Stellar Bookkeeping Solutions

It is 1099 Season!

This is our busiest month of the year! There are several deadlines in January that we need to meet on behalf of our clients, this is also the month we start many new projects, and one big thing, sending all 1099 forms!!

If you are a business owner and have hired a company or an individual for a service (this could be bookkeeping, tax preparation, legal services, web design, social media content, etc.), then you are responsible to send them a 1099 form by January 31st.

People commonly think that you only need to send 1099s if you hire sub-contractors that work for you, but that is not accurate.

Although, not every business will require one, there are many rules that would need to be considered: type of entity, way of payment, total amount paid during the calendar year, among others. We see many mistakes from business owners missing 1099s or sending wrong amounts or forms that were not eligible because of all these rules so it is always better to hire a professional.

The first and most important step is to have clean books and reports to be able to figure out who is eligible to receive a 1099. It is the business’s responsibility to comply with the IRS and send them, so don’t procrastinate and get them done ASAP!





#1099

If our clients are happy, we are happy! If our clients sleep better at night, we sleep better at night!

We love getting feedback from our clients to make sure we are providing the best service!

If you didn’t know, we have clients from all around the US, we are a virtual firm and can work with clients from any state!

If you live by Newburyport or Portsmouth go check them out! They have amazing personal trainers that will definitely get you in shape!

Time is a commodity that you can’t buy

5 reasons to hire a bookkeeper

1. Focus on the fun part of your business
You will be able to spend your time working on what you really love and focus on your core business.

2. Saves you time, money and energy.
Time is money! When you don’t have to do bookkeeping tasks, you can focus on growing your company and getting more clients which can lead to more sales. By outsourcing your bookkeeping tasks, you avoid the exhausting process of finding, hiring, training, and paying an employee so you can save time, money and energy.

3. Reduce Errors
Stop researching how to use an accounting software or how to create financial reports let an expert take care of it. Hire a professional bookkeeper and that will prevent errors you have made which can cost you penalties in the future.

4. Sleep stress-free at nights
Are you struggling to keep track of everything? Is it stressing you out? Avoid unnecessary bookkeeping errors by hiring a professional bookkeeper and I guarantee you'll sleep better at nights!

5. Make better decisions
You need to know where your business is standing to make better decisions. We keep track of your expenses, revenues, and financial reports which can help you understand how you're doing and make better decisions to grow.

The Undeposited Funds account in QuickBooks many times is related to the biggest and most common cleanups I have done for clients in the past.

Although it is a helpful way to match all invoices or sales receipts in bulk to one deposit, if not matched or account for the sales and deposits correctly, you could be doubling your income.

—> This can lead to overpayment of taxes for income you didn’t really get.

—> Overspending thinking your income is higher than what you actually earned.

—> Planning for future goals inaccurately based on information that it’s not quite the reality.

QuickBooks can be a great tool to have your books organized, get easy reports and plan for the future if used correctly. We provide training to clients that are starting up and want to do it themselves or we provide bookkeeping services if they don’t want to deal with this anymore and want to focus on their business more.

Either way, make the accounting a priority, it is the base to have a healthy business!

Happy Mother’s Day to all the moms out there! It is the hardest but most magical job we can have, and for those that add running a business to your plate, extra kudos to you!

One of the main reasons I decided to start my business was to have the flexibility of controlling my own schedule so I can be present with my kids. But being flexible doesn’t mean it’s easier, many days we have to work late nights to compensate the morning we took off volunteering at our kid’s school. Sometimes it means working on vacation or while they are at their tennis lesson. Trying to find the balance of being a mom and being a business owner is not easy, but it is very rewarding!

Keep up the good work moms!! If you are passionate about what you do it won’t feel like work, but a way to do what you love while giving your kids the opportunity of a better life! And I hope I can be a good example to my daughters, so they know there is no limit to be able to achieve their dreams!

Don’t miss the deadline!! If you are a business owner and you made a profit this last quarter, you need to be making estimated tax payments to the IRS.

This is one more reason why having your books in order and up to date is important. Calculating the estimated tax payment is so much easier if you have a clear picture of your profit.

It also helps to pay taxes each quarter so you don’t feel overwhelmed at the end of the year with a big tax bill, which I have seen it happens a lot and cash flow might be an issue by then.

Contact us if you need help with this! Link in bio to book a call!

Let’s talk about productivity!!

I’m sure many small business owners have dealt with time management inefficiencies, searching for ways to organize your schedule, projects, tasks, etc. There are many project management softwares out there, but after trying and researching for a long time, feeling stuck and stressed out, I found the one I have love the best… ASANA!

If you have a bookkeeping/accounting business you got to check out the Kickoff with Asana’s course, it was life changing for my practice!! Click/copy my affiliate link below to get $100 off the price, I promise you won’t regret it!

And for any business owner, you should try out Asana, it is a great program, and it will help you be more productive and efficient with your time and escalate your business to the next level!
https://marcelastellmach.krtra.com/t/uoAnzhFLwkdT

Sales Tax and Economic Nexus

Many business owners are not aware what Economic Nexus means and, in many cases, this could be risky for your business.

Sales tax laws have changed throughout the years and keep changing as our world becomes more virtual.

The traditional way of just collecting sales taxes in the state where your main office is, is far gone. Economic nexus opens up many businesses to have nexus in other states, therefore having the obligation to register, collect, and remit sales tax to that jurisdiction.

Do you sell a product or digital content online all around the US? Do you have employees or contractors working in another state? Do you have inventory in another state?

These are some examples of having possible nexus in other states.

Don’t wait until you get audit and have to pay back taxes to other states that you didn’t even collect when you did the sale. Be proactive and talk to a professional that can help you analyze this!!

Now there is more time to look into your 2020 books and if you see anything off, there is no need to rush to file taxes.

Have an expert take a look at them, fix whatever is needed, and then you can file taxes.

It is always better to be proactive than amending tax returns and paying penalties for filing inaccurate numbers.

Are your books ready for this tax season? Don’t wait until last minute to check if everything is in order and ready to file!

Tax season is a very busy time so avoid the stress and be proactive now!

Love getting feedback from our clients! We care about them and their business!

Christina is about to launch a book and we couldn’t be more excited!!

What are QuickBooks cleanups?

Have you looked into your financial reports and don’t know what is going on? Accounts that should not be negative are; your income is more than what you thought so or what reflects on your checking account; you have old loans, invoices and bills that are still showing open even though they have been closed out?

Cleanups are like puzzles and we need to put the pieces together to have a clean set of books. We happen to love puzzles!

These are typical examples of what we see when we cleanup books of our clients. It begins when we receive a call from a new client that either tried to do the books themselves or had a bad experience with their past/bookkeeper accountant and they can’t seem to get their reports right.

Understanding the basics of accounting is not enough to have clean books as you will also need to know have a firm grasp on the small details about a specific accounting software. A journal entry “fix” only temporarily solves the issue and typically causes a snowball effect that creates further confusion down the road.

We are experts in QuickBooks Online and do cleanups all the time. If you are in this situation, don’t wait any longer and contact us. Remember, your tax returns might not be accurate if your books are not clean. You could be paying more or less taxes than you should so take action now!