BHB Advisors LLC, CPAs and Consultants [ stick ]

January 5th, 2012 Matt Bruun
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Based in Minnesota, BHB Advisors, LLC is a full service tax and accounting practice, offering the following services:

  1. Tax – planning and compliance work for individuals, corporations and partnerships
  2. Accounting Services and Financial Statements
  3. Consulting and Management Advisory Services

Our mission is to communicate, collaborate and cooperate with our clients to help get them where they want to be financially.

Our specialty is working with individuals and small to midsize companies in the Minneapolis and St. Paul area. 

We hope that our website will offer you a glimpse of our expertise and help answer tax and accounting questions you may have.

Accounting & Bookkeeping, Tax News & Info, The Happy Accountant

How an iPad can be good for business

May 10th, 2012 Heather Reiswig
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Initially upon getting an iPad I wondered why so many professionals deemed them essential for business purposes.  In my limited knowledge of an iPad, all I knew was that Fruit Ninja would be 10 times bigger.  But after doing some research and exploring its capabilities I have learned that an iPad can be an excellent tool for business owners and professionals. Here are a few tips: 

 Do not treat an iPad as a PC.  An iPad can do a lot of amazing things, but it was not designed to replace a computer, and was not meant for high levels of data entry. Use your iPad as an extension of your computer to give you access to all the information you might need from potentially any place you go. This gives you the ability to make presentations, do research, and stay completely connected with a low amount of hassle. Note: iPads are much lighter and more travel friendly than laptops. 

Get Apps! Apps (applications) are the life blood of the iPad and with well over 100,000 to choose from you can find pretty much anything you need.  Some apps come standard with the iPad but most others you download for a nominal onetime fee, or for free.  The caveat is that while you may have a lot to choose from. Take the time to read the reviews, you want to make sure your information is secure and that the app really does what it says it can.  

  1. Standard Some of the apps that come standard included Mail, Calendar, Contacts, Notes, iBooks, Face Time (only with newer editions), and Reminders.  Most of these apps can connect with Microsoft Outlook to keep you connected. 
  2. Downloadable Other apps that might be helpful are: Quickoffice Pro- gives you the ability to create and use Office documents between your computer and the iPad.  Apple apps of Keynote, Pages, and Numbers can import Microsoft files for your use. Most major banks have created apps so you can do your banking. Major news and publication companies have created apps so you can store and read all your news in one place. For example, the New York Times has a free app. Lastly, in case you need to be able to access your computer from anywhere, services like GoToMyPC have created apps so that if you have an account with them you can access your whole stationary computer or laptop using your iPad. Note: apps like GoToMyPC are meant to be a helpful tool and will not be a good replacement for your actual computer or laptop. 

Have fun with it. iPads are pretty cool little tools, so have fun searching for apps that will help you be a more efficient business owner or professional. And when you are done working… Fruit Ninja really is 10 times bigger!… and so is Angry Birds… 

You can most certainly be an excellent business owner and professional without an iPad. It is a nice tool that can make you more efficient and give you peace of mind while you are away from the office.  Do your research and have fun! This is your life, enjoy it! 

 

 Note: BHB Advisors is not affiliated with nor endorse any app or Apple product mentioned above.

 

  

Business Consulting

Good Recordkeeping

May 10th, 2012 Heather Reiswig
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A new year has started and tax season is over, and maybe it was a little more difficult to gather all your information than you would have liked.  Before we get too far into the year, read these tips to make sure you are practicing good record keeping habits so that next year will be a piece of cake!

