Bookkeeping Enterprises

“Thanksgiving is a joyous invitation to shower the world with love and gratitude.” --Amy Leigh Mercree

Happy Thanksgiving from Bookkeeping Enterprises!

📱 949.243.0032
✉ [email protected]
🌐 http://www.bkkgent.com

There is still time to file for your Employee Retention Credit (ERC)!

How does employee retention credit work?
The Employee Retention Credit is a refundable tax credit available to certain businesses that qualify. Based on certain factors such as employee cap and qualified wages, specific business owners are entitled to a percentage of qualified wages an employer pays to employees after March 12, 2020, and prior to January 1, 2021.

Who qualifies for the employee retention credit?
To qualify and be an eligible employer you must be able to prove that your business was negatively impacted in one or more of the following ways: Your business experienced a partial or total shutdown during 2020 or 2021 (includes being limited by commerce, inability to travel, or restricted group meetings), or gross receipt reduction (a business may be eligible for one quarter and not another).

How to apply for employee retention credit?
To apply for the Employee Retention Tax Credit, employers must complete and file Form 941-X, Adjusted Employer’s Quarterly Federal Tax Return or Claim for Refund, with their quarterly federal tax return.

What is the deadline for employee retention credit?
The Employee Retention Credit sunset date was moved from 12/31/21 to 9/30/2021; however, you can still file retroactively as long as you meet the eligibility requirements.

Can you still apply for the ERC program in 2023?
Yes, there is still time to apply for the ERC program in 2023. To claim the ERTC tax credit, you will need to fill out Form 941-X. Luckily, the statute of limitations for filing amended quarterly returns is up to three years from the date of filing the Form 941. For example, if you are a business owner that qualifies for the ERTC program during the third quarter of 2020, the amended documentation needs to be submitted by October 2023. Businesses have until 2024 to look back on their payroll during the qualifying period and apply for the ERC tax credit.

For more information and bookkeeping help, contact the experts at Bookkeeping Enterprises today.

📱 949.243.0032
✉ [email protected]
🌐 http://www.bkkgent.com

Do you want to take deductions and write-offs on your taxes?

You will need these 5 things for that deduction to stick. The first 3 are commonly found on receipts.
1. Place - where you actually purchased the item.
2. Point in time (date) - date of when the actual purchase took place.
3. Purchase amount - must show what you purchased and the total purchased for

These last two are missed by 82% of entrepreneurs and it is something that you manually have to add yourself. This is if you want to take advantage of the meal deduction.
4. Person - who you went to eat with (write the name on the receipt)
5. Purpose - the purpose of the meeting (write it on the receipt)

For more information and bookkeeping help, contact the experts at Bookkeeping Enterprises today.

📱 949.243.0032
✉ [email protected]
🌐 http://www.bkkgent.com

You must get an accurate count of the materials and supplies you have on hand if your business has inventory. Otherwise, you could wind up with empty shelves or inventory shrinkage (e.g., expired goods).

If your business has inventory, complete an inventory check before year-end. Match your inventory totals to your balance sheet. If you find discrepancies between your count and balance sheet, make adjustments.

Accounting for inventory at year-end can also help you know how much you spent on inventory during the year and its value. And, it can help you better plan next year’s inventory, especially for busier seasons.

For more information and bookkeeping help, contact the experts at Bookkeeping Enterprises today.

📱 949.243.0032
✉ [email protected]
🌐 https://bkkgent.com