Author: Maria T. Rollins

Maria T. Rollins, CPA, MST

Holiday Memories

Posted by Maria T. Rollins on December 23, 2016

From nostalgic memories of Rudolph sightings, to family gatherings big and small, to the careful selection of the “perfect” Christmas tree ― these are the stories of past and present traditions that the KRS team shares this holiday season.

Rudolph, the Red-Nosed Reindeer

“When I was little, our family went to a big family gathering every Christmas Eve. On our drive home late at night, we always passed a tower with a blinking red light on top. My parents told us that it was Rudolph’s nose. When we would get home, there would be presents under our Christmas tree because Santa was there while we were out.” – Victoria Wilson, Senior Audit Manager

“Walking home from church on Christmas Eve when my son was 4 years old, he saw a red blinking light in the sky. We told him it was Rudolph and Santa’s sleigh flying through the sky. Today, he still fondly remembers that special night.” – Laura Horgan, Controller

Annual Traditions

“A special memory is my sister and me putting on our matching Christmas pajamas on Christmas Eve, and leaving cookies and milk for Santa, with carrots and water for his reindeers. First thing on Christmas morning, we would run downstairs to see how much Santa and the reindeer ate. Then we’d look under the tree for our presents.” – Kelley DaCunha, Senior Accountant

“One year when I was little, my dad took my sister and me to Santa Land in Macy’s Herald Square in New York. I don’t actually recall visiting with Santa, but I do remember waiting in line and looking at all the cool things around us, like the train set and the colorful displays. I especially remember him buying us “dirty water dogs” (hot dogs from a pushcart on NYC street) to eat. Now, I do the same thing with my children every year in New York, to give them this special holiday memory.” – Jennifer Carriel, Marketing Coordinator

“With wonderful memories of selecting the annual Christmas tree, it was only fitting that I carried on this family Christmas tree tradition with my own children. Our first Christmas as a family, we decided to cut down our tree. My husband, our then 11-month old son, and I headed out to a Christmas tree farm with my brother and his wife. We were such amateurs. When we got to the farm we realized that the field was covered with snow and we had an 11-month old who could not yet walk. But my brother had a good idea. He had brought along a radio flyer sled to drag the trees back to the car. He attached my son’s car seat to the sled with bungee cords, and pulled him through the snow-covered field until we found the perfect tree. Of course, we then had to find someone with a saw since we didn’t think to grab one before we headed out. Amateurs! That same 11-month old is now a 20-year old. He stopped home from college last weekend, joining his dad and me on our trek to the local Christmas tree lot to help find the perfect 2015 Rollins’ family tree.” – Maria Rollins, Partner

Family Fun Times

“Christmas comes with many memories and feelings from when I was younger. I always looked forward to spending Christmas Day at my cousins’ house. Being from the city, I was amazed at the way my cousins had their house decorated and lit on the outside. My oldest cousin usually had activities for us younger ones to do, which included ice skating on a nearby pond, walks in the park, and board games. This year, I am looking forward to reliving some of these memories. You’re never too old to spend time with your family and loved ones.” – Lance Aligo, Senior Accountant

“Treasured holiday memories for me include decorating the house and Christmas tree with my loved ones. Then there is spending time with ALL the family, which does not occur enough during the rest of the year, and rehashing stories of Christmases past when we were growing up. We all also really enjoy watching the same old Christmas-related movies, like A Christmas Story and Home Alone.” – Giovanni Carbone, Manager

A Puppy for Christmas

“On Christmas morning when I was 7-years old, my parents were acting a little weird, but I didn’t know why. After I opened all of my gifts, they told me there was one more gift in the other room. When I opened the door to the room, a German shepherd puppy came running out. I was so excited!” – Diane Pineda, Staff Accountant

