Question 1

What role does an accounting specialist play?

Accepted Answer

An accountant has many duties and responsibilities and always makes decisions in your best interest:

An accountant is responsible for financial accounting and reporting
He/She assists in the case of an audit
He/She helps in preparing tax documents
He/She provides management services and consulting
An accountant will provide guidance for financial analysis
He/She plays a major role in cash management

Question 2

What are the common mistakes people make in accounting?

Accepted Answer

There are some common mistakes that people make in accounting. Here are just a few:

Mixing a personal account with the professional account of the company is the most common mistake that people make in accounting.
Lack of communication between the accountant and the company is another common mistake made by people.
Not having a backup system & not correctly allocating resources are some of the mistakes that should be avoided in accounting.
Performing manual accounting should be avoided.
Some people don’t keep the accounting books up to date which is a mistake that should be avoided.
Some people forget to save the receipts which leads to errors in accounting. It is best practice to keep your receipts.

Always consult your Accounting Professional if you have questions.

Question 3

How do I know if I should be doing cash basis accounting or accrual based accounting?

Accepted Answer

If you want to manage your books in an efficient manner, then you can use either cash basis or accrual accounting. Cash basis accounting is a simpler accounting system. With cash basis accounting, you will have to record transactions only when you physically make or receive any payment. For accrual accounting, you will have to record every transaction that takes place, even when you don’t receive or pay money physically. You need to record two entries for each transaction in your accounting system. You should opt for accrual accounting if you provide credit to customers.

You can choose the method that best suits you, but the government specifies some businesses must opt for accrual accounting. If you make more than $5 million in annual gross sales or $1 million in gross receipts for inventory sales, then you should opt for accrual accounting. If your business structure is a C corporation, then you will have to use accrual accounting.

Question 4

Can I pay Illinois taxes online?

Accepted Answer

You sure can! Please visit My Tax Illinois by clicking here.

Question 5

If I am Self Employed, do I need to make estimated tax payments?

Accepted Answer

Most likely yes, you need to pay into the IRS and the state in which you work every quarter. Usually you will need to pay in 100% of your taxes due in the prior year or 90% of your current year taxes to avoid penalties. If you would like assistance calculating your estimated tax payments, please contact us.

Question 6

Does the IRS offer a payment plan if I am not able to pay the full amount due?

Accepted Answer

Payment plans are possible. You have to qualify and fill out an application. Here is the link https://www.irs.gov/payments/online-payment-agreement-application

Question 7

I filed an amended return. Where do I go to find out the status?

Accepted Answer

You can find the status of your return by visiting the IRS website at https://www.irs.gov/filing/wheres-my-amended-return

Question 8

How long does it take to get my refund?

Accepted Answer

It usually takes 4-8 weeks to receive your refund, however it may take longer depending on when you file. You can check the status of your return on the IRS website by visiting https://www.irs.gov/filing/wheres-my-amended-return

Question 9

If I can't locate my prior year tax return, how do I get a copy of the return?

Accepted Answer

You can get a copy of your tax transcripts. Here is the link: https://www.irs.gov/individuals/get-transcript

Question 10

Can I find out when I will receive my refund?

Accepted Answer

You can find out about the status of your refund for both federal and state returns.

For Federal here is the link. https://sa.www4.irs.gov/wmr/

For Illinois, here is the link: https://sa.www4.irs.gov/wmr/

For Wisconsin, here is the link: https://tap.revenue.wi.gov/RefundStatus/_/

Question 11

What is Beneficial Ownership Information (BOI) and who has to register their business?

Accepted Answer

If you register your business with your Secretary of State you have to file a BOI. You can do so through the Financial Crimes Enforcement Website. If you need assistance filing, please contact us.

Question 12

What are the penalties if you do not file your taxes in a timely manner?

Accepted Answer

Filing your taxes on time is crucial. You may be fined up to $500/day (Civil) and up to 2 years in jail and up to $10,000 in fines (Criminally). You can find more information here on the IRS website.

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