September 22, 2015
Midsize Business Accountant in Chicago Illinois
Midsize businesses have very different and varying needs as they are compared to smaller businesses. The differences come in the fact that normally a larger business will have a solid bookkeeper or larger accounting office in place.
I say normally because this isn’t always true. Many times the back offices of larger companies are even more screwed up than smaller ones. When this is the case, our role normally is to keep a full set of external financial statements so that a reasonable income tax return can be completed.
If the company has a solid bookkeeping staff in house, then we normally will only need to come in quarterly to “tune up” the financial statements, making sure that the balance sheet accounts are being properly maintained. Sometimes this would need to be done inside of a quarter if the financials are being presented for financing purposes.
Larger companies normally have a payroll service in place. As such, they generally do not have many payroll issues. But if the company is experiencing cash flow difficulties, their payroll issues could be quite substantial. I have worked on dozens of cases where larger companies had payroll tax debts and a payment plan or Offer in Compromise was necessary.
Midsize companies can have wide ranging difficulties with sales tax. If they have retail outlets in a dozen different states, then they have to file individual sales tax returns for each of the states. If they have several different retail outlets in an individual state, the individual sales tax return will need to account for the different sales tax rates in the various municipalities where they do business. Many states that do not have sales taxes supplement this loss of revenue with other taxes. An example would be The Franchise Tax in Texas. The returns must also be completed.
Midsize companies also tend to get audited much more often than smaller ones. The reason for this is simple. It takes generally just as long to audit a smaller company as it does a midsize one. If there is a problem, the taxation agency will receive a greater benefit for the time expended when they are dealing with larger numbers. Income tax preparation for a midsize business requires a lot of experience. You need to always be inside existing tax law and your documentation procedures must be immaculate. If not, when you get examined, you could have a substantial problem.
If you are having problems with your Midsize Business Accountant in Chicago Illinois or have issues with your accounting in general, we would love to help. I enjoy hearing from my readers, and can be contacted at
Additional Accounting Articles and information on my firm can be found at
Chris Amundson is the President of Accounting Solutions Ltd., a full service public accounting firm of Certified Public Accountants and Enrolled Agents handling the bookkeeping, accounting, tax preparation, and audit representation needs of Businesses, Estates, Trusts, and Upper Income Individuals.
September 22, 2015