Proper tax preparation can save Prattville, AL, business owners significant time and money, especially with notable changes taking effect. Whether you run a retail shop along Cobbs Ford Road, manage a service business near McQueen Smith Road, or own a small LLC in Autauga County, knowing what to gather before your CPA appointment makes the filing process faster and less stressful. This checklist covers key document categories, relevant deduction updates, and why a local CPA often outperforms a national chain for complex business returns. Business Identity and Formation Documents Every tax planning engagement starts with proof of who you are and how your business is structured. Your CPA needs these to determine which return forms apply and how income passes through to your personal return. Gather the following before your appointment: your EIN confirmation letter from the IRS; your LLC operating agreement or articles of incorporation; a current Autauga County business license if applicable; and your prior-year federal and Alabama state tax returns. Income Records Accurate income records are the foundation of every business return. Collect profit and loss statements for the full calendar year, bank statements for all business accounts, 1099-NEC forms received from clients who paid you $600 or more, sales records or point-of-sale reports, and tax preparation documentation of any other income such as rental payments, interest, or asset sales. Business Expense Records Deductible expenses directly reduce taxable income, so thorough recordkeeping here matters. Collect documentation for rent or mortgage interest on your business location, utility bills and phone expenses, payroll records including W-2s and 1099-NEC forms issued to contractors, receipts for equipment and software, and mileage logs. The IRS standard mileage rate for business use is 70 cents per mile, so a complete log adds up quickly. Deduction Changes That Matter to Autauga County Businesses Several meaningful deductions are available or newly permanent. Prattville, AL, business owners should factor into their tax preparation. The Permanent 20% Qualified Business Income (QBI) Deduction The 20% QBI deduction is now permanent for pass-through entities, including sole proprietorships, LLCs, S-corps, and partnerships. If your business generates $100,000 in net income, you may be eligible to deduct $20,000 directly from taxable income. Businesses with at least $1,000 in qualified business income may also qualify for a new $400 minimum deduction. 100% Bonus Depreciation Is Back Businesses that purchased equipment, machinery, or other qualifying property may deduct the full cost in the year of purchase rather than depreciating it over several years. This can significantly reduce your current-year tax liability if you invested in your Prattville, AL, operation. SALT Deduction Cap Expanded The federal cap on state and local tax (SALT) deductions increased to $40,400. Business owners who pay significant Autauga County property taxes or the city's combined 9.5% sales tax rate may benefit from tracking these amounts carefully. New Vehicle Loan Interest Deduction Qualifying taxpayers may deduct up to $10,000 in annual loan interest on new vehicles assembled in the United States. Income phase-out thresholds apply, so bring your vehicle purchase and financing documents to review eligibility. Prattville, AL's Local Tax Preparation Layer Prattville, AL, business owners operate under a layered tax structure. The city self-administers its sales tax and requires separate filing through the City of Prattville's One Spot system in addition to state filings with the Alabama Department of Revenue. If your operations cross into Elmore County, your sales tax obligations may differ by zone. A CPA familiar with Alabama's filing requirements can help you stay compliant and avoid penalties. Why a Local CPA May Outperform a National Chain Tax planning for business owners involves far more than plugging numbers into software. National chain preparers typically handle high volumes of straightforward individual returns. For a business with employees, contractor relationships, multi-county sales tax obligations, QBI calculations, and depreciation schedules, a CPA firm with deep knowledge of Alabama tax law is better suited to the job. A local CPA can review your entity structure under permanent QBI rules, evaluate pass-through entity tax (PTET) elections that reduce your federal SALT burden, and proactively identify deductions you may not know you qualify for. Because they work with Alabama businesses year-round, they understand how state and federal rules interact when Alabama conforms selectively to federal changes. What Documents Should I Bring to My First CPA Appointment? Bring your prior-year return, EIN confirmation, profit and loss statement, all 1099s received and issued, bank statements, payroll records, and receipts for major purchases or vehicle expenses. Organized records make tax preparation more efficient and help your CPA complete your return accurately the first time. When Is the Business Tax Filing Deadline in Alabama? S-corp and partnership returns are due March 15. Sole proprietors filing Schedule C have until April 15. Extensions are available but do not extend the time to pay taxes owed. Ready to File? Work With a CPA Serving Prattville, AL, Businesses Pulling together the right documents and understanding the deduction landscape puts you in the best possible position heading into filing season. Leadingham Rodgers, LLC , serves business owners with personalized tax preparation and year-round accounting support. Visit the tax services page or contact us online to schedule a consultation. You can also call (334) 270-3366 to speak with a member of the team directly.