Celebrating Santa on New Year’s Eve

“My fondest holiday memory is New Year’s Eve with my cousins while growing up in Greece. Every New Year’s Eve, our parents would leave my three sisters and me at my aunt’s house for their Nanny to watch all of us, while our parents went to a New Year’s Eve party. We would play, hang out together, and watch movies until very late. Then we’d all go to sleep in one room, giggling all night until we all fell asleep. The next morning, we would wake up to a delicious breakfast and lots of presents under the Christmas tree. In Greece, Santa comes on New Year’s Eve and his name is Saint Basil.” – Irene Sofos, Manager

Cyber-Attacks: Not IF but WHEN

Posted by Maria T. Rollins on December 12, 2016

“There are two kinds of companies. Those that have been hacked and those that have been hacked and don’t know it yet.” – Mike Rogers, Former Chairman of the House Intelligence Committee

The December KRS Insights Breakfast featured guest speaker Michelle Schaap, an attorney and cybersecurity expert with Chiesa Shahinian & Giantomasi, who spoke about how to protect your company from cyber-attacks. For those who missed the breakfast, we wanted to share some of Michelle’s eye-opening insights and recommendations.

Here are some of the many reasons why it is important for your company to start paying attention to cybersecurity:

More than 70% of cyber-attacks are against small to medium-sized companies.
IRS and other regulations across multiple industries require that you have cyber-insurance.
If your company gets hacked, you’re in breach of confidentiality clauses in contracts you have with other entities.
Getting hacked can put you in breach of your website’s privacy policy and FTC statutes.

As Michelle pointed out in her talk, timing is everything in detecting a security breach. The average time it takes a company to detect and identify a breach is 20 to 582 days and the average time to contain a breach is 7 to 175 days. “That leaves your company’s ‘Crown Jewels’ exposed for far too long,” she noted.

Data breaches are costly

In 2015, reported losses totaled over $1 billion, according to the Internet Crime Complaint Center. In the U.S., the average cost of a data breach was $217 per record. That means for a breach that involved 5,000 records, your company is looking at $1 million in tangible costs. There are intangible costs as well, such as the cost of business interruption, lost customers and lost trust.

Not surprisingly, 50% of small businesses that experienced a data breach are out of business within the following year.

Preparedness is from the top down

“You should be doing this yesterday,” said Michelle. “The bad actors update malware all the time and you need to keep up with the storm. It’s not once and done.”

She emphasized that the best way to get and stay prepared is to have the commitment to cybersecurity start with your organization’s senior executives. From there, it can work down through the organization from the Chief Information Security Officer (CISO) through the IT department and out to employees and third party vendors. “If your company doesn’t have a CISO, consider bringing in an outside consultant to fill this role. You need to invest in this,” she commented.

Data is everywhere – and needs to be protected

You need to be prepared and protected anywhere you receive, create, store, access, manage, transmit or use confidential or otherwise sensitive data. This includes locations outside your office.

“Wherever sensitive information will be accessed – whether it’s a hotel, Starbucks, or an airport – you need to protect it. The bad actors travel with devices that skim off computers,” said Michelle. “So you need to be mindful about where you are when you access data on your laptop.”

You also need to protect equipment such as copiers, cell phones and other devices, as well as the physical environment and technology which may store sensitive data and be vulnerable to hackers.

Have a plan

Today, more companies are required to have cyber-insurance coverage. To get coverage, you need to have a cybersecurity plan in place that includes policies and procedures for identifying and assessing vulnerabilities, mitigating risk, monitoring and detecting breaches, and responding and recovering from them.

“The day you discover you have been hacked is not the day to figure out how to respond,” said Michelle.

The good news is that you don’t have to figure this all out on your own. There are risk frameworks, such as ISO 27001 and the PCI Security Standards, which can help you prepare your cybersecurity plan. Third party consultants can also assist your firm in planning.

We’ve got your back

At KRS CPAs our goal is to make it as easy as possible for you to get the advice and counsel needed, so you can focus on what matters most to you. The KRS Insights Breakfast Series offers timely and relevant information from experts like Michelle Schaap, who can help you stay knowledgeable and prepared.

