Posted by Adam Hale on Fri, May 18, 2012 @ 06:00 AM
Once again, wedding season is upon us. That’s right. Tis the season for weddings. Before walking down the aisle, every couple should take a minute to consider a serious matter.
Whether it’s yourself or a loved one that will be saying “I do”, why not start your marriage out on the right foot. Couples often enter into marriage without ever having had a discussion about financial issues. As a result, they find themselves frequently arguing about money. If you are planning a wedding, here are some steps you can take to get your marriage off to a good financial start.
* Premarital financial discussions. You and your intended might enjoy the same movies and the same kinds of food, but are you financially compatible? Take some time to discuss your finances before you tie the knot. Talk about your assets, your debts, your credit ratings, and your financial attitudes, including your spending and saving habits. Do you share the same goals, such as having children, buying a home, or continuing your education? How will you finance your dreams?
* How will you handle your finances as a married couple? Who will pay the bills? Will you maintain joint or separate checking accounts? If you maintain separate accounts, how will you split your expenses?
* Premarital financial counseling. Every couple needs to work out their own style for handling money. Call upon our accountants to assist you in setting up a budget, controlling your taxes, and mapping out a financial plan for your future.
* Premarital legal counseling. If you have substantial assets, discuss the merits of a premarital agreement with your attorney. If your partner has substantial debt, ask your attorney how you can protect yourself from his or her creditors. Perhaps you plan on buying a house together or combining financial accounts. Your attorney can advise you on the best way to hold title to your assets.
Discussing your finances before you say "I do" may increase your chances for living happily ever after. Contact our office at (260) 497-9761. Our Virtual CFO is always happy to assist in all of your financial needs.
Posted by Jody Grunden on Thu, May 17, 2012 @ 06:00 AM
Are you aware of the changes in your FSA and HSA accounts?
Now is the time to plan for the next tax season. There are changes in the HSA (Health Savings Account) for 2012 that you should know about as well as some changes to the FSA (Flexible Spending Account) contributions in 2013.
HSA limits will increase for 2012:
The amount you can set aside in a health savings account (HSA) in 2012 increased to $3,100 for an individual and to $6,250 for a family. If you’re 55 or older, you’re allowed an additional $1,000 contribution. HSAs permit taxpayers who have high deductible health insurance plans to set aside pretax dollars that can be withdrawn tax-free to pay medical expenses not reimbursed by insurance.
FSA Tax- Free Contributions will Decrease in 2013:
Beginning January 2013, the maximum you can contribute to your FSA will be $2,500. In addition, the “use it or lose it” feature of FSAs means you won’t be able to carry any 2012 excess remaining in your account into 2013 (unless your plan provides a 2½ month grace period for using prior-year funds).
**A Good Planning move: Schedule elective medical procedures during the last half of 2012.
If you have further questions on the new tax rules of the FSA and HSA contributions, contact us at (260) 497-9761 and speak to our tax advisors.
Posted by Adam Hale on Wed, May 16, 2012 @ 06:00 AM
IRS announces business vehicle deduction limits for 2012
The IRS has published depreciation limits for business vehicles first placed in service this year. Because 50% bonus depreciation is allowed only for new vehicles, these limits are different for new and used vehicles.
* For new business cars, the first-year limit is $11,160; for used cars, it's $3,160. After year
one, the limits are the same for both new and used cars: $5,100 in year two, $3,050 in year three, and $1,875 in all following years.
* The 2012 first-year depreciation limit for trucks and vans is $11,360 for new vehicles and $3,360 for used vehicles. Limits for both new and used vehicles in year two are $5,300, in year three $3,150, and in each succeeding year $1,875.
For details relating to your 2012 business vehicle purchases and depriciation, contact our office at (497) 9761 and speak to our Tax Advisors.
Posted by Jody Grunden on Tue, May 15, 2012 @ 06:00 AM
It may seem like a no-brainer – cut expenses to make more money – but many small changes can result in significant savings.
