Monthly Archives: August 2022

Certified Public Accountant United States

Your accountant’s insight ensures you’re both eligible for financing and choose a loan that aligns with your business’s short- and long-term goals. Banks and investors are more confident when your financials are clearly presented and professionally reviewed. You don’t want to run out of money right when it’s time to pay a big vendor. An accountant will not only keep you on track with current finances, but they will strengthen your cashflow and create a budget that sets you up for future growth and success. Your cashflow and budget are key to your company’s financial health, and your accountant can make sure you’re on the right track.

Falling out of compliance can lead to penalties, so an accountant acts as your safeguard against costly regulatory missteps. An accountant is an expert at analyzing your financial data to maximize profitability, identify areas for improvement, and project future business growth. Tax laws and technology (e.g., accounting software and payroll) shift constantly. Your accountant should be able to adapt and continue learning to keep up with changes. In the unlikely event you receive a tax notice, we have an entire audit defense department ready and available to help. We partner with Protection Plus $1 Million Tax Audit Defense so that we can work towards a favorable resolution in every situation our clients might face.

Chew & Lee Accounting Group is an accountancy firm that provides its services to local individuals and businesses in Wichita and the surrounding areas. Its services include 1040, 1041, 1120, 1120S tax preparation; entity selection and restructuring; IRS representation; and bookkeeping/write-up payroll. Darrell Chew established the firm—initially named Darrell J Chew & Company—in 1975. Darrell’s daughter, Tina, became an equity partner in 2007 and is now the CFO and president of Chew & Lee Accounting Group.

• Darrell Chew established the firm—initially named Darrell J Chew & Company—in 1975.
• And according to the BLS, there are about 1,562,000 accountant jobs in the U.S.
• Since 2021, KyTek Accounting has been helping clients in the Wichita Kansas area reach their potential.
• Its services include 1040, 1041, 1120, 1120S tax preparation; entity selection and restructuring; IRS representation; and bookkeeping/write-up payroll.
• He provides a variety of resources like downloadable tax forms, tax publications, and financial calculators to help clients gain a seamless tax experience.

Wichita State University participates in E-Verify, which is an internet-based system that compares information from an employee’s Form I-9, Employment Eligibility Verification, to data from U.S. Department of Homeland Security and Social Security Administration records to confirm employment eligibility. Provides strategic direction and leadership in the planning, development, management, control and reporting of financial management plans and activities of the University. They are upheld to a specific code of accounting services wichita ethics, including a fiduciary standard, which means their clients’ interest must be put first.

Committed to providing quality professional accounting and tax related services and solutions.

The city is also home to the Museum of World Treasures, Tanganyika Wildlife Park, Exploration Place and the Kansas Aviation Museum. If you’d like to learn more about what we do and how we can go above + beyond for you, please fill out the form below.

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• We are ready to tackle any financial challenges that you may have as your trusted tax planner and financial advisor.
• In the unlikely event you receive a tax notice, we have an entire audit defense department ready and available to help.
• We pride ourselves on being proactive and responsive to our clients’ inquiries and suggestions.
• Legal designations, tax filing processes, services, prices and hours of operation may vary by location and by state (per state requirements).
• Accountants help you stay compliant by ensuring your business complies with the latest legal standards.

Attention to detail ensures they don’t miss key financial data that could impact your company’s growth. Pawn shops and solicitors operating in Wichita must secure specific city licenses in addition to the general business license. Massage therapists in Wichita are required to obtain additional city-specific licensing beyond the general business license. Most businesses in Wichita need to obtain a general business license to operate legally within the city. Wherever you are located, come work with us at Cook CPA and benefit from years of industry experience. A CPA is licensed through a professional governing body, and must engage in continuing education to maintain their license.

Cook CPA of Wichita, KS seeks to bridge the gap that is often present within the customer relationship between certified public accountants and clients. Instead of reacting after the fact, we seek to proactively provide specific solutions which will generate results that matter. Our Wichita accounting services will help propel your business or personal financial position forward in a consistent and holistic manner. Our expertise, experience, analysis and thorough research allow us to optimize financial opportunities to be found in existing as well as changing tax laws. We are knowledgeable and up to date on the tax laws and can make sense of your receipts, bills and notices.

An accountant can have you ready by properly planning and ensuring accurate and timely filing of tax returns. All Paramount Tax locations are independently owned and operated by franchisees of Paramount Tax (although one or more may be company owned). Legal designations, tax filing processes, services, prices and hours of operation may vary by location and by state (per state requirements). The Kansas Department of Commerce provides Small Business R&D Acceleration Grants of up to $25,000 for Kansas-registered businesses with 50 or fewer full-time employees. Designed to support the commercialization of innovative products and services, these grants require businesses to match the grant amount. CompilationsCompilations are usually requested for internal purposes and are based upon information provided by a company’s management.

