Business Meals and Entertainment

This article clarifies some common misconceptions related to tax deductions for business meals and entertainment. Generally business tax payers can only deduct 50% of entertainment expenses. However, there are some exceptions where they can deduct 100%. Keep reading to see how much of your businesses meals and entertainment expenses you may be able to deduct and make sure you are taking advantage of the items that are allowed 100% deduction.

Businesses can deduct meals and entertainment expenses that are ordinary and necessary in the course of business and that are not lavish or extravagant under the circumstances. The deduction is limited to 50% unless they meet one of the following exceptions.

Exceptions to the 50% Limit

There are some exceptions where the taxpayer is allowed to claim 100% of the expenditure, as follows:

  • Company holiday party or picnic
  • Meals provided for the convenience of employer (All meals provided on the premises are treated as provided for the convenience of the employer)
    • Must include more than ½ of the employees, or
    • Provided to employees, on an occasional basis, who work overtime
  • Office snacks such as coffee, soft drinks, water, etc. provided on business premises
  • Expenses for goods, services, and facilities made available to the general public and / or for a fundraising event or charity
  • Employer provided services, including an employee cafeteria
  • Amounts paid for meals and entertainment where the taxpayer is in the business of providing meals and entertainment

*It is important to keep accurate records of all business expenses. Receipts that substantiate meals and entertainment expenses are a must and the IRS will look for you to have the proper documentation such as the time and place, business purpose, and attendees. It is also recommended that you have two general ledger accounts to track the 50% and 100% deductible expenses separately.

For more clarification on the business meals and entertainment tax deductions, visit the following link >>>.

Contact Holdsworth Chadd Fuller CPAs for all your tax needs.

 

1099s – What You Should Know

Hard to believe we are approaching the end of another year! For businesses this means many year-end tasks will need to be completed including making sure you are ready to issue 1099s to your vendors.

Make sure you get those W-9s!

Before you pay individuals or entities for services provided throughout the year, you should obtain a W-9 from them. This will give you the information you need to prepare your 1099s come year-end. If you have not obtained these forms throughout the year, it is not too late! This does create more work at year-end when you are up against the 1099 filing deadline, however it is necessary for completing your 1099 forms.

Visit the Resources section of our website to download this form.

1099 Requirements

Per the 1099 instructions you must issue a 1099-MISC form to those who you paid at least $600 for Rents, services (performed by someone who is not your employee), and payments to an attorney. These are only the most common categories, please reference the instructions for an inclusive list.

Visit the IRS website for more details: https://www.irs.gov/pub/irs-pdf/i1099msc.pdf

Preparing 1099s

Accounting software is helpful when preparing 1099s for your vendors. The IRS requires that these forms be provided to the recipient by January 31st of the following year and the IRS copy must be filed by the last day of February. Some software will allow you to print the forms on blank paper however, the pre-printed forms can be ordered from the IRS or purchased from an office supply store should you need them. Contact your accountant for further information on preparing and filing these forms.

Holdsworth Chadd Fuller CPAs uses state of the art technology to prepare 1099s and e-file with the IRS taking the burden off their clients. If you are interested in having us prepare and file your 1099s please contact us.

HOLDSWORTH & COMPANY, CPA’S ANNOUNCES PARTNER ADDITIONS AND NAME CHANGE

 

See full press release here.

 

Holdsworth & Company, CPA’s announced big changes this week including the addition of two new Partners, a name change, re-branding and additional service offerings. Holdsworth & Co. has been serving clients since 2002 offering full Accounting, Bookkeeping, Tax and Advisory Services. Traditionally managed by Founder Matt Holdsworth, the firm adds Jeff Chadd and Monica Fuller as Partners and updates the firm name to Holdsworth Chadd Fuller CPAs.

The many changes come on the heels of Matt Holdsworth joining a privately held company as Chief Financial Officer. Matt will remain a Partner in Holdsworth Chadd Fuller CPAs, and Jeff Chadd will take over as Managing Partner. Jeff has been working in the accounting field for more than a decade and is a member of the AICPA, the Arizona Society of CPA’s and the Idaho Society of CPA’s. Monica Fuller has also been made Partner and will manage the accounting division of the firm. Monica joined the firm in 2010 and is a member of the Arizona Society of CPA’s, the AICPA and is also a Certified QuickBooks ProAdvisor. Read more about each of the partners here.

