes) from $10,000 to $40,000.

Get Help with Your Tax Planning

We understand that changes to tax law can be stressful and confusing. If you’d like to get a more personalized estimate on how these changes will impact your tax return, we encourage you to reach out to The Accounting Guys. Our professional tax planners in Provo, UT, can help you with adjusting your current tax plan, if needed, and provide you with more information about what you can expect on your next tax return. Contact The Accounting Guys today to schedule a tax planning meeting with an experienced CPA.

IRS Crackdowns on Digital Payment Platforms: What You Should Know

Tue, 10 Jun 2025 10:30:00 -0700

Over the last decade, mobile payment platforms like Venmo, PayPal, Zelle, and others have become nearly as common place as credit cards. They’re used by individuals and businesses alike, for both goods and services, at farmer’s markets and in salons. But as these digital payment methods have grown in popularity, so has scrutiny from the IRS. If you use any of these platforms to collect payments for business purposes, it’s important that you ensure you’re handling those payments in the same manner you would handle your other business income. Keep reading to learn what you need to know about the latest IRS rules for digital payments, their implications, and how you can keep your business compliant.

Understanding the Rule Changes

Historically, payment platforms only needed to issue a tax form (specifically, Form 1099-K) if a user processed more than 200 transactions and earned more than $20,000 in a year. However, this threshold was lowered drastically via the American Rescue Plan Act, enacted in 2021; originally intended to take effect for the 2022 tax year, implementation was delayed. However, the IRS has now confirmed that enforcement is underway.

As of the 2024 tax year, digital payment platforms are required to issue a 1099-K form for any user that receives more than $5,000 in payments for goods and services. This threshold is low enough that even casual earners and side hustlers will likely see a change in their tax reporting and forms. It’s also worth noting that the IRS has expressed the intent to lower this threshold even more in future years; so, if you’re collecting only a few thousand dollars in digital payments each year, prepare for this tax form in the near future.

What’s Considered Taxable Income?

This might sound like a simple question when looked at from a business perspective, but for digital platforms that can be used for both personal and business purposes, it’s an important one to ask. Venmo, Zelle, CashApp, and other such platforms aren’t able to differentiate between the payment your friend sent you for their portion of lunch and the payment a customer sent you for the goods you sell online.

Only payments that represent earned income—meaning you provided a good or service in exchange for that payment—are taxable. However, if you’re receiving both types of payments into one PayPal or Venmo account, you may exceed the new $5,000 threshold and mistakenly trigger a 1099-K.

The Right Way to Handle Digital Payments

The complexity of handling taxes for digital payment platforms stems from the recent shift in how these platforms are used. Essentially, people used these platforms for personal payments for so long that, when they started accepting digital payments for goods and services, it didn’t occur to them to change how they used it. Payments of both types go to the same account, and you’re left with inaccurate tax reports and a mess to clean up.

If you want to avoid this kind of confusion with your business’s digital payments, here’s what you should do:

Separate your business and personal accounts. This is absolutely essential and will dramatically simplify your tax reporting for your business income. Set up dedicated business profiles on all digital payment methods you accept, and link them to a business bank account.
Label your transactions. Always include clear notes or memos on payments you send out; this is most important for your business account, but a good habit to implement on your personal account as well. This helps you track your expenses more easily and keeps your payment accounts organized.
Maintain thorough records. Regardless of whether or not you receive enough digital payments to trigger a 1099-K, all business payments you receive are still considered taxable income. We’ll repeat that, because it’s important: All digital payments to your business are taxable income, even if you don’t receive a 1099-K. So, keep invoices, bank statements, and other documentation that supports your reported earnings and expenses for when you file your tax return.
Use accounting software. Don’t rely on the payment platform’s records alone. Consolidate all of your payments into one software program for easier management and reporting of your income.

Receiving a 1099-K Form in Error

Let’s say that you didn’t separate your business and personal accounts just yet, and the combination of the two types of payments mistakenly triggered a 1099-K from the payment processor. That form means the incoming payments on your digital payment account have now been reported to the IRS as earned income. So, what do you do?

First and foremost, don’t ignore it. Whether or not you’re certain it’s a mistake, the IRS has received a copy of that form as well. If you don’t address it, the next form you receive may be a notice of overdue taxes or an upcoming audit.