  1. Keep records in one location- One of the struggles come tax time is that records get filed in many different locations and taxpayers spend lots of unnecessary time searching all the places they could have put that one piece of paper. Instead, when you receive a receipt or record that is commonly used for your taxes, make a copy and keep it in a tax file. Doing this will ensure that all your tax records are together and you can just hand the whole file over to your preparer. Common records to keep will include, but are not limited to, medical and charitable receipts, property tax and interest statements, or any statements with the words “Tax Document” printed on the envelope.
  2. Use Excel Worksheets- When taxpayers begin to gather lots of receipts or data for the year, a good practice is to begin to record these receipts on an Excel spreadsheet.  This way you will be able to make sure that every expense has been recorded without searching through hundreds of individual receipts.  This will also enable you to compute quick totals instead of adding each expense individually with a calculator, which could take a lot of time and mistakes are easily made.  A good example of an expense to record with Excel would be business miles.
  3. Take advantage of Personal or Business Financial Software- Many different types of software such as Quicken, NeatDesk, QuickBooks, and Mint.com are available to help with personal financial needs in a range of prices from $0 to hundreds of dollars.  These kinds of software help to track and locate your finances using search features and other kinds of tracking options. Then come tax time, you can figure out exactly what you paid for deductable items such as vehicle registration fees.  They are also handy tools for budgeting and other personal finance needs. 
  4. Create a System- Every person is different, some people prefer a fancy high tech computer to track everything, some love label makers and cubby holes, and some prefer a shoe box above all else.  Figure out what works for you and your lifestyle.
  5. Be Diligent- Good recordkeeping will save you money and stress in the long run.

 

For additional information check out this video from the IRS titled “Good Recordkeeping helps avoid headaches at tax time”

Note: BHB Advisors is not affiliated with nor endorse any of the aforementioned software companies.

Accounting & Bookkeeping, Business Consulting

HSA contribution limit changes for 2013

May 10th, 2012 Heather Reiswig
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The contribution limit for HSA’s from 2012 will increase in 2013.  The contribution limit for individuals will increase to $3,250 and to $6,450 for family coverage.  Taxpayers age 55 and over will still have the option to contribute another $1,000.  Reminder: the limit for 2012 is $3,100 for individuals and $6,250 for families.

Tax News & Info

Had a baby this year? Learn what that means to your taxes….

January 30th, 2012 Heather Reiswig
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©All rights reserved by dlgbabywear

There are certain tax advantages to adding a little one to your family. 

  •  Taxpayers may receive an exemption for each child or qualifying dependant beginning in the year they were born up to the age of 19 (the limit is 24 if they are a full-time student).
  •   Taxpayers may be eligible for a child tax credit for children under the age of 17.
  •  A child and dependent care credit may be claimed for child care expenses incurred for children under the age of 13, if the expenses are incurred so that the taxpayer may work, or look for work.
  • An earned income tax credit may be available for working parents.
  •   An adoption credit is available for qualifying expenses paid to adopt and eligible child.

 For more information on how your children affect your taxes, please contact your tax professional, or us at BHB Advisors, LLC at 651-332-5101.

 Note: Credits and deduction may be subjects to dependent qualifications and income limitations.

Tax News & Info

Do I owe tax on my benefits at work?

January 30th, 2012 Heather Reiswig
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Ever wonder if the benefits you receive at work are taxable?  A fringe benefit is a form of pay in addition to your salary or hourly wage.  Fringe benefits include cash, services, property or compensation equivalent to cash.  For tax purposes, there are four classifications of fringe benefits:

                Taxable: All benefits are considered taxable unless otherwise excluded by the tax code.  If a benefit is taxable then it must be included in gross wages on your W-2 and is subject to income tax.

                Nontaxable: These are benefits specifically excluded by the tax code.  For example, the IRS just declared that employer provided cell phones are a nontaxable fringe benefit.

                Partially Taxable: This applies to benefits that are specifically excluded to a limit.  This would include benefits that have dollar value ceilings of exclusion.

                Tax-deferred: Tax-deferred benefits are those that are not taxable when awarded but will be taxable in the future. An example would be employer contributions to pension plans.

For information regarding whether your fringe benefit is taxable, see the Taxable Fringe Benefit Guide  written by the IRS or contact your tax professional.

Tax News & Info

Upcoming Due Dates (January 2012)

January 7th, 2012 Matt Bruun
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January 17, 2012: 4th Quarter 2011 Estimated Tax payments are due for Individuals required to pay estimated taxes.

