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Get Ready for Tax Season: Your Complete Preparation Checklist

For CPAs, EAs, and accounting firms, tax season is the most demanding time of the year. With numerous deadlines, evolving tax laws, and high client expectations, preparation is key to ensuring smooth operations. By staying organized and leveraging the right tools, firms can increase efficiency, reduce stress, and enhance client satisfaction.
At Unison Globus, we specialize in providing outsourced tax preparation, bookkeeping, and CPA support services to help firms navigate the complexities of tax season with ease. Our CPA services are designed to assist accounting firms in managing high-volume tax filings, ensuring compliance, and optimizing operational efficiency.
This guide provides a step-by-step tax preparation checklist, covering key deadlines, essential document organization, technology integration, tax law updates, client communication strategies, and workload management tips. Whether you’re an independent CPA or part of a growing accounting firm, this checklist will help you stay ahead during tax season.

Understanding Key Deadlines

The accounting industry has witnessed a seismic transformation in recent years, shaped by rapid technological advancements, evolving client expectations, and an increased emphasis on advisory services. These changes present both challenges and opportunities for CPA firms to redefine their roles and enhance their value proposition.

01. Examples of Non-Accounting Talent

Missing tax deadlines can result in consequences and unnecessary stress. Here are some critical dates to remember:
  • January 31, 2025 – Deadline for employers to issue W-2s and 1099s to employees and independent contractors.
  • March 15, 2025 – Filing deadline for S corporations (Form 1120-S) and partnerships (Form 1065).
  • Marketing Professionals: Experts in branding, client outreach, and digital marketing to help firms grow their client base.
  • April 15, 2025 – Individual tax returns (Form 1040), C corporation tax returns (Form 1120), and first quarter estimated tax payments are due.
  • June 15, 2025 – Second quarter estimated tax payments due.
  • September 15, 2025 – Third quarter estimated tax payments and extended deadlines for S corporations and partnerships.
  • October 15, 2025 – Final deadline for extended individual tax returns (Form 1040).
Read Also: Tax Planning for Individuals: The Proven Guide for 2025

02. State Tax Deadlines

Each state has its own tax deadlines and requirements. CPAs and accounting firms should verify:
  • State-specific tax filing dates
  • Quarterly estimated tax deadlines
  • Unique state regulations affecting deductions, credits, and compliance
By maintaining an updated state tax deadline calendar, firms can proactively manage client filings and avoid last-minute complications.

Organizing Client Information

01. Gathering Necessary Documents

Clients should provide all relevant financial documents in a timely manner. A tax document checklist should include:
  • Income-related documents: W-2s, 1099s, K-1s, and investment statements
  • Expense records: Mortgage interest (Form 1098), business expense receipts, and medical bills
  • Tax compliance forms: Prior-year tax returns, state-specific tax documents, and IRS correspondence
Tip: Encourage clients to use secure portals for document submission to ensure data security and streamline the collection process.

02. Implementing a Document Management System

A digital document management system simplifies tax season preparation by:
  • Reducing paper clutter and improving accessibility
  • Enhancing data security with encrypted storage
  • Facilitating quick retrieval of client records

03. Recommended tools:

  • Canopy – Secure cloud-based tax document storage
  • Drake Documents – Integrated solution for CPAs
  • Smart Vault – Easy file sharing for accountants

Investing in the best document management software for accountants ensures seamless client data organization.

Section 3: Leveraging Technology

01. Tax Preparation Software

  • Choosing the right tax software is crucial for accuracy and efficiency. Best tax preparation software for 2025 should offer:
  • Automated tax calculations for reduced errors
  • Seamless e-filing for federal and state tax returns
  • Client portals for secure document exchange
Top picks for CPAs:
  • UltraTax CS – Comprehensive tax compliance
  • Lacerte – Best for complex tax returns
  • Drake Tax – Affordable and user-friendly

02. Automation Tools for Efficiency

Using tax automation tools can help accounting firms streamline repetitive tasks, including:

  • Automated data entry – Reduces manual errors
  • AI-powered tax review – Identifies compliance issues
  • Automated client reminders – Keeps clients on track Facilitating quick retrieval of client records
Recommended tax automation tools:
  • TaxDome – CRM & workflow automation
  • Xero Tax – Cloud-based tax automation
  • Karbon – AI-driven accounting workflow
By integrating tax software for CPAs and automation tools, firms can save time, enhance accuracy, and improve client service.
Read Also: Assurance in Numbers: Dissecting Internal and External Audits During Tax Season

Staying Informed of Tax Law Changes

Recruiting the right talent requires a thoughtful strategy:

01. Federal Tax Law Updates for 2025

Recent IRS tax law changes impact deductions, credits, and filing requirements. Key updates include:

  • Changes to standard deductions and tax brackets
  • Modifications to business tax credits
  • New IRS compliance requirements
  • Stay informed: Subscribe to IRS updates and leverage tax research platforms like Checkpoint or Bloomberg Tax.

02. State Tax Law Changes

Tax regulations vary by state, with new laws affecting:

  • State-specific deductions and credits
  • Compliance rules for remote workers
  • Updates on corporate tax rates
Tip: Use state tax tracking tools like Avalara or CCH Answer Connect to stay up to date.

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Enhancing Client Communication

01. Effective Communication Strategies

Clear and proactive communication helps manage client expectations. Best practices include:
  • Sending tax reminders via email or text
  • Hosting webinars on tax law changes
  • Providing FAQs to address common tax concerns
Recommended tools for client communication:
  • Practice Ignition – Automates client engagement
  • Slack or Microsoft Teams – Improves internal and client collaboration
Client Education Resources Educating clients about tax season improves compliance and trust. Provide:
  • Downloadable tax preparation checklists
  • Informative tax planning newsletters
  • One-on-one tax season consultations
Tip: Offer a “Subscribe for Tax Tips” option to keep clients engaged year-round.

Managing Workload and Stress

01. Time Management Techniques

To avoid burnout, CPAs and accounting firms should:
  • Prioritize high-value tasks and batch similar work
  • Set realistic client expectations
  • Take breaks to maintain focus

02. Delegation and Outsourcing

Outsourcing non-core tasks can help firms stay efficient. Consider:
  • Outsourcing tax preparation to reliable third-party providers
  • Hiring seasonal staff for administrative work
  • Using virtual assistants for appointment scheduling

Why outsource?

  • Reduces workload during peak season
  • Improves turnaround time for clients
  • Allow firms to focus on high-level advisory services
Read Also: Taming Tax Season: Solutions for CPA Firms Facing Talent Shortages

Conclusion

Preparing for tax season requires a proactive approach. By staying ahead of deadlines, implementing efficient document management, leveraging tax software, keeping up with tax law changes, and maintaining strong client communication, CPAs and accounting firms can streamline their workflow and enhance client satisfaction.
With the right strategies, tax season doesn’t have to be stressful, let Unison Globus assist you optimize your tax preparation process!s

Master TAX Season - Your Ultimate Preparation Checklist Get Ready for Tax Season

Categories
Tax Preparation

Tax Planning for Individuals: The Proven Guide for 2025

As another tax year approaches, it’s time for individuals to prepare by reviewing tax laws, adjusting strategies, and ensuring compliance with new legislation. Effective tax planning is essential to minimize liabilities and maximize savings. For CPAs, EAs, and accounting firms supporting individuals through these complexities, having a comprehensive guide can be invaluable. This article provides updated insights to help individuals, and their tax advisors optimize tax planning strategies for the coming year.

Understanding Tax Planning 01

Tax planning involves analyzing an individual’s financial situation to minimize tax liabilities while adhering to legal obligations. This process includes taking advantage of deductions, credits, and strategic timing of income and expenses. Implementing these strategies early can open investment opportunities, reduce risks, and promote long-term financial stability.

Standard Deduction vs. Itemized Deductions 02

A critical decision in tax planning is whether to take the standard deduction or itemize. Here’s what’s new for the upcoming tax year:

Standard Deduction:

The IRS adjusts the standard deduction annually to reflect inflation. For 2024, the deduction rates are as follows:

  • Single: $13,850
  • Married, Joint Filing: $27,700
  • Married, Separate Filing: $13,850
  • Head of Household: $20,800

Standard deductions are simpler but may not offer the maximum tax benefit for all taxpayers. Itemizing can be advantageous if eligible deductions exceed the standard deduction amount. CPAs should evaluate each client's circumstances to decide the best approach.

Read Also: Maximizing Deductions and Credits: A Comprehensive Guide to Tax Savings

Key Tax Planning Strategies 03

To make tax planning more effective, consider the following strategies tailored for individuals:

01. Maximize Retirement Contributions

Increasing contributions to retirement accounts can reduce taxable income, especially for those with higher incomes. Here’s how to make the most of retirement contributions:

  • 401(k) Plans: Individuals under 50 can contribute up to $22,500 in 2024. Those over 50 can make an additional $7,500 in catch-up contributions.
  • IRA Contributions: Individuals can contribute up to $6,500 ($7,500 if over 50) to a traditional IRA, which may be tax-deductible depending on income level and participation in employer-sponsored plans.
  • Roth IRA Conversions: For those expecting higher tax rates in the future, converting a traditional IRA to a Roth IRA may offer significant tax savings by paying taxes now at potentially lower rates.

02. Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs)

Tax-advantaged health accounts offer another way to reduce taxable income while covering medical expenses. For 2024, HSA contribution limits are:

  • Individual: $4,150
  • Family: $8,300
  • Catch-Up (55 or older): Additional $1,000

Funds in HSAs grow tax-free and roll over each year, unlike FSAs, which have a use-it-or-lose-it policy. Encourage clients to maximize HSA contributions if they have a high-deductible health plan and monitor FSA balances closely to avoid forfeiture.

03. Charitable Contributions

Charitable giving offers tax benefits, especially for individuals who itemize. As of 2024, taxpayers can deduct cash donations up to 60% of their adjusted gross income (AGI). Consider the following to maximize charitable deductions:

  • Donor-Advised Funds (DAFs): Setting up a DAF allows individuals to make a large, tax-deductible donation in one year while distributing funds to charities over time.
  • Qualified Charitable Distributions (QCDs): Individuals over 70½ can make direct transfers from IRAs to charities, reducing taxable income without affecting itemized deductions.

