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Hummingbirds Bookkeeping & Tax Services Group

Hummingbirds Bookkeeping & Tax Services Group

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Jennifer Williams
Hummingbird Star

Frequently asked questions

General

A: The new $3,600 Child Tax Credit is part of the American Rescue Plan Act of 2021, designed to provide financial relief to families during the challenging times brought on by the COVID-19 pandemic. For the tax year 2021, the Child Tax Credit has been increased from $2,000 to $3,000 per qualifying child between the ages of 6 and 17, and up to $3,600 for children under the age of 6. Additionally, the credit is now fully refundable, which means that eligible families can receive it even if they owe no federal income tax. At Hummingbirds Bookkeeping & Tax Services, we can help you maximize your benefit from this new credit. Our experienced team will guide you through the eligibility requirements, ensure accurate reporting on your tax return, and assist you in managing the advance payments, if applicable. Serving clients in Central Texas, Maryland, and Colorado, we are committed to providing personalized, professional services to simplify your tax obligations and enhance your financial well-being. Reach out to us to make the most of the new Child Tax Credit and for all your bookkeeping and tax needs.

Q: Why does my small business need monthly bookkeeping services if I don't have any employees? A: At Hummingbirds Bookkeeping & Tax Services, we understand that small business owners often question the necessity of monthly bookkeeping, especially when they have no employees. However, maintaining organized financial records is crucial for several reasons. Firstly, accurate bookkeeping provides a clear picture of your business’s financial health, allowing you to make informed decisions. Secondly, it helps in tracking expenses and revenues, ensuring that every financial transaction is accounted for, which can be critical during tax season or when applying for loans. Additionally, regular bookkeeping helps you identify potential financial issues early, such as cash flow problems or areas where you can cut costs, which can be vital for your business’s sustainability and growth. Even without employees, you may have multiple financial aspects to manage, including vendor payments, customer invoices, and tax obligations. Our monthly bookkeeping services at Hummingbirds Bookkeeping & Tax Services ensure that your financial records are always up-to-date and accurate, giving you peace of mind and freeing you to focus on what you do best: running your business. ```

A: Bookkeeping is the systematic recording, organizing, and maintaining of financial transactions for your business. At Hummingbirds Bookkeeping & Tax Services, we provide comprehensive bookkeeping services to ensure your financial records are accurate and up to date. This process includes documenting income, expenses, payroll, and other financial activities. Bookkeeping is crucial for several reasons: 1. Financial Health Monitoring: It helps you track your business's financial health by providing a clear picture of your income and expenditures. This can help you identify profitable areas and those that need improvement. 2. Compliance: Accurate bookkeeping ensures that your financial records comply with state and federal regulations, reducing the risk of audits and penalties. 3. Informed Decision-Making: With precise financial data, you can make well-informed business decisions, such as whether to expand operations, cut costs, or adjust pricing strategies. 4. Tax Preparation: Keeping detailed records throughout the year makes tax preparation easier and more efficient, potentially reducing your tax liability. For businesses in Central Texas, Maryland, and Colorado, Hummingbirds Bookkeeping & Tax Services provides tailored solutions to meet your unique financial needs, ensuring your business runs smoothly and profitably.

A: At Hummingbirds Bookkeeping & Tax Services, we recommend updating your bookkeeping records on a monthly basis. Regular updates facilitate more accurate financial tracking, making it easier to manage cash flow, prepare for tax seasons, and make informed business decisions. For our clients in Central Texas, Maryland, and Colorado, we offer tailored services to ensure your financial records are always current and compliant with local regulations. Monthly updates help catch discrepancies early, reduce the risk of errors, and provide a clear picture of your financial health, allowing you to focus on growing your business with peace of mind.

A: The main difference between cash basis and accrual basis accounting lies in the timing of when income and expenses are recognized. At Hummingbirds Bookkeeping & Tax Services, we provide clarity on these methods to help you make informed financial decisions for your business. - Cash Basis Accounting: This method records income and expenses only when cash is actually received or paid. For example, you record a sale when you receive payment from a customer and an expense when you pay a bill. Cash basis accounting is simpler and more straightforward, making it suitable for small businesses with straightforward transactions. It provides a clear picture of cash flow but may not always present an accurate long-term view of the company's financial health. - Accrual Basis Accounting: This method records income and expenses when they are earned or incurred, regardless of when the cash transaction actually occurs. For example, you record a sale when you issue an invoice and an expense when you receive a bill, even if the cash hasn't changed hands yet. Accrual accounting provides a more accurate picture of a company's financial position and performance over time. It is often required for larger businesses and provides better insights for financial analysis and decision-making. At Hummingbirds Bookkeeping & Tax Services, we are here to assist you in choosing the best accounting method for your business needs, ensuring compliance and optimizing your financial processes.

A: At Hummingbirds Bookkeeping & Tax Services, we highly recommend using QuickBooks Online for your bookkeeping needs. QuickBooks Online offers a user-friendly interface, robust features, and seamless integration with various financial institutions, making it easier to manage your finances efficiently. Additionally, it provides real-time data and insightful reporting that can help streamline your business operations. For clients who prefer alternative options, we also support Xero and Wave, which are equally reliable and effective for various bookkeeping tasks. Our team is well-versed in using these platforms and can assist you in setting them up, ensuring you maximize their benefits for your specific business requirements.

Bookkeeping

Concentrate on expanding your business while we take care of saving you time, money, and resources. We offer support in financial reporting, GL management, reconciliation, monthly and yearly closing, budgeting, and compliance maintenance. We're here to assist you every step of the way.

payroll services

Are you looking for comprehensive Payroll and HR Services? By outsourcing your payroll needs to us, business owners can save both time and money. We will handle the calculations for your wages, tax withholdings, deposits, and reporting.

tax

We are here to help you stay compliant with changing financial regulations and tax laws. Our reports will indicate whether you've filed your tax returns, paid your taxes promptly, and fulfilled all your tax responsibilities.

expertise

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