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Need personal accounting services near Wetumpka, AL? Leadingham Rodgers offers expert CPA support for tax prep, planning & more. Contact us today.
Get ahead of tax season with Personal Accounting Services near Wetumpka, AL. Leadingham Rodgers, LLC offers expert CPA support. Call today!
Between the start of a new year and the first day of spring, it’s common to notice a kind of clenching just behind the pit of your gut. Gradually, as the Christmas decorations come down and Valentine’s Day passes, what started as a barely noticeable discomfort transforms into a formless worry. Day after day, you feel a deadline approaching. And even though you could take action at any minute and put your anxiety to bed, like 80 million Americans on average , you wait until the last minute to file your taxes. If this cycle sounds familiar to you, know that you’re not alone. But in 2023, maybe it’s time to break out of the status quo and take a more proactive approach to the financial filing frenzy. The Leadingham Rodgers Guide to Tax Season 2023 At Leadingham Rodgers in Montgomery, AL, we’ve helped countless private citizens and businesses file their tax returns in a timely and advantageous manner. Here are just a few tips, tricks, and changes to the tax code to consider when filing in 2023! The Basics Before we get into the weeds on tax code changes and deductions, let’s cover the basics of the 2023 tax season. Tax Filing Deadline : April 18, 2023 Extension Deadline : October 16, 2023 The IRS’s Free File program has been available since January 13, so if you have the time, energy, and will to submit yourself, make sure you choose direct deposit to speed up your return. Now that we’ve got that out of the way, let’s talk a little shop. Important Tax Filing Changes A few important things have changed since you filed your 2021 tax return back in 2022. No matter who you are (private citizen, business owner), these changes could be applicable to you in a big way. Standard Deduction Increase The IRS has raised standard deductions for single and joint filers to account for rapid (and drastic) inflation throughout the 2022 tax year. New Single Filer Standard Deduction : $12,950 New Joint Filers Standard Deduction : $25,900 For single filers, that’s an increase of $400 over the standard deduction in 2021. For married couples, the standard deduction has jumped by $800. While those numbers may seem small, especially after a 9.1% inflation peak during the 2022 tax year, they could pay dividends in your return. Tax Bracket Changes “Inflation” is the name of the IRS shuffling game this tax season, and few aspects of filing your tax return have gone untouched by record-high rate increases throughout the 2022 tax year. Across the board, the IRS has raised the upper limits for tax brackets by 7% to account for wage increases in keeping with inflation. For the full tax bracket, click here . For visual learners, Forbes has also released a handy guide to the 2022 tax brackets , which may be slightly easier to read than the IRS’s version. Deductions & Credits There’s a special kind of delight in saving money, especially during tax season and especially when you expected to shell out in the first place. Thankfully, there’s a long list of deductions and credits that you may apply for, depending on your circumstances. Before filing, it may be wise to speak with a CPA to determine your eligibility for the following deductions and credits. Earned Income Tax Credit (EITC) Child Tax Credit (CTC) Child & Dependent Care Credit Education Credits Business Deductions Medical Deductions Charitable Deductions By far, the biggest of these credits is the EITC. At Leadingham Rodgers, we’ve written about the EITC extensively , but to learn about the other deductions and credits, it may be best to get the information you need from the horse’s mouth by visiting the IRS here . General Tax Filing Tips & Tricks If you’re reading this, then you’re already taking a helpful, proactive step toward the timely filing of your 2022 tax returns. But for further encouragement in these trying times, Leadingham Rodgers provides a small list of general tips and tricks for filing your 2022 tax return. Start Now – There’s no such thing as “too soon,” really Accuracy Matters – If you’re struggling to form a complete picture, contact the pros Include Your Gig Income – Don’t forget your 1099s, especially if a freelance or gig employer paid you more than $600 in total throughout 2022 Investigate Deductions & Credits – A trained CPA can help you save the most When in Doubt, Extend – If there’s even a small chance that you won’t make the April 18, 2023 deadline, file for an extension now Ask for Help – As with complex home repairs or mechanical