04. Capital Gains and Losses Management

Individuals can reduce taxable income by strategically managing investment gains and losses. Strategies include:

  • Harvesting Losses: Selling investments at a loss can offset capital gains, reducing overall tax liability.
  • Deferring Gains: Postponing the sale of high-performing assets until the next tax year can help individuals manage income and potentially fall into a lower tax bracket.
  • 1031 Exchanges: For real estate investors, deferring capital gains through a 1031 exchange allows reinvestment in like-kind property without immediate tax consequences.

05. Timing Income and Expenses

Managing the timing of income and expenses allows individuals to control their taxable income more effectively. Here are some strategies:

  • Bonus Deferral: For those in high-income brackets, deferring end-of-year bonuses until January can reduce the current year’s tax liability.
  • Medical and Charitable Deductions: By bunching deductible expenses like medical bills and charitable contributions into a single tax year, individuals may benefit more from itemizing.

06. Consider the Net Investment Income Tax (NIIT)

For individuals with significant investment income, the NIIT applies an additional 3.8% tax on net investment income if their AGI exceeds certain thresholds ($200,000 for single filers, $250,000 for joint filers). Here’s how to reduce NIIT:

  • Adjusting AGI: Maximizing retirement contributions and adjusting investment timing can help manage AGI levels.
  • Qualified Dividends and Long-Term Gains: Favor investments that yield qualified dividends or long-term gains, as these are generally taxed at a lower rate.

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Documentation and Record-Keeping Essentials 04

Proper documentation is critical in case of an IRS audit, especially with increased scrutiny on high earners. The IRS typically recommends keeping records for at least three years, but certain situations require longer retention:
  • Three Years: Standard retention for income tax returns.
  • Six Years: For individuals who underreport income by more than 25%.
  • Seven Years: For losses on “worthless” securities or bad debt deductions.

Encourage clients to organize records under categories such as income, deductions, homeownership, investments, and retirement accounts to simplify tax filing.

Why Early Planning Matters 05

Starting tax planning early helps individuals avoid last-minute stress and maximizes the benefits of their tax strategy. It also ensures they can adjust for legislative changes, especially if new laws impact deductions, credits, or tax rates. Late planning can lead to missed opportunities and potential penalties, so CPA firms should emphasize proactive planning with clients.
Read Also: The Ultimate Tax Preparation Checklist

Consider Professional Assistance

Tax planning for individuals can be intricate and time-consuming. Professional guidance from a CPA or outsourced accounting team ensures individuals make the most of available deductions, comply with tax laws, and avoid common mistakes.
Unison Globus provides expert tax preparation and planning services for individuals and firms, combining knowledge and experience to simplify the tax process. Our team is dedicated to helping individuals optimize their tax positions, manage year-end filings, and keep up with legislative changes.

Ready to simplify your tax planning?

Connect with Unison Globus for professional support shaped to your unique needs.
Categories
Tax Preparation

Top Reasons Why Hiring a Seasonal Tax Preparer Boosts Productivity for CPA Firms

As the tax season approaches, CPA firms brace themselves for a period marked by increased workloads, tight deadlines, and client demands for accuracy and timely filings. For many firms, the solution to maintaining quality and efficiency during this peak time lies in hiring seasonal tax preparers. Leveraging skilled professionals on a temporary basis has become an effective strategy for CPA firms looking to balance workloads, manage resources, and provide optimal service.

This guide explores the key benefits of hiring seasonal tax preparers and offers insights on how this approach can help CPA firms remain competitive and productive in the busy tax season.

Understanding Your Motivation and Purpose

Seasonal tax preparers offer CPA firms the flexibility to adapt to fluctuating demand. During tax season, firms can experience a surge in workload, requiring extra hands to manage tasks such as data entry, tax filing, and reviewing client documents. Seasonal preparers provide support without long-term commitment, allowing firms to maintain a lean workforce during off-peak months and scale up when needed.

By bringing in experienced seasonal professionals, firms can meet client demands efficiently without overburdening their core team. This strategy also enhances job satisfaction, as full-time staff are less likely to face burnout or excessive overtime.

Boosting Productivity Through Specialized Expertise

Seasonal tax preparers are often highly skilled professionals with specialized knowledge of tax regulations, filing procedures, and compliance requirements. They come prepared to jump into the tax season’s high-volume tasks with minimal training, helping firms manage complex returns and deliver prompt, high-quality service.

Additionally, many seasonal tax preparers stay up-to-date with the latest tax laws, which can help firms ensure compliance and avoid costly errors. By leveraging their expertise, CPA firms can enhance productivity and minimize the risk of errors or missed deadlines.

Cost-Efficiency and Resource Optimization

Hiring full-time employees to handle seasonal workloads can lead to underutilized resources and increased costs once tax season ends. With seasonal tax preparers, firms pay only for the time and expertise needed during peak periods. This approach reduces expenses associated with hiring, onboarding, and providing benefits to full-time staff.

Moreover, temporary hires allow firms to allocate their budget towards additional resources or technology, optimizing overall operations and improving service quality. For CPA firms seeking to reduce operational costs without sacrificing quality, seasonal tax preparers are a cost-effective solution.
Read Also: Step by Step Process for Outsourcing Tax Preparation Services to Unison Globus

Minimizing Burnout Among Full-Time Staff

Tax season is synonymous with long hours, tight deadlines, and high expectations, often leading to burnout among full-time staff. Overworking employees can have long-term consequences, such as decreased morale, reduced productivity, and increased turnover. By hiring seasonal tax preparers, CPA firms can distribute the workload more evenly, alleviating pressure on their core team and promoting a healthier work-life balance.

Reducing stress among full-time employees also enhances team morale, as they can focus on higher-value tasks without feeling overwhelmed by volume-driven responsibilities. Ultimately, a balanced workforce during tax season leads to better retention rates and a more positive work environment.

Enhancing Client Satisfaction with Timely Service

CPA firms’ clients depend on accurate and timely tax preparation to avoid penalties, ensure compliance, and maximize tax savings. By hiring seasonal tax preparers, firms can maintain shorter turnaround times, handle larger volumes of work, and meet deadlines with ease. This not only demonstrates reliability but also enhances client trust and satisfaction.

Seasonal tax preparers enable firms to deliver exceptional client service by handling routine tasks and ensuring all filings are completed accurately and on time. For clients, knowing their CPA firm has the resources to manage their taxes, even during peak periods, adds significant value.

Access to Fresh Perspectives and Diverse Skill Sets

Seasonal hires bring a variety of experiences and perspectives from working with different firms, industries, and client profiles. This diversity can be advantageous for CPA firms looking to innovate and improve their processes. Seasonal preparers often have insights on best practices and can offer valuable feedback on workflow efficiency, technology usage, and client management.

This influx of new ideas allows firms to refine their processes, adopt more efficient techniques, and continuously improve their service delivery. In a fast-evolving field like accounting, access to diverse skills and perspectives can provide a competitive edge.

Optimize productivity this tax season with

skilled seasonal tax preparers—partner with Unison Globus today!

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Seamless Integration with Outsourced Accounting Teams

Many CPA firms that already work with outsourced accounting teams find it beneficial to hire seasonal tax preparers to complement their existing outsourcing strategy. Seasonal preparers can easily integrate with outsourced teams, bridging gaps and ensuring smooth workflows during peak periods. This approach enables firms to leverage the advantages of both in-house and outsourced expertise, enhancing overall efficiency and productivity.

Working with both outsourced and seasonal teams allows firms to build a versatile workforce that can adapt to changing client demands and deliver comprehensive tax services year-rounds.

Making the Most of Seasonal Tax Preparers: Key Considerations

To maximize the benefits of hiring seasonal tax preparers, CPA firms should follow a strategic approach:

01. Start Recruiting Early:

Begin the hiring process well before tax season to secure the most qualified candidates. Competition for skilled seasonal preparers is high, so early recruitment ensures your firm has access to top talent.

02. Provide Clear Training and Expectations:

While seasonal tax preparers often come with significant experience, providing a brief orientation ensures alignment with your firm’s processes, technology, and client expectations. Clear communication on roles and responsibilities helps them integrate smoothly into your team.

03. Leverage Technology for Efficient Collaboration:

Ensure seasonal preparers have access to the necessary accounting software and collaborative tools. Cloud-based accounting platforms, for example, allow them to work remotely and securely, facilitating seamless teamwork and data sharing.

04. Create a Positive Work Environment:

Treating seasonal hires as valued team members encourages loyalty, enhances productivity, and may lead to them returning for future tax seasons. Recognizing their contributions fosters a supportive environment that benefits the entire team.

Increase Firm’s Productivity with Seasonal Expertise

Hiring seasonal tax preparers is a strategic decision that allows CPA firms to manage tax season efficiently while maintaining high-quality service. By bringing on temporary experts, firms can optimize costs, prevent employee burnout, and ensure client satisfaction even during peak periods.
In the fast-paced accounting industry, adapting to seasonal demands with flexible and skilled professionals is essential for growth and long-term success. Unison Globus specializes in providing outsourced tax preparation services tailored to CPA firms, empowering your team to navigate tax season with confidence and efficiency.

Ready to enhance your productivity this tax season?

Contact Unison Globus for expert seasonal support that will elevate your practice.
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Tax Preparation

Step by Step Process for Outsourcing Tax Preparation Services to Unison Globus

Outsourcing tax preparation can be a strategic move to enhance efficiency, reduce costs, and focus on core business operations. At Unison Globus, we offer comprehensive outsourcing solutions tailored to CPA and accounting firms’ needs. Here’s a detailed guide to our step-by-step process for outsourcing tax preparation services to Unison Globus.

Pathway to Effective Tax Preparation Outsourcing

01 01. Initial Engagement – Laying the Foundation

Our journey begins with a comprehensive engagement proposal. This document outlines the services, terms, and other vital information, providing a clear understanding of what to expect from our partnership. Our team will then request last year’s paperwork, including signed copies, tax returns, and key documents, ensuring we have all the necessary details to get started.

