Individual Accounting Services Guide
As an individual, managing your finances can be overwhelming, especially when tax season rolls around. Many people hire reliable accounting firms because they have the experience and resources to streamline the process. Marshall Jones has a team of Certified Public Accountants (CPAs) and Advisors who provide customized individual accounting services. Our goal is to help clients achieve financial success.
This article is a guide to personal tax filing and how accountants can help. It also discusses other accounting services most people use, including those provided by Marshall Jones. Feel free to contact us if you have any questions.
What to Know About Filing Taxes
Filing taxes can be complex and tiresome but also relatively straightforward if you know the essential things to consider. Certain tax avoidance strategies are legal, but evasion is unlawful. In other words, paying taxes is mandatory, but there are ways to reduce your tax liability without violating the law. That insight can help you implement effective tax planning strategies, considering the following:
1. Personal vs. Business Tax Preparation
Your individual taxes will differ from the commercial taxes depending on the situation. For example, business owners registering their entities as S corporations elect to pass corporate income, credits, deductions and losses through the shareholders for federal tax purposes. This strategy allows you to avoid double taxation on corporate income. Conversely, businesses registered as C corporations pay separate taxes for the entity and shareholders. Individuals employed by a business owner or company pay personal income taxes on their earnings.
Individual tax preparation is unique compared to commercial taxes. For instance, filing forms, tax assessment processes and tax categories often contrast with business tax preparation. Moreover, liability for individual taxes is personal, meaning the taxes, penalties, interests and sanctions apply directly to the taxpayer. As a taxpayer, you must learn and apply the distinctions according to the relevant regulations and best practices.
2. Types of Taxes
There are federal and state taxes in the United States. Federal taxes are paid to the federal government, while state taxes are paid to the state of residence. The Internal Revenue Service (IRS) enforces federal tax laws and collects payments on behalf of the federal government. Each state also has a tax agency that performs functions similar to the IRS but at the state and local levels. An example is the Georgia Department of Revenue (DOR).
3. Categories of Taxes
You must pay several different types of taxes as an individual. For Georgia, the most common taxes are:
- Income taxes: You must pay federal and state taxes if you are a resident and earning income in Georgia.
- Estate taxes: While Georgia has no estate taxes, you must pay federal estate taxes if you meet the threshold.
- Property taxes: You must pay property taxes to the DOR if you own property in Georgia based on its value.
- Capital gains taxes: If you sell an investment asset and receive a gain, you may be required to pay capital gains taxes.
- Gift taxes: Georgia has no gift tax, but you may be required to pay federal gift taxes on gifts made during the donor’s lifetime.
Individual taxpayers must know the applicable taxes and rates and file before the deadline to avoid penalties and other sanctions.
4. Tax Assessment
Various factors determine your tax liability in Georgia, including the following:
- Filing status: Choose the filing status that best suits your situation. For example, taxpayers may file as single, married filing jointly, married filing separately, qualifying serving spouse or head of household.
- Deductions and credits: Use available deductions and credits to reduce tax liability. For example, are you caring for a dependent child? Have you incurred expenses in your self-employed business?
- Taxable income: Federal and state income taxes in Georgia are progressive, which means the amount you pay increases as your income rises after meeting the taxable threshold.
Proper tax planning strategies can help you reduce the amount you pay to federal and state tax agencies.
5. Tax Filing Process
Once you have determined your tax liability, you must report and file your tax returns with the IRS and DOR. This stage requires you to know the relevant forms and the process for filing federal and state taxes. There are three ways to file your taxes — by mail, online, or in person. The DOR assists taxpayers who want to file their own tax returns and works with software vendors to offer free electronic filing services. However, you can leverage the expertise of accountants and other tax professionals, as that saves time and money.
Should You Hire an Accountant for Your Taxes?
