First-Time Homebuyer Credit

A taxpayer who is a first-time homebuyer of a principal residence may claim a refundable credit equal to 10 percent of the purchase price of the residence (with a maximum credit of $8,000 ($4,000 for married couples filing separately)). The Worker, Homeownership and Business Assistance Act of 2009, signed into law on November 6, extends the credit for qualified taxpayers purchasing principal residences on or before April 30, 2010. If a taxpayer enters into a binding contract before May 1, 2010, to close on the purchase of a principal residence before July 1, 2010, the new law treats the credit as not expiring until July 1, 2010.
The new law also expands the credit to 'long-time homeowners' who are buying replacement property but at a reduced amount of the credit. Individuals who have owned and used the same residence as their principal residence for any five consecutive year period during the eight year period ending on the date of the purchase of a subsequent principal residence may be eligible for a reduced credit of $6,500 ($3,250 for married couples filing separately).
Congress has also made the credit available to more individuals by increasing the modified adjusted gross income (MAGI) phaseouts for the credit. For purchases made after November 6, 2009, the credit begins to phase out for individuals with MAGI between $125,000 and $145,000, and for married couples filing joint returns with MAGI between $225,000 and $245,000."

Diana J. Jones

Why Would A Business Hire Double Entry Bookkeeping?

1. Allows the business owner to concentrate on their career area of expertise -- doing the things they do best. Leave the books to someone with accounting/bookkeeping expertise.

2. It’s critical to have checks & balances within the office financial procedures. This enables errors to be found more quickly so that necessary corrections can be made; reduces the opportunity for fraudulent activity.

3. Accounts Payable -- bills to be paid are entered into their accounting program with their respective due dates and categorized to proper accounts. This is coupled with check preparation. We select the bills that will come due before our next visit and either print computer generated checks or hand write checks - for owners’ signatures. For many clients, we also prepare an ‘open payables report’ so owners can determine their future cash needs for upcoming expenses.

4. For some clients, we utilize the Accounts Receivable functions in our accounting software to set up their business’s clients so that they can be invoiced for services or sales provided to them. We can then post customer payments and track any amounts owed to the business. We can prepare customer statements and uses a variety of reports to assist with debt collection.

5. Organization and filing of supporting paper records (invoices, receipts, statements, contracts, etc.) it very important especially when there is a need to look back at the source documents -- for example during income tax preparation or during the course of an audit. This is a service that we provide to our clients.

6. It’s very important to properly categorize financial transactions in the accounting software so that accurate financial statements can be produced. Each business has a “Chart of Accounts” that lists all the appropriate accounts.

7. We perform bookkeeping services as frequently or infrequently as needed by the client. Keeping the books current allows for the production of timely financial statements -- critical for making sound financial decisions.

8. Bank Statement Reconciliations -- are a critical task performed by all accountants. Not only does this process identify potential errors made in the data entry into QB, but there can be errors on the bank end as well. Reconciling the bank statements on a regular basis makes identifies any errors so they can be corrected immediately. Generally, accounting duties should be split up within a business -- going back to that checks and balances concept. A bookkeeper is independent of the business and typically not a signer on the bank account. As such, is the perfect person to handle the bank reconciliation.

9. Credit Card Statement Reconciliations -- should be reconciled for the same reasons as regular bank statements - and particularly if personnel, in addition to the owner, have access to the company credit cards.

Taxes ~ this is a critical area for all businesses ~ and there are many types of taxes that need to be paid during the course of a year.

10. For business owners preferring to handle their payroll in-house; timely filing of payroll tax forms and payments can be a challenge unless you have the knowledge and expertise. Combined, our staff has more than 75 years of bookkeeping experience - including payroll.

11. We also handle the filing of other business taxes such as Meals & Rooms Taxes; Sales & Use Taxes, Property Taxes. We monitor their respective due dates to be sure these are paid on time, avoiding costly penalties. When needed, we communicate with the IRS, Vermont Department of Taxes and Vermont Department of Labor on behalf of our clients.

12. One of the primary goals of our services is to prepare our client for year end income tax filings. Double Entry Bookkeeping offers tax preparation services to businesses and individuals ~ a great service to smaller businesses as all their financial needs can be met by one company.


13. In addition to everyday bookkeeping activities, we also assist owners in areas of business development ~ these include:

· Budgeting -- we can assist with budget preparation and/or financial statements that compare the actual figures for a given period - to the budget

· Cash Flow Projections -- A useful tool for many businesses; we can assist with the set up of a cash flow analysis worksheet

· Financial Analysis -- Our accounting software contains numerous reports enabling us to analyze businesses in a variety of ways; in addition, most reports can easily be exported into Excel allowing for custom studies on anything the owner might need pertinent to their business

· Custom studies might include assistance with costing/pricing of a company’s product or services -- a very important tool to determine a company’s profitability.

14. QuickBooks Training - is a service we provide for the do-it-yourself business owners as they should be properly trained on the software and have adequate accounting background if they are handling their own finances. Diana Jones & I are certified QuickBooks Pro-advisors -- we not only have on the job experience, but we stay updated with the newest advancements in QuickBooks by taking the annual training programs.

15. Lastly, and most importantly, each time we complete a work session, whether in our office or at the clients’, we backup the client’s work -- either on their system or on a portable device. We recommend that our “on-site” clients use the “Remote Data Backup” program just as we do in our office.

Paulette Bergeron