Author: kitty

Getting a Form 1099 with errors is frustrating, but you need to deal with it quickly. No matter what the mistake is, you still have to report your income correctly to the IRS. Here’s how to fix 1099 errors and stay on the right side of your tax obligations.

1. Identify the Error

Start by comparing the Form 1099 to your own records—receipts, bank statements, emails, whatever you’ve got. Figure out exactly what’s wrong: is it the amount, your Social Security Number, your name, or the wrong type of form? Have your documentation ready when you ask for a correction.

2. Contact the Issuer Promptly

Reach out to whoever’s listed as the “Filer” on the form. Give them a call first, then follow up in writing—certified mail is your best bet for keeping a paper trail. Send copies of your supporting documents and ask for a corrected Form 1099 with the “CORRECTED” box checked. Keep everything: all the emails, letters, and the original 1099.

3. If the Issuer Does Not Cooperate, Contact the IRS

If you’ve tried a few times and still haven’t heard back, call the IRS at 800-829-1040 and tell them what’s going on. They’ll reach out to the payer themselves, and you’ll have proof that you did everything you could to fix it.

4. File Your Tax Return Accurately and On Time

Don’t miss the tax deadline just because you’re waiting on a corrected 1099. File on time and report what you actually earned. If your numbers don’t match the 1099, add a note explaining why and what you did to fix it. For 1099-K errors specifically, put the amount on Schedule 1 (Form 1040), Line 8z, then add an offsetting adjustment on Line 24z with something like “Form 1099-K received in error.”

5. File an Amended Return If Needed

If you get a corrected 1099 after you’ve already filed and it changes your tax situation, file an amended return using Form 1040-X to set things straight.

6. Key Points to Remember

• The payer should fix their mistakes, but at the end of the day, you’re the one responsible for reporting your income correctly and explaining what went wrong.
• Keep good records of everything, all your correspondence and supporting documents.
• If you’re still waiting for that correction when Tax Day rolls around, you can file for an extension. Just make sure you pay whatever you owe by the original deadline, so you don’t get hit with penalties.
• Mistakes happen, but you need to act fast.

Conclusion

Form 1099 errors happen all the time, but they don’t have to derail your tax season. Follow these steps, and you’ll get things sorted out while staying compliant. Move quickly, keep good records, and stay in clear communication with the filer and the IRS. If you need help, Warren Accounting Group is here to guide you through it.

Strategic planning is crucial for businesses of all sizes. It serves as a roadmap for growth and development, helping business owners set clear goals and define their path for the next three to five years. Many entrepreneurs, however, often find themselves unsure about the meaning and significance of strategic planning and how it can enhance their business operations.

At its core, a strategic plan helps business owners outline their vision for the future and chart a course to achieve it. In a competitive market, having a well-defined strategic plan can significantly mitigate confusion and disarray, guide you through potential challenges, and enhance your chances of success.

Understanding Strategic Planning

At its core, strategic planning is an overarching framework that not only influences high-level decisions but also guides daily operations. It provides clarity, direction, and consistency, enabling business owners to focus their energy on achieving specific goals. The components of an effective strategic plan can differ based on the size and nature of the business. Typically, smaller companies create more streamlined plans.

A critical element of a strategic plan is the action plan, which clearly defines business objectives. This section details tasks, assigns deadlines, and allocates responsibilities to team members, ensuring everyone knows their role in achieving the company’s goals.

The Importance of Strategic Planning

Many small business owners mistakenly believe that strategic planning is only beneficial for larger companies. However, the truth is that all businesses, regardless of their size, can reap considerable benefits from a carefully crafted strategic plan. One of the key advantages is that it can rekindle the passion and motivation that inspired entrepreneurs to start their business in the first place.

Through strategic planning, business owners can conduct a SWOT analysis to examine their strengths, weaknesses, opportunities, and threats. By understanding where the company stands in relation to its competitors, owners can pinpoint areas for improvement and develop targeted tactics to boost performance. Furthermore, having a paper trail of these strategies helps execute them effectively and track the results.

Distinguishing Between Strategic and Business Plans

It’s important to distinguish between a strategic plan and a business plan, as they serve different purposes. A business plan is a comprehensive document that includes elements such as marketing, financial, and operational plans, as well as the strategic plan itself. It addresses the fundamental questions regarding what a business aims to achieve.