Visit our Insights page to subscribe to our newsletter and you’ll be notified about upcoming breakfasts plus other KRS news, events and resources.

Michelle Schaap practices primarily in the areas of cybersecurity preparedness and technology, construction law, corporate and commercial transactions, and franchising.

If you are concerned about your organization’s cybersecurity, contact her at 973.530.2026 or mschaap@csglaw.com.

Is your small business prepared for the new employment tax filing deadline?

Posted by Maria T. Rollins on November 11, 2016

Be Aware of New W-2 and 1099 Filing Deadlines

In an effort to combat fraud, the Protecting Americans from Tax Hikes (PATH) Act of 2015 was enacted. It revises the filing deadline for Form W-2 and certain types of Form 1099. New Filing Deadlines for W2 and 1099s

Without proper planning, these revisions can cause some real stress for small businesses.

In the past, there were always two dates to consider when filing your employer tax forms. Forms were due to recipients on January 31^st and forms were due to the government agencies (IRS and Social Security Administration) on February 28^th.

Effective with 2016 tax forms, W-2’s and 1099’s with Box 7 entries are now due by January 31^st for both recipient and government agency filings. Form 1099 box 7 reports non-employee compensation.

In practice, we have found that many businesses do not have correct recipient information for employees and independent contractors, and unfortunately do not realize this until it is time to prepare the recipient copies of the forms. In the past, the issuer had until February 28^th to track down or correct any incomplete recipient information.

If you fail to file a correct W-2 or 1099 information return by the due date, and you cannot show reasonable cause, you may be subject to a penalty. There are also penalties if you report an incorrect TIN (taxpayer identification number) or fail to report a TIN. Accordingly, collecting correct information timely is very important.

Complying with PATH

Our recommendations to businesses to assure compliance with the new due dates are as follows:

Verify the accuracy of all employee information NOW
Review all vendor files NOW and confirm that all applicable files include the vendor’s name, address and TIN
Obtain Form W-9, “Request for Taxpayer Identification Number and Certification”, for each new vendor PRIOR to issuing any payment to the vendor
Contact all vendors with missing information NOW to allow sufficient time to receive the correct information (it may be difficult to secure the correct information if you no longer do business with the vendor)

Due to the shortened filing deadline between the end of the year and the filing due date, it is essential that you have all the complete and accurate filing information by early January.

We’ve Got Your Back

At KRS we assist our business clients with employer tax reporting as well as tax planning and compliance. Feel free to contact partner Maria Rollins at 201.655.7411 if you have any questions relating to the filing deadlines or any tax compliance issues.

Tax Planning Strategies – Minimizing 2016 Individual Income Taxes

Posted by Maria T. Rollins on October 24, 2016

It is never too early to get a jump start on tax planning. Why not start now and minimize your end of the year holiday stress? These tax planning techniques could help you reduce 2016 taxes.

Make Charitable Contributions

Making charitable contributions is a great way to reduce your taxable income. The most common type of donation is a monetary contribution. Taxpayers are allowed to make tax deductible monetary contributions to qualified organizations in amounts up to 50% of adjusted gross income.

Additionally, donating securities is an excellent way to support a charitable organization and avoid paying capital gains tax. When you donate securities that were held for more than one year, the contribution is deducted at fair market value and capital gains tax is avoided. This strategy works best with appreciated securities. Unlike monetary charitable contributions, donating securities to qualified organizations are limited to 30% of adjusted gross income.

Plan for Capital Gains

If capital gains are expected to be significant in 2016, consider selling some securities in your portfolio at a loss and generate capital losses. Capital losses are netted against capital gains to calculate the net taxable amount. Furthermore, if capital losses exceed capital gains, taxpayers may take a capital loss deduction up to $3,000 in the current year and carry forward the remainder to future years.