Honored with the 2014 Best of Business Award by the Quad City Business News for top Accounting firm, Holdsworth Chadd Fuller (HCF) is a leading Arizona CPA firm for small to medium sized businesses. In addition to the changes in management and corporate name, HCF announced expanded CFO Services. Serving small to medium sized businesses in Arizona, HCF has honed in on three specific niches to specialize in including Dental Practices, Veterinary Medicine and Treatment Center Facilities. The firm will also continue to serve individuals and SMB’s.

Matt Holdsworth, Founder and Partner, explains how the changes support Arizona businesses: “This is a really exciting time for our firm and our clients. Jeff and Monica will lead our firm to the next level and continue to build a practice that keeps our clients moving forward.”

 

About Holdsworth Chadd Fuller CPAs

Holdsworth Chadd Fuller CPAs (HCF) is an experienced accounting and CPA firm that is dedicated to moving business forward. Businesses of all sizes rely on HCF for expert advice; specializing in Veterinary, Dental, Treatment Center Facilities and small business accounting services.  Helping their clients to understand the story their numbers are telling them, while simplifying their business’s accounting and bookkeeping, QuickBooks, payroll, and tax needs.  With experienced CPA’s that provide business advisory and outsourced CFO services, as well as Certified QuickBooks ProAdvisors to support all aspects of small business accounting needs. For more information call Holdsworth Chadd Fuller CPAs at (928) 445-8633.

What to Consider When Hiring an Accountant for Your Small Business

Many companies keep teams of accountants on staff, but small businesses don’t normally need the day to day services of even one part-time accountant. The solution is to hire an accounting firm on a contract basis. Choosing the right accountant is important for your business, as each industry has different tax and compliance laws they need to adhere to. So it’s vital to choose wisely. Here are some things to consider before making your decision:

What type of Accounting Software do you use

Make sure your prospective accountant has software that will work with your system. Most accounting software can export data into a standard format, but there may be compatibility issues that arise. Make sure your prospective accountant can handle any data access or transfer problems.

Location

Determine if you need an accountant that’s local? With today’s technology most accounting tasks can now be done in the cloud or online. You can simply upload them to a cloud-based server or encrypt and email your accounting records. The accountant then runs the numbers and responds with the results. However, meeting with your accountant can still be very important for some small business owners.

Finding Your Ideal Accountant

The best way to find accountants with the necessary experience or industry you’re in is to tap into your social network. Ask industry associates, business partners, and others in your field whom they recommend. If you don’t have anyone to turn to, start by searching for accountants that specialize in your field. For example Holdsworth & Co. specializes in Dental, Veterinary, Treatment Centers, and Small Businesses. Others may just specialize in Taxes or service so many different fields that they don’t completely understand your needs.

Associations/Certifications

Make sure to find an accountant with the certified public accountant (CPA) certification. They must pass the Uniform Certified Public Accountant Examination, plus any state-level education requirements. In many states, only accountants who have passed these requirements can utilize CPA in their title. The exceptions are North Carolina, Kansas, and Arizona. Most CPAs are members of a state-level CPA association or the American Institute of Certified Public Accountants. Members must meet the organization’s professional standards, educational requirements, and code of ethics.

Your Due Diligence

Accounting firms come in all sizes, from large firms to sole proprietors. Your accountant will have access to sensitive information, so taking your time when making a selection is important. Interview candidates, don’t be afraid to ask about their level of experience, education and client references in your industry.

Choosing an accountant is a vital step in the growth of your business. Utilizing these guidelines can help you make the right choice. Holdsworth Chadd Fuller CPAs is your partner in providing full accounting services from bookkeeping to tax and financial guidance. Contact Us for a free consultation!

Why Your Dental Practice Needs a Specialized Dentist CPA

Would you let your family doctor perform brain surgery on you? Would you let a dentist put on your braces? Not Likely. You would use a specialist in those fields. So shouldn’t you also use a Dentist CPA to work with your dental practice?