On the other hand, a strategic plan focuses on how to achieve those objectives. Essentially, the business plan outlines your goals, while the strategic plan details the pathway to reach them.

Measuring Strategic Success

Understanding how to assess the results of your strategic initiatives is essential for determining if you’re on the right track. Key Performance Indicators (KPIs) are valuable tools for measuring outcomes and can include metrics such as sales growth, revenue, customer acquisition, and client feedback.

The frequency of strategic planning reviews varies between businesses. Some organizations might opt for an annual review, whereas others may conduct strategy sessions when launching new initiatives. Regardless of the approach you choose, regular check-ins and assessments will help ensure that your business remains focused and achieves its long-term objectives.

Strategic planning is not just a luxury for larger enterprises; it is a vital component of success for small businesses. By investing in effective strategic planning, entrepreneurs can better navigate market complexities and position their companies for future growth.

Growth offers opportunities but also increases complexity, particularly in payroll management. What started as a simple task—issuing a few checks — can quickly become much more, including tax compliance, benefits management, and technology integration.

Payroll errors can lead to more than financial losses and employee dissatisfaction; therefore, growing companies need to get payroll right. So, many turn to firms like Warren Accounting Group for expertise, ensuring accuracy, compliance, scalability, and time savings.

Understanding Payroll Complexity

As businesses grow, payroll management becomes more complicated. A company with five employees may face minimal challenges. But as the company expands to 10, 20, or more employees, payroll can become a full-time job. Employers must accurately calculate wages, manage deductions, track overtime, and comply with various tax laws.

Firms that handle payroll processing are well-equipped to navigate growing businesses’ complexities, employing dedicated teams and advanced systems that reduce errors and improve efficiency.

Supporting Growth

One of the main reasons to outsource payroll to a firm such as Warren Accounting Group is our scalability. In-house systems struggle to keep up as your business grows, making it difficult to manage new employees and benefits. We are equipped to handle expansion, offering customized solutions to meet your needs and ensuring payroll remains efficient and does not hinder your growth.

Managing Payroll Accuracy

Payroll accuracy is crucial. Employees expect timely, error-free paychecks, and government agencies demand precise tax filings. A single mistake can lead to employee complaints or IRS penalties, costing small businesses billions of dollars every year.

Warren Accounting Group helps ensure accuracy through verification systems, automated calculations, and regular audits, minimizing errors. We handle all aspects of payroll, from garnishments to benefit deductions, ensuring no detail is missed. This reliability is essential for growing businesses.

Ensuring Compliance

Payroll is subject to complex, ever-changing regulations. Federal laws like the Fair Labor Standards Act (FLSA) set wage and overtime rules, and state and local governments add their own requirements. Businesses must also handle tax obligations, reporting deadlines, and employee classifications. Keeping up with these can be difficult for business owners. That’s why relying on Warren Accounting Group for payroll services is a wise choice. We stay up to date on regulatory changes and ensure your payroll remains compliant at all times.

Talent Shortages

Finding qualified payroll professionals is becoming increasingly challenging due to the rising demand for accounting expertise. The Bureau of Labor Statistics projects a 6% growth in accounting jobs from 2023 to 2033, intensifying competition for payroll and accounting talent. By outsourcing payroll, you bypass the recruitment struggle and gain access to a team of experts without the costs of hiring, training, and retaining in-house staff.

Alleviating Your Burdens

Payroll can be a time-consuming task, involving calculations, tax filings, and paycheck distribution. For growing businesses, managing these tasks can distract from core functions like product development, customer service, and sales. Outsourcing payroll will alleviate this burden, allowing your team to focus on strategic initiatives that drive revenue and growth.

Partnering with Warren Accounting Group

Warren Accounting Group offers tailored payroll solutions for growing businesses. Our experienced team combines industry knowledge with advanced technology to ensure your payroll is accurate, compliant, and scalable. By partnering with us, you gain a trusted advisor focused on your success.

Payroll is crucial, and for growing businesses, errors and compliance issues can hinder progress and damage reputations. With Warren Accounting Group, you receive accuracy, compliance, and expert guidance, freeing you to focus on business growth. As demand for accounting professionals rises, outsourcing payroll is essential for sustainable success. Partner with us today and let our team handle your payroll efficiently.

