Category Archives: Non-Profit Accounting

Articles and tips related to non-profit accounting by James E. George, CPA

A Lack of Documentation can Cost You!

A Lack of Documentation can Cost You!

I met with a number of clients in the last couple of months who are very tech savvy and utilize a lot of the current technology available in running their businesses. Some deposit their customer checks by taking pictures of them with their phones. Others track their auto mileage by using the GPS app on the phones. Almost all pay their bills via online banking or with a debit card.

While this may seem cutting edge cool and very convenient, it could come back to haunt you later if you don’t fortify your business recordkeeping by performing a few additional procedures. Mileage logs should be downloaded and stored in a digital format on a local computer no less frequently than once a month. You need to document the business purpose of every single debit card transaction by making notes on a copy of your printed or online bank statement. You may have to prove to the tax authorities later the business purpose of those expenditures.

I have spoken with Accountants who have terminated their cloud software subscriptions and were unable to access vital records that were stored in their cloud application’s files. I have also spoken to business owners whose phones were lost or damaged and rendered unusable. All the information stored on their phones was no longer accessible. When you utilize your devices to run your business, you still need to assure that all business transactions are supported by some form of documentation and, if your device is lost or damaged, you can still access the information.

When a business owner comes into my office to have their income taxes prepared, I want to see reports, spreadsheets and summaries. For many types of transactions, such as the purchase of large depreciable items, I also want to see the receipts. I need to scan them into my digital file cabinet as support for how I prepare their income tax returns. If the majority of your business records reside in the cloud or on your telephone, I will recommend you print them out or e-mail them to me. This will help minimize the cost of my services to you. The more time a Tax Preparer spends accumulating your support documentation, the higher your fee will be.

Tax-Related Telephone Scams

Tax-Related Telephone Scams

This week our area has been hit with an increased number of tax-related scam telephone calls. They are starting to sound much more realistic than similar scams in prior years. Usually the caller will identify themselves as a member of an enforcement division of either the IRS or Maryland State Police. They will inform you… Continue Reading

Many New Tax Law Changes are Just Around the Corner!

Many New Tax Law Changes are Just Around the Corner!

Last week I spent three fantastic days at the IRS Nationwide Tax Forum! Many new tax laws and changes to the tax forms are slated for the next filing season. The amount of new information, procedural changes and tax form modifications discussed was at times, overwhelming. The increasing number and types of new tax scams… Continue Reading

Hired Guns

Hired Guns

When you operate a seasonal business, your workload is concentrated into a few months out of the year. The very nature of this beast makes it difficult to assemble a talented workforce. Most experienced employees desire year-round income. This limits the business to finding seasonal help. Every year we experience a backlog at the review… Continue Reading

Business Tip: Customers Don’t Want Equal Treatment

Business Tip: Customers Don’t Want Equal Treatment

The advice we give our clients is personalized to their situation and circumstances. No two clients are the same. We may recommend one course of action for you and the opposite for your neighbor. The key is to listen to your client. Learn their goals and question any limitations to achieving them. Customers don’t want… Continue Reading

Beware of Tax-Related Identity Theft Scams

Beware of Tax-Related Identity Theft Scams

Deceitful communications come via phone, email, postal mail, and sometimes even a knock on your door. It’s important to know that the IRS does occasionally contact taxpayers, but when they do, it’s most often by mail. Sometimes the IRS needs to verify a taxpayer’s identity and will do so by sending a Letter 5071C. This… Continue Reading

Make 2018 Your Business’ Best Year

Make 2018 Your Business’ Best Year

All of us here at James E. George, CPA would like to wish you and yours a very happy and prosperous new year! At this time of reflecting on the past and planning for the future, I’d like to suggest making 2018 the year you get your business finances in order. Not just for your… Continue Reading