A dentist CPA has the knowledge needed for the dental industry. They subscribe to publications like Dental Economics and Dentaltown Magazine, reading and understanding specific industry needs, and staying up to date on what matters most to your practice.

A CPA specializing in the dental field would not be much value to your business if you only utilize them to prepare your taxes once a year. We at Holdsworth & Co., CPA’s take the time to build a relationship with your team to better understand your needs and how we can help your practice grow. We work with your business throughout the year in managing your financial health to allow your organization to keep moving business forward. Here are some of the key benefits of working with a specialized dental practice accounting firm:

  • Understand changes regarding taxes and compliance issues.
  • Be Proactive! Your Dentist CPA can pick out common issues and trends that many dental practices face. They also provide guidance on how to handle the issue and can look at financial trends or purchasing needs to proactively plan.
  • You need to create a retirement plan. Your dental CPA understands and knows what kind of plans will work best given your company size and employee count.
  • You’re trying to decide whether or not to purchase equipment (like a CEREC). A CPA specializing in dental practices knows what a CEREC is and whether or not it’s a financially prudent investment.
  • You’re thinking about adding a partner to your practice. Understanding how to structure the addition of new partners is a key benefit of working with a dental CPA.
  • You are building or buying an office. Your dentist CPA knows banks and loan officers that specialize with the dental industry. They are able to contact them to get estimated loan terms. A loan from a bank that has dental specific lending can have better terms than a bank that does not.
  • You want to compare other practices to your practice. We know benchmarks and industry stats for you to compare with. We advise you on how to improve and manage your Dental practice.

Dentist CPA for your Dental Practice

These are just some examples of the many benefits of working with a specialized dentist CPA.  Our team of specialized and knowledgeable accounting professionals can help you develop ways to improve your practice, reduce taxes, manage the daily bookkeeping needs and save for retirement. Contact Us for a free consultation and learn how we can help your practice!

Dental CPA to Improve Your Practice: Trusted Business Advisors

Do you plan to open a Dental practice or acquire an existing one? In building your business plan, to ensure a successful launch, engage a professional business advisory team that specializes in the fundamentals of dental practice as the first step in your blueprint for success.

The primary role of a trusted business advisor is to allow dental practice owners to care for patients and focus on practice requirements in an efficient and productive manner 24/7/365. Many practices attempt to do it all on their own, and find it to be mission impossible. There are multiple different types of business advisors that you will need to enlist: Attorney, Banker, Insurance Agent, and a CPA. It is best to engage in advisors that specialize in your specialty to ensure all of your liabilities are covered, and specific purchasing needs are considered.

The dental CPA advisor is not just a resource for tax planning and filing; the right firm will be your resource for investment planning, CFO services in your business, provide daily bookkeeping services and handle payroll for your staffing needs. Investing time in qualifying a professional dental CPA firm with a proven track record in the field is like choosing a business partner and shouldn’t be taken lightly. You need professionals that work in your type of business on a daily basis; the dental CPA of your choice should have a team of experts that allow you to focus on operating your practice and caring for patients.

Many practices choose an internal staff member to handle the daily tasks, or a spouse, over a dental CPA. Problems then occur when the firm grows and scaling is not planned for, or you experience staff turnover, fraud, and most commonly the books are not done accurately so there is no forecasting which can lead to failure or tax penalties. What you need is an experienced advisor, who knows their way around the complex and demanding field of dental practices. A resource for financial questions associated with your dental practice, such as taxes, planning and compliance. Holdsworth & Co., CPA’s work with your internal staff to act as the liaison/key contact; Professionals with the expertise your Dental practice needs in combination with contributions from the internal team.

Ensuring the success and development of your dental practice can be an extremely complex and exhausting task. In order to move through the scary labyrinth of regulations and financial requirements with ease and budgeted costs, you need an expert. This is exactly what Holdsworth & Co., CPA’s – a specialized dental CPA firm provides. Contact us today for a free consultation and get your practice on track for success.

Managing the Numbers in a Growing Practice

As more and more patients find your services, word of mouth will take over and you’ll find a spike in new patient intakes. Balancing the time between new patients, office staff training, and possible new hiring of hygenists and office staff can be tricky. Here’s what we recommend.