Instead, compare the form to your own records, and reconcile the amount on the form with your own income reports. Contact the payment platform that issued the 1099-K and file a dispute or request a correction of the form. You can also include a written explanation alongside your tax return to outline why you’re reporting less income than what’s shown on your 1099-K.

Need Help? TAG Us In

Handling the taxes for your business—whether it’s a side hustle or your main source of income—can be complicated. If you’re not sure how to handle an incorrect 1099-K, need help filing your first business return, or need advice on how to tax plan for your growing company, contact The Accounting Guys. Our business tax experts in Provo can assist you with all of your business tax planning and tax preparation needs. Contact us to schedule an appointment today.

SOCIAL: The IRS has tightened its restrictions on tax reporting for digital payment platforms. If you receive business payments through PayPal, Zelle, Venmo, or similar apps, here’s what you need to know.

The Pros and Cons of Amending a Tax Return

Fri, 02 May 2025 13:12:29 -0700

When it comes to filing taxes, doing it accurately is extremely important. But unfortunately, even the most diligent taxpayers can make mistakes or encounter new information after their return has been filed. Luckily, the IRS offers a way to address these situations: amending your tax return. While this can be beneficial, it’s not always the right solution for everyone. It’s important that you understand the pros and cons of amending a tax return so you can better decide whether or not amending your tax return is the right path for you

What Is an Amended Tax Return?

An amended tax return is a corrected version of a previously filed federal income tax return—think of it as submitting a revised version of an assignment to your teacher. Form 1040-X allows taxpayers to correct errors or omissions that impact the return’s accuracy. Common reasons for amending a return include reporting additional income, claiming or removing deductions or credits, correcting filing status, or updating dependent information.

Pros of Amending a Tax Return

One of the most compelling reasons to file an amended return is to recover overpaid taxes. If a taxpayer discovers that they missed a valuable deduction or credit—like the Earned Income Tax Credit, Child Tax Credit, or a business expense—they may be eligible for a refund. Amending the return ensures that the IRS recognizes these deductions an d credits, potentially giving you a significant financial benefit.

Filing an amended return also demonstrates a proactive commitment to accuracy on your taxes. If a taxpayer realizes they made a significantmistake—like underreporting income or miscalculating tax liability—filing an amendment can help correct the issue before it draws unwanted scrutiny from the IRS. This step may also reduce penalties or interest that could accrue on unpaid taxes.

It’s also important to remember that an error on a tax return can have long-term consequences, especially if you’re audited later. Amending a return can correct discrepancies that might otherwise raise red flags. For example, if a third-party payer (such as a client or employer) issues a corrected Form 1099 or W-2, it’s wise to align your return with the corrected documentation to avoid triggering an IRS notice or audit.

Cons of Amending a Tax Return

While amending a return is a legal and responsible action, it may prompt closer scrutiny by the IRS—particularly if the changes are substantial or involve previously underreported income. In some cases, an amendment may serve as a trigger for a full audit. It’s important that you are prepared to provide supporting documents for all changes made in your amendment.

You should also be aware that amended returns are processed manually by the IRS, which means significantly longer processing times. While electronic filing of Form 1040-X is now available for recent tax years, delays are still common. It may take up to twenty weeks or longer to receive a response or refund. This is not ideal for taxpayers expecting a quick financial return from the correction.

Please also note that there is a statute of limitations on filing an amended return. Generally, taxpayers must file within three years from the original filing date or within two years of paying the tax, whichever is later. Failing to amend within this window can mean forfeiting potential refunds or giving up the ability to correct costly errors.

Of course, amending a tax return is not as simple as checking a box—it involves recalculating tax liability, preparing Form 1040-X, and explaining the changes clearly to the IRS. Inaccurate amendments can create further complications, including increased tax liability or triggering an audit. That is why we always strongly recommend working with a CPA to amend your tax returns.

Should You Amend Your Return?

You should never deliberately allow a major error on your tax forms to go uncorrected. However, not all mistakes require an amendment. Minor math errors are typically corrected by the IRS during processing, and omitted forms may be requested without the need for a full amendment. Before filing an amendment, we suggest consulting with a CPA or tax professional to determine whether the benefits outweigh the potential risks.

If you have discovered new information that impacts your filed tax return, or if you believe you made an error on your return, we encourage you to reach out to us at The Accounting Guys. Our tax experts in Provo, Utah, can work with you to determine whether or not you need to file an amendment and, if so, get one submitted in a timely manner. Give us a call to schedule a consultation.

