FAQ

Accounting/Bookkeeping Services Frequently Asked Questions

Accounting services can cover a large variety of functions. We don’t have standard accounting products, rather we adjust to the services our clients want to transfer to us.
This means providing a simple number is difficult. We have clients that pay us as little as $250 per month to clients that pay us several thousand dollars per month. Various factors go into this range, including the size of the company, complexity of their accounting, volume of transactions, etc. It’s a relatively safe assumption that smaller businesses will land on the lower side of that pricing spectrum.

Accounting services is a term that can encompass many functions. Our clients come to us to transition all or just a few of their accounting functions. To give you an idea, these can include:

  • Payroll Processing
  • Bank Reconciliations
  • Trial Balance Reconciliation
  • Income Statements
  • Balance Sheets
  • Custom Financial Reports
  • Cash flow forecasting
  • Variable and fixed expense reports
  • Debt planning

And many others. The best way to find out how we can help is to get in touch with us.

The short answer is no. We keep our engagements flexible so that we can assist only with the functions you don’t want or are unable to do. We can discuss what you’d like to keep and what you want us to manage for you.

First, it’s important to mention that we have clients that we work with monthly, quarterly, and annually. However, a monthly accounting arrangement does offer some key advantages:

  • Compared to quarterly or annual, the accountant can review your numbers each month and provide advice more frequently and prevent errors.
  • In quarterly or annual arrangements, it may be too late to make changes that could improve profitability or prevent errors because the mistakes have already been made.
  • You receive updated financial information monthly, which allows you to make better-informed decisions.
  • It saves time because as the accountant is engaging monthly and helping avoid errors, there is less information to work through and fewer items to correct.

It can seem overwhelming to have to transition from an in-house accounting model to an outsourced one. In practice, the process can be quite easy and it’s not one you’d be undertaking alone. Our team will guide you during the transition and indicate the information we need as well as the best practices around transitioning to an outsourced accounting model.

Payroll Processing Frequently Asked Questions

The price of a payroll service hinges on several important factors:

  • Frequency of your payroll processing
  • Number of W-2s that need to be filed
  • Turnover of your employees
  • Whether employees are in one or multiple states
  • Garnishments or additional legal complexity around your employees

We know this is not the answer you wanted, but the best way to find out how much payroll services will cost for your business is to get in touch with us.

We need the following information process your payroll:

  • The information in your employee’s W-4
  • Salary amounts, bonuses, and commission details
  • Payment period information, for example, hourly, weekly, monthly, etc.
  • Voluntary or involuntary deductions, including pre-tax deductions

When you engage with us, we’ll provide a complete list of what we need that is specific to your business. We’ll help you get the information if you don’t already have it.

Perkins Tax & Accounting Solutions customers just need to send those letters to us. Our team will investigate why the letter was sent, what needs to be done about it, and if necessary prepare the response. We’ll notify you and explain the situation before any actions are taken, we’ll discuss options, come up with a plan you approve, and execute accordingly.

All you need to do is send the garnishment order to us. We’ll review it, explain the situation and the compliance actions that need to be taken. Garnishment orders will be followed in accordance with the law.

Tax Preparation Frequently Asked Questions

In 2019, according to the National Society of Accountants, the average fee for tax preparation was $294 if you itemize your deductions. Please note, that as with any average, your fee may be lower or higher than this. Time and complexity are the main factors when determining the price of tax preparation.

An extreme example would be someone who presents a disorganized box of receipts or is missing documents. Situations like these take more time to sort through, the added time increases the cost.

Both a tax preparer and a Certified Public Accountant (CPA) are required to take competency exams and register with the IRS to receive a Preparer Tax Identification Number. However, there are a couple of differences:

  1. Tax preparers are required to pass an examination administered by the IRS to demonstrate their competency in preparing 1040 tax returns. As mentioned above, registered tax preparers will have a Preparer Tax Identification Number issued by the IRS.
  2. CPAs are not required to take the examination tax preparers are required to take. However, CPAs have passed the CPA exam administered by the National Association of State Boards of Accountancy. CPAs may have a broader scope and can represent their clients in various tax matters. As mentioned above, CPAs must still register with the IRS to receive a Preparer Tax Identification Number.

“Tax preparation fees on the return for the year in which
you pay them are a miscellaneous itemized deduction and
can no longer be deducted. These fees include the cost of
tax preparation software programs and tax publications.
They also include any fee you paid for electronic filing of
your return.” – IRS

To file your taxes a tax preparer no longer requires a paper signature, but must have a copy of your completed 8879 Form, the form serves several purposes:

  • Acknowledges that you accept the accuracy of the return and the direct deposit information
  • The signature replaces the physical paper signature that used to be provided on paper-filed returns
  • The IRS requires that the tax preparer receive a copy of the signed 8879 before electronically filing the tax return
  • A Tax return without having a signed 8879 is akin to identity theft. Form 8879 ensures that the taxpayer has authorized the filing of the tax return

Yes, Perkins Tax & Accounting Solutions works with both businesses and individuals with regard to tax preparation.

Business Plan Preparation Frequently Asked Questions

A business plan is a comprehensive document comprised of many sections that explain your business’ purpose, operational plan, marketing analysis, financial breakdown, and financial projections. Sections include:

  • Details of your business, legal structure, formation history, location, etc.
  • Details of your product or service
  • Who your customers are and why they will purchase from you
  • Who your competitors are, both direct and indirect, their strengths and weaknesses, and an explanation of your competitive advantage against them.
  • Financial information including startup costs, operational costs, the funding required over the next several years, etc.
  • Projections around sales, income, operational expenses, growth, etc.

Business plans serve more purposes than just aiding in securing financing. A business plan can help by:

  • Forcing you to consider all aspects of your venture
  • Identifying potential problems with your proposed business
  • Provide a plan to keep everyone focused and if you need to deviate, you’ll know what you are deviating from and the opportunity costs associated with that deviation.
  • Helps explain your business and its model to others. Not just investors, but also business partners and employees that you’ll need in the future.
  • Your projections will help you understand your risks and the contingencies you need in place to address them.
  • And yes, for all these reasons, it also helps you secure financing.

Investors are usually looking for very specific information in a business plan. It’s unlikely that they will read yours from cover to cover. They will likely read the Executive Summary and skim other parts of the plan. Investors, particularly venture capital firms are looking for roughly 5x their original investment in five to seven years.

There are no hard and fast rules here as circumstances can dictate some of the characteristics of a plan. However, a business plan is generally between 20 and 50 pages long.