It looks like the economy may finally be looking up. Still, this is no time to loosen the purse strings in terms of your business expenses. Rather, why not re-double your efforts to cut costs and boost your profitability?
Excessive expenses cause debt, which in itself can be very costly. So any money-saving actions you take will be doubly rewarding.
More Effective Money Management
To cut expenses significantly, poke into every corner of your company's finances. Inventory is a good place to start. If you sell multiple units of the same item and reorder regularly, you should be using QuickBooks' inventory-tracking tools. Go to Edit | Preferences | Items & Inventory | Company Preferences.
Figure 1; Make sure that these settings are correct. If you need advanced features like FIFO costing, serial number and lot-tracking or inventory management at multiple locations, contact us about upgrading to Enterprise Solutions.
You should be stocking your inventory to match the pace of sales. You don't want to be caught short, nor do you want to be sitting on too much and tying up money unnecessarily. QuickBooks can help, but you'll need to calculate the sweet spot for each item. Several built-in reports can help, including:
Inventory Valuation Summary. Displays the current asset and retail value of each item and inventory as a whole
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Inventory Valuation Detail. Shows how individual transactions have affected the value of your inventory
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Inventory Stock Status By Item. Helps you set up smart reordering procedures
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Open Purchase Orders. Outlines each purchase order and its expected delivery date
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Figure 2: To maintain profitable inventory levels and minimize expenses, you'll need to study QuickBooks' related reports regularly. When you're making buying decisions, consider factors like reorder turnaround time and seasonal sales upticks.
Ratio reports, like profit over sales, can also be very telling. QuickBooks does not supply these, but we can help you create them in Excel.
Using Available Tools
The efforts you make toward reducing expenses in other ways can result in more savings than you might think. Here are some actions you can take that will accelerate your cash flow:
Use QuickBooks' budgeting tools. This doesn't need to be as onerous as you might expect – you can start by pulling in your real data from the previous year as a base. Build in line items for ongoing accounting support like QuickBooks maintenance. Click on Company | Planning & Budgeting | Set Up Budgets.
Figure 3: Selecting this option simplifies your task.
Minimize your April 15 obligation with year-round tax planning. Work with us throughout the year on the next year's taxes to, for example, make smarter quarterly payments, and we'll help you reduce your tax bill by making better decisions every day.
Get discounts by paying invoices early. Set up a custom field in vendor records to track this.
Figure 4: Get to know which vendors offer early discounts – and take advantage of them.
Analyze the cost-effectiveness of your transportation. Can you replace some in-person sales calls with web-based communication? Make sure that your delivery routes and sales call paths are efficient.
Change product/service prices to build in your own cost increases. Do it across the board, in small increments. It may not even be that noticeable to customers.
Talk to us about establishing a line of credit. We'll help you determine if this is a viable option for emergencies. It's cheaper than using credit cards.
Cross-train employees. Have employees train each other on their tasks where it makes sense. You can avoid costly temp help and relieve overworked departments.
Don't try to change everything at once. Establishing these new procedures will require some extra work. And you may not notice a reduction in expenses immediately. But over time, you will see a positive change – one that will give you extra dollars and hours to invest in making your company flourish.
If your are interested in being more profitable or need a Quickbooks consultation, contact our office at (866) 497-9761 . Although we are located in Fort Wayne, Indiana, we can work with you virtually anywhere in the United States.
Posted by Adam Hale on Mon, May 14, 2012 @ 06:00 AM
Once you have filed your 2011 tax return, you may still have a few tax questions. The IRS provides these answers to commonly asked questions.
* How can I check the status of my refund?
You can go online to check on your refund. Go to www.irs.gov and click on "where's my refund?" Or call 1-800-829-4477 for automated refund information available 24 hours a day, seven days a week.
* What records should I keep?
Keep receipts, canceled checks, or other substantiation for any deductions or credits you claimed. Also keep records that verify other items on your tax return (W-2s, 1099s, etc.). Keep a copy of the tax return, along with the supporting records, for seven years.
* What if I discover that I made a mistake on my return?