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Will Layoffs at the IRS Impact Your Tax Return?

Wed, 26 Mar 2025 14:38:35 -0700

Tax season is always hectic for taxpayers, CPAs, and the IRS alike. This year, however, has brought a new flurry of activity on top of the usual busyness that comes with the approaching tax deadline. We’re talking about the recent mass layoffs at the IRS, just one of the federal agencies that Elon Musk’s Department of Government Efficiency (DOGE) has reduced in size recently. If you’re concerned about how the loss of those IRS workers will impact you and your tax return, you’re not alone. While we certainly don’t have all the answers, here’s what tax experts are saying about the potential effects this will have on tax returns and refunds this year.

Who’s Been Laid Off?

At the moment, an estimated 7,000 probationary employees at the IRS have been dismissed, according to the Washington Post.

Will It Impact Your Return?

According to experts, odds are that most taxpayers won’t experience a significant delay in the processing of their return or refund. In fact, the former IRS Commissioner stated that “there should not be a significant impact on current filing season operations,” Time Magazine. Of course, that’s assuming your return is filed (1) electronically, (2) correctly, and (3) fairly early in the season. If you meet these three criteria, your return can be processed by a computer, without the need for an actual staff member to handle it.

Taxpayers whose returns require manual review are more likely to experience a delay. After all, fewer bodies in the buildings mean fewer eyes on paper returns or returns with errors and “red flags” attached to them. If you need to communicate directly with the IRS, you should expect longer wait times, as well as an increased chance of dropped calls.

How Can You Avoid These Issues?

If you’re concerned about your return or refund being delayed—and many of our clients are—there are a few things you can do to reduce the chance of that happening:

1. File Electronically:

2. Double Check Your Work:

3. File as Soon as Possible:

Make tax season stress-free with The Accounting Guys, your trusted Provo tax professionals. We specialize in , ensuring you maximize deductions and receive your refund faster.

Don't let tax delays hold you back - contact us today for expert tax preparation in Provo!

Maximize Your Retirement: Why Tax Planning is Key to Financial Security

Thu, 13 Feb 2025 13:25:33 -0700

Why Tax Planning Should Be Part of Your Retirement Plan

When planning for retirement, most people are focused on saving and investing wisely—both very important elements of any retirement plan. However, beyond understanding just how much you need to save now for your future retirement, it’s also important to understand how future taxes may impact your retirement income. Tax planning is a crucial element in ensuring that your retirement years are financially stable and secure. Without a tax strategy, taxes in your retirement years can quickly eat up a large portion of your savings, leaving you with less money than you’d planned for. Here at The Accounting Guys, we can provide detailed consulting and planning for your taxes, both now and in the future. Keep reading to learn more about why this kind of tax planning should be a part of your retirement plan.

Understanding How Taxes Impact your Retirement

When financially planning for retirement, it’s essential to understand that taxes don’t simply stop because you’ve stopped working. Like most retirees, you’ll probably continue to have multiple sources of income throughout your retirement years, and taxes can impact each of them differently. Social Security, pension, retirement account withdrawals, and earnings on your investments can all be taxed, but will likely be taxed in different ways.
For example, many retirees assume that Social Security benefits are exempt from tax, but that’s not necessarily true. Depending on your total income each year, up to 85% of your Social Security benefits may be considered taxable income. Pension payments and withdrawals from tax-deferred accounts like traditional IRAs and 401(k)s are also taxed as ordinary income. Because these income sources are taxed differently, it’s important to have a thorough tax plan for your retirement years; this allows you to strategically time your retirement account withdrawals and manage your income to reduce your tax burden each year of your retirement.