For example, if a taxpayer sells two securities, one with a gain of $50,000 and one at a loss of $65,000, a $3,000 capital loss deduction is allowed in the current year. The remaining $12,000 capital loss is carried forward to the following year.

Avoid Alternative Minimum Tax

The alternative minimum tax (AMT) has a significant impact on tax planning for high income individuals. AMT limits certain benefits and itemized deductions you might otherwise be eligible to receive. In years where taxpayers will be subject to AMT, one strategy is to accelerate income or defer tax deductions. This will help avoid AMT either in the current year or over multiple years.

For example, if you are subject to AMT and will not receive any benefit for state tax payments in the current year, defer those payments, if possible, to the next year when you’re not subject to the AMT.

If you’re not in the AMT for the current year, pay any state taxes before the end of the year, which may be due in April, to accelerate the year of the tax deduction. The IRS has the following tax tool to help determine if you might be taxed under AMT (https://www.irs.gov/individuals/alternative-minimum-tax-assistant-for-individuals).

Prepay Deduction Items

Another way to reduce taxable income in 2016 is to prepay 2017 real estate taxes, state and local income taxes, and other miscellaneous itemized deductions. Itemized deductions are recognized in the year they are paid, not the year they are due. If a taxpayer itemizes and has the option to accelerate 2017 expenses to 2016, this will increase deductions in 2016 which will decrease adjusted gross income.

Before implementing this strategy confirm you will not be subject to the AMT and your overall itemized deductions will be greater than the standard deduction. You should also consider itemized deduction limitations that may be greater due to higher income in 2016.

You may benefit from implementing at least one of these tax planning strategies. They are just a few of the methods to reduce taxable income and should be implemented on a case-by-case basis. At KRS we work with our clients to develop fluid tax plans and minimization strategies.

If you would like to learn more about tax planning and how to implement strategies to reduce your taxes, please contact Maria Rollins, CPA, to set up a consultation.

What Drives SMBs’ Accounting Software Purchases?

Posted by Maria T. Rollins on September 30, 2016

Software Advice™, a trusted resource for software buyers across industries, recently published a trend report on accounting software purchases by small and midsize businesses (SMBs). SMB Accounting Trends Buyer Report – 2016 was based on hundreds of consultations the firm conducted with SMBs over the past year. The report provides excellent insights into what business owners should look for when considering buying an accounting software system to replace outdated software or manual entries (e.g., pen and paper or Excel spreadsheets).

prospective buyers current accounting methods — Prospective Buyers Current Accounting Methods

Software Advice analyzed a random sample of consultations and found that nearly 60% of SMBs are looking to replace their existing accounting software with a more advanced system, while roughly 30% are first-time buyers.

35% of buyers seeking upgrades are now using some version of QuickBooks. This comes as no surprise. In my experience working with SMBs, I’ve seen that software packages such as QuickBooks and Sage 50 (formerly Peachtree) are very popular because they are advertised as relatively inexpensive and easy-to-use. Though these solutions provide the basic financial information owners need to prepare their tax returns, they do have limitations on the following:

The number of user licenses and the ability to set user permissions
Inventory items and SKUs that can be tracked in the system
Capabilities for tracking edited/deleted transactions (audit trail)
Integration with operational, industry-specific software

SMBs Requirements for Advanced Functionality

According to the trend report, the majority of buyers desire greater system capabilities. Buyers want the new software solution to be able to:

Handle multiple entities
Consolidate data and accounts
Run payroll in-house

At KRS CPAs, we’ve noted that handling multiple entities is often a tipping point for businesses progressing from basis to advanced accounting solutions. When businesses try to perform the function with a solution that isn’t designed to support multiple entities, the process is time consuming and error-prone.

For example, inter-company transactions processed by larger software applications are handled in one entry. If the application doesn’t offer multi-entity access, then the entry must be recorded in each entity separately, which is time consuming and can result in mistakes.

Software Advice also reported that the 21% of buyers wanting to automate processes correlates with the same percentage currently managing their accounting with manual methods, such as Excel spreadsheets. These buyers are looking to improve efficiency by reducing time spent on manual data entry.

