UPDATE! The Comptroller's Office is still OPEN... and they are HELPING!  (The Comptroller is FULLY Operational...This data is HISTORICAL)

Here's some news you can use! 

The following information is broken down by taxpayer situation in Texas.  Refer to the state taxing authority in all governing states.  States have different policies.

UPDATE: Until further notice, if your audit package is dated March 26, 2020 or later, the Comptroller's office is tolling the period to request a hearing if you don't agree with your audit result.  They will send notification when they reestablish the 60-day deadline to request a hearing and once we receive this notice, we will again update this post.  Be sure you are subscribed to our blog so you receive notification when this change has been made.

Claim Your Money!... Understanding Unclaimed Property

Each state keeps a database that lists people and companies that did not claim money that was legally due.  If you need some cash, you and your company may want to check with state taxing authorities to claim money that the state may be holding for you.   You can do it online.

The flip side to this statement is that companies must file reports that identify people and entities that are owed money or property and remit the items to the state taxing authority.  

This article is about a boon and a "gotcha!"  State taxing authorities may grant filing extensions.  It is highly unlikely that unclaimed property requirements will not be enforced.  It takes time to file these reports.  

When your company writes a check to anyone, i.e. an employee, vendor etc., if the person doesn't cash it, you can take the money back into income.  Right?  WRONG!

The Comptroller's Office is OPEN... but they are trying to HELP!

Here's some news you can use! 

The following information is broken down by taxpayer situation in Texas.  Refer to the state taxing authority in all governing states.  States have different policies.

UPDATE:  Corporate tax returns were NOT due Monday!

  UPDATE:  The deadline is April 15, 2020.  Businesses may request a six-month extension by filing Form 7004 and submitting a deposit for taxes owed.  Work with your tax filer to determine your best options.

I know that you are wondering if you have the right blog.  You do!  Nothing has changed.  We do not help people with federal income tax or franchise tax matters.  Both filings do impact sales and use tax matters.  Here's how:

WARNING!  Your Sales Tax Accrual Account Is Key

Warning! It is critical that you pay attention to your sales tax accrual account.  One of the first things an auditor does when reviewing company records is reconcile your sales tax accrual account.  The auditor must make sure that all sales tax collected is remitted to the state tax authority.  

I Don't Know!.. Year-End and Adjusting Journal Entries and Sales Tax

 At the end of year, everyone closes the books.  Your accountant goes over the records, you explain unusual transactions, and you enter year-end and adjusting journal entries.  Everything is great and you're ready to go.  Right?!  Wrong!...very wrong!

Kudos!  Your Business is Growing... Avoid these TRAPS!

Congratulations! I LOVE to hear that anyone’s hard work is translating into more money.  After getting off the initial happiness high of hearing this, I go into protection mode.  What’s protection mode?  If we have ever met, you know that I guard any progress like a hawk!  I want you to keep, grow, and enjoy the fruits of your labor. 

Happy 2020!...We are launching ONLINE classes this year!

That's right!  The picture says it all!  We are launching online classes in a few weeks.  The first class was developed for contractors with jobs in Texas.  We are going to build contractors' knowledge of Texas sales and use tax compliance from the ground up.

TRICK or TREAT! ...Here's a Sales Tax Treat

I recently spoke with a client who asked the million-dollar question:  Why do I get a different answer every time I ask someone the same tax question?  It's maddening isn't it?  Here are my top three reasons this happens:

Are You Still Feeling the Love?

February always brings to mind hearts, flowers, love and passion. Business owners usually start a business when they are passionate about what they are doing.For example, you love baking, so you open a bakery. You love working with your hands, laying tile or installing cabinets, so you become a contractor. You want to support your family, you enjoy nice things, and you have an idea about how to make money, so you open a business. Whatever the reason, every business owner has a story about why they hung out their shingle.

Why Do Companies Have a Second Set of Books, i.e. Financial Records?

I went to a conference and the speaker encouraged business owners to have a second set of books.  I heard the suggestion and thought, “what is this craziness?!” The rationale was as follows:

  • The first set of books would be given to your CPA, and serve as the basis for tax filings etc.  It would accurately reflect expenses, revenues, etc.
  • The second set of books would remove select items to show “how the firm was really doing.”  The second set of books would eliminate expenses, such as owner salaries, owner-related expenses, and revenue that was deemed extraordinary.  It was advised that the second set of books be kept under lock and key and never confused with the “real” set of books.

As people began to make plans to institute this plan, I was struck by the level of risk associated with this practice.  It is truly dangerous to have two sets of books.

Computer Conversions: Right after I purchase tech it is upgraded!

One of the most heartbreaking things I see too often is the ineffective technology upgrade.  How can an increase in functionality be ineffective? There’s one huge way...when you have someone who refuses to use the new technology.

We have all seen companies that pay a lot of money for computer upgrades.  Management spends a lot of time and money on the computers, software, training, and troubleshooting.  Everything seems to be going great until someone makes a simple request.

Don't Let Spring Fever Turn into an Inferno for Your Business

Spring is upon us. The birds are singing, bees are buzzing, and the pollen count is off the charts. Even if you are experiencing snow in April (which is so weird), spring fever is still contagious. But business owners and accounting departments should not get carried away clearing out old files and records, in case the state taxing authority decides to visit.

Show me the money! Say your price LOUD and PROUD!!!

People talk about clients that don’t want to pay them. The client pays too slow or raises a stink about the bill. There are several ways to deal with it. I find that an ounce of prevention is worth a pound of cure.

When people call, I tell them my prices up front. When I estimate how much time a project is going to take, I make a reasonable guess based on past jobs and then multiply the estimate by two and provide a range of prices.

4 Red Flags: I’d Rather Eat a Dirt Sandwich than Become Involved

Hindsight is 20-20.  Over the course of my career, I have regretted accepting select engagements.  The interesting thing is a voice in my head always told me to “run!” I listen now after much aggravation and loss of time and money.  

Bye Felicia

bye-felicia.jpgMost of us have a client that we love. Your contact is wonderful. They pay on time. The volume of business is spectacular. You are living large!

Then it happens. Your client merges with or is bought by another company. Your contact is  replaced by someone who sends email at 2:00am and is enraged that you dare to sleep. The person who employs your company has been replaced with someone who decides to limit or discontinue your contract. Or the client decides they are not going to use your services and they are not going to pay you the “substantial” amount that they currently owe you.

“The content of this website is intended to convey general information only and does not represent accounting, tax or legal advice or opinion. Because tax laws, policies, and applications are dynamic and fact-specific, please consult with a state tax professional for a complete analysis of law as it may apply to your specific situation at a particular time. If you require an in-depth review of a specific fact situation, please contact our offices to establish a client relationship for opinion and advice.”