Choosing between Tax-Deferred and Tax-Free Retirement Accounts

Did you know that the retirement accounts you contribute to now can directly impact how much tax you pay in your retirement years? Tax planning helps you to balance contributions between tax-deferred and tax-free accounts, and understand how those choices impact your current and future taxes.
Traditional IRAs, 401(k)s, and similar retirement accounts allow you to defer taxes until you withdraw funds during your retirement years. This will provide an immediate tax benefit by reducing your tax liability in your working years. However, this means that the distributions you receive from these accounts during retirement will be taxed at your ordinary tax rate. Because retirees’ income levels are generally lower than during their working years, this does mean that you’ll likely pay less tax on that income by being in a lower tax bracket. However, those distributions may push you into a higher tax bracket during retirement, making more of your Social Security benefits subject to taxes.
On the other hand, tax-free accounts like Roth IRAs and Roth 401(k)s are funded with post-tax dollars. Because you have already paid taxes on that income, your withdrawals during retirement are tax-free. This provides you with a source of income without worries about how much you’ll lose to taxes. However, it does mean that you likely paid more in taxes on the income, since you paid them while in a higher tax bracket.
Choosing between tax-free and tax-deferred accounts can be a careful balancing act—as can timing the withdrawals from each of them. A detailed tax plan to accompany your retirement financial plan can help you get the most benefit from both types of accounts.

Establishing Tax-Efficient Withdrawal Strategies

To continue with this line of thinking, tax planning now can help you to have a clear strategy for when to withdraw from which of your retirement accounts in the future, as well as when to start taking your Social Security benefits. This is one of the most critical components of retirement tax planning.
These early years of retirement are generally the most stable ones in terms of finances, and withdrawing from these accounts first allows your tax-deferred and tax-free retirement accounts to continue growing. You may also choose to delay Social Security benefits to reduce taxable income in the earlier years of your retirement and increase the amount you receive later on.
There are many different approaches and strategies to managing taxes in your retirement years; the only way to know which one is best for you is to take the time to meet with a tax planner, discuss your retirement finances, and put together a strategy that works for your future finances.

Meet with a Retirement Tax Planner

Here at The Accounting Guys, we can provide expert, in-depth guidance on tax planning for this year, the next, and into the future. Contact us today to meet with an experienced tax expert about your retirement tax planning in Provo. We’ll go over your finances with you and help you to establish a tax-effective strategy that will allow you to get more from your retirement savings. Schedule a free consultation with our tax experts today and start planning for a financially stress-free future!

4 Tips for Simplifying Your Business Tax Return

Thu, 13 Feb 2025 13:22:35 -0700

September 15th is just around the corner. For most people, that date might not mean much, but for many business owners, September 15th is a source of a great deal of stress. If you filed for an extension on your business tax return in the spring, that date is your new deadline, and it’s approaching quickly. If you still haven’t filed and are feeling overwhelmed by everything involved in getting your business tax return ready, keep reading. The business tax experts here at The Accounting Guys have a few tips that can help you to simplify the process, relieve some of that stress, and get your return filed on time.

Gathering and Organizing Financial Documents

One of the most daunting tasks involved with preparing your taxes is often gathering and organizing all of the right financial documents. In order to file your return accurately, you’ll need a comprehensive record of your company’s income, expenses, credits, and deductions. Here are a few of the key documents you’ll want to gather now so that you can prepare your return quickly:
P&Ls: Your profit and loss statements, or P&Ls, are one of the most important financial documents for your business tax return. These statements show your company’s revenue and expenses, along with your overall net income for the previous tax year.
Balance Sheets: Your balance sheets provide a more immediate snapshot of your company’s financial position, including assets, liabilities, and equity.
Receipts and Invoices: These documents help to support your P&Ls by providing support for the stated income and expenses.
Bank Statements: While you don’t necessarily need to submit any information that’s included directly on a bank statement, you should ensure your statements are reconciled and accurately reflect your business transactions.
Payroll Records: If you have even one employee, you’ll need payroll records to account for the wages paid, taxes withheld, and any other expenses related to company payroll.

With the deadline so close, now is the time to gather these documents. You’ll want to have them in order before you start working on your return to save yourself time and reduce the risk of errors on your business tax return.

Get the Right Tax Forms

Different types of businesses require different types of tax forms based on their business structures. It’s important that you get the right type of form for your company, so here’s a quick guide to common business tax forms:
Sole Proprietorships: If your business is a sole proprietorship, you’ll need to use Schedule C to report income or losses from your business. This would actually be filed alongside your Form 1040 for your personal tax return. This means that, if you filed an extension, you won’t actually need to submit this tax information until October 15th, rather than September 15th.
Partnerships: Partnerships need to file Form 1065 for the business, as well as issuing a Schedule K-1 to each partner in the business. Partners would file their K-1s alongside their personal tax returns. The deadline this year is September 16th.
C Corporations: There are a few different types of corporations, and you shouldn’t assume they’ll use the same tax forms. For a C corp, you’ll need to file Form 1120.
S Corporations: S corps, on the other hand, need to file Form 1120S (a convenient distinction for differentiating it from other corporations’ tax forms). The deadline this year is September 16th.
Limited Liability Companies: LLCs file different forms based on how the business is taxed. Single-member LLCs usually file as sole proprietorships, while multi-member LLCs file as partnerships or corporations. You’ll need to distinguish which tax structure is applicable to your business, then select the appropriate form as outlined above.

