Accounting: A Profitable Career Choice

Accounting Today recently revealed that accounting and related careers are some of the most profitable jobs of today.

Accounting, along with tax preparation, payroll services,and bookkeeping reportedly had a net profit margin of around 19.80% last year, beating out the legal services industry, the oil and gas extraction industry, and the commercial and industrial machinery industry.  

That’s pretty impressive, but you may be wondering what it has to do with you. Well, when you really think about it, a lot. Truly skilled people tend to go into fields where they can make good money and be financially secure. And, when those people are financially secure, they tend to work harder and do better at their jobs.

Thus, you can look at the profitability of accounting as proof that there are many good accountants out there. In fact, you don’t have to look far to find a great accounting firm in Naperville and the surrounding areas.

With so many skilled accountants working in the industry today and many more looking to join the workforce, there’s absolutely no excuse not to have an accountant working for you.

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New Rule will Affect Businesses

A new rule was recently passed that will change the way companies record revenue. The rule, passed by the U.S. and global rule makers, won’t go into effect until 2017, but many business owners are already gearing up for the changes it will bring about.

Under the rule, many businesses will need to change the rate at which they book different parts of their revenue. The total revenue will likely stay the same, but performance results could fluctuate due to the new timing that will be in effect.  

While many businesses have mixed feelings about the new rule, experts feel that it will help to prevent accounting fraud, which is often committed by speeding up or putting off reporting of revenue. They also believe it will make revenue reports more true to the rate at which companies are providing the goods and/or services that generate that revenue.

Is your business prepared for this change? If you need help getting ready or simply understanding how the change might affect you, talk with your business CPA. If you don’t have a CPA, then find one at Susan S. Lewis, Ltd. of Naperville.

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Accountants are more than just Tax Time Assistants

When most people think of accountants, they think of people who help with tax return preparation. While accountants certainly do help with tax returns, it’s important to understand that they actually do a whole lot more as well. Did you know, for example, that many accountants can act as financial advisors of sorts?

If, for example, you’re having a hard time making ends meet, despite bringing in (at least on paper) more than enough, you may need a little help with budgeting and with determining where your money is going vs where it should be going. In that situation, an accountant could help you to set and stick to a smart, workable budget for your lifestyle and goals.  

An accountant could also help you to invest money in smart places, to keep better track of your financial records, and more. Good accountants will even recommend you to other financial professionals as needed. In other words, accountants are wonderful resources, not just for tax return preparation, but for your financial needs as a whole. For a great accountant in Naperville, contact Susan S. Lewis, Ltd.

Don't Miss Out on Deductions

One of the most common complaints amongst recent taxpayers is that they missed out on deductions. Deductions can help any taxpayer to save lots of money on his or her taxes, but unfortunately, finding all of the deductions for which a filer is eligible isn’t as easy as it seems.

Sometimes, for example, new tax laws or amendments to laws can create deduction opportunities that didn’t exist before. And, unfortunately, those who haven’t “heard the news” often miss out.  Others might rely on tax software to help them find deductions, but even the best software will eventually reach a point where it’s out of date. Furthermore, even quality software can often miss the mark when it comes to scoping out all

possible deductions available.

Missing out can become a thing of the past when people work with a Naperville accounting firm, however. An accountant is more reliable than software and can handle each person’s deductions on a case by case basis. Furthermore, it’s an accountant’s job to be up to date on the latest changes to tax laws and the creation of new laws.

To make sure you get all the deductions you’ve got coming, trust Susan S. Lewis, Ltd. to be your Naperville accounting firm. You won’t regret it!

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Avoiding an Audit

Ah, the dreaded tax audit. There are two types of people in the world as it relates to this sensitive subject. 

First, you’ve got your people who will have to go through the horror and worry of an audit. Second, you’ve got your people who never will. Everyone wants to be in that second group, but getting there isn’t easy. However, there are a few things you can do to greatly increase your chances of being in the “good group.”

For starters, report all of your income, every last bit. Cutting corners is a surefire way to end up in deep trouble. Another thing you’ll always want to do is to ask questions as they arise! Never just make a “best guess” and hope you did the right thing. Know for sure; taxes are not something you should take chances with, since incorrect filing can cause you to incur some serious penalties and perhaps face a tax audit.

The absolute best way to avoid an audit and to avoid error is to let someone else handle your taxes—someone who knows the tax business inside and out. You can find that person at Susan S. Lewis Ltd. of Naperville.

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Tax Help for Small Business Owners and Self Employed

Do you run your own small business? Or maybe you’re just self-employed and do a lot of contract work to support yourself. Whatever the case may be, you’re probably a very busy person. Whether you’re dealing with the hassles of Naperville payroll processing for your employees or just struggling to get work done on a daily basis, the last thing you need is to have a problem with your taxes.

Unfortunately, there are a lot of things that you, as a small business owner or self-employed individual, will need to know in order to avoid tax time mistakes. For starters, did you know that, if you made any kind of

profit, you’re probably going to have to pay a self-employment tax? Not doing so could land you in serious hot water.

There are so many little things you need to know in order to file your taxes correctly, and doing so just isn’t easy. That’s why it’s wise to let a qualified financial expert assist you. Hopefully, you already have a professional handling your payroll processing and your other financial matters, so why not also get someone to help you with your taxes? You can find that “someone” at Susan S. Lewis, Ltd., one of the most qualified and professional accounting firms in Naperville.

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Tax Time Mistakes

Tax time, have you met the deadline? If you are one of the many procrastinators, it’s crucial that you don’t make a mistake. Unfortunately, if you haven’t been doing the proper bookkeeping, you’re at a high risk of making a mistake, especially if you’re feeling rushed and stressed about the tax filing process.