Starting your own business is no easy feat, as many business owners are responsible for managing every aspect of their business, from answering the phones to handling finances. Your plate is full! The best way to become comfortable in your new role as a business owner is to start with the basics. Keep reading to learn what accounting essentials you should know as a new business owner!

Set up a System

The first step to get your accounting in order is to set up a structured system that works for you. Having a specific process to follow when managing the financial aspects of your business makes it much easier to establish a routine. Research different software to find out which one is right for you, set up your charts and accounts, and begin recording your transactions, invoices, and revenue. Create a system where you perform the same actions every day, week, or month. Ensure that your system is set up for long-term use and will be easy to maintain over time.

Develop Cash Flow Management

Develop a cash flow management strategy as soon as possible. This is the key to maintaining your business’s financial health and staying on track. Keep an eye on outstanding invoices so you know how much money you are owed and from whom. Establish a savings plan for unexpected expenses and create a cycle for managing your payments. When your cash flow is developed and positive, there is money being moved in and out of your business, which is a good thing. Having a negative cash flow means you have more money going out than coming in, which is not a profitable situation. A positive cash flow means that you can grow your business and maintain success even in slower times. To manage cash flow, pay close attention to cash coming in and going out, track growth and make predictions, control expenses, and follow up on money owed to you.

Plan for Taxes

For many business owners, tax season can be a stressful, challenging, and overwhelming experience. To avoid these frustrations, it is essential to be proactive and plan for tax season in advance. Set aside cash specifically for taxes so that you are prepared when payments are due. Know which taxes apply to you, understand the tax laws, and be aware of any changes. Stay on top of the deadlines. Being well-prepared for tax season and having all the necessary records and receipts readily available will save you plenty of time and money in the long run.

Keep Records and Stay Organized

A key factor in good accounting is being organized. Maintaining accurate and up-to-date records can significantly ease your life, and staying organized is the first step. Make it a habit to record all transactions and reconcile accounts regularly. Staying on top of your business’s financials helps avoid errors and provides reliable information, enabling you to make informed financial decisions. Additionally, the more organized you are, the faster you will be able to complete your accounting.

Annual Tasks

There are several tasks you should consider doing annually to help you stay organized. Review your past-due receivables, review your inventory, complete any necessary tax forms, and analyze your financial reports for the entire year. Having accurate lists and information to refer back to helps in the future and can help you avoid penalties, fees, and interest.

As you begin your business, becoming familiar with the various aspects of accounting and financial management is crucial. Warren Accounting Group can help you determine the best way to get started and help you manage your financial tasks with ease. Our team is committed to helping you grow your business, one step at a time. From first-time business owners to seasoned entrepreneurs, our services are tailored to fit your specific needs. Contact us today to learn how we can assist you, 252-827-5259.

Business owners face considerable pressure and stress when building their companies. What if there was a way to delegate while still overseeing every aspect of your business? When you outsource some of your most significant, time-consuming responsibilities, like your financials, you can focus on other tasks. So, when it comes to outsourcing, what kind of help do you need: a bookkeeper, an accountant, or both? There are stark differences, and we’ve broken down the tasks and responsibilities for each below to help you make an informed decision. Keep reading to find out more about the differences between an accountant vs. a bookkeeper!

Bookkeeping

In a business, bookkeeping helps maintain financial health and drive growth. Regular bookkeeping ensures you are always aware of your business’s current financial status. Having a bookkeeper can benefit you in the long run, enabling you to make informed decisions, meet requirements and goals, and comply with state and federal regulations. This job requires organization and a basic understanding of financials. Other bookkeeping tasks typically involve:

• Recording sales and purchases
• Reconciling statements and accounts
• Paying suppliers
• Creating and organizing financial reports
• Documentation records
• Running payroll
• Tracking invoices

Accounting

An accountant uses the data recorded to make recommendations and offer valuable insights into the company’s current financial standing. Having an accountant means understanding how your business is performing, being aware of areas where you excel and areas that need improvement and having peace of mind that your overall financials are being monitored and taken care of. Accountants provide information and perform various tasks, including:

• Tax advice, recommendations, and liabilities
• Filing income tax returns
• Flag any inconsistencies
• Monitor and develop budgets
• Work with auditors

Do you need an accountant or a bookkeeper?