issues with your car, asking for help is a virtue, not a failure Conquer the 2023 Tax Season with Leadingham Rodgers Like fingerprints or snowflakes, no two tax returns are the same. Every financial picture is unique, and if you’re not careful, you can easily overlook valuable deductions and credits. Trust the professionals at Leadingham Rodgers in Montgomery, AL, to ensure the smoothest, most lucrative 2022 tax return. Our trained CPAs can help you uncover options you never knew you had while navigating the ever-changing seas of tax code law and shifting tax brackets. Give yourself or your business the best chance at filing with grace this tax season by calling 334-721-2548 today or contacting us online . Together we can put tax season behind us and get back to making—rather than reporting—money. Trust the Tax Pros & Sleep Easier Tonight, Tomorrow, & For the Rest of 2023! Tax season doesn’t have to feel like one long clenched fist. As an annual part of adult life, filing your taxes is easier with a little knowledge, a little research, and a little help from a trusted tax professional. For businesses and private citizens throughout Montgomery, AL, and beyond, there’s Leadingham Rodgers. To learn how we can help you or your business save the most this tax season, call us today at 334-721-2548 or contact us online .
It’s a new year and a new time for celebration, commitment, and confidence that we can achieve our goals. For many of us, especially after a year of inflation and uncertainty, those goals are financial in nature. Whether it’s finally making your side hustle your main gig or simply getting your budget in order, the IRS has an incentive that could significantly impact your tax return this year—the Earned Income Tax Credit. We know that many folks aren’t quite ready to think about their taxes just yet—especially those who are self-employed and dreading their Schedule Cs. But the CPAs at Leadingham Rodgers are gearing up for a new season of tax triumphs. After all, we’re here to help clients proactively approach their financial health. So, let’s take a look at one of the options lower-income taxpayers may have for easing the financial burden this tax season. What is the Earned Income Tax Credit? The Earned Income Tax Credit (EITC or EIC) is a financial credit that low- to moderate-income taxpayers can apply toward their taxes. The exact amount granted to each person varies depending on their income and how many children they have. But it’s money on the table that you can use to reduce the amount of taxes that you owe—or increase your IRS refund. Who Qualifies for the Earned Income Tax Credit? The EITC was designed to assist families who aren’t making a lot of money, specifically, families with children. That’s why people with more children in their household usually get a bigger credit. However, in recent years, the EITC has also been expanded to help people without children. Now, any U.S. citizen who worked but made less than a certain amount of money per year could benefit from the extra money provided by this initiative. What is the EITC for 2023? Anyone who worked and earned income but made less than the threshold amounts (outlined below) may be eligible for between $600 and $7,430 in tax credits. That’s increased for 2023, up from a range of $560 to $6,935 last year, in part due to the Inflation Reduction Act.
If Alabamans aren’t nationally recognized for their entrepreneurial spirit, they truly ought to be. With over 400,000 small businesses in the state, accounting for 99% of all businesses here, Alabamans are making incredible contributions to their local economies and communities. But as we all know, the last few years have had their share of unique challenges, leaving many business owners struggling to manage their debts. Debt management is a crucial aspect of any successful business—you have to balance smart investments with healthy cash flow to find the ideal debt ratio for you. Let’s look at business debt, and how you can make it work for you. How Do Small Businesses Manage Debt? Although debt is usually one of those four-letter-words we don’t want to hear, most business owners know that some debt is a good thing. The right amount of debt can help your company grow and expand, achieve a higher credit score, and secure lower interest rates. However, too much debt is never a good thing. You may have multiple payments to monitor and keep track of, making it easy to miss one and rack up penalties. Your repayments may start to interfere with your cash flow. And your business credit score may take a dive, making it difficult to secure additional loans with affordable rates. if you find yourself in a position where a third or more of your business capital is tied up in credit debt, that’s when