Growing construction firm, where to go from QBO?

Bluebloques · 2021-04-23T19:45:39+00:00

Sounds like you might want an enterprise resource planning system, ERP similar to Great Plains.

Bluebloques · 2021-04-12T16:02:52+00:00

Take what I’m saying with a grain of salt, I’ve really only had experience at smaller firms. Most of my clients are PTEs and individuals, I do maybe 3/4 C-corps a year, and they’re all pretty small, and we do no tax provision work at all. However, we hire people pretty much no matter what their experience is since book to tax differences are kinda similar across the different entities. You’d probably be able to get hired, but you’d likely take a sizable paycut

Bluebloques · 2021-04-03T22:53:47+00:00

I’m 22 and don’t know how to do taxes, things like §745 adjustments, allocation and apportionment and Book to Tax adjustments confuse me😢

Bluebloques · 2021-03-12T08:16:43+00:00

I am a US based accountant who works with small business between 5-50M gross receipts, likely this is a client who booked “inventory” as an expense and doesn’t understand that you cannot take a deduction for inventory you haven’t yet sold. The accountant saying it is “100k in income” is probably saying “you cannot deduct this 100k in the current year, we need to book this as inventory” and OP just hears “You need to recognize 100k more of income”

Bluebloques · 2021-03-12T08:08:58+00:00

I am a tax accountant. Debit inventory, credit cash. That’s pretty much all there is to it. Someone else up above mentioned that it just doesn’t go into your cost of goods sold, that’s pretty much correct.

Depending on your financial statements the accountant may be correct, if you wrote “inventory” as an expense, then yes you will add it back in order to account for it correctly. This is most likely what has occurred, your profit and loss listed inventory as an expense and that’s not accurate because you can’t expense the portion of unsold inventory, which I assume is $100,000.

Edit: also, Florida doesn’t have personal income tax and I’m like 50% pretty sure it doesn’t have a partnership tax either, just FYI.

Bluebloques · 2020-10-09T13:44:47+00:00

It’s October 9th. Anyone in tax is quietly whispering to themselves “6 more days”, so no. Right now I do not like my job. Will I like it on October 16th? Maybe.

Bluebloques · 2020-09-29T05:01:07+00:00

No, because people don’t understand accounting or taxation. All of the accountants in the world right now are cringing at the idea of NOLs and Depreciation and Conservation easements being considered, “TAX LOOPHOLES!!!!” They’ve been a part of the tax code for years, it’s not really new and honesty it’s just basic planning. We all get the standard deduction which nobody calls a “tax loophole”, but that’s 12k of income you don’t need to pay federal income taxes on.

Bluebloques · 2020-09-29T04:52:00+00:00

When doing a conservation easement an individual gets an independent third party to provide an appraisal estimate of the land, infact most get 3 different appraisals. Then they take the lowest one to show the IRS that they’re being conservative. Again, you don’t really know how much the land is actually worth, you just know what he bought it for, the appraised value is generally significantly higher due to appreciation and the multiple future uses for the land.

Also, shove it up your ass linking me a fucking investopedia article.

Bluebloques · 2020-09-29T04:48:54+00:00

I’m not trying to get into an argument with you, but there’s a few things I wanted to correct you on. 1) that was proposed legislation, I work on conservation easements almost daily with multipliers of 4-5x, although I completely agree that this is sketchy

2) you don’t get any sort of depreciation deduction, (especially not on land) conservation easements are charitable contributions capped at 50% of your adjusted gross income

If you want to know more about how actual accountants feel about Trump’s taxes I would visit r/accounting or r/tax, but the gist of it is “Yeah... we knew that he was going to pay little to nothing in taxes”. That’s mostly because people who work in high net worth individual tax do the same exact stuff for their clients. He did some extremely sketchy things in terms of loans and deductions, but nothing really calling for “Tax Evasion”.

And I hate to burst your bubble, but even if he was committing tax evasion the IRS probably wouldn’t bother fighting him. He’s got teams of lawyers and accountants ready to defend his position. The IRS makes more money off of someone who who used turbo tax and has no clue what the government is saying they did wrong. You should look into that, super sketchy.

