FAQ's
Smart & Hassle-Free Tax Filing in the Digital Age
Got Questions? We Have Answers
Everything you need to know about the product and billing.
What is bookkeeping, and why do individuals need it?
Bookkeeping is recording your financial transactions, income, expenses, assets, and liabilities so your records are accurate and ready for tax filing or financial planning.
Do individuals need a bookkeeper?
It’s optional but recommended if you have rental income, freelance work, a side business, or complex finances, as it reduces errors and tax issues.Absolutely. We handle prior-year and amended returns, helping you get compliant quickly.
What is the difference between bookkeeping and accounting?
Bookkeepers organize records; accountants analyze them for tax filing, financial planning, and reporting.
How often should I update my financial records?
Monthly is best so you stay organized and avoid stress at tax season.
What is Form 1040?
It’s the U.S. Individual Income Tax Return form for reporting income and calculating tax owed.
What documents do I need for my tax return?
W-2s, 1099s, receipts for deductions, investment statements, mortgage interest statements, and other income records.
What is a tax deduction?
A deduction lowers taxable income (e.g., student loan interest, mortgage interest).
What is a tax credit?
A tax credit lowers the tax you owe dollar-for-dollar (e.g., Child Tax Credit).
Do I have to file taxes if I didn’t earn much?
Generally yes if income exceeds IRS thresholds; otherwise you may still file to get a refund.
What is the estimated tax for individuals?
If you’re self-employed or earn 1099 income, you pay estimated tax quarterly.
What is an ITIN?
A Taxpayer Identification Number used for individuals who can’t get an SSN but must file taxes.
Can I deduct home office expenses?
Yes, if the space is used regularly and exclusively for business.
What’s the standard deduction?
A fixed amount that the IRS lets you deduct instead of itemizing varies by tax year.
How do I change my address with the IRS?
File Form 8822 to notify the IRS of a new address.
What if I need to amend my tax return?
Use IRS Form 1040-X to amend a previously filed return.
What is e-file, and why use it?
Electronic filing speeds processing and refunds through IRS E-file.
How long should I keep tax records?
Typically, at least 3 years; employment tax records may require longer
What is backup withholding?
A portion of payment held by the payer and sent to the IRS, usually triggered by an incorrect TIN
Can I file taxes without a CPA?
Yes, with tax software or a tax preparer; CPAs provide expertise for complex returns.
Do I owe penalties for late tax payment?
Yes, the IRS charges penalties and interest for late payments or filings.
What is the self-employment tax?
Social Security and Medicare taxes for self-employed individuals.
Are alimony payments deductible?
Depends on the year and IRS rules; rules changed in recent tax laws.
What receipts should I keep?
Receipts for business expenses, charitable donations, medical bills, property tax records, and investment statements.
How can tax consultants help?
They optimize tax deductions, prepare/fix returns, and provide audit support.
What tax forms do I use if I worked freelance?
Form 1099-NEC/-MISC and Schedule C with Form 1040.
Can I get a refund if I overpay taxes?
Yes, overpayments can be refunded or credited to next year.
How do I lower my tax bill legally?
Maximize deductions and credits, contribute to retirement accounts.
What is the deadline to file tax returns?
Usually April 15, but can vary if holiday/weekend.
Can tax professionals represent me before the IRS?
Yes, CPAs, EAs, and attorneys can represent clients in audits
What is “tax-ready bookkeeping”?
Organized books that make preparing your taxes smoother and more accurate.
What bookkeeping services do businesses need?
Monthly recording of transactions, bank reconciliation, payroll tracking, accounts payable/receivable, and financial statements.
Why is accurate bookkeeping important for my business?
It ensures compliance, helps with tax filing, and provides clarity on financial health.
What financial reports should I get monthly?
Profit & Loss, Balance Sheet, and Cash Flow Statement.
Do I need bookkeeping if I have an accountant?
Yes, accountants need organized books to prepare accurate financials and taxes.
What is GAAP?
Generally Accepted Accounting Principles is the standard accounting framework in the U.S.
What business structure is best for taxes?
Sole proprietorship, LLC, S-Corp, or C-Corp have different tax implications.
What is an EIN, and do I need it?
Employer Identification Number required to file business tax returns and hire employees.
What tax forms do businesses file?
S-Corp: 1120-S; C-Corp: 1120; Partnership: 1065; Sole proprietors file Schedule C with 1040.
What are quarterly estimated taxes?
Businesses pay tax on estimated income quarterly to avoid penalties.
