JVG is the complete, affordable source for all your accounting needs. We offer a free initial consultation and provide free pick-up and delivery services. We specialize in back taxes and tax relief services. JVG has been particularly successful in working toward stopping IRS collection activity. Our professional services and/or consultation include the following:
- Accounting and bookkeeping
- Payroll and all related taxes
- Tax relief services
- IRS back taxes and work toward, stopping IRS collection activity
- Tax planning and tax return preparation (Corporate, Individuals, Non-profit and Clergy)
- Monthly/quarterly sales tax filing
- Account development for new business
- 501 (c) (3) filing for non-profit organizations
- QuickBooks setup and training
- Incorporation and tax election
- Monthly, quarterly and annual financial statements
- Church accounting and issues
- Church special examinations
- Non-profit incorporation, by-laws and set-up
Custom Accounting Systems Designed for Success
Because no two businesses are exactly alike, it is difficult to design a single system that will work for all companies. JVG takes the time to understand your business and industry, while taking unusual or significant industry or business characteristics. One example is whether a construction company accounts for its contracts under the completed-contract or percentage-of completion method of accounting.
Based upon your company’s specific needs, JVG designs a system customized for you. We keep the system as simple as possible to promote maximum efficiency. JVG accounting systems provide controls to ensure that they capture and accurately record informationabout all of the company’s transactions. As your business grows and the needs vary, JVG adapts the system to suit your company.
One of the most important aspects of an accounting system is that it produces a general ledger that contains financial information that management can use. At a minimum, JVG accounting systems provide the information necessary to prepare tax returns. Depending on company needs, the system may also produce information for balance sheets, income statements, statements of cash flows and supplementary information. How the financial information will be used is analyzed and taken into consideration as JVG designs your accounting system.
JVG selects the most appropriate basis of accounting. This in turn ensures the effort to prepare financial statements and tax returns is reduced, making your accounting system cost-effective. Three of the more important considerations in choosing the basis of accounting are:
■ Keeping the number of adjusting journal entries at a minimum.
Preparing adjusting journal entries takes additional time. JVG uses the basis of accounting that requires a minimum number of monthly adjusting journal entries, making certain we can provide bookkeeping services efficiently and effectively.
■ Providing businesses with useful information. Clients need financial information to assist them in making business decisions. The accountant should carefully consider the client’s financial needs before selecting a basis of accounting. For example, certain nonprofit organizations must closely monitor cash receipts and disbursements.
Consequently, cash basis financial statements may be more useful to them than accrual basis statements.
■ Can the same basis of accounting be used for both tax and financial reporting? Generally, small to medium-sized businesses can use the same basis of accounting for the general ledger and for tax and financial reporting, particularly if the basic financial statements are supplemented with schedules that provide information on significant accrual basis items (such as accounts receivable). If the same basis of accounting is used, few, if any, adjustments will be necessary to prepare financial statements and tax returns from general ledger information.
Clergy and Non-profit
Members of the clergy are in many ways treated like non-clergy taxpayers, but there are special tax treatments that recognize their position of a church.
General Rules of Income – for all taxpayers
U.S individual taxpayers are required to report as gross income all compensation for personal services in the year they receive it, no matter what the form of payment. This includes:
- Retirement pay
- Profit sharing
- Director’s fees
- Jury fees
In addition to the guidelines above, Clergy must report compensation such at:
- Marriage Fees
- Baptismal and Funeral Offerings
- Other Stipends received
Employee or Self-employed?
For tax purposes, members of the clergy may be treated as either employees (preferred by the IRS) or independent contractors. In either case, with approval from the IRS, clergy may decide to be made exempt from self-employment (Social Security and Medicare) taxes. If an exemption is claimed, no benefits are available to the clergy member under either program in retirement. So unlike other taxpayers who are required to pay Social Security and Medicare, clergy may choose whether or not to participate.
As an Employee:
■ Clergy receive a W-2 statement of income from their employer (church) organization.
■ As discussed, Social Security may or may not be withheld. A minister is always considered self-employed when it comes to Social Security, but the minister must file Form 4361 on a timely basis to opt out of Social Security withholdings.
■ Federal income tax withholding is voluntary, but if it is not withheld, quarterly estimated tax payment must be made.
■ Housing allowance is generally exempt from income as long as it is spent for housing related expenses.
■ Only expenses that exceed 2% of income can be deducted.
As an Independent Contractor:
■ Clergy receive a 1099 from organizations receiving their services.
■ Self-employed tax return is filed (Scheduled C).
■ No withholdings are taken for Social Security, Federal income tax or State income tax as noted above.
■ Any housing allowance is not included in income.
■ All clergy-related business expenses may be deducted and are not subject to the excess of 2% income threshold.
Fringe benefits given to clergy do not have to be included as income provided since the clergy does not utilize them for personal use. If used for personal use, you must calculate the value of the percentage of your personal use. Such fringe benefits could be: Automobile, Computers, Entertainment, Educational Benefits, Airfare, Travel Expenses, Moving Expenses. Etc.
Value of a home furnished to an ordained minister; Allowance provided to a ministry by a church for the purpose of the minister renting a home and Allowance included in a retired minister’s pension payments.
■ Housing allowance:
Income exclusions only apply to ordained, commissioned or license clergy. Any unused amounts must be reported as miscellaneous income; Allowance must be spent on housing related expenses or if it is considered self-employed income subject to federal, state and self-employed taxes. A minister housing allowance is not subject to income tax but must be subject to self-employed tax.
THE JACKSON-VAUGHANS GROUP CAN HELP YOUR BUSINESS
Getting started with JVG is easy. Just give us a call and we will set up appointment with you to begin working on the following:
■ Discuss the goals and objectives of your company.
■ Perform a customized, detailed analysis of your existing accounting/bookkeeping systems or Restructure or design a new business accounting or bookkeeping system to meet your specific needs.
■ Provide recommendation on how to overcome any obstacles that may exist.