How a Skilled Bookkeeper Can Save You Time and Money: A Boon for your Businesses

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In the world of business, a competent bookkeeper can be the unsung hero behind significant cost savings. This holds especially true for construction businesses and therapists who, with the right financial guidance, can optimize their finances and make informed decisions for their success.

For construction businesses, meticulous bookkeeping is vital for effectively managing project costs and expenses. A skilled bookkeeper can keep track of materials, labor, subcontractor payments, and more, enabling the identification of cost-saving opportunities and the negotiation of better deals with vendors. Moreover, accurate financial records ensure compliance with regulations and aid in maximizing tax deductions.

Therapists and mental health professionals often find themselves preoccupied with their clients’ well-being, leaving little time for managing financial matters. By delegating their bookkeeping responsibilities to experts, therapists can focus on their core mission while reaping the benefits of organized finances and maximized earnings. A competent bookkeeper can also assist in claiming eligible deductions, such as those for professional development or home office expenses.

Core Columbia Financial stands out as a reliable partner in the bookkeeping realm, offering tailored solutions and unwavering attention to detail. Their expertise can revolutionize financial management for businesses of all sizes, ensuring cost-saving opportunities are not missed and errors are avoided.

In conclusion, investing in a skilled bookkeeper can be a game-changer for construction businesses and therapists alike. From expense optimization to tax compliance and organized financial records, the benefits are plentiful. Core Columbia Financial’s team is ready to provide the financial expertise needed to unlock savings and drive success. For a no-obligation consultation, reach out to Ashley at 206-538-3338, and take the first step towards securing your financial future today.

Tips on Reporting Self-employment Income to the WA Exchange

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Are you self-employed? It is best practice to estimate your self-employment income and expenses for the year based on past earned income, expenses, industry standards and other information. If you filed a federal tax return last year, you could use the Adjusted Gross Income you reported, deduct self-employment expenses, then add or subtract based on how you think your income may change for the current year. 

As always, if you have any questions, do not hesitate to give us a call at 206-258-6820. We are always here for you with free assistance.  

If you are trying to report self-employment income based on prior year taxes:

Adjusted Gross Income – Expenses from Prior Year +/- Anticipated Changes = Current Year Self Employment Income

You should update your estimated annual net income when your business circumstances change. If your earnings are lower, you may be eligible for higher tax credits and Cost Sharing reductions. If your earnings are higher than you reported on your Washington Healthplanfinder application, you could have to pay back some or all of the tax credits you took during the year.

You may report that you are self-employed, and may or may not receive a “wage” or pay stub. Only do this if you do not receive a paycheck from your business (income from a corporation is reported as “earned income”.) Additionally, if you receive dividends from your corporation, this would be considered “other” income.

When you are truly self-employed, follow the guidelines below for how income should be reported. You can report all earned income (through your business), collected from your most current tax return, profit and loss statements, or other income ledgers. Individuals should report their net income, taking into account any allowable business expenses (sometimes called “profit”).

  • If self-employment income is higher than business expenses, report as net income

If business expenses are higher than income, report a net loss

California and Washington – Important 2019 Tax Filing Information

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California and Washington clients must file 2019 taxes correctly to remain eligible for premium assistance in 2021. Your APTC (advanced premium tax credit) helps you save on your health insurance premiums. To keep your full tax credit, you’ll need two important forms when you file your return this year. If you have any questions on this form, or the process, give Core Columbia a call at 206-258-6820. We are always here for you with free assistance, and straight answers.

Use your 1095-A to file Form 8962 with your tax return. These two forms will determine the amount of your tax credit. If you file a paper return, you can get Form 8962 here. Using these two forms to file your taxes correctly and on time is very important! If you don’t, you may lose your tax credit, resulting in higher premiums. Don’t forget: the filing deadline for your taxes is April 15!

Do not hesitate to give Core Columbia a call at 206-258-6820 if you are missing your 1095-A. We are always here for you, and can quickly provide a copy for you at no charge.

Form 1095-A: What You Need to Know to File Your 2019 Taxes in CA or WA

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By now you should have received your Form 1095-A.

If you have not received it or are unable to locate it, please give us a call at  619-259-6905 or 206-258-6820 , and we will send you a copy.

Below are some additional tips to help with your 2019 tax needs.
Please disregard this message if you have already received your 1095-A and filed your 2019 taxes.
Why do I need Form 1095-A? 

This form lists the amount of tax credits you received in 2019 to help pay your health insurance monthly premiums. Why do you need it? When you enrolled in your plan, you were asked to estimate your 2019 income, which determined your federal tax credits to help pay for your monthly health insurance premium.

When you complete your taxes this year for 2019, you’ll have to report whether your actual income was different from your estimated income. Since most members received tax credits in advance, you may either owe or be owed money if there’s a difference. 

You will need this form to file your taxes if you had coverage for any part of 2019.
Can I file my 2019 taxes without my 1095-A?

If you are expecting to receive a Form 1095-A, you should wait to file your 2019 income tax return until you receive that form. However, it is not necessary to wait for Forms 1095-B or 1095-C to file. What is the difference between Forms 1095-A, 1095-B and 1095-C? 
Getting the Right Tax Credit or Financial Help

Since you received financial help to make your monthly insurance premium more affordable, you will need to file taxes. The IRS will then compare this financial help, which is officially called Advanced Premium Tax Credits (APTC), you received during 2019 with the financial help that you qualify for based on your actual household income and family size.