things may need to change. Here are a few tips for making the most of your debt. Tip #1: Invest in Your Growth It’s important to make investments that will improve your business in the long term. For instance, taking out a loan to purchase a large piece of equipment that will boost your revenue is “good” debt. Whenever you’re thinking about taking on more debt, evaluate it for its return on investment and ability to improve your cash flow while you’re paying it off. Don’t be afraid to make these kinds of investments! Tip #2: Take a Full Inventory of Your Debts As you grow and take on more lines of credit, it’s important to stop and look at the full picture. Categorizing and organizing your debts can help you put together a winning management strategy. Make a note of loan details such as: Total remaining balance How much you pay per month Interest rate Repayment terms & due dates How you pay (check, bank draft, etc.) Type of credit (loan, credit card, bank line of credit, etc.) What the debt is for Tip #3: Pay Down High-Interest Loans First Whenever possible, try to prioritize debts with higher interest rates. Identify the loan that carries the highest rate and do your best to tackle that one first—doing so could save you hundreds if not thousands in the long run. There are a few ways to go about this: Make more than the minimum payment every month Pay more than once per month (for example, every two weeks instead of every month) Set up automatic payments or payment reminders to help you stay on target If you can pay more than the minimum on more than one account, that’s even better. But as long as you’re making regular payments on the other accounts, prioritizing the highest rate will help you reduce the total amount owed faster. Tip #4: Look for Ways to Boost Cash Flow We understand—this is easier said than done, especially in a tough economy. That said, managing cash flow isn’t only important for making your monthly payments. An extra boost can also help you lower your overall debt utilization rate, in turn improving your credit score. Consider cash flow improvements such as: Offering a discount or putting on a sale to entice an influx of customers Small overall pricing increases for products or services where possible Additional marketing to engage more customers online or within the community Cutting non-essential expenses Adding products or services that customers demand Tip #5: Reevaluate Your Invoicing Strategy If you find that a lot of your cash flow is tied up in late or unpaid invoices, it may be time to reevaluate how you request payments and follow up with clients. More frequent invoices may help you minimize issues, so consider shortening your remittance window from 30 days to 14 days, especially if you bill electronically. For clients who consistently lag in payments, you may want to consider new terms. An installment plan could help your client pay what they owe while you keep revenue streams open. Or, you could offer more creative solutions like the 2/10 Net 30 trade credit , where customers get a 2% discount if they pay in full early (within ten days). Otherwise, they can pay in full in 30 days without the discount. Tip #6: Consider Debt Consolidation If your business is juggling multiple debts, struggling under high interest rates, or frequently missing payments, debt consolidation could be a great option to consider. Merging your debts into one fixed payment at a more favorable interest rate makes it much easier to budget consistently and tackle the problem for good. That said, be careful about who you choose, as there are many debt consolidation scams out there. At Leadingham Rodgers, our local CPAs have helped hundreds of business owners find realistic solutions for managing their debt right here in Montgomery. Tip #7: Get Help from a Certified Public Accountant From debt management to financing help, hiring business consulting services from a CPA is a great way to identify opportunities for growth—and areas that are negatively impacting your business. The right balance between good and bad debt is going to be different for each unique business. A CPA can help you strike that balance, offering personalized advice and solutions to help you reach your financial goals for the new year and beyond. Leadingham Rodgers: Debt & Financing Services in Montgomery, AL As a business owner, you have a lot on your plate—let the experts at Leadingham Rodgers help you manage debt, evaluate your financing options, and get you on the healthy side of debt. We have years of experience serving businesses and individuals throughout South Alabama, combining our exhaustive accounting knowledge with our deep roots in the community to find meaningful solutions. Call (334) 721-2548 or contact us online to get started.
