Chortek Named a 2013 All-Star Firm

Chortek LLP is pleased to announce it has been named a 2013 All-Star Firm by INSIDE Public Accounting.

This is the third year Chortek has been ranked by INSIDE Public Accounting. “We are delighted to be recognized by INSIDE Public Accounting as an All-Star Firm. The ranking published by INSIDE Public Accounting affirms Chortek’s market leading capabilities in the area of accounting, tax, M&A, fraud investigation and technology service offerings and our strong commitment to provide a full suite of services that comprehensively help our clients grow and manage their businesses. We look forward to participating in INSIDE Public Accounting’s process again next year,” said Greg Junek, managing partner of Chortek.

DoigTailwaggers

Congratulations Doig Corporation

Chortek was a sponsor of this year’s Future 50 award show and we’re excited to congratulate Doig Corporation for winning an inaugural social media competition. In addition to the 50 awards that were handed out, a special award for “Future 50 Most Social Company” was presented to Doig Corporation.

Companies that participated in this contest run through Facebook selected a non-profit organization to represent in a public voting competition, and BizTimes Media awarded a cash prize and advertising package to the non-profit attached to the company that tallied the most votes.

As a winner of this competition, Doig Corporation selected Tailwaggers 911 to receive the cash prize.

Congratulations Doig Corporation and Tailwaggers 911!

Inc 500 5000 logo

Congratulations Inc. 500/5000 Clients

Inc. Magazine recently published their 32nd annual list of the top 500 fastest growing private companies in America. At Chortek, we are thrilled to congratulate our client, Patina Solutions for making the list. Since 2009, Patina Solutions has grown by 1,555 percent.

Inc. Magazine also released their 2013 Inc. 5000 List and we are thrilled to congratulate another client, Doig Corporation, for making the list.

Both Patina Solutions and Doig Corporation have demonstrated outstanding performance and are significant contributors to the local business landscape. At Chortek, we are honored to provide innovative, client-centric solutions that enable high growth businesses like these to excel.

Chortek Earns Microsoft Gold Certified Partner Status

Chortek LLP, a CPA and business advisory firm with a 65+ year legacy of serving private businesses and individual clients throughout the nation is excited to announce its technology consulting division has earned Gold Certified Partner status from Microsoft. For nearly 20 years, Chortek has provided clients with the exact software and hardware tools they needed to excel in their business endeavors. As a result, Chortek’s commitment to demonstrating the highest level of skill and achievement has landing the firm this prestigious award from Microsoft.

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Chortek Expands Waukesha Team

Chortek LLP, a CPA and business advisory firm with a 65+ year legacy of serving private businesses, governmental entities and individual clients throughout the nation is excited to announce the addition of eight new team members hired in various roles within our Accounting, Tax, Technology Consulting and Merger and Acquisition divisions.

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rebranding

Chortek Announces Rebranding and Renaming Initiative

Chortek LLP, a CPA and business advisory firm with a 65+ year legacy of serving private businesses, governmental entities and individual clients throughout the nation is excited to announce a rebranding initiative and renaming of the firm. In 1947, Sam Chortek formed a small accounting firm. Roughly 30 years later, Don Gottschalk joined the firm and they appropriately named it Chortek & Gottschalk, LLP. Over 65 years later, a firm that started with two key partners is now approaching 60 staff members located throughout offices in Wisconsin, Illinois, and Washington, DC.

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What Is The Burden Of Proof?

The responsibility to prove entries, deductions, and statements made on your tax returns is known as the burden of proof. You must be able to prove (substantiate) certain elements of expenses to deduct them.

Generally, taxpayers meet their burden of proof by having the information and receipts (where needed) for the expenses. You should keep adequate records to prove your expenses or have sufficient evidence that will support your own statement. You generally must have documentary evidence, such as receipts, canceled checks, or bills, to support your expenses. Additional evidence is required for travel, entertainment, gifts, and auto expenses.

Why Should I Keep Records?

Good records will help you monitor the progress of your business, prepare your financial statements, identify source of receipts, keep track of deductible expenses, prepare your tax returns, and support items reported on tax returns.