Financial Reporting Capabilities Are Crucial for SMBs

82% of buyers wanted financial reporting in their new software solution in order to measure key financial and performance metrics. I typically advise clients to ensure their new system has basic reports, including the balance sheet, profit and loss statement (P&L), and cash flow report. The P&L acts as the starting point for tax planning, while the balance sheet reports cash levels, debt and retained capital in addition to assets and liabilities.

Accurately tracking and reviewing this financial data on a regular basis gives business owners insight into financial history, department efficiency and the profitability of different ventures. This allows them to make more informed decisions regarding cash flows, budgets and projections.

Cloud Solutions Grow in Popularity

Another accounting trend SMBs should be aware of is the growing popularity of cloud-based solutions. Software Advice identified these benefits of moving accounting to the cloud:

Greater ease of access
Better security
Improved ease of use

I’ve also seen that cloud-based systems provide more integration and add-on options, which allows users to extend the reach of their existing systems to serve many industry-specific needs.

Ready to Get New Accounting Software?

If you’re ready to start evaluating accounting software, Software Advice offers an online accounting software questionnaire that can help you match your business needs with several products for you to assess.

Once you have your new software installed, KRS CPAs can help you set up your bookkeeping, accounting and financial reporting processes so that they deliver the insights you need to manage your business more effectively.

Cybersecurity Mistakes You Cannot Afford To Make

Posted by Maria T. Rollins on September 2, 2016

Companies can’t afford to be asleep at the wheel when it comes to protecting personal and corporate data. Below are the five common mistakes you can’t afford to make when it comes to protecting assets from cyber-attacks.

Mistake #1: Assuming you’re not a target

Protect yourself from cyber attacks Whether large or small, organizations in every industry are vulnerable to attack. The stories that make the news headlines are usually about theft of credit card data or personal identity information. As a result, companies that don’t handle this type of data often believe they are not a target. All companies need to recognize this risk and work to detect and prevent the devastating damage cyber-attacks can cause. While developing your plan, consider your organization’s response if it does happen to you. This will help you react faster and potentially minimize the negative effect of a data breach.

Mistake #2: Approaching security as just an IT Issue

Many attacks come from the inside of an organization as a result of misuse, theft or loss of devices. A company-wide security policy including employee education, policies and procedures should be developed specifically for your business operations and employee device usage. Regular “audits” of the policies should be conducted to ensure compliance at all levels within the organization.

Mistake #3: Neglecting to understand and update your network

Organizations may never be able to prevent every attack; networks are too expansive and there are many opportunities to breach software. However, failing to understand the structure of your company’s network and where company data flows to and from will prevent you from knowing what to protect. Once you have determined what needs to be protected and systems are in place to protect your data, continued monitoring, testing and updating is necessary to avoid an increased opportunity to invade your systems.

Mistake #4: Relying on anti-virus technologies

Anti- virus technologies are very helpful but are not sufficient to prevent advanced attacks. Hackers are at their game non-stop and have evolved their tactics faster than anti-virus technologies can react. Updates to anti-virus and malware software are necessary, but strong data security policies, testing and monitoring are also needed.

Mistake #5: Failing to use strong passwords

Passwords should be unique and complex. It is easy to use the same password for many different applications and quite often this is what many people do. The cyber attackers know this. Unique passwords for each application are best. Your passwords should be complex. Never use words like “password” or “football”. “12345” is not a good password either. Your password should contain a combination of letters (upper and lower case), numbers, capital letters and symbols. Phrases using symbols, for example Th3king&! (The king and I) is a way to remember a complex password.

As you can see there is no one security solution to protecting your company’s data. Data security must consider the data and system as well as internal and external users. Your plan should also consider your plan of action if there is a cyber-attack and breach of company data. A good action plan can limit the exposure and damage a data loss may cause.