As a business owner, your job is to manage the big picture, making sure that your vision is executed at every possible level. But while you’re making connections, nurturing your brand image, and keeping the wheels of your industry turning, it’s easy for smaller details to slip between the cracks. Nowhere is this more true than in the case of your finances—which is how businesses lose an average of 5% of their revenue to organizational fraud every year. “Organizational fraud” is a complex term covering deceitful activities committed against businesses by outside agents and internal employees. Whether you’re running a cozy coffee shop, a major manufacturing company, or anything in between, your finances are at risk without a robust fraud prevention plan in place. So, how can Montgomery businesses protect themselves? Let’s take a closer look. What Are the Most Common Frauds in Small Business? The Association of Certified Fraud Examiners (ACFE) defines three major categories of fraud for every size of business: corruption, asset misappropriation, and financial statement fraud. The most common source of occupational fraud is: Asset Misappropriation (indicated in 86% of reported cases): any theft or misuse of the company’s resources by an employee. Common examples include skimming money, lying on expense reports, and stealing/misusing company property. The next two most common fraud categories are: Corruption (indicated in 50% of reported cases): dishonest behavior perpetrated for the financial gain of individuals in power. Common examples include bribery, kickbacks, bid rigging, and other conflicts of interest. Financial Statement Fraud (indicated in 9% of reported cases): schemes that involve intentional misrepresentations or omissions on a company’s financial statements. Common examples include overstating net income, concealing liabilities, or incorrect valuations of assets. As you can see, many fraud cases involve more than one type of dishonest activity. Altogether, these actions account for hundreds of thousands of dollars in lost revenue annually. Top Organizational Fraud Prevention Tips Involve Employees in Financial Fraud Training More than half of all fraud tips in 2022 came from employees, meaning they can be your greatest asset. No one likes to come across as a paranoid boss or manager. But with the right fraud training programs, you can deter employee fraud and equip well-meaning employees with the knowledge of what red flags to watch for. That way, everyone can work together to protect their mutual interest in the company’s success. Separate Accounting & Cash-Handling Duties Small businesses are especially vulnerable to asset misappropriation schemes because, often, one person is in charge of all accounting duties. That makes it both tempting and easy for that person to tamper with checks, inflate or fabricate invoices, or skim payments. Make sure you hire at least two people to handle financial activities like handling petty cash, processing payments, and making bank deposits. You may also want to rotate job duties between these employees so each can check the actions of the other. For example, you might have Accounts Receivable & Accounts Payable employees change out every few months. Better yet, you can enlist the help of a CPA to manage and safeguard your bookkeeping, payroll, and financial statements. Shore Up Any Digital Weak Spots In today’s world, computerized payroll, accounting software, and cloud-based workspaces are incredible assets—essentially a requirement for modern businesses. But ensure you keep these systems up-to-date and protected by antivirus software, firewalls, and two-factor authentication checks. Consider choosing software that comes with financial fraud detection tools that can help you detect suspicious activity early. Encourage an Ethical Company Culture We all try our best to hire honest people. But sometimes, despite our most vigorous background checks, personality tests, and reference reviews, an employee will crack under the pressures and temptations of fraud. It’s important to set clear boundaries, expectations, and examples for employees. Give employees ways to report suspected fraud anonymously, and follow up on even the smallest report or tip. Make sure that employees understand clearly what constitutes fraud and how it will be handled. Finally, try to make sure all your employees take their vacation. This isn’t just a gesture of goodwill: fraudsters are known for avoiding vacation because they can’t cover up their illegal activities while they’re away. Review & Audit Your Accounts Often It’s all too easy to become complacent when the books check out month after month. But the moment you stop monitoring them for missing checks, unrecognized payments, or other suspicious activities, you leave your account vulnerable to fraudsters. Consider hiring a CPA for surprise audit, review, and compilation services. This can both help you catch early warning signs of fraud and demonstrate to your employees that you’re watching the financial records closely. Get Support from a Certified Public Accountant A Certified Public Accountant can be one of your biggest assets in the fight against occupational fraud. The earlier you catch suspicious financial activities in your organization, the better your chances of mitigating losses, maintaining your business reputation, and achieving your business’ goals. Don’t let opportunists—or simple mistakes—cost you what you’ve fought so hard to build. Let the CPAs at Leadingham Rodgers put our accounting and auditing skills to work for you. Leadingham Rodgers: Fraud Prevention & Forensic Accounting in Montgomery, AL If you are concerned about your business’ accounts or fraud prevention programs, call the CPAs at Leadingham Rodgers. One of our many accounting services, forensic accounting can provide a detailed analysis of your financial records, investigating for any fraudulent activities and helping you manage any financial losses or illegal accounting practices we discover. Call (334) 721-2548 or contact us online to learn more.