Accountants and other tax professionals add value to your finances. They bring knowledge and experience to the table, improving your tax preparations. Outsourcing your tax preparation and other accounting services takes the load off your shoulders. The benefits are many, so let’s dive deeper:
- Handling complexities: Tax preparation can be complicated, especially if you have a complex financial situation. For example, individuals with multiple income streams, investments or real estate can use the services of tax accountants to streamline the process. They can help you optimize deductions and credits to reduce your tax liability.
- Time-saving: Tax laws can be intricate and time-consuming to understand. Unless you have the time, patience and knowledge of tax laws, hiring an accountant is often best. This strategy frees up your time to focus on other aspects of your life.
- Avoiding mistakes: Tax accountants are trained to prepare tax returns accurately. They can help you mitigate penalties or audits from tax authorities.
- Tax planning optimization: Accountants can provide valuable advice on tax planning. They can help you implement tailored strategies to reduce your tax liability throughout the year. You can use available deductions and credits or use estate planning techniques to avoid or reduce some taxes.
- Peace of mind: Knowing that a professional is handling your taxes can provide peace of mind and reduce stress during tax season. This benefit is essential to those prioritizing quality time for themselves and their families.
Other Accounting Services You Can Outsource
Other services interrelate with or stand-alone from taxation. Depending on your situation and time availability, you can outsource these services to accountants. Here are a few examples:
- Investment: Accountants can examine your investment portfolio to assess performance, financial risk exposure and tax implications. They can also provide audit or bookkeeping services, ensuring accuracy in financial reports. Tracking, reconciling and accounting for investment activity can help drive growth.
- Family office: Accountants can provide detailed financial reporting to help track income, expenses, assets and liabilities. They can also help with budgeting, cash flow management and financial planning. Families that want to develop a succession plan can also leverage accounting services.
- Estate planning: Accountants can help you develop efficient estate planning strategies. This service can help your heirs avoid complex, time-consuming processes like probate and reduce taxes. Accountants can also help you set up and administer trusts as part of your estate planning strategies.
- Retirement planning: Retiring with a financial plan is ideal. Accountants can examine your income sources, savings and investments and help you set goals. This service can help you achieve financial security in retirement.
Why Choose Marshall Jones?
Marshall Jones is a renowned accounting firm in Atlanta dedicated to bringing value to our clients’ finances. We provide excellent services and practical solutions — but there’s more. Here are four reasons you should join us:
- Customized strategies: At Marshall Jones, we offer customized accounting strategies for individuals. We take the time to understand your financial situation and create a personalized plan to help you achieve your financial goals.
- Expertise: Marshall Jones’s accountants are experienced and knowledgeable in all areas of accounting. Whether you need help with tax planning or preparation, bookkeeping, or financial planning, we have the expertise to help.
- Reliable representation: If you ever have to deal with the IRS, having a CPA on your side can significantly benefit you. We can represent you before the IRS and help you navigate tax issues.
- Customer services: Our experienced team values personal attention and communication with our clients. We will work with you one-on-one to ensure you fully understand your financial situation and the strategies we recommend.
What We Do: the Marshall Jones Advantage
Marshall Jones provides a range of accounting services for individuals in Atlanta. Here are some examples:
1. Tax Preparation
We have a team of highly trained CPAs and advisors capable of preparing tax returns for individuals with complex financial situations. We ensure that you are taking advantage of all available deductions and credits. Quality tax preparation can help you save money on your taxes and avoid surprises come tax time.
2. Bookkeeping
The professionals at Marshall Jones can work with all aspects of bookkeeping, including accounts payable and receivable, bank reconciliations, and financial statement preparation. Keeping track of your finances can be time-consuming and overwhelming, but we are ready to assist.
3. Financial Planning
At Marshall Jones, we help individuals create financial plans to achieve their goals. Whether saving for a house, planning for retirement or investing in the stock market, we can help you achieve those goals.
Partner With Marshall Jones Today
Marshall Jones has served the city of Atlanta for decades. We understand the financial system and can help you navigate the hurdles. We aim to simplify your accounting and tax preparation so you can achieve your financial goals. Contact us today to learn more. Our trusted agents will listen and provide the answers you need.