If you’re not certain which tax forms your business needs, contact us here at TAG, and we’ll help you sort it out and ensure you’re not wasting any time on incorrect forms.

Double-Check Credits and Deductions

For a business, claiming all your deductions and credits is essential to minimizing your tax liability and maximizing your bottom line. Once you have all of your documents and tax forms in order, go over your expenses and figure out which ones are deductible. Common business deductions include operating expenses, salaries and wages, depreciation of equipment and vehicles, and business travel.
You should also consider any tax credits for which your company might qualify, like the R&D tax credit or the small business health care credit. Oftentimes, ensuring you get all those credits and deductions is the most complex and stressful part of filing your business return. We encourage you to work with a tax professional to ensure you get all the deductions and credits that you qualify for.

Work with a Business Tax Professional

That leads us to our fourth and final tip: Ultimately, the best way to ensure that your business tax return is filed quickly and accurately, with minimal headaches for you, is to work with a tax expert who’s experienced in filing business tax returns. Here at TAG, we’ve filed countless business tax returns, giving us the knowledge and experience you need to breathe a little easier and get your return filed a little sooner.
Contact our business tax experts in Provo today to schedule a consultation before the deadline on September 15th!

Have You Been Making Your Quarterly Estimated Tax Payments?

Thu, 13 Feb 2025 13:22:35 -0700

What You Should Know about Quarterly Estimated Tax Payments

The second quarter of the year has ended. For most individuals, fiscal quarters don’t mean much. For business owners, however, the ending of each quarter brings with it a number of accounting tasks that must be tended to—and each of them must be done accurately and on time. One key task that business owners, including freelancers and contract workers, can’t overlook is making quarterly estimated tax payments. If you haven’t made an estimated tax payment this year, and you receive untaxed income from your business, keep reading; our tax experts can give you the important information you need to avoid unnecessary fees and penalties.

What Are Quarterly Estimated Tax Payments

For employees that receive a W-2, the IRS withholds taxes before you even receive your paycheck. This makes all of your W-2 income post-tax income. However, if you own a business or perform contract work, you’re most likely receiving payments from your clients without any withholdings. However, the US tax system is based on a pay-as-you-earn model. This means that you’re expected to pay taxes on your income as it’s earned, and not just when tax season rolls around. So, for those who receive untaxed income, there are quarterly estimated tax payments—payments made to the IRS four times a year to cover your expected tax liability. This ensures that your taxes are paid throughout the year.
But why does that even matter? Why not just pay your taxes when you file, when you know exactly how much you made and exactly how much you will owe? While making these payments helps business owners to better manage their tax debt throughout the year, there’s another, more important reason to make your estimated tax payments each quarter: It’s the law. While the IRS does not expect you to be perfect in your estimated payments, drastically underpaying on your taxes throughout the year (or not making any payments at all until tax season) can result in penalties and interest charges against you.

How to Calculate Your Payments

So you know why you need to make these payments, but how much do you need to pay? As the name implies, these payments are an estimate, but each one should be a very educated guess and not just a shot in the dark. Here’s how to calculate your quarterly estimated payments each quarter:
Estimate Your Income – First, you’ll need to estimate how much you believe you’ll make this year. This can be based on your previous year’s income, or an average of several years. Be sure to include all revenue sources.
Subtract Deductions and Credits – Deduct any business expenses and apply any tax credits for which you’re eligible. This will give you your total taxable income.
Calculate Your Annual Tax – Based on your estimated income for the year, use the IRS’s tax tables to calculate how much tax you’ll owe for the entire calendar year.
Divide by Four – Once you have the total taxes you’ll owe, divide that by four to know how much to pay each quarter.
You should recalculate this amount each quarter, based on how your income changes throughout the year. If you see a spike in income that wasn’t there in previous years, increase your payment amount.

