Frequently Asked Questions

We get it - accounting and business consulting isn’t exactly the easiest thing to understand. At Money Mastery, we believe in educating our clients as much as possible so that they can understand the importance of taking control of their finances. Check out our list of frequently asked questions below:

As soon as you start to think about your business, an accountant can help you take the next steps. We can discuss your business's organization, tax purposes and operations, along with target pricing and profit margins.
Get some impartial advice from an accountant before you consult the bank. A bank will want to see a strong business plan and organized records. Let us help you get ready for your business's next step!
Does your accountant return your calls? Do you feel comfortable asking them a question? Do you feel heard? With the right accountant, the answers should be a resounding "Yes!"
An A/R Aging Report lists all customers who currently owe balances and how old the balances are.
Viewing a Sales by Customer Summary Report allows a business to look at the characteristics of their top customers in order to help identify potential new customers with the same traits.
Businesses that consult a sales by product/service summary report can decide which products they should buy more of or which products to put on sale, depending on volume.
An A/P Aging Report lists all vendors with open balances and also how old the balances are.
View a Profit/Loss Report to see profitability as well as how much money was earned and spent in each category.
Checking your Balance Sheet Report will help you understand cash balances, money owed to the company, money owed by the company, and net income for a certain period.
The Inventory Valuation Summary reports the purchase or cost value of your inventory items as well as the quantity of each item on hand.
A Profit & Loss Report is an important probability metric that can tell a business owner whether they need to raise prices, reduce spending, or both.
Viewing a Profit & Loss Report will help a business understand what categories they are spending their money on.  
Expenses By Vendor Summary Reports can help businesses negotiate better pricing if they’re buying a lot from a vendor.  
Viewing a 1099 Contractor Report allows a business to verify and validate 1099 contractor payments and compliance requirements. 
A Statement of Cash Flows Report will help a business see the cash flowing in and out for a specific period of time. It also breaks down the source of cash received and spent into operating, investing, or financing activities. A Statement of Cash Flows Report can help a business identify whether it is making more cash than it’s using.
An LLC is a type of business entity created at the state level. But, it is a bit of a chameleon when it comes to taxes making it very confusing for many business owners to understand.
  1. There is no IRS income tax return form for an LLC. Instead, the IRS has some default rules for tax treatment:
    1. If the LLC has only one member, then the LLC is treated like a sole proprietor and the owner will file a Schedule C with their Form 1040. These returns are usually due by April 15th of each year.
    2. If the LLC has two or more members, then the LLC is treated like a partnership and will file a Form 1065 Partnership Return. These returns are usually due by March 15th of each year.
  2. An LLC may ELECT to be treated as a corporation for tax purposes by filing a form with the IRS. Knowing when and how to do this can be complicated, so always seek the advice of a tax professional.
  3. Key Take ways: When applying for a EIN (Federal Tax ID number) it is critical to understand how the LLC will be treated for tax purposes. The EIN letter will set out the type of IRS income tax form to be file and the annual filing due date. Have us complete the EIN application for you!
This is a commonly used term that is totally incorrect. There are employees and there are independent contractors. There is no in-between category. Generally speaking, an employee is someone who is under the control of the employer. Some examples of control include: setting the work schedule, providing the tools for the job, and directing the work. When this is the nature of the relationship, the employer is required to pay the employee through payroll. Payroll includes withholding taxes from each paycheck, filing state and federal payroll tax returns and remitting state and federal taxes. An employee receives a W-2 annually. This is not an option for an employer-employee relationship. An independent contractor receives a 1099 annually, but an employee does not. Independent means that they control themselves. Typically they will dictate their own schedule, provide their own tools and supplies and complete the work without supervision. Amounts of $600 or more paid in a year to an independent contractor must be reported to the IRS on form 1099 NEC or MISC. Consider the degree of control over the person in these relationships, not what you call it or how you label it. If a business is paying someone as an “independent contractor”, but the nature of the relationship is really one of employer-employee, state and local tax agencies can conduct audits and calculate back payroll taxes, penalties and interest for amounts paid that should have been processed through payroll. This is an area highly subject to audits, so make sure that you are covered by seeking the advice of a tax professional. 1099’s are issued for many other reasons as well. Federal and state laws vary on labor law topics, so seek the advice of an attorney in your state for more information.

Still have questions?

Don’t worry - just give us a shout and we’ll be happy to answer questions about our accounting and business consulting services!