I'm now an IRS Enrolled Agent

I am pleased to announce that I have earned the elite designation of IRS Enrolled Agent.

What this means to you is that I have proven I have the knowledge and skills necessary to properly prepare your tax returns and to help you deal with any tax issues that arise.

I am authorized by the IRS to represent you on all tax matters, including any audits.

Please keep me in mind for all of your tax needs, including preparing and filing your tax returns.

Kelli Hegsted, MBA, EA
Owner - KDH Business Services LLC


You can check out my website at:  www.KdhBusinessServices.com

Preparing for your tax appointment

Happy Tax Season

Now is the time to start preparing for your tax appointment.

The more prepared you are at this appointment the less stress and anxiety you will have as you preparer works through your return.

The following is a list of items you may need to take with you to your appointment.  (this is not meant as an all inclusive list, as you may have other items that need to be reviewed as well)

• Last year's tax return
• Original W-2 Forms
• Schedule(s) K-1 from any partnerships, S-Corps, estates or trusts
• Copies of other compensation documents, such as any 1099's
• Any retirement or pension documents, such as any 1099-R's
• Brokerage Statements
• Any 1098's including those for Mortgage interest
• Personal Property Taxes Paid
• Sales Tax paid for large items, such as boats, vehicles, etc
• Copies of closing statements regarding the purchase or sale of real property
• Daycare expenses
• Higher Education expenses, including student loan interest
• Medical and Dental Expenses
• Charitable Contributions

You may have additional items that will be required to finalize you return, in which case your preparer will let you know what those are.

If you require further information or have questions please contact me.  

If you are in need of a tax preparer give me a call and we'll set up an appointment to review your records and get your taxes prepared and filed.

Kelli Hegsted, MBA, EA

IRS Enrolled Agent / Tax Preparer

Check out my website for more information.

www.KdhBusinessServices.com

Paying Cash for Business Expenses

This is not necessarily a good idea, unless you have a Petty Cash account set up.  

As a small business owner, if you withdraw cash from your bank through the ATM, or inside the bank with a check and then pay for business expenses with the cash it may be impossible to prove that the money you withdrew was not a draw.  

I definitely have to advise against paying for anything major with cash.  Paying for improvements, equipment, rent, etc with cash is a good way for the person you paid to either come back and say that you didn't pay them (since there is no paper trail), or for you to claim it on your taxes as a business expense (since you most likely do not have a W-9 from them and cannot file a 1099).

Just a few things to think about before paying for your purchase with cash.

You can check out my website for more information or to contact me for additional topics.

www.kdhbookkeeping.com

How long should I keep my records?

This is a question each business owner eventually asks themselves.  Usually when their storage area is overflowing and they are not sure what they can shred and what they have to keep.

I've put together this list of the most common records and when/if they can be destroyed.

If you have questions or require additional information please feel free to contact me at info@kdhbookkeeping.com

 

Document	How long to Keep
Accounts Payable ledgers and schedules	7 years
Accounts Receivable ledgers and schedules	7 years
Articles of Incorporation	Permanently
Audit Reports	Permanently
Bank Deposit Slips	3 years
Bank Reconciliations	1 year
Bank Statements	Permanently
Bills from Vendors	8 years
Bills of Lading	6 years
Brokerage Statements (Annual)	Permanently
Budgets	2 years
Cancelled Checks	Permanently
Cancelled Checks for important payments (taxes, purchase of property, special contracts)	Permanently
Capital Stock and Bond Records	Permanently
Cash Books	Permanently
Cash Projections	2 years
Contracts, mortgages, notes and leases (expired)	7 years
Copyright Registration	Permanently
Correspondence (General)	3 years
Correspondence (Legal and important matters)	Permanently
Correspondence with customers or vendors	1 year
Credit Memos	3 years
Deeds, Mortgages and bills of Sale	Permanently
Depreciation Schedules	Permanently
Duplicate Deposit Slips	2 years
Employee Expense Reports	3 years
Employee Payroll Records (w-2, w-4, etc)	6 years
Employee Personnel Records (After termination)	6 years
Employment Applications	3 years
End of the Year Trial Balance	Permanently
Expense Analysis and expense distribution schedules	7 years
Expired Insurance Policies	6 years
Financial statements (end of year)	Permanently
Freight Bills	4 years
Garnishments	7 years
Insurance Records	Permanently
Internal Audit Reports	3 years
Internal Reports	3 years
Internal Work Orders	3 years
Inventory Records	7 years
Invoices to Customers	8 years
Journals	Permanently
Minutes of Board of Directors Meetings	Permanently
Notes Receivables	7 years
Option Records (expired)	7 years
Patents and Related Papers	Permanently
Payroll Records	8 years
Petty Cash Vouchers	3 years
Physical Inventory Tags	3 years
Productions and sales reports	7 years
Property appraisals by outside appraisers	Permanently
Property Records (depreciation schedules, blueprints and plans)	Permanently
Purchase Journals	Permanently
Purchase Orders (all others)	1 year
Purchase Orders (purchasing dept copy)	7 years
Receiving Sheets	1 year
Requisitions	1 year
Retirement and Pension Records	Permanently
Sales Commission Reports	3 years
Sales Records	7 years
Scrap and Salvage Records	7 years
Subsidiary Ledgers	7 years
Tax Returns and worksheets	Permanently
Telephone logs/message books	7 years
Timecards	7 years
Trade mark Registrations	Permanently
Training Manuals	Permanently
Voucher for payments to vendors, employees, etc	7 years
Voucher Register and Schedules	7 years
Withholding Tax Statements	7 years