02 02. Software Assessment – Choosing the Right Billing Solutions

We know that every business has unique needs. That’s why we take the time to assess the most suitable billing software for your operations. Whether you’re using a current system or require a fresh start, we ensure your business processes remain efficient and user-friendly.

03 03. Agreement and Documentation – Finalizing the Partnership

Once you review the terms, we follow up to finalize and sign the agreement. For new entities, we determine incorporation requirements and gather additional documentation to confirm operational status. This step guarantees compliance and sets the stage for a seamless tax preparation experience.

04 04. Data Transfer and Integration – Seamless Transition to Our Systems

If you’re migrating from an existing software, our experts handle the transfer of data into the new system, minimizing operational disruptions. We then select and configure the best-fit accounting and tax software tailored to your business’s needs, setting up essential features like a new chart of accounts.

05 05. Formalizing Contact Information – Ensuring Effective Communication

We collect your contact details and mailing address to formalize and authorize our approach. This step is crucial for maintaining transparency and effective communication throughout our engagement.

06 06. Comprehensive Onboarding – Our Checklist for Success

Client onboarding is a pivotal stage for operational efficiency. To ensure a smooth process, we follow a comprehensive checklist that includes:
  • Planning the transition: Aligning the process with your business goals.
  • System upgrades: Upgrading systems to meet your specific requirements.
  • Data collection: Facilitating a seamless transition by gathering essential information.
  • Secure information transfers: Implementing safe data transfers for peace of mind.
  • Policy development: Establishing policies to guide our engagement effectively.
  • Stakeholder communication: Keeping key players informed and involved.
  • Process implementation: Transitioning operations smoothly without disruption.
  • Legal compliance: Ensuring adherence to regulations at every step.

07 07. Transition Strategy Audit – Reviewing and Refining the Process

To ensure everything is on track, we conduct a thorough audit and analysis of the transition strategy. Our team identifies potential issues and recommends corrective measures to ensure a smooth transition.

08 08. Post-Engagement Support – Ongoing Excellence and Follow-Up

Our commitment to excellence doesn’t end once the transition is complete. We assist with post-engagement reviews, conduct follow-up meetings, and maintain transparency and accountability to ensure your ongoing satisfaction.

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What to Expect from Your Side: Easy and Protected Onboarding

We value our clients’ time and security, making your part in the onboarding process simple yet effective:
Provide Essential Documents Gather and securely share necessary documents, such as previous tax returns and incorporation records.
Collaborate on Software Selection Share preferences regarding billing and accounting software to help us tailor the best solutions for your needs.
Clear CommunicationMaintain open communication to ensure a smooth exchange of information.
Adopt the New Systems Integrate and familiarize yourself with the new accounting systems we put in place, equipping your business for success.
Next Steps: Now that you’re familiar with the onboarding process, let’s explore the flexible engagement models that Unison Globus offers for your tax preparation needs.

Flexible Engagement Models and the Unison Globus Workflow

Step 1: Choose Your Engagement Model – Flexibility to Suit Your Needs

At Unison Globus, we understand that every firm has unique requirements. That’s why we offer two flexible models for outsourcing tax preparation services:

1. Per Return Model

This model is ideal for seasonal support when you're unsure about the fixed number of hours needed. You can outsource a specific number of tax returns as and when you need assistance.

  • Pricing: We charge a fixed base price for the initial hours. If the preparation takes longer, an hourly rate applies for the extra hours.

2. Hire a Tax Preparer

For a more dedicated approach, this model allows you to hire a remote tax preparer who works exclusively for you, mirroring your in-house staff. We offer three variations to suit your needs:

  • Full-Time: A tax preparer works 8 hours daily, providing:
    • The opportunity to interview and select the remote staff before hiring.
    • Daily timesheet submissions for full transparency.
    • Constant monitoring to prevent errors and ensure quality.
    • Full control over task allocation.
  • Part-Time: A part-time tax preparer works 4 hours daily, offering the same benefits as full-time but with reduced hours.
  • Hourly: For those uncertain about workload, this model charges only for the hours worked by the remote tax preparer, making it a cost-effective and flexible solution.

Step 2: Choose the Tax Preparer That Fits Your Firm’s Needs – Tailored Expertise for You

One of the biggest advantages of outsourcing with Unison Globus is the ability to handpick the tax preparer you want. We provide you with a selection of CVs for review based on your criteria, such as core tax expertise, industry-specific knowledge, software experience, or extensive training under tax reviewers.

Benefits of Choosing Your Tax Preparer:

  • Core Tax Expertise: Select a remote staff member with expertise aligned with your clients' needs.
  • Industry Knowledge: Choose a tax expert experienced in your specific industry.
  • Software Proficiency: opt for a remote staff proficient in the tax software you use.
  • Experience: Hire professionals trained under seasoned tax reviewers for 5+ years.

Step 3: Conduct a 1-on-1 Interview – Ensuring the Right Fit for Your Firm

After selecting potential candidates, conduct a 1-on-1 interview to assess their skills. Ask theoretical and practical questions to evaluate their expertise, ensuring they meet your firm’s standards before onboarding.

Step 4: Welcome the Tax Preparer Onboard – Seamless Integration into Your Team

Once finalized, the tax preparer joins your team within 24-48 hours. They begin by securely collecting documents through a remote access portal. No extra training is needed as our tax preparers are seasoned professionals experienced in multiple tax seasons.

Take the first step toward a hassle-free tax preparation journey now!

Unlock the full potential of your firm's operations with Unison Globus's expert outsourcing solutions. Our flexible engagement models and dedicated team of tax professionals are here to streamline your processes, ensuring compliance and peace of mind.

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    Unison Globus: Streamlining Your
    Tax and Accounting Solutions

    Our diverse range of outsourcing CPA services caters to every aspect of your tax and accounting needs:
    Our services are delivered with a commitment to data security, quality, and transparency, ensuring peace of mind for your firm.

    The Process Workflow at Unison Globus

    We prioritize security, efficiency, and seamless outsourcing with our workflow’s three key aspects:

    1. Access

    • Cloud: Our remote staff securely logs into your software to access client documents.
    • RDP Access: Staff connects to your computer via a remote desktop connection, logging out after the work is done.

    2. Communication

    • Immediate Response: Using tools like Email, Skype, Slack, Microsoft Teams, and SharePoint, our staff ensures prompt communication and 24-hour turnaround time due to our Indian Time Zone advantage.

    3. Task Monitoring

    • Timesheet: Daily timesheets provide complete visibility of the remote staff's work.
    • Review Meetings: Regular meetings allow you to assign further tasks, resolve queries, and monitor progress.

    Why Choose Unison Globus for Your Outsourcing Needs?

    Unison Globus offers tailored outsourcing services designed to streamline operations, reduce costs, and ensure compliance. Our flexible models, expert team, and transparent workflow make us your go-to partner for a hassle-free outsourcing experience.

    Let’s Get Started on
    Your Outsourcing Journey!
    Make your tax preparation process
    more efficient, secure, and
    cost-effective with Unison Globus.

    Whether you need seasonal support or a full-time tax preparer, we have the right solution for you.

    Contact us now to discuss your requirements and discover how our tailored outsourcing services can benefit your firm.

    Optimize your tax preparation process—partner with Unison Globus today! Contact

    Tips for a Successful Outsourcing Experience with Unison Globus

    01 01. Organize Your Documents

    Before starting the outsourcing process, gather all the necessary tax-related documents, including previous year tax returns, financial statements, and other relevant paperwork. Having these documents ready will facilitate a smoother transition.

    02 02. Define Clear Objectives:

    Outline what you aim to achieve by outsourcing your tax preparation. Whether it’s cost-saving, improved accuracy, or handling a seasonal workload, clear objectives will help tailor the outsourcing process to meet your business needs effectively.

    03 03. Communicate Your Preferences:

    Share your preferences regarding billing software, accounting processes, and reporting formats. This will allow Unison Globus to align their services with your existing workflows, ensuring seamless integration.

    04 04. Select the Right Engagement Model

    Assess your current workload and future projections to choose the most suitable engagement model. If you anticipate seasonal spikes, the Per Return model may work best. For continuous support, consider hiring a full-time or part-time tax preparer.

    05 05. Be Open to a Flexible Approach

    Outsourcing offers flexibility, so be open to adjusting your engagement model as your business needs evolve. Regularly assess the outsourced tasks to ensure they align with your firm’s goals and make changes if necessary.

    06 06. Take Advantage of the Interview Process

    Use the 1-on-1 interview step to thoroughly assess the tax preparer’s expertise and compatibility with your firm. Ask relevant theoretical and practical questions to gauge their knowledge and experience in your specific industry.

    07 07. Set Clear Communication Channels

    Establish preferred communication tools, such as Email, Skype, or Microsoft Teams, to stay connected with the remote tax preparer. Regular communication ensures alignment and quick resolution of any queries.

    08 08. Review Timesheets Regularly

    Monitor the timesheets provided by Unison Globus’s remote staff. This will give you insights into their work progress, helping you make informed decisions on workload allocation and task prioritization.

    09 09. Utilize the Secure Access System

    Rest assured that Unison Globus follows strict security measures. Use the secure access portals and cloud login systems recommended by their team to protect your clients’ sensitive financial information.

    10 10. Schedule Regular Review Meetings

    Set up periodic meetings to review the progress and provide feedback. These sessions are an excellent opportunity to discuss any adjustments, address concerns, and align on upcoming tasks.

    11 11. Stay Involved

    Even though the tax preparation tasks are outsourced, staying involved in the process helps maintain control over your operations and ensures that the service meets your standards.

    Ready to get started?

    Connect with Unison Globus today and take the first step toward an expertly managed tax preparation process.
    Categories
    Accounting and Bookkeeping Management Accounting Payroll Tax Preparation

    Useful List of Accounting Services for Small Business in 2024

    As small business owners, wearing many hats is inevitable. However, juggling essential tasks like accounting alongside day-to-day business operations can become overwhelming. The relevance of professional accounting services remains unchanged for businesses of all sizes, but for small businesses, efficient accounting is crucial for sustaining growth and compliance.
    While outsourcing accounting might feel like a leap, it is a cost-effective solution for small businesses that lack the resources to hire full-time professionals. Unison Globus offers tailored solutions to simplify your accounting needs, helping you stay focused on your business goals. Below is a list of critical accounting services your small business can benefit from in 2024.