Everyone in business must keep records. Keeping good records is very important to your business. Good records will help you do the following:

  •  Monitor the progress of your business
  • Prepare your financial statements
  • Identify source of receipts
  • Keep track of deductible expenses
  • Prepare your tax returns
  • Support items reported on tax returns
  • Monitor the progress of your business
    • You need good records to monitor the progress of your business. Records can show whether your business is improving, which items are selling, or what changes you need to make. Good records can increase the likelihood of business success.
  • Prepare your financial statements
    • You need good records to prepare accurate financial statements. These include income (profit and loss) statements and balance sheets. These statements can help you in dealing with your bank or creditors and help you manage your business.
      • An income statement shows the income and expenses of the business for a given period of time.
      • A balance sheet shows the assets, liabilities, and your equity in the business on a given date.
  • Identify source of receipts
    • You will receive money or property from many sources. Your records can identify the source of your receipts. You need this information to separate business from nonbusiness receipts and taxable from nontaxable income.
  • Keep track of deductible expenses
    • You may forget expenses when you prepare your tax return, unless you record them when they occur.
  • Prepare your tax return
    • You need good records to prepare your tax returns. These records must support the income, expenses, and credits you report. Generally, these are the same records you use to monitor your business and prepare your financial statement.
  • Support items reported on tax returns
    • You must keep your business records available at all times for inspection by the IRS. If the IRS examines any of your tax returns, you may be asked to explain the items reported. A complete set of records will speed up the examination

What Kind of Records Should I Keep?

You may choose any recordkeeping system suited to your business that clearly shows your income and expenses. Except in a few cases, the law does not require any special kind of records. However, the business you are in affects the type of records you need to keep for federal tax purposes.

Your recordkeeping system should also include a summary of your business transactions. This summary is ordinarily made in your business books (for example, accounting journals and ledgers). Your books must show your gross income, as well as your deductions and credits. For most small businesses, the business checkbook is the main source for entries in the business books.

Supporting Business Documents

Purchases, sales, payroll, and other transactions you have in your business will generate supporting documents such as invoices and receipts. Supporting documents include sales slips, paid bills, invoices, receipts, deposit slips, and canceled checks. These documents contain the information you need to record in your books. It is important to keep these documents because they support the entries in your books and on your tax return. You should keep them in an orderly fashion and in a safe place. For instance, organize them by year and type of income or expense.

The following are some of the types of records you should keep:

  • Gross receipts are the income you receive from your business. You should keep supporting documents that show the amounts and sources of your gross receipts. Documents for gross receipts include the following:
    • Cash register tapes
    • Bank deposit slips
    • Receipt books
    • Invoices
    • Credit card charge slips
    • Forms 1099-MISC
  • Purchases are the items you buy and resell to customers. If you are a manufacturer or producer, this includes the cost of all raw materials or parts purchased for manufacture into finished products. Your supporting documents should show the amount paid and that the amount was for purchases. Documents for purchases include the following:
    • Canceled checks
    • Cash register tape receipts
    • Credit card sales slips
    • Invoices
  • Expenses are the costs you incur (other than purchases) to carry on your business. Your supporting documents should show the amount paid and that the amount was for a business expense. Documents for expenses include the following:
    • Canceled checks
    • Cash register tapes
    • Account statements
    • Credit card sales slips
    • Invoices
    • Petty cash slips for small cash payments Travel, Transportation, Entertainment, and Gift Expenses If you deduct travel, entertainment, gift or transportation expenses, you must be able to prove (substantiate) certain elements of expenses.
  • Assets are the property, such as machinery and furniture, that you own and use in your business. You must keep records to verify certain information about your business assets. You need records to compute the annual depreciation and the gain or loss when you sell the assets. Documents for assets include the following:
    • When and how you acquired the assets.
    • Purchase price
    • Cost of any improvements.
    • Section 179 deduction taken.
    • Deductions taken for depreciation.
    • Deductions taken for casualty losses, such as losses resulting from fires or storms.
    • How you used the asset.
    • When and how you disposed of the asset.
    • Selling price.
    • Expenses of sale.
    • The following documents may show this information.
    • Purchase and sales invoices.
    • Real estate closing statements.
    • Canceled checks.
    • Employment taxes
      • There are specific employment tax records you must keep.  Keep all records of employment for at least four years.

How Should I Record My Business Transactions?

Purchases, sales, payroll, and other transactions you have in your business generate supporting documents. These documents contain information you need to record in your books. A good recordkeeping system includes a summary of your business transactions. Business transactions are ordinarily summarized in books called journals and ledgers. You can buy them at your local stationery or office supply store. A journal is a book where you record each business transaction shown on your supporting documents. You may have to keep separate journals for transactions that occur frequently. A ledger is a book that contains the totals from all of your journals. It is organized into different accounts.

Whether you keep journals and ledgers and how you keep them depends on the type of business you are in. For example, a recordkeeping system for a small business might include the following items:

  • Business checkbook
  • Daily summary of cash receipts
  • Monthly summary of cash receipts
  • Check disbursements journal
  • Depreciation worksheet
  • Employee compensation records

Note: The system you use to record business transactions will be more effective as you follow good recordkeeping practices. For example, record expenses when they occur, and identify the source of recorded receipts. Generally, it is best to record transactions on a daily basis. For additional information on how to record your business transactions, refer to Publication 583, Starting a Business and Keeping Records.