Mickey Mouse's Social Security Number (Photo credit: Tom Simpson)

So, what’s the biggest tax mistake people make? Surprisingly, it’s often the little things that go wrong. One of the main mistakes people make is listing their social security numbers incorrectly or not listing them at all. The IRS reports getting thousands of tax returns without proper social security numbers, a mistake that can lead to late fees and interest charges.

To avoid little (and big) mistakes on your tax return, don’t take on the tough task of bookkeeping on your own. Let the friendly, professional accountants at Susan S. Lewis Ltd., located in Naperville, handle the tough work for you!

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How Homeowners Save Money on Taxes

Do you own a home? If so, know that you can “catch a break” in a variety of ways when it comes to your taxes. The best way to learn about all of the different tax breaks available to you and to take full advantage of them is to seek the help of a knowledgeable accounting firm in your area.

When you visit that accounting firm, you will likely learn about several different types of tax breaks, including the much-loved mortgage interest deduction. You can claim this deduction on up to two homes as long as

your mortgage loan is not for more than a million dollars. All you have to do is itemize your return, and you’re good to go!

While the mortgage interest deduction is a popular way for homeowners to save money, it’s certainly not the only way for them to do so! To learn about other ways in which you can save big, contact Susan S. Lewis, Ltd., an accounting firm in Naperville, today.

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List Your Wages as Wages

No one likes paying taxes, but paying taxes is just a part of life, plain and simple. Unfortunately, some people try to get out of this “fact of life” by taking the wages that they have received and then claiming that those wages aren’t wages at all. These individuals typically claim that their wages are actually reimbursements for a loan or that the company made a mistake in the way it listed the money received. 

Whatever the case may be, lying about wages or even underplaying the amount of wages received is never smart and will never result in a good outcome. Know that it is possible to be honest and to file your taxes legally and to still benefit. All you have to do is find the right accountant in Naperville, such as the financial pros at Susan S. Lewis, Ltd.

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Where is Your Money Being Held?

These days, taxpayers have access to a wide range of great investment opportunities. Unfortunately, however, not all of these opportunities are what they appear to be. In recent years, more and more people have been suckered into what they believe to be legitimate and very profitable investments or business deals, only to find out later that the money they’ve invested and any potential profits are being stowed away in foreign accounts that they cannot access without engaging in illegal activity.  

While there are some legitimate transactions in which money is held in a foreign account, it’s important to understand that there are strict rules and requirements when it comes to having and reporting on those accountants. If you’re involved in some kind of a scam or if you simply cannot justify your use of the foreign account, you could find yourself in trouble.

Don’t wind up in a situation such as this one; run every potential investment opportunity by a tax advisor and see if the opportunity is really as good as it appears to be. Furthermore, always know the rules and regulations surrounding any financial decision you make; your tax advisor can fill you in on what’s required when certain decisions are made. Find your advisor and start making smart decisions today by contacting Susan S. Lewis, Ltd. of Naperville.

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Will the Alternative Minimum Tax Affect You?

Some people are really good at dodging high taxes. These people, who often earn higher than average salaries, can sometimes get away with paying next to nothing in taxes due to smart deductions made by their accountants. In order to prevent wealthy earners from not paying any taxes, the alternative minimum tax was created. Individuals who fall within certain income brackets and who meet other qualifications must pay the alternative minimum tax under certain circumstances.

In recent years, however, more and more moderate earners, not just high earners, have been forced to pay the Alternative Minimum Tax due to the fact that the tax and its qualifications were not adjusted to reflect inflation. All of that changed last year, however, due to recent “patch” that stops middle earners form having to pay the tax.

You can find out if, based on your income, you are required to pay the alternative minimum tax this year. The best way to do so is to contact qualified accountants in Naperville, such as those at Susan S. Lewis, Ltd.

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Same Sex Couples and Taxation

Recent changes in tax law are affecting all kinds of people from all walks of life. Surprisingly, one group of people that they are affecting is same-sex couples. While same-sex couples may not be able to get married in every state in the United States just yet, married same-sex couples are now allowed to file their income taxes jointly or as “married filing separately,” even if they live somewhere where the marriage is not recognized by the state. 

While many people regard this recent change as a step in the right direction for homosexual couples, the new law could potentially result in increased taxes for same-sex couples. Couples who will likely face the highest increase in taxes are couples in which both spouses are employed.

Whether you are affected by this new tax law or any other, you should know that there is available tax help in Naperville. You can get the tax help you need, regardless of your situation, by contacting Susan S. Lewis, Ltd. of Naperville.

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How the Affordable Care Act Affects Taxpayers

Barack Obama signing the Patient Protection and Affordable Care Act at the White House (Photo credit: Wikipedia)

Many view the recently passed Affordable Care Act as a blessing while others view it as a curse. Regardless of how you feel about the tax, you do need to understand if it will affect your paycheck and/or investments, and, if so, how. While all kinds of people could potentially be affected by the Act, it will mainly impact those who fall within the top two tax brackets.

Individuals who earn above the current threshold amount will be subject to a 0.9% increase in funds taken from their paychecks as a result of the new tax. Likewise, those earning above the threshold amount will lose 3.8% to Net Investment Income taxes.  And, even if you aren’t currently subject to an increase in taxes, you could be if your earnings increase; there is no evidence that threshold amounts will increase due to inflation.

If you are going to be affected by this new tax, a Naperville accountant can explain to you how you will be affected and what you can do to minimize your tax losses. You can find a helpful, knowledgeable Naperville accountant at Susan S. Lewis, Ltd. 

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