Many business owners handle their bookkeeping and accounting but often find it frustrating and time-consuming. Some may even put the task off for as long as possible, making it harder to stay on track. When you are focused on growing your business, it can be easy to put other tasks on the back burner, but it can eventually affect the health of your business, and maybe even cause significant problems when it comes time to file taxes. The roles of bookkeeping and accounting are crucial parts of managing a business’s finances, maintaining accurate records and statements, and ensuring compliance. If you find yourself struggling to do it all as a business owner, the good news is that you don’t have to anymore!

Warren Accounting Group can help with any accounting or bookkeeping needs you may have. Our team is dedicated to providing helpful and efficient solutions to each client, giving you the time and resources you need to focus on what you do best – running your business. Speak with one of our team members today to see how we can help guide you to a brighter financial future, 252-827-5259.

Accounting and bookkeeping can be a complicated and stressful task. There are many forms to track, terms to know, and new practices to keep up with. Understanding the jargon can help you better understand your business’s bookkeeping and financial status. We’ve put together a list of accounting terms you need to know to help you stay on top of things!

Accounts Payable refers to the money that the business owes. Any unpaid bills and expenses are considered accounts payable and, technically, debt. These are listed as short-term liabilities on your balance sheet.

Accounts Receivable refers to the money that is owed to you for services that you have provided but have not yet received payment for. Monitoring and managing your accounts receivable ensures you maintain a positive cash flow. This is classified as an asset on your balance sheet.

Accruals are known as bills that you have not paid yet, or sales that you have made that have not been paid. In reference to your balance sheet, think of accruals as outstanding services or sales that you have not yet received a bill or payment for.

Assets are known as any items that your business owns that have value, including vehicles, cash, and property.

A Balance Sheet is a list that shows your assets compared to your equity and liabilities. A balance sheet helps you monitor the health of your business, keep track of cash flow, and monitor overall finances. Keeping your balance sheet updated allows you to make informed and calculated decisions when it comes to payments, investments, and risks.

Cash Flow refers to the money that flows in and out of your business, including income and expenses. Keeping track of your cash flow is an essential part of understanding the financial state of your business.

Expenses refer to the money that you spend to keep your business running and functioning. Expenses may include the cost of your goods, the rent and upkeep of your building, any office supplies, and payroll.

Equity is the value that remains after liabilities are removed or paid. To determine equity, you should subtract your liabilities from your assets.

Income Statements show the amount you have spent and the amount you have made at any given point. Income statements are used to monitor and report revenues and expenses, and show profit or loss earned.

Liabilities refer to debts that your company owes to someone else. There are two categories: short-term liabilities (accounts payable or credit card balances) and long-term liabilities (loans).

Return on Investment (ROI) refers to the profit your business makes from something you invested in. For example, your ROI is divided by the investment you put into it. In short terms, it is the amount you make back after investing in something for your business. It’s essential to track ROIs to know what investments are worth making and what investments you should change.

Even if you are a pro when it comes to bookkeeping language, it can still be a daunting task to constantly update, track, and review your bookkeeping and finances. Trust Warren Accounting Group to help! We offer a variety of services to take some of the stress off of you so that you can focus on your business. For more information on our accounting and bookkeeping services, give us a call!

Hiring a bookkeeper is daunting and can cause stress, anxiety, and uncertainty. You want to be able to trust your bookkeeping firm, as they will have access to all your financial information.  So, how do you get started? You should hire a bookkeeper the way you hire an employee – by asking them questions. We’ve put together a list of the most important questions to ask before hiring a bookkeeper so you can be sure you are working with someone you can trust!

What is their experience?

One of the most important questions you’ll want to ask is what kind of experience the bookkeeping firm has. Unlike other financial professionals, bookkeepers do not have to be legally certified, so it’s essential to check that they are experienced in your industry and to know what other types of businesses they have worked with. Different companies have different financial needs, so a bookkeeper with knowledge in your field could benefit you.

What software/tools do they use?

Another question that could help you decide on the right bookkeeper is what kind of software they use. A variety of software is available that allows bookkeeping to be seamless and efficient. Ensure that you ask your bookkeeper if they are proficient in the software, you currently use or if they recommend a different kind of technology.

