Taxes and Record Keeping This will cover the importance of keeping your finances in order, including a record system, bookkeeping, accounting, payroll, and other financial and tax issues.

1. Asian Women In Business
Tax Issues and Record Keeping
Monday Nov. 10th 2014
Presented by Chunyee Wong Miot, CPA PC
626 RXR Plaza, Suite 631, Uniondale, NY 11556
T: (516) 522-2780; F: (516) 522-2781
Chunyee7@yahoo.com

2. The importance of
having a proper bookkeeping system
• It enables you to run your business more efficiently and
effectively
• It saves time and minimizes error
• It shows you the true picture of your operation
• It provides a good document for financing needs
• Easier transition when changing staff
• It provides accountants with accurate and timely
information
• It makes auditing a breeze

3. Create a Bookkeeping System
• Software: Quickbooks, Preachtree
• Record all business transactions
• Keep receipts and paper work
• Proper Classification of Income, Expenses,
Assets, Liabilities and Equity
•Cash basis or Accrual basis
(Refer to sample financial statements: profit and loss
statement, balance sheet and cash flow statement)

4. Profit and Loss Statement
• Gross Revenue
Sales
Consulting Fees
• Cost of Good Sold
Purchases
Labor Costs
Freight and Shipping

5. Profit and Loss Statement
• Operating Expenses
Accounting and Legal Fees
Salaries – Officers
Salaries – Staff
Bank Charges
Office Supplies
Interest Expenses
Depreciation
Amortization
Utilities
Dues and Subscription
Finance Charges
Taxes

6. Balance Sheet
• Assets
• Current Assets
Cash
Accounts Receivables
Inventory
Prepaid Expenses
Loan Receivable

7. Balance Sheet
• Fixed Assets
Equipments (5 years)
Furniture and Fixtures (7 years)
Automobile
Real Estate Property(27.5 years)
Leasehold Improvement (over lease
term)
Less Accumulated Depreciation

8. Balance Sheet
• Intangible Assets
Organization Costs
Patent
Trade Mark
Less Accumulated
Amortization
• Other Assets
Security Deposit
Loan Receivable

9. Balance Sheet
• Liabilities
• Current Liabilities (within 1 Year)
Accounts Payable
Loans Payable (within 1 year)
Accrued Expenses
Payroll Taxes Payable
Sales Tax Payable
Credit Card Payable

10. Balance Sheet
• Long Term Assets (over one year)
Loans Payable
Loan from Shareholders
Line of Credit
• Equities (investment & income/loss)
Capital
Additional Paid in Capital
Retained Earning
Current year Earning

11. Business taxes
 Payroll Taxes – Social Security Taxes: 6.2% for wages up
to $117,000 for 2014
- Medicare Taxes: 1.45% for all wages
Employee Vs Independent Contractor
Sales Taxes – 8.875% for businesses located in 5boroughs
Use Taxes (Refer to Sales tax table for other New York
Counties)
Business income taxes and franchise fees
Metropolitan Commuter Tax

12. Special business deduction for
start up businesses
 Start Up Costs: $5,000 deduction in initial year
 Organization Costs: $5,000 deduction in initial
year
 Home Office Deduction
 Travel Expenses – 56 cents per mile
 Meal & Entertainment – 50%
 START-UP NY program: No Tax for 10 years
Qualified business must locate in tax-free zone:
in or near State University of New York
campuses and some private colleges.

13. Home Office Deduction
Regular Method
 Percentage of home used for business
 Actual expenses determined and records
maintained, such as utilities, rent & depreciation
 Home-related itemized deductions apportioned
between Schedule A and business schedule, such
as mortgage interest & property tax
 Deduction cannot exceed gross income from
business use of home less business expenses
 Amount in excess of gross income limitation may
be carried over

14. Home Office Deduction
Simplified Method
 Standard deduction of $5 per square foot of home
used for business (maximum 300 square feet) =
Maximum $1,500 Deduction
 Home-related itemized deductions claimed in full
on Schedule A
 No depreciation deduction, no recapture of
depreciation upon sale of home
 Deduction cannot exceed gross income from
business use of home less business expenses
 Amount in excess of gross income
limitation may not be carried over

15. Accounting Method
 Cash Method
Income are recognized when payment is received.
Expenses are recognized when payment is made.
 Accrual Method
Income is recognized when services are
rendered and goods are shipped.
Expenses are recognized when it has occurred.

16. ObamaCare
Every one has to have health
insurance by 01/01/2014.
Business with 50 plus full-time
employees must provide health
insurance plan.
NYS official website:
https://nystateofhealth.ny.gov

17. Chunyee Wong Miot,
CPA
626 RXR Plaza, Suite 631
Uniondale NY 11556
T: (516) 522-2780; F: (516) 522-2781
375 West Broadway, 3rd Floor
New York, NY 10012
T: (917) 488-7975; F: (212) 937-5217
Email: chunyee@chunyeecpa.com

18. Asian Women In Business
42 Broadway, Suite 1748
New York, New York 10004
Tel: 212.868.1368 - Fax: 877.686.6870
Email: info@awib.org