    Detailed Descriptions of Each Service

    01 01. Bookkeeping Services

    Precise bookkeeping is the backbone of any business’s financial strength. It involves systematically recording financial transactions to ensure smooth accounting processes. Partnering with outsourced bookkeeping services ensures your records are kept up-to-date, helping you stay on track with cash flow and financial planning. By engaging with expert accountants and bookkeepers, you gain access to professionals who can manage your books using advanced software, ensuring efficiency and accuracy.

    02 02. Monthly Accounting Activities

    Monthly accounting reviews provide valuable insights into your financial standing. These reviews help detect early issues and enable informed decision-making for the future. Small business owners can benefit from accounting outsourcing services USA, ensuring that timely reports are generated and monthly financial statements prepared by experienced professionals.

    03 03. Tax Preparation and Filing

    Staying compliant with tax regulations is non-negotiable for small businesses. An understanding of common tax deductions and proper filing ensures you avoid penalties and save money. Engaging outsourced CPA services offers the expertise needed to manage tax-related obligations efficiently. Whether it’s navigating tax season or preparing returns, outsourced accounting services USA can help streamline the process.

    04 04. Payroll Processing

    Payroll management is often more complex than it appears. Ensuring on-time payments, compliance with tax regulations, and accurate payroll reporting are vital. Outsourced bookkeeping & accounting services help manage payroll smoothly, allowing you to focus on core business activities while ensuring compliance and proper tax filing.

    05 05. Financial Planning and Analysis

    Strategic financial planning plays a pivotal role in guiding business growth. With financial planning and analysis, businesses can make data-driven decisions based on in-depth financial insights. For example, using remote accounting services can provide regular financial forecasts and analyses that align with your business goals, aiding in long-term sustainability.

    06 06. Outsourced CPA Services

    Hiring a full-time CPA may not be feasible for small businesses due to cost. However, outsourcing to a bookkeeping outsourcing firm or CPA allows you to access expert advice at a fraction of the cost. These services provide advisory support, periodic reviews, and assistance in making strategic financial decisions.

    07 07. Forensic Accounting Needs

    Protecting your business from fraud is essential. Forensic accounting helps detect discrepancies and misstatements, identifying potential fraud early. By engaging with outsourced accounting services, small businesses can implement necessary safeguards and maintain financial integrity.

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    Benefits of Using Professional Accounting Services

    The benefits of professional accounting services go beyond accuracy. They help small businesses stay compliant, avoid penalties, and make informed financial decisions. By outsourcing, you reduce the burden of in-house accounting while gaining access to expertise and technology solutions that enhance your financial processes.

    Comparison of In-House vs. Outsourced Accounting

    While in-house accounting provides control, it can be resource-intensive and costly for small businesses. Outsourced bookkeeping solutions offer flexibility, cost savings, and access to expert accountants without the overheads of full-time staff. Additionally, outsourcing allows small businesses to scale operations as needed without compromising quality.
    Aspect In-House Accounting Outsourced Accounting
    Cost Requires full-time salaries, benefits, and office space, leading to higher overheads. More cost-effective, with flexible payment options based on the scope of services. No additional costs for office space or employee benefits.
    Control Full control over accounting processes with direct oversight of staff. Access to experienced professionals, with the option to customize services. Regular updates and reports maintain transparency
    Scalability Limited by the capacity of the in-house team; hiring more staff can be expensive and time-consuming. Easily scalable to meet the changing needs of the business without hiring new employees. Can expand or reduce services as required.
    Expertise Limited to the knowledge and experience of the in-house staff. Ongoing training may be needed. Access to a wide range of experts with specialized skills in accounting, tax, and bookkeeping, who stay up-to-date with industry trends.
    Technology Integration May require significant investment in software and tools, plus training for staff. Outsourced firms use the latest accounting technology and software, with no additional costs for setup or training.
    Compliance & Regulation In-house teams may need regular updates and training to stay compliant with changing regulations. Outsourced providers ensure compliance with the latest tax and financial regulations, reducing the risk of penalties.
    Time Commitment Business owners need to dedicate time to managing and overseeing the accounting team. Outsourcing frees up time for business owners to focus on core activities while receiving timely updates on financial matters.
    Flexibility In-house accounting teams may not be able to adapt quickly to changing business needs. Outsourced accounting provides flexibility to adjust services based on seasonal or market changes.
    Hiring & Training Requires time and resources to hire, train, and retain qualified accountants. No need to hire or train. Outsourced firms provide a ready-made team of professionals with experience in your industry.
    Read Also: https://ud.web-stage.in/accounting-vs-bookkeeping-infographic/

    Tips for Choosing the Right Accounting Service

    Selecting the right accounting partner is essential. Look for bookkeeping firms that specialize in small business needs, offer competitive pricing, and have a strong track record. A good partner will provide personalized services, from outsourced bookkeeping for CPAs to payroll management, ensuring all aspects of your accounting are covered.

    Pro Tips for Choosing the Right Accounting Service

    Specialization in Your Industry Choose a firm that understands the unique challenges and requirements of your industry. Specialized accounting services ensure they are well-versed in the specific tax laws, compliance regulations, and financial reporting standards that apply to your business.
    Scalable Solutions As your business expands, your accounting needs will advance. Look for firms that offer scalable accounting solutions—from basic bookkeeping to advanced financial analysis—so you can easily adjust the level of service based on your business’s growth without switching providers.
    Technology-Driven ServicesOpt for firms that integrate cloud-based accounting software and use the latest technology for secure, real-time access to your financial data. This will help you stay updated with your accounting reports, access your data on the go, and ensure your business uses cutting-edge solutions for better financial management.
    Transparent Pricing Structure Ensure the accounting service provides a transparent pricing model with no hidden fees. Whether they offer hourly rates, fixed fees, or package deals, it’s crucial to understand what’s included in the service and how additional costs may arise as your needs grow.
    Proven Track Record & Reputation Verify the firm’s experience by looking into their track record with businesses similar to yours. Client testimonials, reviews, and case studies can provide insights into how well they handle small business accounting needs and their success in delivering results.
    Certifications & Qualifications Ensure that the accountants you work with have the proper certifications (e.g., CPAs, CAs, or EAs). Certified professionals provide assurance that they are held to high standards of competency and ethics, which is crucial for accurate reporting and regulatory compliance.
    Comprehensive Service Offerings Choose a firm that offers a full suite of accounting services, including payroll management, tax preparation, bookkeeping, and financial advisory services. This ensures all aspects of your accounting are covered, reducing the need for multiple service providers and streamlining your operations.
    Communication & Responsiveness Look for a partner who is responsive and communicative. Timely responses, regular check-ins, and easy access to financial reports are critical. A good accounting partner should feel like an extension of your team, keeping you updated and informed at all times.
    Data Security Measures With increasing concerns around data breaches, ensure your accounting partner follows strict data security protocols to protect sensitive financial information. Opt for firms that use encrypted systems and have robust cybersecurity measures in place.
    Proactive Financial GuidanceA good accounting service doesn’t just handle your numbers; they act as strategic advisors for your business. Look for firms that offer proactive guidance, helping you identify cost-saving opportunities, improve profitability, and plan for future growth with data-driven insights.

    Industry-Specific Accounting Services

    Different industries have unique accounting requirements. Unison Globus offers specialized services across various sectors, from tech startups to e-commerce and manufacturing. Each industry benefits from tailored accounting services that address specific compliance and reporting needs.
    Finance & Insurance
    Real Estate, Rental & Leasing
    Advisory & Financial Service
    Research and Development
    Arts & Entertainment
    For more details, visit our Market Page.

    Technology Integration in Accounting

    Modern accounting is driven by technology. Outsourced accounting services incorporate advanced software and tools to enhance data security, improve reporting accuracy, and streamline processes. Investing in technology-driven accounting and bookkeeping outsourcing services ensures your business stays ahead in an increasingly digital world.

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      Common Accounting Mistakes to Avoid

      Small businesses often make common accounting errors such as improper record-keeping, missing tax deadlines, and poor cash flow management. Engaging with bookkeeping service providers ensures you avoid these pitfalls. Professional accountants help keep your financial records in order, ensuring timely reporting and filing.
      Common Accounting Mistakes to Avoid:
      Inaccurate Record-Keeping: Keep all financial records up to date and organized to prevent discrepancies.
      Tip: Use cloud-based accounting software for real-time updates.
      Not Reconciling Accounts: Regularly reconcile your bank accounts to catch errors or fraud early.
      Tip: Schedule monthly reconciliations with professional bookkeepers.
      Missing Tax Deadlines: Ensure timely filing to avoid penalties.
      Tip: Automate tax reminders and rely on professional accountants to handle tax compliance.
      Poor Cash Flow Management: Monitor your cash flow regularly to avoid liquidity issues.
      Tip: Create monthly cash flow forecasts with the help of expert accountants.
      Mixing Personal and Business Finances: Always keep personal and business accounts separate.
      Tip: Set up dedicated business accounts and track every transaction accurately.
      Read Also: https://ud.web-stage.in/common-accounting-mistakes-and-how-to-avoid-them-expert-tips/

      How to Maximize the Value of Accounting Services

      To get the most from your accounting services, ensure regular communication with your accounting partner. Regular financial reviews, budget adjustments, and strategic planning sessions are essential. Outsource bookkeeping and accounting services that offer tailored advice and proactive solutions to enhance business growth.

      On the whole

      Accounting plays a crucial role in the success of any small business. With the right outsourced accounting services USA, you can streamline financial operations, stay compliant, and make better business decisions. Unison Globus is here to support your journey with customized, cost-effective accounting solutions. Our outsourced bookkeeping services and expert CPAs can help you maintain financial health, grow your business, and stay ahead in 2024. Contact us today to learn how we can assist your business in achieving its goals!

      FAQs on Accounting Services for Small Businesses

      01 01. What is the difference between bookkeeping and accounting?

      Bookkeeping involves recording daily financial transactions, such as sales and expenses. Accounting includes interpreting, classifying, analyzing, reporting, and summarizing financial data to provide deeper insights into your business.