Ten Tips for Choosing a Reliable Payment Processor

Posted by Maria T. Rollins on August 19, 2016

Choosing a credit card processor can be confusing. Here’s what you need to know to get it right.

Since businesses usually cannot withdraw funds directly from a customer’s bank or credit card account they rely on payment processors as the middleman. These payment processors connect you to merchant accounts such as Visa or American Express.

Tips for choosing a credit card processor There are many ways to obtain payment processors. For example, they can be found through banks, online providers and companies such as PayPal. They all have different rates. Some may require contracts or mandatory leasing of their equipment (credit card machine), so it is very important that you choose one that will work best for your company’s needs.

Finding the right credit card processor is important and there are many points you should consider. For example, mobile businesses must consider the ability to accept credit card payments from anywhere. For these businesses, a mobile credit card processor would be best. Also consider integration with your accounting system and CRM software to ensure efficient processing and recording.

Selecting Your Payment Processor

With the help of Christopher Mammaro, CEO/President of Integrity Card Systems, we have listed 10 tips to consider when selecting your payment processor:

Don’t be sold/fooled – Make sure you are not being set up with equipment you do not need. Quite often representatives will indicate that you need new equipment that is proprietary in nature and only works with their processing system. If you do need such equipment, are you paying for it? Often merchants will offer a “FREE” terminal when in fact you are actually paying for it through unexpected monthly or annual fees, or costly termination fees.
Bigger does not always mean better – Just because a bank is larger does not mean that it will provide better service. Inquire if your bank uses a third-party provider and be sure to get comfortable with them. As a third party, they may not know anything about your business.
Availability – Make sure the processor you choose can be reached in a timely manner. Inquire about their customer service and response times. Common complaints are in the area of support as many do not have local representation and you will not have a dedicated service representative.
Trust –Referrals from people you trust or respect are more likely to place you in front of a good payment processor.
Rates – Understand your current pricing structure and what type of pricing structure the processor suggests for you. Here are some examples: flat rate, tiered, interchange plus, and surcharge.
Education – The processor should listen to the needs of your business and, afterwards, present a few solutions. Make sure their processing solutions are PCI (payment card industry data security standard) compliant and utilize current technology.
Beware the contract – Avoid a long-term contract. If there is a contract, find out the term and if there is the penalty for leaving before the end. You are looking for a client relationship, not a hostage situation.
Reputation – Do your homework. Make sure the company is reputable. Look for ratings and referrals.
Sales rep vs sales partner – A sales rep may have a quota to fulfill and will be very accommodating during the sales process only to never be seen or heard from again. Make sure the person you deal with has a vested interest in your satisfaction.
Bait and switch – Have a frank discussion about fees. Inquire as to any extra fees there are and how often they are charged. Request this information in writing. You do not want to be sold on a monthly savings only to be charged another “non-disclosed” fee.

Accepting credit/debit cards can increase sales, help you better compete with your competitors, have quicker access to funds, and avoid the cost and time of collections. Choosing a payment processor is perhaps the most difficult task in any businesses decision to accept credit cards. Mammaro’s advice is to take your time, comparison shop and search for the one that best suits your needs and business operations. Credit card processing companies are competitively priced, yet each may have a unique set of fees and contracts; it’s important to understand those nuances so you find the processor that’s a good match for your business needs.

At KRS CPAs, we work with businesses to provide the bridge from operations to financial reporting. Our accountants and bookkeepers understand the sales and collection process and assist our clients in evaluating merchant services and integrating these services with their accounting systems. If you need help, contact me at 201.655.7411 or mrollins@krscpas.com.

Prince Died Without a Will – Why Estate Taxes Get Complicated

Posted by Maria T. Rollins on August 5, 2016

What happens to the estate when someone dies without a will?

Usually when a famous person dies, news of their death travels fast, far and wide. Living relatives and those claiming to be relatives will come forward staking their claim on estate assets.