If you discover that you failed to report some income or claim a deduction or credit to which you are entitled, you can correct the error by filing an amended tax return using Form 1040X.
* What if my address changes after I file?
If you move or have an address change after filing your return, send Form 8822 "Change of Address" to the IRS . You should also notify the Postal Service of your new address so that you'll receive any refund you're due or notices sent by the IRS.
If you find that you still have questions about your tax return, contact us at (260) 497-9761 and speak to our Virtual CFO.
Posted by Jody Grunden on Fri, May 11, 2012 @ 06:00 AM
As you all know, this Sunday, May 13th, is Mother’s Day. The Staff at Summit CPA , would like to take the time to wish all the Moms out there, “Happy Mother’s Day”.
A little “Mother’s Day” History: 
The first attempts to establish a "Mother's Day" in the U.S. began in 1868 when Ann Jarvis , created a committee to establish a "Mother's Friendship Day". The main purpose was "to reunite families that had been divided during the Civil War. These meetings were mostly 
mothers whose sons had fought or died on opposite sides of the American Civil War.
Mother’s day was officially declared a holiday by the state of West Virginia until 1910, with the rest of the states quickly following their lead.
The US Congress passes a law designating the second Sunday in May as Mother’s Day on May 8, 1914. On May 9, 1914, President Woodrow Wilson issued a proclamation declaring the first national Mother’s Day, as a day for American citizens to show the flag in honor of those mothers whose sons had died in the war. In 1934, U.S. President Franklin D. Roosevelt approved a stamp commemorating the holiday.
Today, Mother's Day is one of the most commercially successful U.S. holidays. It has become the most popular day of the year to dine out at a restaurant. Mother’s Day also 
generates a 
significant portion of the U.S. jewelry industry's annual revenue. Americans spend approximately $2.6 billion on flowers, $1.53 billion on pampering gifts—like spa treatments—and another $68 million on greeting cards.
Commercialization has not only ensured that the holiday has continued, it is very profitable for many businesses too. Don't forget to keep those reciepts in a good place for insurance purposes and of course there may be a gift tax deduction too.
Just remember, aknowledgement of what goes into being a good Mom is what really goes a long way. Take the time to spend some time with the Mom's in your life. Let's face it, without our Mothers, we wouldn’t be here! Have a Great Weekend!
For all of your financial needs Contact us at (260) 497-9761.
Posted by Adam Hale on Thu, May 10, 2012 @ 06:00 AM
Do you use a third party service for your company payroll? It’s important to use a trustworthy company to make sure your tax payments are deposited on time. If your business uses a third-party service provider to handle payroll tax duties, we have three tips to share:
1. Remember that you, the employer, are ultimately the responsible party for the deposit and 
payment of federal tax liabilities. You may transfer tax payments to the service provider to make the deposits, but you bear the final responsibility for payment.
If the third party fails to make the tax payments, the IRS will look to you for the taxes, plus any penalties and interest due.
2. The IRS will use the address of record for any correspondence related to your account. The IRS strongly suggests you do not change the address of record to that of the payroll service provider. Using your business address will enable you to stay informed of tax matters relating to your business.
3. Choose a payroll service provider that uses the Electronic Federal Tax Payment System (EFTPS). You can register with the EFTPS system to get your own ID number to verify payments.
If you are interested in doing business with our outsourced CFO contact our office at (260) 497-9761 and we will be happy to set up a consultation to assess your business needs.
Posted by Jody Grunden on Wed, May 09, 2012 @ 06:00 AM
Tax-exempt organizations are required to file annual reports with the IRS. Those with gross receipts below $50,000 can file an E-postcard rather than a longer version of Form 990.
The deadline for nonprofit filings is the 15th day of the fifth month after their year-end. For calendar-year organizations, the filing deadline for 2011 reports is May 15, 2012.
To make things a little easier, the IRS is now offering an on-line search tool to check exempt organization federal tax status. The search tool will allow users to select an exempt organization and check certain information about its federal tax status and filings. This search tool also consolidates three former search sites into one, providing expanded search capability and a more efficient way to search for organizations that:
*Are eligible to receive tax-deductible charitable contributions.