      Read more: https://ud.web-stage.in/accounting-vs-bookkeeping-infographic/

      02 02. Why should I separate my business and personal finances?

      Separating business and personal finances simplifies tax preparation, protects personal assets from business liabilities, and makes it easier to track business expenses and cash flow. It’s a fundamental step in maintaining financial clarity and compliance.

      03 03. How often should I review my financial statements?

      Reviewing your financial statements monthly ensures accuracy and enables informed business decisions. Regular reviews allow you to identify trends, adjust strategies, and address any issues early on.

      04 04. What are the benefits of outsourcing accounting services?

      Outsourcing saves time, reduces costs, and provides access to expert advice, ensuring tax compliance and accurate financial management. It allows business owners to focus on growth while experienced professionals handle the accounting workload.

      05 05. How can cloud-based accounting services benefit my business?

      Cloud-based accounting services offer anytime, anywhere access to real-time financial data, improved collaboration, enhanced data security, and cost savings. These services integrate advanced technology, enabling better financial decision-making.

      06 06. What should I look for when choosing an accounting service provider?

      Look for a provider with industry-specific expertise, a range of scalable services, advanced technology integration, and a strong reputation for communication. A good accounting partner will tailor services to your business needs and be responsive and transparent.

      07 07. Can I prepare my company’s taxes myself?

      While possible, hiring a professional accountant ensures accuracy, maximizes deductions, and keeps you compliant with ever-changing tax laws. Accountants provide valuable strategic advice that can improve financial outcomes.

      08 08. How much does it cost to hire an accountant?

      The cost varies on the services you expect, the complexity of your business, and the accountant’s experience. Always compare pricing and services to find an accounting partner that fits your budget and delivers value.
      Read Also: https://ud.web-stage.in/how-much-does-it-cost-to-hire-a-cpa/

      Connect with Unison Globus

      At Unison Globus, we specialize in helping small businesses navigate their accounting needs with expert solutions, scalability, and advanced technology integration. Whether you need bookkeeping, tax services, or financial analysis, our team is here to support your growth with personalized services. Contact us today to learn how Unison Globus can be your trusted accounting partner!
      Categories
      Auditing Tax Preparation

      Assurance in Numbers: Dissecting Internal and External Audits During Tax Season

      With tax season on the horizon, the emphasis on financial transparency, accuracy, and compliance intensifies. Achieving these critical attributes necessitates thorough auditing—a fundamental process for examining and verifying financial records. Internal and external audits, while both vital, serve distinct functions within this framework. This article explores the differences between these two types of audits, emphasizing their unique roles during the crucial tax season.
      At Unison Globus, we excel in delivering top-tier Audit & Assurance Services, guiding organizations through the complexities of financial oversight. Our extensive expertise in outsourced taxation and accounting services makes us a trusted partner for CPAs, EAs, and accounting firms throughout the USA. Our professional yet approachable approach highlights our proficiency in accounting, taxation, and outsourcing, all while remaining customer-focused and helpful. As we delve into the distinctions between internal and external audits, we will illustrate how Unison Globus can support your audit needs, ensuring your organization stays compliant and transparent during tax season and beyond.

      What are Internal Audits?

      Internal audits are conducted by an organization’s own team of auditors or by certified internal auditors from specialized internal audit services. Their main goal is to assess and enhance the effectiveness of internal controls, risk management, and governance processes. Unlike external audits, internal audits are a continuous process, aimed at providing ongoing evaluations and improvements.

      Key Features of Internal Audits:

      Purpose Focus on strengthening internal controls, improving risk management, and enhancing governance processes.
      Frequency Performed regularly throughout the year, ensuring continuous oversight and improvement
      ScopeComprehensive, covering a wide range of organizational activities and processes.
      Reporting Findings are communicated to management and the board of directors to support strategic decision-making and operational enhancements.

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      What are External Audits?

      External audits are conducted by independent audit firms to provide an unbiased verification of an organization’s financial statements. These audits are crucial during tax season, as they validate the accuracy and completeness of financial reports, ensuring compliance with accounting standards and regulatory requirements.

      Key Features of External Audits:

      PurposeEnsure the reliability and accuracy of financial statements, enhancing credibility with stakeholders.
      FrequencyTypically conducted annually or as mandated by regulatory authorities.
      ScopePrimarily focuses on financial records and statements, assessing their fairness and compliance.
      ReportingResults are presented in an audit report shared with stakeholders, including shareholders, regulators, and the public

      Internal vs. External Audits

      When it comes to financial transparency and accountability, internal and external audits are essential. Understanding their differences in focus, scope, objectives, and goals is crucial for CPA firms in providing exemplary service tailored to client needs. Knowing how external audits work can help internal auditors better prepare and ensure compliance with regulatory requirements. According to the Institute of Internal Auditors’ Global Perspectives and Insights report, several key differences exist between internal and external audits.

      Benefits of Internal Audits

      • Enhanced Internal Controls: Internal audits identify weaknesses in internal controls and recommend necessary improvements.
      • Effective Risk Management: They help recognize potential risks and develop strategies to mitigate them.
      • Operational Efficiency: Internal audits provide insights into operational inefficiencies, suggesting ways to boost productivity and effectiveness.

      Benefits of External Audits

      • Increased Credibility: External audits add credibility to financial statements, strengthening stakeholder trust and confidence.
      • Regulatory Compliance: They ensure that the organization adheres to relevant laws and regulations, crucial during tax season.
      • Fraud Detection: External audits play a significant role in detecting and preventing fraudulent activities through an objective review of financial records.

      Audit Purpose

      Internal Audit:

      Objective: Internal audits analyze and improve organizational controls and performance. They evaluate the organization’s entire risk and control landscape, assess risk management effectiveness, and consider implications for strategy and performance. Internal audits identify risks that could prevent an organization from achieving its goals and proactively recommend improvements to mitigate these risks.

      External Audit:

      Objective: Internal audits analyze and improve organizational controls and performance. They evaluate the organization’s entire risk and control landscape, assess risk management effectiveness, and consider implications for strategy and performance. Internal audits identify risks that could prevent an organization from achieving its goals and proactively recommend improvements to mitigate these risks.

      Audit Focus

      Internal Audit:

      Scope: Internal audits assess organizational health holistically, determining whether business practices support strategic objectives and identifying risks that could impact those objectives.

      External Audit:

      Scope: External audits, conducted by regulatory agencies or government auditors, look for compliance deficiencies or violations. They focus on whether the organization’s financial accounts accurately and fairly represent its performance, primarily through a backward-looking and reactive approach

      Audit Scope

      Internal Audit:

      Coverage: Internal audits provide insights and suggestions to management covering all governance, risk, and control processes. They are preventative and ongoing

      External Audit:

      Coverage: External audits typically occur annually or at least once every five years. For compliance audits, the scope is determined by the regulatory body conducting the audit and is limited to financial statements.

      Primary Audience

      Internal Audit:

      Reporting: Internal audits report directly to the board of directors, senior management, the audit committee, and other groups within the organization’s governance structure, providing governance assurance.

      External Audit:

      Reporting: Internal audits report directly to the board of directors, senior management, the audit committee, and other groups within the organization’s governance structure, providing governance assurance.

      Auditor Skills

      Internal Audit:

      Qualifications: Internal auditors come from various academic and professional backgrounds. Objectivity and independent assurance are key principles, even though internal auditors are employees of the organization they audit.

      External Audit:

      Qualifications: External auditors are certified accountants (for financial audits), compliance professionals, or government employees (for compliance audits). They may be requested by customers to verify that an organization meets their requirements.

      Employment Relationship

      Internal Audit:

      Independence: Internal auditors report to senior management, the audit committee, and the board rather than the business areas being audited. They maintain objectivity by avoiding professional or personal involvement with the areas being audited.

      External Audit:

      Independence: External auditors are not employees of the organization being audited. Despite the different purposes and outcomes of internal and external audits, they can share information to avoid duplication and enhance audit coverage.

      Focus and Scope

      Internal Audit:

      Focus: Internal audits focus on identifying potential risk areas, evaluating the effectiveness of internal controls, and improving internal processes. CPA firms can use internal audits to provide management with insights and recommendations for enhancing financial controls.

      External Audit:

      Focus: External audits evaluate the accuracy and reliability of financial statements and ensure compliance with applicable laws and regulations. CPA firms conducting external audits provide assurance to stakeholders, such as shareholders and regulators.

      Objectives and Goals

      Internal Audit:

      Objective: The primary objective of internal audits is to help the organization improve its internal processes, identify risk areas, and ensure compliance with internal policies and procedures. They help clients enhance internal processes and mitigate potential risks.

      External Audit:

      Objective: External audits assure stakeholders that financial statements are accurate and reliable and that the organization complies with applicable laws and regulations.

      Standards and Regulations

      Internal and external audits adhere to different standards and regulations, which are crucial to understand. Internal audits follow internal policies and procedures, guided by standards like the International Standards for the Professional Practice of Internal Auditing (IPPF) and the Institute of Internal Auditors (IIA) standards. External audits adhere to standards like Generally Accepted Accounting Principles (GAAP), International Financial Reporting Standards (IFRS), Generally Accepted Auditing Standards (GAAS), and the Sarbanes-Oxley Act (SOX).

      Stakeholders and Reporting

      Internal audits are conducted for management and the board of directors, with results reported to these stakeholders. External audits cater to a broader range of stakeholders, including shareholders, regulators, and creditors, with results reported in the company’s financial statements.

      Pros, Cons, and Impact

      Internal Audit:

      • Pros: Comprehensive review of operations and processes, risk management, and governance. Helps identify and mitigate risks, improve internal controls, and enhance operational efficiency.
      • Cons: Potential lack of independence and objectivity, limited expertise in certain areas, and less oversight than external audits.
      • Impact on CPA Firms: Offering internal audit services can expand service offerings and help clients improve internal controls and risk management.

      External Audit:

      • Pros: Independent assessment of financial statements, ensuring compliance with standards, identifying material misstatements, and improving financial statement accuracy.
      • Cons: Higher cost, less in-depth review of operations, and potential disruption during the audit process.
      • Impact on CPA Firms: Offering external audit services can be a significant revenue stream, but maintaining independence and objectivity is critical.

