Category: Bookkeeping

Bookkeeping Mistakes That Drain Your Profits — And How to Fix Them

Posted on by admin

⚠️ Are bookkeeping errors quietly costing you money?

For many small business owners, bookkeeping feels like a back-office chore — something to “get through” rather than a strategic tool. But messy books don’t just create confusion… they can lead to missed deductions, inaccurate reports, and costly tax surprises.

Here are the Top 5 Bookkeeping Mistakes we see most often:
1️⃣ Mixing Personal and Business Expenses
Using one account for everything might feel convenient, but it’s a recipe for audit risk and missed deductions.
Fix: Open a dedicated business account to stay organized.

2️⃣ Ignoring Bank Reconciliations
If your books don’t match your bank statements, you’re flying blind.
Fix: Reconcile monthly to catch errors, duplicates, or missing transactions.

3️⃣ Forgetting to Record Small Transactions
Coffee with a client? A quick app subscription? These add up — and they’re deductible.
Fix: Use a mobile-friendly tool and log expenses on the go.

4️⃣ Misclassifying Income and Incorrect expense categorization
Not all revenue is created equal. Mislabeling income and using the wrong categories can distort your financial reports and impact your tax filings.
Fix: Set clear categories and review them monthly with your bookkeeper.

5️⃣ Not Reviewing Monthly Reports
Your Profit & Loss, Balance Sheet, and Cash Flow reports aren’t just paperwork — they’re decision tools.
Fix: Schedule a monthly review to spot trends, plan ahead, and stay tax-ready.

Avoiding these mistakes means fewer headaches and clearer insight into your business health. Remember, clean books are not just for taxes — they’re for strategy.

🧹 Need a Cleanup? We’ve Got You.
If your books feel more “Before” than “After,” don’t wait until tax season to fix it.
CMCPA Services offers fast, accurate cleanup and ongoing support — so you can focus on growth, not spreadsheets.

📊 At CMCPA Services, we help business owners understand their numbers, not just record them.
📩 Message us today to get started!

Why Cloud-Based Bookkeeping Is a Game-Changer for Growing Businesses

Posted on by admin

Running a business means wearing many hats—but when it comes to your finances, clarity isn’t optional. That’s where cloud-based bookkeeping steps in.

At CMCPA Services, we help entrepreneurs move from scattered spreadsheets to streamlined systems that work anytime, anywhere.

Here’s why it matters:

Real-time access – Know your numbers instantly, whether you’re in the office or on the go.

Secure records – Your data is protected, organized, and backed up in the cloud.

Smarter decisions – With clean reports and dashboards, you can plan, pivot, and grow with confidence.

Cloud bookkeeping isn’t just about convenience—it’s about control. And when your books are in order, your business is free to scale.

Curious how it could work for you? Contact us—no pressure, just clarity!

 Profit ≠ Cash Flow: Know the Difference

Posted on by admin

Many businesses celebrate a “profitable” month—only to realize they’re short on cash at month-end.
Here’s why:
📊 Profit shows what you earned on paper.
💵 Cash flow shows what’s actually in your account.
You can be profitable and still run into cash problems if:
✅ Customer payments are delayed
✅ Inventory ties up funds
✅ Expenses aren’t aligned

🔑 Tip: Always review your cash flow statement alongside your profit & loss report.

📌 At CMCPA Services, we help businesses stay on top of both profits and cash flow so you can make smarter financial decisions.

U.S. Tax-Ready Checklist for Small Business Owners

Posted on by admin

Be prepared. Stay compliant. Maximize your deductions.
By CMCPA Services – Helping U.S.-Based Entrepreneurs Stay Tax-Ready Year-Round

🗂️ 1. Organize Your Business Documents

✔️ Business Registration (EIN, LLC, S-Corp docs)
✔️ Prior Year’s Tax Return (Federal & State)
✔️ Articles of Incorporation or Partnership Agreement
✔️ IRS Correspondence (if any)

📊 2. Update Your Bookkeeping

✔️ All income and expenses recorded
✔️ Bank & credit card statements reconciled
✔️ Categorized transactions (with receipts if possible)
✔️ Accurate chart of accounts
✔️ Up-to-date financial reports (P&L, Balance Sheet, Cash Flow)

🧾 3. Collect Your Tax Documents

✔️ 1099-K / 1099-NEC / 1099-MISC forms
✔️ W-2s (if you have employees)
✔️ Business loan statements & interest paid
✔️ Asset purchases or disposals (equipment, vehicles)
✔️ Estimated tax payments made (IRS & State)

💼 4. Track Deductions & Credits

✔️ Home office expenses (sq. ft. + bills)
✔️ Mileage or vehicle expenses (with logs)
✔️ Internet, phone, and software tools
✔️ Professional services (legal, accounting, etc.)
✔️ Business meals, travel, and marketing costs
✔️ Depreciation on business assets
✔️ Employer credits (if applicable)

📆 5. Key Deadlines to Remember

📌 January 31 – 1099s & W-2s due to contractors/employees
📌 March 15 – S-Corp / Partnership tax return deadline
📌 April 15 – Individual & single-member LLC tax return
📌 Quarterly – Estimated taxes due: Apr 15, Jun 15, Sep 15, Jan 15

👩‍💼 BONUS: Work With a Professional

Don’t wait until the last minute. Avoid costly mistakes and missed deductions.