*Have had their tax-exempt status automatically revoked because they have not filed Form 990 series returns or notices annually as required for three consecutive years.
*Have filed a Form 990-N annual electronic notice (e-Postcard).
Exempt Organizations Select Check
This data is generally updated on the third Monday of each month for automatically revoked organizations and organizations eligible to receive deductible contributions, and weekly for Form 990-N (e-Postcard) filings. In addition to searching for a particular organization, users may download a complete list of each of the three types of organizations through Exempt Organizations Select Check.
If you need help filing for your tax-exempt organization contact our office at (260) 497-9761 and speak with one of our tax advisors.
Posted by Adam Hale on Tue, May 08, 2012 @ 06:00 AM
If you missed the April 17 tax filing deadline for your 2011 return, the IRS has some advice for you. There are three things that you should know that will help.
First; don't panic. But do file your return as soon as possible. If you owe money on the return, the penalty for late filing and interest on the amount you owe will continue to grow until you file. E-filing is the fastest way to file, and this option is available on 2011 tax returns through October 15, 2012.
Second; pay as much of the tax you owe as you can. If you cannot pay the full amount of 
tax due with your return, you can ask to make monthly installment payments to the IRS. File Form 9465, "Installment Agreement Request," or apply online using the IRS Online Payment Agreement Application available at the IRS website (www.irs.gov).
Third; any additional delay in filing will just increase any penalty and interest charges. These include a late filing penalty, a late payment penalty, and interest on taxes not paid by April 17.
If you haven't filed your return, the problem will not go away by itself. File your return, and if you can't pay the tax owed, inform the IRS of your current financial situation.
For more information or filing assistance, contact our office at (260) 497-9761 and speak to one of our tax accountants.
Posted by Rick Skinner on Mon, May 07, 2012 @ 06:00 AM
Expand Your Investment Horizon With Foreign Bonds
Why would you invest in bonds issued in a country half way around the globe when there are so many issued right here in the United States? Diversification may be one good reason. Holding foreign bonds or shares of foreign bond mutual funds, in addition to U.S. investments, may help you reduce risk in your fixed-income portfolio over time.
Foreign Bond Basics
Like domestic bonds, foreign bonds represent a financial obligation of a government body or
corporation. The issuer promises to pay the buyer a specific amount, through interest payments and/or a lump-sum payment at maturity. In exchange, the buyer loans the issuer the principal amount for its use. In other words, a bond is an "IOU."
There are two options for investing in foreign bonds -- you can purchase individual issues or shares of mutual funds that invest in foreign bonds. Emerging-market bond funds invest in bonds from developing countries, which may involve greater risk and greater return potential than bonds from developed countries. International bond funds invest predominantly in the debt of countries outside the United States. Global bond funds invest in the debt of developed nations, but also invest in U.S. bonds. Other bond funds invest only in specific regions of the world or in select countries.
Before You Go Global
Perhaps the key factor to be aware of when considering foreign bonds is the role currency rates play. Changes in the value of a foreign country's currency can directly impact the value of bonds issued in that country. For example, if the value of a foreign country's currency rises relative to the U.S. dollar, the earnings from bonds issued there will buy more dollars when received by the investor.
In addition to currency rates, the credit quality of a nation's bonds should not be overlooked. Credit quality in developing nations, for instance, may be affected by their more volatile political or economic atmospheres. Also, such countries may not adhere to the same standards of accounting and oversight required in the United States. Foreign bonds can be complex instruments and may entail greater volatility than U.S. bonds. Before you decide if you're ready to venture into foreign lands for fixed-income investments, consult a qualified financial professional.
NOTE: Investors in international securities are sometimes subject to somewhat higher taxation and higher currency risk, as well as less liquidity, compared with investors in domestic securities.
For further information visit Wealth Management & Investment Services or call us at (260) 497-9761.