Has been specializing in personalized taxation and accounting services throughout the Wichita area for over 35 years. In addition to our certified public accountants, we have the skills, knowledge and charisma to handle all of your accounting needs. We are ready to tackle any financial challenges that you may have as your trusted tax planner and financial advisor. When a local company faces financial reporting, compliance, assurance or growth challenges, they turn to Adams Brown for help. Across Kansas and the country, we provide audit and attestation, advisory and consulting, outsourced accounting, payroll, tax, technology and wealth management services. 1-800Accountant is focused on helping small businesses grow by taking bookkeeping, payroll, and tax concerns off of their hands.

Find other best professional services near Wichita, Kansas

You might consider signing up with easy-to-use accounting software to handle your expense and income tracking, create invoices, and generate financial reports. With organized and up-to-date books, you can make your meetings with your accountant or Certified Public Accountant shorter and more productive—saving you time and money. With specialized knowledge and experience serving the agriculture, construction, dentist & physician, local government and manufacturing industries, our team stands ready to assist.

Financial reporting

BFR CPA, LLC is an accounting firm established in 1997 and based in Wichita. The firm provides general accounting services such as payroll, bookkeeping, audits, and reviews. It also offers income tax preparation and filing services, and tax consulting.

Filing your business taxes online with 1-800Accountant is quick and easy:

Accountants help you stay compliant by ensuring your business complies with the latest legal standards. An accountant can represent your business by preparing documentation to audit inquiries and help resolve discrepancies to reduce potential penalties or fines. Accountants can keep your business dealings up-to-date with regular financial reporting (e.g., quarterly and annual statements).

And according to the BLS, there are about 1,562,000 accountant jobs in the U.S. Think of an accountant as a financial strategist who shows you the big picture while staying grounded in the numbers. Choosing the right accounting system—and using it effectively—can save time, reduce errors, and give you real-time insight into your finances. They can prepare necessary documents, compare small business loan interest rates, and forecast your ability to repay. Analytical thinking and problem-solving skills identify patterns, spot inefficiencies, and create actionable plans.

We provide a full range of tax, payroll, bookkeeping and general CPA accounting services. In addition to providing you with a profile of our firm and the services we provide, this website has been designed to become a helpful resource tool to you, our valued clients and visitors. We have also included useful resources such as informative articles (in our Newsletters section) and interactive financial calculators (in our Financial Tools section). We pride ourselves on being proactive and responsive to our clients’ inquiries and suggestions. Since 2021, KyTek Accounting has been helping clients in the Wichita Kansas area reach their potential. Whether you need assistance with bookkeeping, tax preparation, payroll or any other accounting-related matter, we would love to help.

While accounting is a technical and specialized field, soft skills are just as necessary to succeed in this role. Read on to learn about the main duties of an accountant (and Certified Public Accountant), questions to screen a future accountant, and more. When choosing an accountant or bookkeeper for your Wichita small business, you should consider several important factors. Located in south-central Kansas, the city of Wichita is also known as the Air Capital of the World. The name reflects the area’s deep tie to aviation manufacturing since Cessna, Beechcraft, Learjet and others have built over 300,000 aircraft from Wichita assembly lines.

The Hidden Truth About Passive Revenue

The other entity is an S corporation which leases the assets from the LLC to use in the business. This directly reduces the S Corp’s net operating business income, and might possibly reduce the amount of salary required to be paid by the business to the shareholders. In today’s changing market, it is often advantageous to diversify your income streams to provide a buffer and avoid the risk of relying heavily on one source of income. Yes, it is possible and actually ideal to have a combination of passive and non-passive income streams.

Embracing these technological solutions can significantly enhance your ability to create and manage passive income streams. Advancements in technology have opened up many opportunities for creating passive income streams. From e-commerce platforms to automated investment tools, technology can help streamline the process of building and managing many income sources. The IRS has specific rules for classifying income as passive or nonpassive. Typically, rental properties, limited partnerships, and royalties are considered passive, while actively managed businesses and employment income are nonpassive.

These rates are often lower than ordinary income tax rates, leading to potential tax savings for individuals who earn passive income. While it’s possible to live off passive income, it typically takes time and effort to build passive income streams that can fully replace active income. Most financial experts recommend maintaining a balance of both passive and non-passive income sources for financial stability.

While passive income requires less active involvement than non-passive income, it often requires initial effort and ongoing management. Investments and income-generating assets may require monitoring, maintenance, and occasional decision-making to optimize returns. Passive income/losses are those in which the taxpayer does not materially participate. And in 1984 President Ronald Reagan successfully changed the tax law so taxpayers with paper (passive) losses cannot take them against non-passive income.

• This type of income doesn’t demand the recurrent effort to keep securing more revenue.
• This Site may contain references to certain laws and regulations which may change over time and should be interpreted only in light of particular circumstances.
• Depending on the holding period of the asset, and other factors, that gain might be taxed at ordinary income tax rates or capital gains tax rates.
• This directly reduces the S Corp’s net operating business income, and might possibly reduce the amount of salary required to be paid by the business to the shareholders.