January 31, 2012: 1099 statements due to recipients, W-2 statements due to employees, Annual FUTA 940 payroll tax return due, Fourth quarter 941 payroll tax return for previous year.

February 5, 2012: Minnesota Sales and use Tax for annual filers

Tax News & Info

1099 Filing Requirements

January 6th, 2012 Matt Bruun
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Businesses who pay independent contractors, royalties or other non-employee workers must file 1099 forms with the IRS.

Nonemployee compensation of $600 or more is reportable in Box 7 of Form 1099-MISC.

Include fees, commissions, prizes and awards for services performed as a nonemployee, and other forms of compensation for services performed for your trade or business by an individual who is not your employee.

Businesses are generally not required to file 1099’s for payments made to an entity taxed as a corporation but this exemption from reporting payments made to corporations does not apply to payments for legal services.

What is nonemployee compensation?  If the following four conditions are met, you must generally report a payment as nonemployee compensation.

  • You made the payment to someone who is not your employee;
  • You made the payment for services in the course of your trade or business (including government agencies and nonprofit organizations);
  • You made the payment to an individual, partnership, estate, or, in some cases, a corporation; and
  • You made payments to the payee of at least $600 during the year.
Tax News & Info

Tax Season Resources-2011

January 5th, 2012 Heather Reiswig
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Welcome to another tax season! To make this busy time a little easier, you can download all the necessary documents right here.

We ask all of our clients to fill out and return a signed engagement letter, a yes/no questionnaire, and an organizer.

Engagement Letter

Yes/No Questionaire

If we prepared your tax return for 2010 you have access to a detailed tax organizer that includes your prior year information on our web portal. We will also mail you a copy upon request.

If you are a new client, please download and complete the organizer listed below that pertains to you.

  • Basic- For taxpayers with no Schedule C business income or Rental property.
  • Business Income- For taxpayers with self-employment income. Please make sure to fill out this organizer AND the Basic Organizer.
  • Rental Income – For taxpayers with rental properties.  Please make sure to fill out this organizer AND the Basic Organizer.
  • Complete- This is the complete version for taxpayers with multiple activities such as Business, Rental, or Farm income.

NOTE: The tax organizers are not “fill in” PDF forms so you will need PDF editing software if you would like to enter text directly onto the forms. For instructions on how to enter text on a PDF using Adobe Standard, please see: Filling In Your 2011 Tax Organizer.

Tax News & Info

Simplify Your Year End Payroll

December 6th, 2011 Heather Reiswig
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Let’s be honest, December is crazy and the last thing most business owners want to think about is payroll tax filing.  Before the holidays and the January deadline, get organized now.  Here are some things you should consider:

Calculate automobile use for W-2 reporting early

If you provide company vehicles to your employees that they can take home and use for personal travel, you are required to add this taxable fringe benefit to their W-2 wages.  To compute the taxable benefit amount, gather the vehicle’s value, model year, mileage, and a breakdown of mileage for business vs. personal.  NOTE: the IRS requires substantiation for business and personal use, so make sure your employees are keeping a log or good records. The value of driving an employer owned vehicle is based on the IRS annual lease value and the computation must be prorated for the number of months it was used.  The IRS gives companies the option of setting an October 31st or November 30th cutoff date, instead of the calendar year end.  Advice: use an optional cutoff date and compute this reportable benefit now.

Know which insurance benefits are reportable

Life insurance Premiums- reportable and taxable if the beneficiary of the policy is a shareholder, officer, or a member of their family.

Health and Disability- reportable for 2% shareholders of S Corporations, partners in a partnership, and members of an LLC.

Group Term Insurance- reportable for coverage over $2,000 on any owner or employee’s dependent. Also taxable income is added to an employee’s W-2 wages for any coverage over $50,000 based on the employer’s age and IRS premium tables.

 Many 3rd party payroll services have specific deadlines for this information, make sure to check their requirements and send them the necessary information s so they can issue correct W-2’s to your employees.

Business Consulting, Tax News & Info
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