Credit scores can certainly seem mystifying. They’re a unique combination of the data analytics efforts of 3 major credit reporting agencies: Experian, Equifax, and TransUnion (or Dun & Bradstreet for businesses). Each of these companies gathers data about your credit history, analyzes your financial creditworthiness, and tells lenders how likely you are to repay your debts in the form of a FICO® score from 300 to 850. Nobody can opt out of having their credit history rated on this scale, yet it’s a critically important aspect of financial health for businesses and individuals alike. Improving your credit score can mean the difference between securing a business loan, getting a mortgage, or purchasing a big-ticket item to expand your earnings—or your family. So, how can you take control of your credit score and make it work for you? Let’s dive in! Why Knowing Your Credit Score is Important Keeping an eye on your credit score gives you a greater understanding of what potential lenders are going to see if you need to apply for a loan or credit card. Watching it over time can help you catch any inaccuracies or signs of identity theft. It can also help you plan to improve your credit ahead of a big event, such as buying a house or acting on an important capital expenditure. Your credit score doesn’t just determine whether or not a lender will agree to loan you money. It can also determine your interest rate for repaying what you owe. Generally speaking, the better your score, the less you’ll have to pay over time. What credit score do you start with? Before you start building credit, you don’t have a score at all. It isn’t zero or even 300 (the lowest possible)—it simply isn’t . Once you open your first line of credit, you’ll get a score, which will likely be somewhere between 300 and 850, depending on your unique circumstances. Scores are calculated based on: Your track record of making regular, on-time payments How much debt you’ve accumulated Your credit utilization ratio (how much money you owe compared to your available credit) The mix of loan types you have (such as credit cards, car loans, mortgages, etc.) The length of your credit history (also called credit age) How to Check Your Credit Score There are many ways to check your credit score for free. Some methods of checking will lower your score—these are known as hard inquiries, which are used any time you apply for a new line of credit or a credit line increase. But personal reviews (or soft inquiries) won’t affect it, and you should never have to pay for your scores. Instead, try one of these options: Ask your financial institution about credit monitoring and reporting. Most big names in banking provide this service to their customers for free. Request a free credit report from the Annual Credit Report Request Service online or via phone call. Through December 2023, you are entitled to free weekly reports. Use a reputable online credit monitoring service such as Credit Karma . Tips for Improving Your Credit Score Always Make Payments on Time Making your credit card or loan payments on time is the single most important factor in your credit score. It’s best not to carry too much debt, but making the minimum payment on time is better than missing it, especially by more than 30 days. Late payments of 30 days or more can drop your score by up to 100 points and stay on your credit report for more than seven years. Individuals should set up reminders or automatic payments to never miss a due date. Businesses should consider streamlining their bill payments, either through an upgraded accounting system or working with a Certified Public Accountant (CPA). Manage Your Credit Utilization The second most important factor in your credit score is your credit utilization ratio, which is typically represented as a percentage. The lower your balance, the higher your score is likely to be, because it shows lenders that you’re being responsible and spending within your means. Typically, you should use less than 30% of your credit card limit on any given card. Smart ways to manage this ratio include paying several times throughout the month, paying off your balance before the billing cycle ends, or asking your creditor for a higher credit limit. You’re more likely to receive an increased limit if you’ve recently gotten a raise or have had a good track record with that card for a few years. Discuss Debt Management Options with Your CPA Whether you’ve gotten behind on your bills due to illness or job loss, or you aren’t sure how to pay down your accumulated debt, a CPA can help. Debt management is just one of the many things we do for our clients here in Montgomery, both on a personal and business level. We can help you choose the right steps for your situation, from getting you on a good schedule to negotiating with your creditors, and ultimately improving your credit score. Get Smart About Your Credit with Leadingham Rodgers Credit scores are a fact of life. But instead of seeing them as a millstone around your neck, you can take control and turn them into valuable assets. As Montgomery’s trusted accounting firm, Leadingham Rodgers is ready to help clients manage their debt, set up a responsible credit history, and rehabilitate their financial health for the long term. Your Reliable CPAs in Montgomery, AL Leadingham Rodgers’ CPAs have deep roots in the community here in Montgomery. We’re committed to helping all our friends and neighbors in the area take control of their financial situations. Whether you need business accounting, personal tax help, consulting, or something totally unique, our team is ready to use our expertise to help. Call us today at (334) 721-2548 or reach out online for more information.