What other services do they offer?

Check with your prospective firm about the other services they offer. Having the same firm handle your bookkeeping, payroll, and tax preparation could make things much more manageable. This way, you don’t have to have your bookkeeper coordinate with other financial professionals, everything is taken care of, and you have one specific firm that is up to date with your financial data. This is a cost-effective way to become financially proficient and stay organized year-round.

Do they have references?

When considering hiring a bookkeeping firm, hearing about other businesses’ experience with them can be helpful. Reach out to other business owners for recommendations and referrals to be sure you choose the right bookkeeper. This will give you an idea of the type of work they do and how proficient they are. You can also ask for case studies to be sure the firm you are looking into can benefit you.

Warren Accounting Firm provides professional financial guidance to help your business flourish. We offer bookkeeping services, payroll, and tax services to help you minimize tax liabilities and maximize resources. Our friendly, personalized service means you get the exact help you need for your financial situation. Contact us today to schedule a meeting with one of our accountants and see how we can help guide you to a brighter financial future.

When it comes to bookkeeping, ensuring everything is accurate, accounted for, and up-to-date can take up much of a business owner’s time. Mistakes are easily made, and they can cost a business in the long run. Luckily, errors can be fixed when they are caught quickly. We’ve put together a list of the 5 most common bookkeeping mistakes, and how to prevent making them!

Not Reconciling Bank and Credit Card Statements

One of our biggest tips for making bookkeeping easier is to reconcile your bank statements with your books as often as possible. This way, you will know exactly how much money your business has at any moment. It will also allow you to catch any errors or mistakes quickly. When done regularly, reconciliation gives you insight into the health and status of your business. We recommend setting aside monthly time to compare your statements and bank accounts to ensure accuracy.

Combining Personal and Business Expenses

Co-mingling your personal and business expenses is one of the most common and expensive mistakes we see business owners make. Mixing these accounts could even cause issues with the law if your business was audited. We advise opening a bank account for your business that is separate from your personal accounts. This way, when it is time to reconcile your accounts, you can easily track expenses and payments, ensuring that your books are accurate. This will make the process simple and hassle-free.

Classifying Employees Incorrectly

When classifying your employees, it is crucial to be as specific as possible about what type of employee they are. For example, if you hire an independent contractor and incorrectly classify them as an employee, you will be at risk of owing a hefty fine to the IRS. In some types of businesses, owners make the mistake of listing themselves on their payrolls, but they are not technically W-2 employees. It can quickly get complicated when it comes to classifying what type of employees you have and labeling them appropriately. Be sure you are categorizing them correctly!

Neglecting to Track Reimbursable Expenses

Another major mistake we often see is neglecting to track reimbursable expenses. These charges are easy to forget because you pay a client and then charge it back to them. Make a point to keep a log of every reimbursable expense. This will protect you with a paper trail during an audit, allow you to ensure you are not losing money, and save you money down the road when you are filing your taxes!

Trying to Do it All Yourself

As your business grows, bookkeeping can become complex and time-consuming. Business owners who try to manage everything from finances to operations may find themselves burning out, which can lead to making costly mistakes. Consider outsourcing your bookkeeping to an accounting firm. Professional bookkeepers have the expertise to catch any errors, provide insight into your finances, and help you stay up to date on ever-changing tax requirements.

Warren Accounting Group is the go-to firm for payroll processing and bookkeeping services your business may need. Our experienced team can assist you by offering various services to improve your business’s financial health. Ready to focus on growing your business? Contact our office today to get started at 252-827-2652.

We know bookkeeping can be stressful and tedious. Taking care of your bookkeeping is much easier when your tasks can be broken down into smaller and more manageable pieces. That’s why we’ve created a list of tips to help you break down your monthly finance tasks so that they are less overwhelming. Keep reading for some help on the best ways to simplify your bookkeeping!

Record Everything

First and foremost, be sure to record every sale, expense, and invoice. Tracking these documents is a key factor in managing finances and is necessary for accurate record keeping. It is also important to categorize your records by document type and year. We recommend keeping records up to six years back in case the IRS audits you. Overall, having documentation of all of your business transactions that are easily accessible will help prevent errors down the road.