How to Make Your Payments

Now that you know how much you should be paying for the quarter, you need to know how to make your payments to the IRS. This can be done using several different methods:
Electronic Federal Tax Payment System (EFTPS): A free service for paying federal taxes online.
Direct Pay: Pay directly from your bank account through the IRS Direct Pay system.
Credit or Debit Card: Pay using a credit or debit card; processing fees may apply.
Check or Money Order: Mail a check or money order with the payment voucher from Form 1040-ES.
Regardless of the method you choose, you should fill out Form 1040-ES, which includes a worksheet to help you calculate your estimated tax payments.

When to Make Your Payments

Like all things tax related, your quarterly estimated tax payments have deadlines. Your quarterly payments are due on April 15 for Q1, June 15 for Q2, September 15 for Q3, and January 15 of the next year for Q4.
Failing to make quarterly estimated tax payments or drastically underpaying can result in penalties and interest charges from the IRS. The penalty amount is calculated based on just how much you underpaid, and any interest owed is compounded daily. So, if you’ve fallen behind on your quarterly estimated tax payments, we strongly recommend reaching out to an experienced CPA for help getting back on track.
The Provo tax experts here at The Accounting Guys have ample experience working with business owners and contract workers who are required to make these quarterly estimated tax payments. We can help you to calculate the amount you should be paying each quarter and help ensure you get those payments in on time. Contact us today to schedule a consultation.

From Legos to Ledgers: How The Accounting Guys support Bricks and Minifigs

Thu, 13 Feb 2025 13:18:57 -0700

How We Help Bricks and Minifigs with Their Accounting Needs—And How We Can Help You

The Accounting Guys is a full-service accounting firm, and as such, we love to flex our accounting knowhow across the board. When we’re able to provide comprehensive bookkeeping, tax preparing, strategic planning, and every other accounting service a business needs, we get a little excited—and that’s why we’re so excited about working with Bricks and Minifigs.
Bricks and Minifigs is a franchise that specializes in selling Legos and associated mini-figurines from several locations. A business can’t get much more fun than that, right? But even a franchise that’s based on selling toys to kids of all ages has boring business on the backend, and that’s where TAG comes in. We handle the books, so they can handle the bricks. Here’s a quick look at the ways we serve Bricks and Minifigs, and how we can help other businesses like them.

Book Setup and Cleanup

A franchise can live and die by the accuracy of its books, so we don’t leave anything to chance. Our team reviewed the business’s existing books on both the corporate and individual franchise levels to ensure complete accuracy and consistency. Not only is this a great “checkup” for a business’s financial health, but it also makes the monthly work of maintaining the books a great deal easier and provides the business with accurate information for making important financial decisions or reporting to various agencies.
We complete this book cleanup service within 90 days for all of our business clients. For those business that don’t yet have a set of books, the TAG team can set them up for you and ensure it’s ready for easy maintenance on your end.

Maintaining Accurate Financial Records

While some businesses opt to only have us set up their books, for Bricks and Minifigs, we provide ongoing maintenance of financial records to ensure they’re always accurate and up to date. We track all expenses and revenue streams, providing valuable insights into where the company’s money is being spent and how it’s being earned. This way, they never have to second guess the accuracy of their finances when making an important decision, and they’re always in compliance with tax regulations.

Managing Cash Flow

Cash flow is to a business what blood flow is to your body. We help our clients to maintain as steady and predictable a cash flow as possible by identifying patterns in their income and expenses, as well as managing the recording and reporting of receivables and payables. It’s all a key part of ensuring a healthy, thriving business.

Timely Reporting and Compliance

Regardless of whether you’re selling bricks or BMWs, minifigs or actual figs—we’re pretty sure that’s a fruit—you’re probably required to be in compliance with at least one regulatory body. On top of that, a lot of businesses answer to investors, not to mention the nationwide requirement of staying compliant with IRS tax laws. TAG helps Bricks and Minifigs remain in compliance with all regulatory requirements by ensuring their financial statements are prepared accurately and on time. So, when they need to answer to the IRS or their investors, they’re always prepared.

Preparing Business Taxes

Toys and taxes just don’t mix, which is why the fun people at Bricks and Minifigs leave all that paperwork to the boring people here at TAG. (We promise, we’re not actually that boring. We just get unnaturally excited about numbers.) We provide full tax planning and preparation services, not only ensuring an accurate and timely tax filing, but helping our clients understand, anticipate, and plan for their upcoming tax return. We work throughout the year, well past April 15th, to help our clients minimize their tax liability, avoid penalties, and simply do away with the typical stresses of tax season.