If you die without a will or trust, you have died “intestate” and state law will determine how your assets are distributed. State law will provide a hierarchy of beneficiaries to which an intestate estate will be distributed. The state intestate succession law will only apply to those assets that would have passed through your will, known as “probate” assets, which you owned at the time of your death.

For example, some accounts you own may have named designated beneficiaries, such as an IRA or life insurance policy. Such assets will be distributed to the named beneficiaries. Also, joint assets and “paid on death” accounts will also pass to the joint or paid on death holder even if there is no will.

If you die without a will in New Jersey, determining who gets what depends upon factors such as: do you have a living spouse, children, parents or other close relatives. It can get complicated with blended families, children from multiple marriages, half and whole siblings and their decedents. Click here to see the NJ intestate succession law. In NJ, if you die without a will and do not have any close family your property will “escheat” to the state coffers.

Dying without a will is costly

Unless your estate is insubstantial, if you die without a will the Surrogate Court will appoint an estate administrator. It is the administrator’s responsibility to secure your assets, pay any debts and taxes as well as search for any heirs. Administrators will be paid by the estate for their services.

Prince’s estate could be worth in excess of $150 million and most likely will earn millions over years to come. At the time of his death, he was known to have a sister and half-siblings. His parents were deceased and he had two ex-wives. Rumors surfaced that he may indeed have a child born out of wedlock and at least one individual claimed he was Prince’s son. Under Minnesota inheritance law all siblings are treated equally. Without a will and clear instructions as to how Prince wanted his assets to be distributed, most likely there will be a will contest over the estate. Litigation is expensive. The attorneys are sure to benefit along with the State and Federal governments due to the lack of estate planning and tax minimization strategy he could have had in place.

Who should have a will?

If you want your assets to be distributed in a manner of your choosing, you will need a will or a living trust. Your will appoints an “executor” who you choose to be in charge of securing your assets, filing and paying any taxes, and distributing your assets as you have instructed. Of great importance, a will makes it easier for your loved ones to work it all out.

If you have minor children your will can provide for the guardianship of those children. A will can also provide an opportunity for estate planning, potentially reducing estate or inheritance taxes. You may believe your estate is not large enough to require a will. That may not be so true in a state like New Jersey that taxes estates in excess of $675,000 in addition to collecting an inheritance tax on certain family member beneficiaries. The process of preparing a will can also provide an opportunity to review designated beneficiaries on any retirement accounts and life insurance policies, and to determine if you have adequate life insurance coverage.

At KRS, we work with individuals in developing tax minimizing strategies for current taxes as well as estate tax planning, estate administration and estate tax compliance. Visit our website to download our executor’s checklist for more information regarding the estate administration process.

Choosing The Right Accounting Software

Posted by Maria T. Rollins on July 8, 2016

Get the Accounting Software Your Small Business Needs to Succeed
If you are looking for an accounting system for a small business you may want to start by reviewing the features included in prepackaged solutions such as QuickBooks or Xero. These are relatively inexpensive and can be set up and functioning quickly with some user training.
Depending upon the version purchased, these packages will offer the user the ability to perform basic bookkeeping functions such as