Tax Treatment of Passive vs. Nonpassive Income

Income reported on a K-1 form can be classified as passive if the income earner is not directly involved in business operations. This classification affects how income is taxed and impacts available deductions. If passive losses exceed passive income, the excess can be carried forward to future years, preserving the benefit for when passive gains become available. Management sees a strong pipeline of investment opportunities and forecasts $4 billion in investment volume this year.

Taxpayers Guide to LLCs and S Corps

Non-passive income is what most people think of when they ponder how to make money. Simply put, it’s any type of income that is not accumulated passively. Deciphering the difference between passive and non-passive income is critical come tax season, but it can also aid you in figuring out how to bring in extra cash flow. The amount of money needed varies depending on the type of passive income stream. Some options, like creating digital products or starting a blog, can be started with minimal investment.

Passive income is earned with minimal effort once the income stream is established, while non-passive income requires ongoing work to generate income. Passive income requires an upfront time commitment to set up income streams and investments. However, once established, they require minimal ongoing effort.

A distressed property can be a wise investment while helping owners get out of debt. The stock is down 30% over the last three years from rising interest rates, which puts downward pressure on real estate values. But this is why investors can get the stock at such a great yield and valuation. The stock is currently trading at a relatively low price-to-AFFO multiple of 13. This comprehensive guide breaks down everything you need to know about how K-1 distributions are taxed for partnerships, S corporations, trusts, and more. For getting really good at solving real problems, and then figuring out how to scale your solution without scaling your stress.

Liquidity Risk in Investments: Navigating Financial Waters

Passive income bluntly is income that would continue to generate if you died. Passive income is income that would continue to generate if you decided to do nothing and sunbathe on some beach. Passive income includes rental income, royalties and income from businesses or investment partnerships / multi-member LLCs where you do not materially participate. There are other areas such as Schedule E or F where income can passive v non passive income come into your individual tax return and be subjected to self-employment taxes, but Schedule C is the most common. In conclusion, both passive and non-passive income streams offer their own set of advantages and disadvantages. Both passive and non-passive income streams have their advantages and disadvantages in the long run.

ARE YOU READY FOR LIFELONG WEALTH?

Non-passive income, in contrast to its passive counterpart, is money earned through active involvement, effort, and personal time investment. It represents compensation for your work, services, or business activities, and it’s typically subject to direct labor or business management. It’s important to understand non-passive income as it forms the foundation of most people’s financial lives. Losses from nonpassive sources, such as active businesses, wages, or self-employment income, generally offer more flexibility in how they can offset income. Nonpassive losses can be applied against other types of income, including wages, business income, and portfolio income, providing greater versatility in managing overall taxable income. Nonpassive income, on the other hand, is income derived from active participation in a trade or business, such as salaries, wages, and income from self-employment.

The IRS defines passive income as earnings from a business or rental activity in which the taxpayer does not materially participate. Passive income is generally taxed at a flat rate, which may vary depending on the type of passive income and the taxpayer’s overall income level. Passive income is income that is earned with little to no effort or active involvement on the part of the recipient.

They have to pay minimal attention to their investments, which keep bringing assured returns. Another notable advantage of passive income options is that taxpayers can group all their passive income avenues into a single large unit. This ultimately means that the IRS will not consider material involvement for each activity individually.

It’s best to ask with a tax professional for personalized advice. Even small, consistent efforts can lead to significant results over time. Flexibility allows you to adapt to changing market conditions and personal circumstances.

• Understanding the differences between passive and non-passive income is essential for anyone looking to improve their financial situation.
• And in 1984 President Ronald Reagan successfully changed the tax law so taxpayers with paper (passive) losses cannot take them against non-passive income.
• This means you can generate income even while you sleep, travel, or pursue other interests.
• Let us help you navigate income taxation complexities and optimize your tax strategies.

Portfolio Income

Non-passive income is often characterized by a direct exchange of time and effort for monetary compensation. This can include salaries, wages, commissions, and income earned through self-employment. Unlike passive income, non-passive income ceases when you stop working or actively participating in the income-generating activity. You can start generating passive income by exploring options like investing in dividend-paying stocks, creating and selling digital products, renting out property, or starting an online business. It’s important to start small and gradually build your passive income streams over time. Non-passive income, on the other hand, refers to earnings that require continuous effort and involvement.

Individuals have to pay taxes on both passive and non-passive income. For example, rental income and security deposits are taxable income for investors. However, they can claim deductions for several property-related expenses, such as property tax, mortgage interest, and depreciation. Interest earned from savings accounts is also taxed like earned income. We hope this detailed guide has helped you understand the primary difference between passive and nonpassive income.

This includes wages, income generated from any kind of business activity or investment. In simpler words, non-passive income is the exact opposite of passive income type. This is a separate category of income, which does not factor into the passive/active determination. Whether you choose to focus on passive income, non-passive income, or a combination of both, it’s important to align your income streams with your financial goals and risk tolerance. Consider diversifying your income sources to create a more robust and resilient financial foundation.