      Conclusion

      Both internal and external audits are essential for ensuring financial transparency and accountability. CPA firms can help clients choose the right audit service for their needs and offer additional support in areas like bookkeeping, tax preparation, and financial reporting. By partnering with Unison Globus, firms can provide a comprehensive range of financial services, ensuring clients’ financial reporting and compliance needs are expertly managed. With your firm’s auditing expertise and Unison Globus’ outsourcing services, clients can achieve their financial goals with confidence.

      Categories
      Tax Preparation

      Maximizing Deductions and Credits: A Comprehensive Guide to Tax Savings

      Guide to Tax Savings

      For CPAs and financial firms, the complex landscape of U.S. tax regulations offers both challenges and opportunities. Navigating the labyrinth of tax laws can be daunting, but understanding how to maximize deductions and credits can lead to significant savings. This comprehensive guide provides essential insights and strategies to help individuals and businesses not only comply with tax requirements but also capitalize on opportunities to reduce their tax liability.

      Understanding Tax Deductions and Credits

      Tax Deductions serve to reduce your taxable income, effectively lowering your overall tax liability. Prominent tax deductions include payments towards mortgage interest, state taxes, and charitable contributions—elements crucial for American taxpayers aiming to optimize their financial profiles. These deductions not only lessen the amount of income subject to taxation but also align with personal and community investments.

      Tax Credits, in contrast, are subtracted directly from the total amount of tax owed, providing direct, dollar-for-dollar tax relief. Notable credits include the American Opportunity Tax Credit and credits for making energy-efficient upgrades to residential properties, such as installing solar panels or purchasing high-efficiency appliances. These incentives are designed to encourage educational advancement and sustainable living among U.S. residents.

      Read also: Tax Planning For Individuals : The Proven Guide

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      Strategies for Maximizing Deductions

      • Itemize Deductions: Opting for itemized deductions over the standard deduction can amplify tax savings for those with substantial deductible expenses. Areas often itemized include healthcare costs, tax preparation fees, and property taxes.
      • Timing Expenses: Managing the timing of significant expenses can enhance deductible amounts. A strategic move such as prepaying a forthcoming year’s property tax or scheduling medical procedures within a single fiscal year can aggregate deductions, maximizing tax returns.
      • Maximize Charitable Contributions: Documenting every charitable donation, including those not in cash, such as goods or stocks, is essential. The IRS requires detailed records for all donations, making thorough documentation paramount to justifying these deductions.

      Leveraging Tax Credits

      • Education Credits: Capitalize on education-related tax credits such as the Lifetime Learning Credit, which supports lifelong learning and professional development, crucial for maintaining competitiveness in today’s economy.
      • Energy Credits: Investing in energy conservation through upgrades like energy-efficient HVAC systems not only cuts utility costs but also qualifies for significant tax credits, promoting environmentally friendly investments.
      • Small Business Credits: For small business owners, leveraging specific tax credits like the Small Employer Health Insurance Premiums Credit can significantly reduce the costs associated with providing health benefits to employees.

      Avoid Common Pitfalls

      • Documentation and Receipts: Maintaining detailed and organized financial records is indispensable. A lack of proper documentation can result in the disqualification of valuable deductions and credits during an audit by the IRS.
      • Understand the Limits: Being well-informed about the limits and qualifications for each deduction and credit is crucial. This knowledge helps avoid costly errors and ensures maximum tax benefit realization.

      Advanced Tactics for Business Owners

      Business owners face unique challenges and opportunities with tax deductions and credits:

      • Depreciation Strategies: Utilizing advanced depreciation methods can defer income taxes and enhance cash flow, essential for reinvestment and growth.
      • Employment Credits: Hiring from specific demographic groups that face significant barriers to employment can qualify businesses for valuable tax credits under initiatives like the Work Opportunity Tax Credit.

      Conclusion

      In the intricate landscape of U.S. tax regulations, the ability to expertly navigate and optimize tax deductions and credits stands as a cornerstone of financial expertise. For CPAs and financial firms, this guide has outlined not only the foundational elements of tax savings—such as maximizing deductions on mortgage interest, state taxes, and charitable contributions, and leveraging direct tax credits for education and eco-friendly investments—but also strategic maneuvers that can substantially enhance the fiscal outcomes for clients.

      Effective tax management involves meticulous planning and execution. From choosing to itemize deductions to understanding the optimal timing for expenses and strategically documenting every charitable contribution, these actions require a high level of expertise and organizational skill. Similarly, leveraging tax credits must be approached with an informed understanding of eligibility and limits to ensure that all available benefits are fully realized, thereby providing tangible savings and incentives for sustainable and educational investments.

      For business owners, the landscape becomes even more complex. Advanced tactics like employing varied depreciation strategies and tapping into employment credits necessitate a nuanced grasp of tax law and proactive financial planning. The potential to significantly impact a company’s financial health through these methods underscores the importance of sophisticated tax strategies and the need for expert guidance.

      As your operations grow and the intricacies of tax obligations strengthen, partnering with a seasoned outsourcing firm like Unison Globus can transform challenges into opportunities. Unison Globus offers the expertise to navigate these complexities, ensuring that your tax strategies are not only compliant but optimized for maximum benefit.

      Choose Unison Globus as your trusted outsourcing partner to capitalize on our expertise in accounting, taxation, and strategic financial management, and let us help you transform tax planning from a daunting task into a competitive advantage. Reach out today to enhance your capabilities and ensure your clients receive the most advantageous financial guidance available.

      Categories
      Tax Preparation

      Relaxation Returns: How to Unwind After the Tax Season

      As the tax season concludes, CPAs and accounting firms throughout the United States make a significant shift from the rigorous demands of tax filings to a period of essential relaxation. Unison Globus recognizes the profound impact of this transition on professionals in the industry. We provide targeted, practical assistance to facilitate your unwinding process effectively. Leveraging our extensive expertise in accounting, taxation, and outsourcing, we aim to serve as your steadfast partner, helping you navigate the complexities of the post-tax season landscape with precision and ease. Our commitment is to ensure that you reclaim balance and prepare for upcoming challenges rejuvenated and with renewed focus.
      Understanding Post-Tax Season Fatigue
      The conclusion of tax season often marks a period of considerable mental and physical depletion for many accounting professionals. The relentless deadlines, intricate client demands, and prolonged periods of intense focus required during this time can significantly drain your energy reserves, leaving you feeling exhausted on multiple levels. It is imperative to acknowledge and understand the symptoms of this post-tax fatigue—such as persistent tiredness, difficulty concentrating, or a lack of motivation—which are common but critical signals that your body and mind need rest and recovery.
      Addressing these signs promptly is not merely beneficial; it is essential for restoring your overall health and ensuring sustained productivity and professional efficacy. Ignoring these symptoms can lead to a prolonged recovery period, potentially affecting your performance in the upcoming fiscal periods. Thus, recognizing and acting upon these indicators of exhaustion is the first step toward revitalizing your well-being and ensuring you remain at the peak of your professional capabilities. This proactive approach not only aids in quicker recuperation but also fortifies your resilience against future stresses.
      Effective Strategies for Post-Tax Relaxation
      • Embrace Physical Wellness: Integrating physical activity into your routine is vital. Consider yoga, meditation, or simple aerobic exercises as ways to refresh your body and clear your mind. These activities are not just beneficial for physical health; they also provide mental clarity and stress relief, making them perfect for relaxing after tax deadlines.
      • Reestablish Work-Life Boundaries: After a period of intense work focus, setting clear boundaries is essential for maintaining balance. Designate times for work and relaxation, ensuring that your personal time is preserved, which is crucial for de-stressing after taxes.
      • Rediscover Personal Interests: Tax season often requires setting aside personal hobbies and interests. Now is the time to reconnect with these activities, which can be significantly restorative and fulfilling.
      • Pursue Professional Growth: The quieter post-tax season is an ideal time for professional development. Engage in activities that enhance your skills and knowledge, such as attending webinars or enrolling in courses relevant to accounting and taxation.
      • Schedule Time Away: Taking a vacation or even a short break can dramatically aid in your recovery process. Such escapes are essential for mental refreshment and can provide a new perspective upon your return.
      • Limit Digital Engagement: Consider a digital detox to reduce reliance on electronic devices, which can be a significant source of stress. Reducing screen time can help improve focus and decrease anxiety.

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      Year-Round Wellness Integration
      To maximize the benefits of post-tax season recovery, it is crucial to integrate the outlined relaxation and wellness strategies into a consistent, year-round wellness plan. This approach ensures that wellness is not just a reactionary measure following intense periods but a foundational aspect of daily professional life.
      Regular engagement in wellness activities—such as scheduled physical exercise, mindfulness practices, and structured work-life boundaries—plays a pivotal role in preventing burnout. These activities contribute to a more balanced lifestyle, helping to sustain energy levels and mental clarity throughout the year. Moreover, by maintaining a focus on wellness consistently, you can enhance your overall productivity and job satisfaction. This continuous attention to well-being not only boosts your capacity to tackle professional challenges but also enriches your personal life, leading to a more fulfilled and balanced existence.
      Incorporating these practices requires thoughtful planning and commitment. It may involve setting specific times each week for physical activities, designating daily periods for mental health breaks, and periodically assessing your professional boundaries to ensure they still meet your personal and professional needs. By doing so, you foster a resilient framework that supports both your career ambitions and your personal health, ensuring you remain productive and satisfied in all facets of life.
      In The End
      At Unison Globus, we advocate for a balanced approach to professional and personal life, especially following the taxing demands of the tax season. Implementing these post-tax relaxation tips will not only aid in your immediate recovery but also contribute to your sustained health and professional success. We are dedicated to supporting our clients through their entire professional journey, ensuring they thrive in all aspects of accounting, taxation, and outsourcing
      Thank you for placing your trust in us. Together, let’s move forward with renewed energy and a balanced approach to the challenges ahead. Stay connected with Unison Globus for ongoing insights and support that caters to the unique needs of the accounting profession. Let us help you turn the lessons learned from this tax season into cornerstones for a healthier, more productive professional journey.
      Categories
      Tax Preparation

