Accounting answers for small business owners in Raleigh, Durham, and Cary,  NC

Small Business Accounting Questions - Answered.

Two cornerstones of Gwendolyn M. Reilly, CPA, PLLC are education and transparency. We believe information and clarity lead to confident decision making. This will help you manage your finances and your entire business more effectively.

Here are some of the most common questions we hear from small business owners. Of course, we’re happy to answer any questions you may have. If we don’t know the answer, we’ll know where to go to find it.

The decision to structure your business as an LLC or S-corp or sole proprietorship or C corp is based on several factors, such as the type of company you have and your business goals.

Also, the right business entity structure might change as your business evolves. For example, a roofer may start as an LLC. As revenue increases, you might switch to an S-corp. This would allow you to pay yourself a salary, which would reduce your business taxes and personal income taxes.

Mortgage providers, loan brokers, lenders, adoption agencies, and other third parties often request that self-employed individuals provide a CPA letter for verification of self-employment. Essentially, the CPA confirms that they prepared the person’s tax returns and that the individual is self-employed. A CPA letter can increase the likelihood of loan approval and/or a lower interest rate.

If your small business is an S-corp or C-corp, you can pay yourself a salary. If you are a sole proprietor, single-member LLC, or a partner in an LLC partnership, the IRS does not allow you to pay yourself a salary. You can take distributions to pay yourself but those distributions are not deductions. In a partnership, partners can be paid guaranteed payments.

Individuals should save tax data for seven to 10 years since the IRS can audit 10 years of returns. Small business owners should save tax data for seven to 10 years after they no longer own the business.

Gwendolyn M. Reilly, CPA, PLLC charges a flat-rate fee for most services provided. We offer flat-rate fees so you know exactly how much you’ll be paying each month for the services you need. We’re confident that we are a very affordable small business CPA firm compared to other firms in the area.

Call your CPA and show it to them. Never ignore a letter from the IRS! Your CPA will be able to confirm that the letter is authentic and not a scam, and then explain what action you should take in response to the letter.

QuickBooks is accounting and financial management software with robust features, such as accounting, inventory, payroll, invoicing, expense tracking, bank account tracking, reconciliation, and reporting. QuickBooks helps small businesses monitor and manage their financials in a single platform. Gwendolyn M. Reilly, CPA, PLLC is a QuickBooks ProAdvisor.

Outsourcing your accounting and bookkeeping gives you more time to focus on core business activities that generate revenue and allow your business to grow. Outsourcing also places your financials in the hands of a trusted expert so you can leverage their knowledge to make better business decisions.

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We understand that small business accounting and tax planning are complex. If you would like to discuss how Gwendolyn M. Reilly, CPA, PLLC can help you manage your financial data and run your business more effectively, please contact us to schedule a free consultation.