Creating estimates and invoices

Syncing bank or credit card accounts

Printing checks

Reconciling bank accounts

Exporting data to Excel

Maintaining a General Ledger

Providing basic financial reports such as Balance Sheet and Profit & Loss statements.
If not offered in the basic versions, more advanced features may include preparation and printing of 1099’s, payroll, inventory tracking, time & billing, budgets, and enhanced financial reporting. In addition to the pre-packaged accounting software, there are many add-on applications that can automate many business processes. For example, applications are available to provide point of sale solutions, enhanced inventory management, paperless bill-pay processes, employee expense/reimbursement processing and sales tax automation. There are even CRM and document management add-on applications available to help manage and grow your business.
Do your homework before buying accounting software
Not every app will integrate with every software package or version so it is important to do your homework. And if remote access is important to you, many packages offer both cloud-based and desktop versions of their software. Be sure to compare the features offered in each since certain functionality may be available in one and not the other.
It is also important that the system you use for your business provide an audit trail and the ability to lock down closed accounting periods. These functions will protect the integrity of the data and limit unauthorized posting or deletion of data.
Accounting software for a growing business
So what do you do when you believe you have outgrown the small business packaged software solutions such as QuickBooks or Xero?
First, be certain that it is the accounting software that you have outgrown and not your operational software. For example, a large volume distributor may have intricate inventory management, markup and costing operational needs that are best managed through industry-specific operational software. If this is your dilemma, then it is not only necessary to evaluate the accounting functions of the software; most often, the operational functionality will take the lead in the selection process.
Although they are getting better, we often see excellent industry-specific operational systems that lack functionality and integrity on the accounting and financial reporting side. In these circumstances, it is important to determine if the benefits of operational reporting outweigh the accounting functionality. If so, some customized software enhancements may be needed at additional cost. These operational and accounting software packages will be much more costly than packaged software and require significant training for all users. Most often it is recommended to run a new system simultaneously with the prior system until the integrity of the data can be tested and trusted.
In either scenario your accountant should be able to help you in the software selection process. He or she should understand your business operations, user needs and reporting requirements and be able to offer valuable insight in your selection process. Your accounting software should allow you to process transactions efficiently and provide financial reporting that will help your business be more profitable.
If you have questions about choosing the right accounting software for your small business, KRS CPAs can help. Give me a call at 201.655.7411 or email me at mrollins@krscpascom.

How to Choose the Right Accountants

Posted by Maria T. Rollins on June 24, 2016

Tips for choosing an accountant for your business or family
Let’s face it, to be called a certified public accountant (CPA) one must have a certain educational background as well as proven knowledge (i.e., by passing a rigorous exam). We believe CPAs have the business acumen that allows them to prepare basic financial reports and tax returns. You may also expect your CPA to fill the role of business consultant to help you achieve certain business and personal results.
How do you know if a CPA is right for you?
You can start by asking the following questions:

How many years of (corporate, partnership, individual, estate) tax experience do you have?

If I use you/your firm, who will prepare my tax returns? Who will be working on my account?

Do you hold any advanced degrees? What associations are you a member of?

What if I am audited? Will you represent me? What are the additional costs?

Will you review prior years tax returns at no additional charge?

Do you have expertise in my industry or with a specific issue relevant to my facts and circumstances (i.e. stock options, government contracts, tax credits, etc.)?

How do you bill for your services/what will you charge?

What if I need accounting or bookkeeping help? Do you offer these services?

What if I need a loan or credit line? How can you help me?

If I decide to use you, what should I expect?
These basic questions should spark conversation that will not only provide you with the assurance that the CPA is qualified, but it should also provide insight as to how the CPA can help your business or family. This conversation should allow you to evaluate how the CPA can educate you and how the CPA will collaborate with you to help you achieve your goals. The CPA should be focused on understanding your needs and clearly communicating how his or her skills and expertise will help meet those needs.
Most CPAs will tell you they meet many of their new clients through referrals from existing clients or from other professional service providers such as attorneys, bankers and investment advisors. Other business owners, family and friends are also good sources to seek out for accountant recommendations. If you are unlucky finding a CPA through referral, you can try your state’s CPA society as it will likely have a directory of its members. You can also check the CPA firm’s website and partner profiles for services offered, industries served and other specific expertise.
All CPAs are NOT all the same
The industries CPAs specialize in and the services they offer will vary according to firm size and partner/staff expertise. At KRS, for example, we provide full-service accounting, tax planning and preparation, business office processing and business valuation services to businesses. We also offer family office services, individual tax planning and preparation, and estate accounting and tax preparation to our individual clients.
If you have questions about choosing the right accountant for your family or business, I’d be happy to help. Contact me at mrollins@krscpas.com or 201.655.7411.