Business Accounting Services in Montgomery County, Maryland
Aventa Tax offers expert tax, advisory, and bookkeeping services so that you can focus on what matters most: growing your business
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Accounting Services for Businesses
We can assist with entity selection, S-corporation conversions, reasonable compensation, QBI planning, and much more.
We provide strategic advisory for your business to give you actionable financial insights and clarity.
We offer tax filing for Sole Proprietors (Schedule C), S-corporations (1120S), C-corporations (1120), and Partnerships (1065), and Tax Exempt Entities (990).
We can help organize your business financial transactions. Our team consists of QuickBooks Pro Advisors and Xero Advisors.
Our tax practitioners can represent you before the IRS and other tax agencies to address tax notices and collection actions.
We can provide Income Statement (P&L), Balance Sheet, Cash Flow Statement, and custom reporting.
Frequently Asked Accounting Questions for Business Owners
1. Business Structure & Setup
Q: Should I form an LLC or another structure for my business?
A: The right structure depends on liability protection, tax flexibility, and your long-term goals. Many business owners choose
LLCs for their simplicity and liability protection, but some startups opt for S-Corps or remain sole proprietors. Our tax professionals can help you plan and determine the ideal tax entity type for you. Learn more here
Q: Do I need to establish my business (LLC or otherwise) before making purchases or accepting payments?
A: While you can begin as a sole proprietor, forming an entity like an LLC before significant expenses or contracts can be beneficial for separating personal and business finances, and for legal protection.
2. Bookkeeping & Records
Q: What is the best way to keep my books in order?
A: Use business-only bank accounts, track every transaction, and leverage beginner-friendly cloud accounting software like QuickBooks Online, Xero, Wave, or FreshBooks. Establish a clear chart of accounts and ensure accurate categorization of income and expenses. Aventa Tax's bookkeepers are QuickBooks ProAdvisors or Xero Advisors and can help you keep your books clean and accurate.
Q: Can I start bookkeeping now, or do I have to go back and account for prior years?
A: It's ideal to track records from your business start date, but if you’re behind, begin now and catch up on past years as best as possible for accurate tax filings and business insights. We offer clean-up and back-up bookkeeping to get you up to date.
3. Taxes & Deductions
Q: What accounts should I open and how do I handle business income and expenses?
A: Open a business bank account for all business transactions, and keep your personal finances separate. This makes deduction tracking and audit protection far easier.
Q: What tax deductions can I claim?
A: Common deductions include office supplies, equipment, mileage, home office expenses, and certain meals and entertainment. Always keep receipts and consult a tax professional for details relevant to your industry and state.
Q: Do I need to collect and remit sales tax?
A: This varies by state and the type of product or service you provide. Research Maryland sales tax rules or ask your accountant to ensure compliance.
4. Accounting Methods
Q: What’s the difference between cash and accrual accounting? Which should I use?
A: Cash accounting records income/expenses when money changes hands, while accrual accounting records them when earned or incurred. Many small businesses stick with cash accounting for simplicity, but accrual gives better insight into business finances; your accountant can explain IRS requirements for both.
5. Payroll & Contractor Payments
Q: When should I set up payroll versus paying contractors?
A: If you hire employees, you must run payroll and withhold taxes. Independent contractors receive gross payments and get a 1099-NEC at year-end. Additionally, the way owners/shareholders/partners are paid varies depending on the tax entity type, so it is important to understand the IRS treatment of such. Misclassifying employees can lead to penalties, so review guidelines carefully with your accountant.
6. Software & Tools
Q: What accounting software is best for a small business?
A: Widely recommended platforms include QuickBooks Online, Xero, Wave, and FreshBooks. Choose software compatible with your accountant’s preferences and that fits your business complexity and budget.
7. Common Compliance Issues
Q: Do I need to reconcile all balance sheet accounts, or just bank and credit accounts?
A: Reconciling all balance sheet accounts (bank, credit, loans, payables, receivables) is best practice for financial accuracy, not just the bank accounts. This is crucial for reliable reporting and year-end account closings.
Q: Should I “lock” accounting periods in my software?
A: Locking periods after reconciliation prevents accidental changes to finalized records and is recommended, especially after tax filings.
Aventa Tax LLC is an accounting firm which specializes in providing outsourced accounting services for small businesses. We are based out of Maryland but can service clients nationwide.