LedgerBench

Payroll reconciliation means verifying all your employees are paid correctly. It also means, all taxes are paid and reported accurately. Regardless of your business, Payroll Services involves different accounts such as: • Retirement • Medicare • Federal taxes • State taxes • Insurance Deductions • Social Security Withholdings Let’s take an example here: Your employee earned $2000 during the pay period but received $1500 as the rest of the money was disbursed appropriately on the above accounts. Here, payroll reconciliation would entail verification of all the accounts involved with the transaction agreed upon. Payroll reconciliation: While formulating payroll, accountants must make sure their calculations are correct. Prior to submitting payroll, the accountant audits for entry errors and makes adjustments as necessary. Ensure that the entries are posted to the right accounts. Validating transactions: After the completion of payroll, CPA would review the entries for a...

Starting a small business is a dream for many people. Unfortunately, half of the people’s business shuts in between due to lack of finance preparation or there can be multiple other reasons.  Have you heard this famous proverb?  “The Art Is Not In Making Money, But In Keeping It.” Financial Preparation We know how to start a business, but managing finances can be a key challenge.  Talk to a tax expert: It’s imp ortant to work with an Accountant before starting a business- to understand ramifications of all transactions. A good CPA can make life so much easier by handling taxes, payroll, tax filing and other financial Figure out funding for the business: Funding for the business is the biggest decision aspiring business owners need to make. If you have savings and you don’t require funding/loan from a third person then you are better off using your own investment. But if taking a loan is the only option you have, then make sure you can repay i...

Have you recently received tax notice from the IRS and are terrified what to do about it? Well, you have come to the right place for all your queries. Not all tax notices by the IRS are related to audits.  The notice letter given by IRS will have all the reasons for the contact and give you instructions how to handle it.  What is a Tax Audit Support ? A tax audit is an examination of your tax return by the Internal revenue Services (IRS) to verify if your deductions and Income tax are accurate.   Reasons for your notification by IRS: You changed your return You have a balance due They need to verify your identity They require additional information You re due larger or smaller refund A notification stating there will be delay in processing your return Now when you know the reason for the notice, let’s get going on more information. If you receive a notice stating your taxes are being audited: A tax audit is an ...

Payroll is a complex process with changing legislation, varying allowances and deductions and compliance issues. Many businesses manage payroll in-house while some outsource it to a third party. The goal is to adapt constantly changing legislation and to avoid compliance risk. One of the most important concerns of an employer is to meet statutory compliance in payroll. Payroll is one of the most regulated functions in an organization that must meet federal, state and local jurisdictions requirements.  What is Statutory Compliance ? Compliance is the process of fulfilling official requirements.  Hence, statutory compliance is a legal framework to which organizations must abide by. In nutshell, statutory compliance means adhering to rules and regulations.  A lot of hard work, time and money goes in to make sure payroll is compliant through statutory audits. Each company has different payroll challenges, but what you need is the solution that must be reliable, i...

Reconciling customer statements ensures that there are no inaccuracies or mistakes in what the vendor is charging and the inventory, services or supplies you received. Statements mostly arrive at the same time each month. In simple terms, reconciliation is matching the statements items with your invoices.  What is C ustomer Reconciliation ? Vendor reconciliation is a statement received from the vendor which contains details of invoices of the vendor for a particular period. This is a process of comparing the outstanding customer balance or bills to the accounts receivable as recorded in the general ledger. It is part of accounting activity and is usually conducted at the month-end before issuance of monthly financial statements. It also contains unclear items such as payments and credit notes.  Steps to reconcile customer/vendor statement: Gather your invoices: Organize your invoices of the vendor by date. If you use a computer to assist your accounting n...