Providing Analysis and Insight

One of the things we love most about offering comprehensive financial services to clients like Bricks and Minifigs is the ability to provide ongoing financial analyses and insights that can help the business grow and succeed. We strive to become a partner to our clients in many ways, offering the guidance and support needed for strategic decision-making, such as identifying cost-saving opportunities and assessing the financial viability of business initiatives—and, of course, the tax implications of all those decisions.

Get the Accounting Support You Need

These are just some of the ways we help one of our many clients with their accounting needs. Every client we serve is unique, and we offer the exact level of support needed to help their businesses thrive. Whether it’s simple annual tax preparation, full-service accounting and bookkeeping support throughout the year, or something in between, the experts at TAG can provide the services you require, tailored to your exact needs.
Contact our bookkeeping and accounting experts in Provo to schedule a consultation and learn how we can help your business with your individual accounting needs.

Why you should start planning for your 2024 tax return right now

Thu, 13 Feb 2025 13:18:00 -0700

Why You Should Start Planning for Your 2024 Tax Return Now

As we put another tax season behind us, you likely feel like you just barely got done filing your 2023 tax return, and you’re probably ready to put taxes out of your mind until next January rolls around. However, the best time to start planning for the next tax season is right now. Proactive tax planning is key to maximizing your tax benefits and minimizing your liability when you file. Here are just a few reasons why our tax planners encourage our clients to start their tax planning early.

A More Accurate Return

As the saying goes, haste makes waste—and it also makes a lot of mistakes when you file your tax return. Planning for your taxes now allows you to take a measured and methodical approach. You can take the time to understand which deductions you might qualify for this year, ensure you have a filing system in place to organize important documents for your return, and address any questions you may have about this year’s taxes well before the filing deadline approaches. Taking the time to handle these things now means you won’t be rushed when it’s time to file, and you can ensure that everything is handled appropriately, and your return is as accurate as possible.

A More Efficient Filing Process

Even though you won’t be rushed when tax season rolls back around, by planning for your return now, you’ll likely find yourself filing a lot more quickly than you would do without any preplanning. As we already mentioned, early planning allows you to organize your documents and address questions regarding your tax situation now; not only does that mean fewer mistakes later, but it also means fewer tax-related tasks to check off your list in tax season. That means you’ll be able to get your forms completed and submitted sooner, with less stress, and even look forward to a faster return, should you qualify for one.

Make Strategic Financial Decisions

Perhaps one of the greatest benefits of early tax planning is the opportunity to make strategic financial decisions throughout the year. Whether you’re filing as an individual or a business, the financial decisions you make throughout the year will directly impact your tax return next year; taking a reactive approach to taxes means you simply report the numbers after all the financial decisions have been made. With a proactive, pre-planning approach, you can evaluate your financial choices throughout the year and weigh which one will have the greatest positive impact on your tax return—something that can play a major role in your choices.

For example, individuals can make important decisions regarding which retirement accounts to contribute to, how much to give to charity, and even take advantage of “bunching” tax-deductible expenses to get the greatest tax benefits year after year. Businesses can analyze profitability, assess investment opportunities, and implement tax-saving strategies like cost segregation and accelerate depreciation to minimize their taxable income throughout the year. Early tax planning is an important step in a holistic financial plan for the rest of your year.

Take Advantage of Your CPA’s Open Schedule

It likely comes as no surprise to you that we’re incredibly busy during tax season. With the sheer number of returns that need to be filed in a relatively short period of time, it’s difficult for us to sit down with each of our clients and have a one-on-one discussion about optimizing your tax credits and deductions for the maximum profit. However, in the off-season, our schedules open up significantly, giving us more time to go over those nitty-gritty details that can really help you save on your taxes.

We encourage you to reach out to our Provo tax planners now to schedule a tax planning consultation, so you can take a more measured approach to your finances throughout the rest of the year. Contact The Accounting Guys today to schedule your tax planning meeting with an experienced CPA.

Ten Year-End Tasks To Ensure Your Dealership Doesn't Miss A Tax Break

Thu, 13 Feb 2025 13:16:46 -0700