      IRS Tax Season 2024: Exploring Extended Services and Digital Tool Advancements

      As the calendar turns to 2024, the Internal Revenue Service (IRS) embarks on a pivotal tax season, equipped with new strategies and resources aimed at enhancing taxpayer support. This year, the IRS opens its doors to a season of change, welcoming over 146 million individual tax returns by the April 15 deadline. These efforts symbolize a significant shift in how the IRS plans to manage the influx of filings and taxpayer inquiries.
      In a notable move increased by additional funding from the Inflation Reduction Act, the IRS is extending service hours at nearly 250 of its in-person Taxpayer Assistance Centers across the nation. This expansion is a direct response to the increasing demand for accessible and efficient tax assistance. Simultaneously, the IRS is diligently enhancing its phone services and online tools, particularly the “Where’s My Refund?” platform, which is set to provide more comprehensive updates to taxpayers eagerly tracking their refunds.
      However, these advancements do not come without their challenges. The IRS is currently navigating the complexities of a tax extenders bill coursing through Congress, which could bring significant changes to the Child Tax Credit and several business-related tax provisions. These potential legislative alterations add a layer of uncertainty to an already intricate tax landscape.
      Amidst this backdrop of change and challenge, IRS Commissioner Danny Werfel emphasizes the gravity
      of the tax season's commencement. "The start of a tax season is an important day for the nation and for
      the IRS," Werfel remarks, highlighting the extensive preparations behind the scenes at the IRS.
      Months of planning, programming, and testing culminate in the kick-off of the filing season, underscoring the IRS’s commitment to facilitating a smooth and efficient process for taxpayers. As Werfel notes, the tax season is not just a bureaucratic exercise but a fundamental right of citizenship, integral to the nation’s functioning.
      In this blog, we will explore the IRS’s latest initiatives, the challenges they aim to address, and the broader implications for taxpayers and the tax community. Join us as we route the hints of the 2024 tax season, a period poised to redefine the tax filing experience.
      The IRS’s Proactive Approach: A Statistical Overview
      The IRS is set to handle an impressive 146 million tax returns by April 15, 2024, highlighting a critical demand for operational efficiency and accuracy. With Inflation Reduction Act funds, the agency is boosting services at 250 Taxpayer Assistance Centers nationwide, significantly enhancing in-person taxpayer support.
      This expansion isn’t just about more hours; it’s a quality upgrade in taxpayer assistance, directly addressing the complexity of tax filing needs.
      IRS Commissioner Danny Werfel underscored the importance of this season, stating, “The start of a tax season is an important day for the nation and for the IRS.” He highlighted the extensive IRS efforts in preparing for this season, showcasing a commitment to a seamless tax filing experience.
      Despite these efforts, challenges loom, particularly with pending legislation that may impact key tax credits. However, the IRS stands ready to implement any new changes swiftly.
      To further facilitate the filing process, phone services have been enhanced, and the “Where’s My Refund?” feature has been introduced to offer taxpayers better, more specific information. The IRS’s steps this season reflect its evolving role, focusing on better service and adapting to the dynamic tax landscape, demonstrating a commitment to taxpayer-centric initiatives and continuous improvement.
      Understanding the Impact of New Resources and Tools
      The IRS is revolutionizing its digital interaction for the 2024 tax season, notably through developments to the “Where’s My Refund?” online platform. This tool is poised to offer more in-depth insights for taxpayers tracking their tax refunds, marking a significant leap in digital service quality. This upgrade is a key element in the IRS’s initiative to make tax filing and refund tracking processes more transparent and user-friendly.
      The enhanced “Where’s My Refund?” is not just an improvement; it’s a response to the growing need for digital efficiency in tax administration. By providing detailed, easy-to-understand updates, the IRS aims to streamline the experience for millions of taxpayers eagerly awaiting their refunds. This move is in line with the modern taxpayer’s expectations for accessible and responsive online services.
      These digital improvements also signify the IRS’s commitment to adapting to technological advancements, ensuring their services meet the evolving needs of a digitally oriented public. The focus on enriching online tools underscores the IRS’s dedication to a taxpayer-centered approach, prioritizing ease of use and clarity in their digital interactions.
      These enhancements to online resources such as “Where’s My Refund?” demonstrate a strategic move towards a more efficient, transparent, and approachable tax filing system, catering to the needs of the contemporary taxpayer.
      Facing the Challenges Head-On
      While the IRS strides forward with digital enhancements, it concurrently navigates through a depth of legislative complexities. A significant challenge is the looming tax extenders bill in Congress, a legislation that could significantly reshape aspects like the Child Tax Credit and various business tax provisions. This bill represents a substantial layer of uncertainty for the tax landscape, necessitating a high degree of adaptability and vigilance from tax professionals.
      This potential shift in tax legislation underscores the ever-evolving nature of tax law and the need for tax professionals to stay active. The possible changes could have wide-ranging impacts, affecting everything from individual tax liabilities to business tax strategies.
      “For tax professionals, this means staying abreast of legislative developments is more crucial than ever”.
      The IRS, for its part, is preparing to respond swiftly to any changes. Their readiness to adapt to new regulations demonstrates their commitment to maintaining a stable and responsive tax system.
      “For tax professionals and taxpayers alike, it’s a reminder of the importance of being informed and prepared for shifts in tax policy”.
      This scenario, while challenging, also presents an opportunity for tax professionals to showcase their expertise and adaptability. Directing through these legislative changes, they can provide invaluable guidance to their clients, helping them understand and adjust to any new tax realities.
      IRS Commissioner’s Perspective
      During the 2024 tax season, IRS Commissioner Danny Werfel has placed a significant emphasis on the role of this period in the national context. He regards the tax season as a unique right of citizenship,” a statement that underscores the fundamental importance of this annual process. His perspective highlights the IRS’s comprehensive efforts to streamline the tax filing procedure, emphasizing the agency’s commitment to an efficient and effective system.
      Commissioner Werfel’s remark about the tax season being a crucial function for the nation reflects a deep understanding of the IRS’s role in the larger societal framework. It acknowledges the responsibility the IRS holds in managing a system that affects nearly every citizen. His anticipation of issuing more than $300 billion in refunds this year is indicative of the vast scale of operations undertaken by the IRS. This figure alone underlines the magnitude and impact of the tax season on both individual taxpayers and the broader economy.
      [SOURCE: IRS Data Book (https://www.irs.gov/pub/irs-pdf/p55b.pdf)]
      The Commissioner’s insights provide a valuable perspective on the tax season. They serve as a reminder of the criticality of the IRS’s work and its direct implications for millions of Americans. This viewpoint reinforces the importance of the IRS’s ongoing initiatives to enhance taxpayer services and adapt to legislative changes, ensuring the tax season runs as smoothly as possible for all involved.
      The Financial Implications and Future Plans
      As the IRS advances its operations for the 2024 tax season, financial considerations and future planning are at the forefront. The agency is actively working to prevent potential funding cuts that could significantly impact its operations. A notable financial challenge is the reduction in extra funding, which was initially set at $80 billion over ten years but has been cut by about $20 billion. Despite these budgetary constraints, the IRS maintains a steadfast commitment to continuous improvement and efficiency in its services.
      IRS Commissioner Danny Werfel has pointed out the critical difference that adequate funding makes in the functionality and effectiveness of the IRS. This sentiment is echoed throughout the tax community, underlining the importance of financial support for the agency’s success. A well-funded IRS is not just a matter of maintaining current operations but is integral to implementing advancements and improvements in taxpayer services.
      Looking to the future, the IRS’s commitment despite budget cuts reflects a proactive approach to adapting and optimizing its operations. The agency’s focus on future readiness and adaptability, even in the face of financial challenges, demonstrates its dedication to serving the public and ensuring a smooth tax season. This dedication also signals the IRS’s intent to continue evolving and enhancing its services, ensuring that it remains responsive to the needs of taxpayers and the ever-changing tax landscape.
      The IRS’s Response to Legislative Changes
      The IRS is showcasing its agility and expertise as it prepares for potential shifts in tax legislation, particularly concerning the tax extenders bill. This bill, if passed, would introduce changes in key tax provisions, necessitating a prompt and effective response from the IRS.
      IRS Commissioner Danny Werfel has confidently stated that the IRS is well-equipped to implement any new tax provisions swiftly following their enactment.
      This readiness is crucial in ensuring that the implementation of legislative changes causes minimal disruption to taxpayers and tax professionals alike. Werfel’s assurance reflects the IRS’s resilience in adapting to legislative shifts. The agency’s ability to quickly update and modify its operations in response to new laws is a critical component of its commitment to maintaining a stable and reliable tax system. This responsiveness is not only about reacting to changes but also about anticipating and preparing for them, demonstrating a proactive approach to tax administration.
      The IRS’s preparedness for legislative changes is a key factor in ensuring a seamless transition for taxpayers and a smooth continuation of services. It highlights the agency’s in-depth understanding of the tax code and its implications, further emphasizing the IRS’s role as a competent and dependable authority in tax matters.
      Enhanced Customer Service and Digital Initiatives
      The IRS is on track to significantly enhance its customer service, aiming for an 85% service level on its main phone line, a notable leap from previous years. This ambitious goal reflects the agency’s dedication to improving taxpayer interaction and support. The initiative is expected to reduce wait times and improve the overall efficiency of phone-based assistance, which has been a point of contention in the past.
      In addition to phone services, the IRS is making substantial progress in expanding in-person assistance. This expansion is an acknowledgment of the diverse needs of taxpayers, some of whom prefer or require face-to-face support. By increasing the availability of in-person help, the IRS is catering to a broader range of taxpayer preferences and scenarios, making tax processes more accessible.
      Another key development is the advancement of the IRS’s Paperless Processing Initiative. This program represents a significant stride towards modernizing the tax filing and processing system. Going beyond mere digitization, this initiative is about transforming the tax experience into one that is more streamlined, less intimidating, and more environmentally friendly. By enabling electronic submission of forms and correspondence, the IRS is not only simplifying processes but also reducing the paper burden for both the agency and taxpayers.
      INSIGHTS: By Filing Season 2024, taxpayers will be able to digitally submit all correspondence, non-tax forms, and responses to notices.
      These initiatives collectively signify a shift in the IRS’s approach towards customer service and digital transformation. They are not just about adopting new technologies but also about rethinking and redesigning the taxpayer experience. The IRS’s efforts in these areas are crucial in making tax filing and processing more efficient, user-friendly, and less daunting for millions of Americans.
      The Role of Technology in Tax Administration
      The IRS is making significant advancements in integrating technology into tax administration, as exemplified by the latest updates to the “Where’s My Refund?” tool. This tool has been enhanced with voice bot technology, representing a leap forward in taxpayer interaction and convenience. The incorporation of voice bot technology into this widely used tool exemplifies the IRS’s commitment to leveraging modern solutions to improve taxpayer experiences.
      The enhanced “Where’s My Refund?” is designed to provide clearer and more detailed information, making it easier for taxpayers to get the answers they need without direct contact with the IRS. This feature aims to streamline the information-gathering process, reducing the need for taxpayers to rely on traditional, often time-consuming, methods of communication with the IRS for basic inquiries.
      This step towards technological integration in tax administration is part of a larger trend within the IRS towards digital transformation. By adopting technologies like voice bots, the IRS is not only modernizing its approach but also making tax-related processes more efficient and user-friendly. These technological initiatives are crucial in adapting to the evolving expectations of taxpayers in a digital age, ensuring that the IRS stays at the forefront of customer service and operational efficiency.
      A New Era In the 2024 tax season, the IRS is clearly focused on meeting the evolving needs of taxpayers and professionals. Key strategies include implementing advanced technologies, enhancing customer service, and preparing for legislative updates. These efforts are central to effectively managing the tax season. Both tax professionals and taxpayers benefit from staying informed and adaptable, ensuring a smoother and less stressful tax experience.
      Categories
      Tax Preparation

