Accounting

Accounting is the systematic process of recording, summarizing, and analyzing a business’s financial transactions. In a tax office, this is the "foundation." It ensures that every dollar coming in and going out is categorized correctly so that financial statements (like Profit & Loss) are accurate for tax filing.

Payroll

Payroll is the specific process of compensating employees. It involves more than just writing a check; it includes:

• Calculating gross wages and hours.

• Withholding federal and state income taxes.

• Deducting Social Security and Medicare (FICA).

• Ensuring the business pays its own share of payroll taxes.

Form W-2 (Wage and Tax Statement)

A W-2 is the annual form provided to employees. It summarizes how much they were paid and how much tax was withheld throughout the year. Employers must send these to employees and the Social Security Administration by January 31st each year.

FUTA Reports

FUTA stands for the Federal Unemployment Tax Act. Unlike many other taxes, this is an employer-only tax—it is not deducted from the employee's wages.

• Purpose: It funds the federal share of unemployment compensation programs.

• Reporting: Most businesses report this annually using Form 940.

Form W-9

Think of a W-9 as an "information gathering" form. A business sends a W-9 to an independent contractor or vendor to request their legal name, address, and Taxpayer Identification Number (TIN) or Social Security Number. You do not send this to the IRS; you keep it on file so you have the info needed to issue a 1099 at the end of the year.

Form 1099

This is the "big picture" service. A consultant looks at your financial health to help you make decisions, such as whether it’s time to elect S-Corp status for tax savings, how to improve your bookkeeping, or how to structure the business for future growth and liability protection.