How do I calculate quarterly tax payments?
Estimate the total tax for the year and divide it into quarterly payments.
What deductions can my business take?
Ordinary and necessary expenses like rent, supplies, wages, and utilities.
Do I need payroll tax filings?
Yes, if you have employees to withhold and report payroll taxes.
What is sales tax compliance?
Collecting and remitting mandatory sales tax in states where you have nexus.
What does “nexus” mean?
A tax connection to a state requiring you to register and collect tax.
How long should I keep business tax records?
Generally 3 to 7 years, depending on the type of record.
Can I do bookkeeping myself?
Yes, if simple, but outsourcing saves time and improves accuracy.
What software is best for small business bookkeeping?
QuickBooks, Xero, Wave, and similar cloud platforms.
When should I hire a bookkeeping service?
If you’re behind on books, growing, or need tax prep ready financials.
Can bookkeeping services prepare tax returns?
They can organize and prepare records, but CPA/licensed tax pros file returns.
What is tax planning?
Strategy to minimize liabilities and maximize deductions legally.
What are common bookkeeping mistakes?
Missing reconciliations, mixing personal/business expenses, and late records.
Why is cash flow projection important?
Helps plan for expenses, growth, and avoid cash shortages.
What are accounts payable and receivable?
Payables are what you owe; receivables are what customers owe you.
Do I need payroll services?
Yes, if you have staff to handle withholdings and filings.
How do I handle 1099 contractors?
Collect W-9, issue 1099-NEC if paid $600+.
Can advisors help with financial forecasting?
Yes, advisory helps plan budgets and profit goals.
What is business valuation?
Estimating the worth of a business for investment or sale planning.
What if the IRS audits my business?
Advisors prepare records and represent you in correspondence.
Are payroll taxes separate from income tax?
Yes, they cover Social Security, Medicare, and unemployment.
How can a tax advisor reduce my tax burden?
By finding credits/deductions and structuring income/timing legally.
Got Questions? We Have Answers
Everything you need to know about the product and billing.
Do you prepare individual tax returns?
Yes, we prepare personal income tax returns accurately and on time, ensuring you claim all eligible deductions and credits.
Can you help if I missed filing previous years’ taxes?
Absolutely. We handle prior-year and amended returns, helping you get compliant quickly.
Do you offer help if I get an IRS notice?
Yes. We provide IRS and state notice resolution, so you don’t have to deal with tax authorities alone.
What if I work in multiple states?
We are experienced in multi-state tax filings and ensure you remain compliant everywhere you earn.
Do you help with budgeting and personal finance planning?
Yes, we provide advisory support to help you understand cash flow, savings, and long-term financial goals.
Can you advise on retirement plan options?
Yes, we guide you on tax-efficient retirement contributions (401k, IRA, SEP) to maximize savings.
Do you prepare estate or trust returns?
Yes, we handle trust and estate tax filings (Form 1041) and provide related guidance.
How do you keep my information secure?
We use encrypted systems and secure online portals to protect all your personal and financial data.
Do you provide year-round tax planning?
Yes. We take a proactive approach with quarterly reviews to reduce surprises at tax time.
How much does it cost to file individual taxes with you?
We use transparent, fixed-fee pricing based on the complexity of your return. No hidden charges.
What is included in bookkeeping services?
Our bookkeeping covers monthly reconciliations, expense categorization, financial statements, and real-time reporting.
What is the Business Owner Package?
It’s a bundled service for small business owners that includes bookkeeping, payroll, tax compliance, and advisory support.
Do you handle payroll processing?
Yes, we manage end-to-end payroll, including employee payments, tax withholdings, and year-end filings.
Can you help me choose the right business structure?
Yes, we advise on LLC, S-Corp, and C-Corp structures based on tax impact and growth plans.
Do you provide financial modelling?
Yes, we build models for existing businesses, new ventures, and investment decisions.
What is a feasibility study and investment memorandum?
It’s a detailed report on risks, returns, and market potential — often used to evaluate projects or pitch investors.
Can you help with mergers or acquisitions?
Yes, we provide valuation, due diligence, deal structuring, and post-deal integration support.
Do you offer tax planning for businesses?
Yes, from quarterly tax estimates to long-term planning, we minimize liabilities and improve cash flow.
Can you represent my business in an audit?
Yes, we handle audit assistance, negotiate with tax authorities, and represent you before the IRS.
Do you provide ongoing advisory support?
Yes, through unlimited phone/email consultation and strategic sessions, we act as your financial partner year-round.