Prime Accounting Solutions, LLC is a technology-forward firm that provides clients with advisory services along the way as they prepare hundreds of monthly financials. Their team is constantly educating themselves about new things in the accounting space, such as:
● recording cryptocurrency gains/losses
● Tax strategies, and
● Utilizing technology to work efficiently with clients.
Not only does Prime Accounting Solutions handle the monthly accounting functions, but they always provide some advisory services when reviewing financials with clients. Their goal is to make financial data approachable.
Most firms just send the financials and answer some questions. Prime Accounting Solutions offers bookkeeping, tax preparation and planning, payroll services, and always go the extra step to make recommendations to truly help their clients.
CEO Andrew Compton started his company in 2008 after working at a CPA firm and real estate firm. He built it with one client at a time to now have 250 clients and a solid team of 12.
Andrew earned his MBA, Financial Coaching certification, and is a licensed California tax preparer. However, he considers himself a CEO and coach of his team. They are currently trying to scale their business throughout the West Coast and eventually nationwide.
5 Things to Ask Your Accountant
Communicating openly with your accountant is a good idea for several reasons. If your business is small, the accountant might be the only other person you talk to about business on a weekly basis. They can also make suggestions that help grow your company. Finally, they may be able to save you money or add additional services to their current offerings.
Andrew shares five things you should definitely be talking about with your accountant:
1. What records should I keep?
If you don’t keep proper records and do a thorough job, then all of your books will be missing information. The IRS is not lenient when it comes to maintaining good financial records and can tack on penalties that can even exceed the amount due for your taxes, or worse – take away your business! Your accountant should be ready with an answer as to what type of records you should keep as well as backing up their answer with examples from clients’ businesses.
Attending a tax seminar or workshop will also help reduce the chances of being audited by the IRS since they have qualified experts teaching everything from business structures to sales tax, payroll, and more!
2. How should I prepare for tax season?
If you’re looking to become an independent contractor, then the person who performs your work will be responsible for paying social security, medicare, and unemployment. But it’s up to you to calculate how much they owe on top of their payments to you! This is not something you want to leave up to chance if one day someone decides that they would like some extra cash at your expense.
As a freelancer, you should also keep track of all your receipts for both business and personal purchases. If the IRS decides to audit you, they will expect to see proof that what you’re saying is true!
It’s best practice to separate personal and business expenses if possible since it’ll make calculating things much easier come tax season. If you have a home office or other rooms in your house where work is done, then those costs go on top of any dues/fees/rent/internet service, etc.
3. What business expenses can I deduct?
If this is the first time starting a business or just switching accountants, learning the ins and outs can be overwhelming! Your new accountant should be able to provide guidance on how to start correctly or at least point you in the right direction. That way, when tax season comes around, you will have no problems trying to figure out what goes where since they will already know your business inside and out.
The process of accounting for your taxes is definitely not the most exciting topic, but it’s essential to make sure you are getting what you deserve come tax season.
Accountants will help you figure out what decisions are best for your business, income, and current financial situation.
They can also usually connect you with a Certified Financial Planner in order to start investing in IRA accounts, stocks, or bonds! This way, when that day comes where you’re ready to retire, then it’s already set up and waiting for you!
4. What do I need to know about preparing my taxes?
IRS e-file is a fast and easy way to file your income taxes – if done correctly. If you have a business, then it’s crucial that you find out the rules for filing as an LLC or S Corp, because even if you don’t have any employees, your accountant can still take care of this for you!
5. How can I better manage my cash flow?
This is where a good bookkeeping software comes in. Prime Accounting Solutions uses QuickBooks and Xero software to work with their small business clients. Most banks synchronize the activity with these software’s which allows business owners to see accurate financial reports daily, weekly, or monthly.
Additional Tips and Questions
Some additional questions for your accountant could include:
● Can you file my business taxes?
● How can I reduce my tax liability?
Some questions to ask yourself include:
● Does your bookkeeper or accounting offer advisory services?
● Are you investing and recording gains or losses via your business?
Media Contact: Andrew Compton
Company Name: Prime Accounting Solutions, LLC
Office Number: 424-603-0012