Accounting Firm in Texas

Income is taxed at the federal, state, and local levels, and earned income is subject to additional levies to fund Social Security and Medicare, to name a few. Taxes are difficult to avoid, but there are many strategies to help ward them off. Here are six ways to protect your income from taxes. 1. Invest in Government Bonds:   Buying a government bond essentially means lending money to a state or local governmental entity for a set number of interest payments over a predetermined period. Once the bond reaches its maturity date, the full amount of the original investment is repaid to the buyer. Interest on  government  bonds is exempt from federal taxes, and may be tax exempt at the state and local level as well, depending on where you live. Tax-free interest payments make municipal bonds attractive to investors. However, government typically pay lower interest rates. Because of the tax benefits, government bonds’ tax equivalent yield makes them attractive to some investor...

 There are many different types of accounting software available for small businesses, with varying capabilities and price tags. Generally, the type of industry and number of employees are two factors that can help a small business owner begin to choose the accounting software that is appropriate. For example, a freelancer would not need the same features in accounting software as a restaurant owner. In market there are many types of software available for varieties of industries. We have searched around 10-12 accounting software are available, but some software are very helpful for any types of businesses. While evaluating the best accounting software we considered the uses, features, reliability and cost. There are some best Accounting Software :- 1. QuickBooks Desktop or Online : QuickBooks Desktop or Online is the best overall accounting software for small businesses of those reviewed. Not only do the majority of small business or other types of accounting profession...

 The term " tax benefit " generally refers to any law that gives you with a chance to scale back your bill once you satisfy certain eligibility requirements. A tax break comes in several forms, like a deduction, exclusion or credit. the quantity of tax you'll save also depends on the sort of tax break you claim because they each offer a special sort of savings. (Image sources from:  https://tmgnorthwest.com/wp-content/uploads/2021/03/Top-5-Tax-Benefits-of-Investing-in-Real-Estate.png ) Saving tax with deductions:  The most common sort of tax break comes within the sort of a tax write-off . once you claim a tax write-off , it reduces the quantity of your income that's subject to tax. the quantity of the deduction you're eligible to say is precisely the quantity of the reduction to your taxable income. Frequently claimed deductions cover the value of tuition and costs , medical expenses, charitable contributions and state income taxes. Another benefit to a deduction...

For the majority of married couples the Married Filing Joint status is more tax advantageous. However, there are good reasons when you should use the Married Filing Separate filing status as it might be more beneficial to your specific tax situation. When filing married filing jointly, both spouses report their income, tax deductions, and tax credits on the same tax return. Both parties are responsible for each other's tax liability. Therefore, if you choose to file as married filing jointly your spouse will be responsible for any tax, penalties, and interest that arises from that joint tax return, even if you reported no income on the return. (Image Source form:  https://www.hrblock.com/tax-center/wp-content/uploads/2015/02/MarriagePenalty-Featured2-825x510-1.jpg ) Benefits of Married Filing Jointly:   If you and your spouse file as married filing jointly, your tax may be lower than your combined tax would be for married filing separately, or you may receive a bigger tax refu...

  If you made a payment during the calendar year as a small business or self-employed (individual), you are most likely required to file an information return to the IRS. Receipt of certain payments may also require you to file an information return to the IRS. This page is applicable to specific and limited reporting requirements. For more detailed information, please see General Instructions for Certain Information Returns or specific form instructions. Payment Made to:  If, as part of your trade or business, you made any of the following types of payments. For each person to whom you have paid at least $600 for the following during the year (Form 1099-MISC). Services performed by someone who is not your employee (including parts and materials) Cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish.  Payments to attorneys (including law firms or other providers of legal services). Note:   You must a...

 Types of Account's Accounting is a process of recording, classifying and summarizing  of the financial transactions in a significant manner. Accounts is called arts as well as science also. According to the double entry system of bookkeeping, there are three 3 types of accounts that will help you to maintain error free recording of the financial transactions. There is 3 main types of accounts, which is Personal Account, Real Account and Nominal Account. All these 3 accounts have their own properties and it's important. 1. Personal Accounts:   The first accounts is personal accounts, which are related o the individuals, firms, companies etc. Some examples are debtors, creditors , bank, suppliers, customers account's and many more. In this accounts some are Natural person and some are Artificial person. Natural Personal Accounts is simple to understand mostly is the name of the people. E.g., Adam A/C, Mr.Patel A/c, and many more. Artificial Personal Accounts whi...

  Since In 1950, Individual income taxes has been the primary source of revenue for the US federal government. Taxes had been existence more than thousands of years and I think it will remain forever as long as the human being exists. Through the taxes governments playing a crucial role towards     Government's charging varies in tax rates for different types of commodity or services.  Tax are collected by governments at 3 different levels, which is federal, state and local. They are all charging different rates of taxes with different level of  governments. Below are the some reason why we  have to pay taxes., 1).  Social Welf a re:  Social welfare and social security are one of the greatest benefits to the less privilege, some homeless people and some needy people who didn't able to pay taxes. Governments collecting the taxes from many years so that spend on the humanity.  This types of funds used for the society or need...

What is Individual Income Tax Return ? First of all we understand the what is Individual ?  so we can go ahead. The Individual means any natural human being whether it's Male or Female are knows as the Individual according to the Income Tax. So now we can move to our main topic " Individual Tax Return ". The Individual Income Tax or Personal Income tax which is levied on generally on the wages, salaries, interest, dividends or any other types of income which earns during the year. The Federal Income Tax was established  in 1913 with the 16th amendment. Form the last 100 Years, Individual Income Taxes are the largest source of tax revenue in the county.  Individual income tax are levied by the Federal Government  (Central),  State Government or Local. Most of the countries in the world levy the Individual Income Tax Return. In US Income tax is progressive, which means if the income of a person rises then the tax will also rise and vice-a- versa.

      What is an Accounting Standards ? Accounting standards are standards for financial reporting which is common set of principals, standards and procedure that define the accounting policies. Accounting  Standards has been created by GAAP (Generally Accepted Accounting Principles).   Accounting Standards improve the transparency of financial reporting in all over countries. Non-US companies used the IFRS (International Financial Reporting System) for financial reporting. IFRS's setup by International Accounting Standards Boards. In USA GAAP is used by any other public and private companies. Remaining country follows the IFRS Rules. In USA, The American Institute of Accountants, which is currently knows as American Institute of certified public accountants and  the New York Exchange have launched its first accounting standards in the 1930s.   Important of Accounting Standards :   1. Accounting standards specify th...

  In  Accounting there are 2 types of transactions which is recording on the Books of Accounts. The business is running for long term so we are making some transaction on cash basis and some are accrual basis. Cash Basis mostly uses by some local stores but the Accrual Basis uses by small and medium size businesses.  Accrual Basis Accounting :  (1). Accrual accounting is method of accounting   where revenue and expenses are recorded when they earned, but actually it's not paid or received. There's Account receivable and Account  Payable which will made in future. (2). Accrual basis accounting mostly used by the mostly larger company. Like MNCs, and many others company.   ( 3). In Income Statement will show higher income, but actually it's not correct. Cash Basis  Accounting    (1) .   Cash Basis Accounting is method  of which accounting where all Income and expenses paid in cash. So there's no  Account receivable...