      What is Tax Liability: Definition, Calculation, and Example

      You are familiar with tax liability, which refers to the amount of tax an individual or business owes to the government based on their taxable income, deductions, credits, and other factors. In this article, we will provide a comprehensive on what is tax liability, how it is calculated, some examples, and ways to reduce it.

      Understanding Tax Liability

      Tax liability is an essential aspect of taxation. It varies depending on the type of taxes applicable, the taxpayer’s income level, the tax bracket, and the deductions and credits available to them. It is calculated based on the applicable tax rates and the taxpayer’s taxable income.

      Taxable income includes all sources of income, such as wages, salaries, self-employment income, investment income, rental income, and other sources. Deductions and credits are subtracted from the taxable income to determine the final liability.

      Tax deductions are expenses that can be subtracted from the taxable income to reduce the overall tax liability. Some standard tax deductions include mortgage interest, charitable donations, state and local taxes, and medical expenses.

      Tax credits, on the other hand, are a dollar-for-dollar reduction in tax liability. Some common tax credits include child tax credit, earned income tax credit, and education tax credit. Tax credits can significantly reduce tax liability, making it an essential factor to consider while calculating tax liability.

      How to Calculate Your Tax Liability

      You need to be familiar with how to calculate tax liability accurately. It is calculated by multiplying the applicable tax rate with the taxpayer’s taxable income. The tax rates vary depending on the taxpayer’s filing status and income level.

      Standard deductions for 2023 are:

      • $13,850 for single filers
      • $13,850 for married couples filing separately
      • $20,800 for heads of households
      • $27,700 for married couples filing jointly

      2023 Tax Brackets

       

      Tax Rate Single Filer in 2023 Married Filing Separately in 2023 Married Filing Jointly in 2023 Head of Household in 2023
      10% $11,000 or less $11,000 or less $22,000 or less $15,700 or less
      12% Over $11,000 Over $11,000 Over $22,000 Over $15,700
      22% Over $44,725 Over $44,725 Over $89,450 Over $59,850
      24% Over $95,375 Over $95,375 Over $190,750 Over $95,350
      32% Over $182,100 Over $182,100 Over $364,200 Over $182,100
      35% Over $231,250 Over $231,250 Over $462,500 Over $231,250
      37% Over $578,125 Over $346,875 Over $693,750 Over $578,100

      To calculate the it, multiply the taxable income by the applicable tax rate and then subtract any applicable tax deductions and credits.

      An example demonstrates this…

      Let’s look at an example of how a hypothetical flow-through entity would calculate its federal income tax liability using these tables. Assume Helly’s Widgets earned $300,000 in taxable income in 2022, and Helly files a joint tax return with his wife, Bendy.

      Helly’s tax liability would be:

      $30,427 + 24% of the amount in excess of $178,150 (or $29,244).

      The total tax due for your friend Helly is $30,427 + $29,244 = $59,671.

      Important: To calculate your client’s state tax liability, locate your client’s state’s standard deductions and tax information and follow the state’s instructions. Some states have a flat tax, while others have graduated brackets.

      How to Reduce Your Tax Liability

      You should be aware of various ways to reduce tax liability. Here are some ways to reduce tax liability:

      Maximize tax deductions

      As discussed earlier, tax deductions can significantly reduce tax liability. Therefore, it is essential to identify and maximize all tax deductions available such as

      • Business expenses
      • Using your car for business purposes
      • Using your home for business purposes
      • Itemized deductions
      • Education deductions
      • Healthcare deductions
      • Investment deductions

      Contributing to retirement accounts

      Contributing to retirement accounts such as 401(k), IRA, or Roth IRA can reduce the taxable income, thereby reducing the tax liability.

      Take advantage of tax credits

      Tax credits such as child tax credit, earned income tax credit, and education tax credit can significantly reduce tax liability. Therefore, it is essential to take advantage of all eligible tax credits, such as:

      • Family and dependent credits
      • Income and savings credits
      • Homeowner credits
      • Healthcare credits
      • Education credits

      Plan for capital gains and losses

      Capital gains and losses can significantly impact tax liability. By planning for them in advance, taxpayers can reduce their tax liability. For example, if a taxpayer has realized capital gains, they can sell some investments at a loss to offset the gains and reduce the tax liability. Capital gains are taxed differently depending on whether they are long-term or short-term. If your client held an asset for one year or less and sold it for a profit, the gain is considered a short-term capital gain and is included in their income.

      If they hold an asset for more than a year and sell it for a profit, it is considered a long-term capital gain and is taxed. There are capital gains thresholds, which are analogous to income tax brackets.

      2023 Capital Gains Tax

      Capital Gains Single Filer in 2023 Married Filing Separately in 2023 Head of Household in 2023 Married Filing Jointly in 2023
      0% $44,625 or less $44,625 or less $59,750 or less $89,250 or less
      15% $44,626 to $492,300 $44,626 to $276,900 $59,751 to $523,050 $89,251 to $553,850
      20% $492,301 or more $276,901 or more $523,051 or more $553,851 or more

      Charitable donations

      Donating to charities is a noble act and helps reduce tax liability. Taxpayers can deduct charitable donations from their taxable income, reducing it.

      Use a tax professional

      It is always recommended to seek advice from a tax professional to identify and maximize all tax-saving opportunities. A tax professional can guide tax deductions, credits, and other tax-saving strategies that can significantly reduce tax liability.

      When it comes to tax deductions, you can either itemize (add up all of your client’s deductions) or take one standard deduction (a single lump sum deduction of $12,950 for single taxpayers, $19,400 for heads of households, or $25,900 for married filing jointly).

      The standard deduction is the best option if you don’t have many deductions to claim.

      If you have a lot of deductions, you should probably itemize. Check out The Big List of Small Business Tax Deductions to ensure you claim every possible deduction.

      Check out The Big List of U.S. Small Business Tax Credits to see if you qualify for any tax breaks.

      What is Federal Income Tax Liability?

      Federal income tax liability is the amount of federal income tax that an individual or business owes to the federal government based on their taxable income. Federal tax is a tax levied by the federal government on individuals, businesses, and other entities that earn income. The federal government uses tax revenue to fund various programs and services such as defence, social security, and healthcare.

      Federal tax liability is calculated based on the taxpayer’s taxable income, which is their total income minus any deductions or exemptions they are eligible for. The tax rate applied to the taxable income varies based on the taxpayer’s income bracket.

      It is important to note that federal income tax liability is just one component of the total tax liability that an individual or business may owe. Other taxes, such as state and local taxes, may also contribute to the total tax liability.

      It is essential to have a comprehensive understanding of federal income tax liability as it is a crucial component of the overall tax liability. This knowledge can provide better tax planning and advice to clients, ultimately leading to a better client experience.

      In order to reduce federal income tax liability, individuals and businesses can employ various strategies such as maximizing deductions, contributing to retirement accounts, taking advantage of tax credits, and planning for capital gains and losses. It is also essential to stay up-to-date on changes in tax laws and regulations, as they can significantly impact federal income tax liability.

      Deferred Tax Liability

      In addition to the current tax liability, taxpayers may also have a deferred tax liability. Deferred tax liability refers to the taxes that will be payable in the future due to temporary differences between book and tax accounting. For example, if a business records revenue in its books but defers recognition for tax purposes, it will have a deferred tax liability.

      Deferred tax liabilities can be reduced by accelerating expenses or delaying revenue recognition. However, it is essential to note that these actions can significantly impact the financial statements and should be carefully evaluated.

      The final road…

      Understanding tax liability is crucial for individuals and businesses to ensure they are compliant with tax laws and regulations. You play a significant role in guiding your clients toward minimizing their tax liability. By following the tips mentioned above, taxpayers can effectively reduce their tax liability and save money.

      As a leading outsourcing firm, Unison Globus offers expert tax preparation and accounting services to help your clients navigate the complex world of tax liabilities. Our team of experienced tax professionals can assist you in maximizing your clients’ tax deductions, taking advantage of tax credits, and identifying opportunities for reducing their tax liability. We also provide timely and accurate tax preparation and filing services, so you can focus on growing your business while we take care of the rest.

      Contact Unison Globus today to learn more about our tax preparation and accounting services, and take advantage of our free trial offer to experience the difference for yourself. Let us help you and your clients save time, money, and stress by streamlining your tax processes and ensuring compliance with all relevant tax laws and regulations.