🎯 Book a FREE Consultation with CMCPA Services
📅 Schedule here: Book a Call
📧 Email: mcmworkz@gmail.com
🌐 Website: cmcpaservices.com

Reports You Need Before Quitting Quickbooks Online Subscription

Posted on by admin

Before canceling your QuickBooks Online subscription, export or print key reports like the Balance Sheet, Trial Balance, Profit & Loss, and General Ledger to ensure you have access to your financial data for future reference, tax filings, or audits. 

Here’s a breakdown of the reports you should consider exporting or printing:

Essential Reports:

  • Balance Sheet: Provides a snapshot of your assets, liabilities, and equity at a specific point in time.
  • Profit & Loss (Income Statement): Shows your revenue, expenses, and net income or loss over a specific period.
  • General Ledger: A comprehensive record of all financial transactions, essential for audits and detailed analysis. 

Other Useful Reports:

  • Sales Tax Liability: If applicable, ensures you have records of your sales tax obligations.
  • Statement of Cash Flows: Tracks the movement of cash in and out of your business.
  • Inventory Valuation Summary: If you have inventory, this report helps track its value.
  • Customer Balance/Vendor Balance: Provides a summary of outstanding balances for customers and vendors.
  • A/R Aging Summary and A/P Aging Summary: Helps track outstanding accounts receivable and payable. 

How to Export Data:

  1. Go to the Gear icon .
  2. Select “Export Data” under Tools .
  3. Set the date range: in the Reports tab.
  4. Add or remove items from the Reports and Lists tabs .
  5. Click “Export to Excel” . 

You may download any report that is important to you. If you need some assistance, we can help!

Maximizing ROI in Real Estate

Posted on by admin

What is ROI in Real Estate?

RETURN ON INVESTMENT (ROI) in real estate measures the profitability of a property investment. It’s calculated using the formula:

A higher ROI means your real estate investments are generating strong returns, while a lower ROI may indicate inefficiencies or areas for improvement.

How a Bookkeeper & Accountant Can Help Real Estate Businesses Increase ROI

As a bookkeeper and accountant specializing in real estate, we help investors, landlords, and agents maximize their ROI through:

  1. Accurate Expense Tracking
    • Categorizing operating costs (maintenance, property management fees, utilities, etc.)
    • Identifying tax-deductible expenses to minimize liabilities
  2. Cash Flow Optimization
    • Monitoring rental income vs. expenses to ensure profitability
    • Implementing strategies to reduce vacancies and late payments
  3. Smart Tax Planning & Deductions
    • Maximizing deductions like depreciation, mortgage interest, and property taxes
    • Structuring investments to optimize tax benefits
  4. Financial Analysis & Investment Decisions
    • Evaluating properties based on ROI and cash flow projections
    • Advising on whether to hold, sell, or refinance properties
  5. Budgeting & Forecasting for Growth
    • Creating financial plans to scale a real estate portfolio
    • Forecasting potential market trends to make informed investment decisions
  6. Ensuring Compliance & Reducing Risks
    • Keeping records up to date for audits and legal compliance
    • Helping navigate financial regulations in real estate

By partnering with an experienced bookkeeper and accountant, real estate business owners can gain financial clarity, improve cash flow, and make smarter investment decisions—all leading to a higher return on investment.

Be Our Partner Firm

Posted on by admin

Attention Tax Preparers, Advisors and EA’s:

Are you tired of doing the books for your tax clients? Then we could be the solution, we can help! Outsource accounting and bookkeeping to us. We will handle the books for you so that you can do the things that matters to you most. Having us as your partner will free your firm of the time doing the hard work and many more. Our partner firms are enjoying the benefits, be one of them!

Talk to you soon,
CMCPA Services

Back Taxes Implications and What To Do

Posted on by admin

Back taxes is a term for taxes that were not completely paid when due. Typically, these are taxes that are owed from a previous year. Causes for back taxes include failure to pay taxes by the deadline, failure to correctly report one’s income, or neglecting to file a tax return altogether.

Most of this happen because of lack or incomplete recording in the books that it is hard for the tax accountant to get the information it needs to complete the filing of return.

What are the implications of this?

If back taxes are owed, the taxpayer’s debt will continue to increase with the inclusion of interest and tax penalties. Late payment penalties include 1/2 of 1% for each month the taxes remain due past the due date. If the taxpayer never filed taxes, there is also a significant late filing penalty.

You will also risk losing your refund and other benefits if you don’t file your return. If you are due a refund for withholding or estimated taxes, you must file your return to claim it within 3 years of the return due date. The same rule applies to a right to claim tax credits such as the Earned Income Credit.

What do you need to do?

First, consult with your tax accountant what needs to be done.

Second, look for someone to complete your books.
(Hint: We are an expert when it comes to accounting and bookkeeping.)

Lastly, act now. The longer you delay filing, the larger your interest and penalties will be!

Reminder to Taxpayers

Posted on by admin

File when ready, don’t wait until October 17 to file a 2021 tax return.

For people who requested an IRS extension to file, the October 17, 2022, deadline may seem far away, but it’s coming up fast.

Taxpayers who haven’t filed, whether they requested an extension or not, should file a complete and accurate return as soon as possible.

For people who have all their paperwork in hand, filing sooner and filing electronically could help them avoid possible processing delays later. 

And for those who have not done their books for 2021, we can help!