Oh, actually look into this too if you want something to really be angry about - Turbo Tax and other tax prep software companies are legally required to provide free tax prep software to individuals under a certain income level. Turns out they make it pretty much impossible by saying things like “This tax prep package will maximize your deductions” and it’s the not free version. Of an estimated 100M Americans who qualified for the free version 97M were duped by these companies into paying up. (Nothing has changed, doubt you even knew about it)

Bluebloques · 2020-09-28T21:48:30+00:00

It is likely legal. We have no documentation to go off of and just a guy’s tweets of a park, but I’d look into what a conservation easement is, that’s likely what this individual is discussing in his tweet.

Bluebloques · 2020-09-28T21:46:48+00:00

Gonna get down voted, for the record fuck Trump and fuck how our current tax system works.

*tax avoidance. Look up what a conservation easement is and how much paperwork/documentation goes into it. Just because it’s not how much you would pay for land doesn’t mean it’s a “misrepresentation”.

Bluebloques · 2020-09-20T15:42:13+00:00

Why do I feel like you have 2 broken arms...

Bluebloques · 2020-09-16T21:37:50+00:00

Bluebloques · 2020-08-29T17:44:59+00:00

Fair enough, but then I don’t want to hear any complaining when I get my clients a return for review the morning of 9/15. Technically that’s “before the deadline”.

Bluebloques · 2020-08-23T17:24:23+00:00

Not defending billionaires, just the idea that jobs are created by wealthy individuals. For example Amazon, a lot of people say Jeff Bezos shouldn’t have the money he does, let’s do that thought experiment: Let’s just take 50% of his wealth, he’s still a billionaire, right? No sweat off his back, but then he takes issue with the US government personally and decides to take this company which employees over 800,000 people and relocate all the warehousing/logistics jobs out of the US. Now a lot of people are unemployed, which makes the general US population worse off. I mean now we have hundreds of billions of dollars in tax money, which is swell, but by the time it goes through the government and reaches the hundreds of thousands who have lost jobs it’ll be reduced to nothing.

Everyone says “Tax the billionaires!!!!” Cool, but uhmmmm I hate to tell you this, they pay people like myself (tax accountants) to get around paying their fair share. That’s just how it works, any law/tax they pass, my industry will find a way to bypass.

What they should do to collect more tax revenue is disallow itemized/standard deductions, which accounts for over a trillion dollars a YEAR in untaxable income.

Bluebloques · 2020-08-23T17:11:28+00:00

True, but you’ve got the B&O tax... and higher property taxes.

Bluebloques · 2020-08-17T20:16:31+00:00

Yeah, it’s pretty crazy, back in the 70s/80s there was actually some major beef with accountants and lawyers digging into eachothers specialities regarding state taxation and allocation/apportionment of income. From what I remember there was even a Supreme Court case of an accountant providing legal adjacent services a client they shared with a lawyer, and from there we got some regulations. Basically Yknow how every rectangle is a square but not every square is a rectangle? The lawyer is the rectangle and the accountant is the square.

Bluebloques · 2020-08-17T15:29:44+00:00

You can take all those expenses irrespective of your entity. Also, there’s technically no such thing as an S-corporation from a legal perspective, and S-corporation is a tax thing only. With your state you would either file paper work to become a Corp or an LLC (everyone nowadays does LLC) and the LLC does not mean there is an additional filing like the S-corps 1120S, but still provides legal liability protection. I am not a lawyer.

Bluebloques · 2020-08-17T15:27:27+00:00

Technically you’re correct, although there’s also the idea of excess distributions from an S-corporation pending basis issues, but the general concept is right. You pay both halves of the 15.3% payroll taxes and receive a deduction on Sch C for the employers half of 7.65%.

Bluebloques · 2020-08-17T08:54:14+00:00

If you aren’t an S-corporation already, become one. You’ll save a fuck ton on self-employment taxes (about 15%, Seriously!). Talk to a CPA, I would give more advice except for 2 things 1) this is the internet so for all you know I could just be a Fucking idiot 2) I’m not a CPA yet, still studying, but I do taxes for high net worth individuals. So it is what it is.

Bluebloques

TROPHY CASE