Reconcile Often

Another tip is to regularly reconcile your accounts to confirm everything matches or quickly catch any discrepancies or issues. We advise comparing your statements to your records at least once a month so you can pinpoint any problems, account for all transactions, and know exactly where you stand financially.

Stay Organized

Try to keep your bookkeeping documents as organized as possible. Sort your documents by group and file them according to date. Monitor your cash flow to ensure you can pay any upcoming expenses and pull reports regularly to stay on top of your profits and losses. We also advise keeping your finances separate from your business finances for many reasons. When your accounts get intertwined, sorting through and identifying each transaction requires more time and effort. Staying organized and consistent allows for a seamless record system, and you will be less likely to make mistakes.

Establish a System

To be as efficient as possible, establish a specific system you follow each time you tackle your bookkeeping. Automating things like payroll or invoicing can help prevent you from missing a deadline and give you more time to focus on other aspects of your finances. You should also form a detailed filing system and keep a physical and digital version of your files. An efficient system is a great way to divide tasks and keep things structured when managing your bookkeeping.

Consider Outsourcing

If you have implemented all these ideas and still feel swamped and overloaded with your bookkeeping – it may be time to consider outsourcing. Documenting your finances is important but can be difficult while running a business. There are so many nuances and details to remember regarding bookkeeping. When you outsource your financials, you can trust that everything will be balanced, compliant, and done without error.

Warren Accounting Group provides professional bookkeeping to all kinds of businesses. Our ability to tailor our services to fit the needs of your specific business means that we can accommodate any requirement or request. We can handle the ins and outs of bookkeeping so you can focus on your business’s growth. Contact us today to speak with one of our team members: https://www.warrenaccountinginc.com/contact/.

Tax day is right around the corner, and if you are not prepared, it can cause tons of stress and anxiety. We encourage you to stay in the know, get organized, and know your circumstances. Do not let tax season sneak up on you! Keep reading for some tips to make filing a breeze!

Know Your Deadlines

Most people dread the arrival of tax season. One of the easiest things to do to make filing taxes simple is to know your deadlines. This can keep you from worrying and rushing to file on time. This will also help you prepare and set aside a day to file. If filing for an extension, it is essential to know when that due date is as well. Moreover, if you request and receive an extension, your tax bill is still due on time. If you fail to file on time, you will be fined.

Important dates to note:

• January 27, 2025 – IRS opens and will begin accepting/processing returns.
• April 15, 2025 – Tax filing deadline. Even if you request an extension, your tax bill is still due by this date.
• October 15, 2025 – Tax filing deadline if you requested and received an extension.

Gather All Your Documents

Another way to prepare for tax season is to be sure you have all the documents you will need on hand to save time down the road. No matter how you file, you will need certain documents to file your taxes. It may benefit you to keep a folder of all the relevant forms you will need so it will be easier to access next year. Confirm that you have the following documents:

• Social Security number
• W-2 form
• 1099 forms, if necessary
• Retirement account contributions
• Property taxes and mortgage interest
• Donations
• Paid state/local taxes
• Educational expenses
• Previous federal and state tax returns

Know Your Filing Status

Life events can make a huge difference in your tax filing, so know your filing status beforehand. If you got married, had a baby, retired, or purchased a home this past year, your filing status may have changed, or your taxes may have been affected.

Filing statuses are:

• Single: Unmarried, divorced, or legally separated.
• Head of household: Single, pays over half of your living expenses for yourself and at least one qualifying dependent.
• Married, filing jointly: married couple or married person whose spouse passed this year, filing one return.
• Married, filing separately: Married couple, filing taxes separately.
• Qualifying widow(er): A person whose spouse passed in the last 2 years, with one or more qualifying dependents.

Determine How You Want to File

There are multiple ways you can file your taxes. Some use tax software that prompts you with questions and allows you to submit paperwork to help you file successfully. Others hire tax preparers to handle this task. This limits the risk of making mistakes when filing and ensures compliance with the IRS. A professional accounting group can also help maximize your deductions and credits, potentially helping you save money.

Preparing for tax season doesn’t have to be a drag – let Warren Accounting handle it! Our team of experienced professionals can navigate the stress of compliance, audits, and disputes, so you do not have to! When you outsource tax filing, you can save time, reduce stress, and gain peace of mind. Schedule an appointment with us today at 252-827-5259.