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In 1990, Jeanne and Paul A. were
in a complicated situation with their unusual family business.
Headquartered in San Jose, California, ACI
Alloys Inc. finds the perfect coatings for sputtering targets
through two highly specialized and technical processes. "Taking care of
a business that has sales over $1 million a year keeps Paul very busy,"
adds Jeanne. Having expertise in, and while focusing on, the science
and mathematics involved in his field, however, Paul had fallen behind
in his bookkeeping records.
“I hadn’t
realized that Paul was not keeping up with the accounting, and he was
in over his head
…” Jeanne admitted.
First, the
company was maintaining a single-entry bookkeeping system, which was
inadequate for a business the size and caliber of ACI Alloys
Inc.
More importantly, the California Employment Development Department (EDD) could have challenged
and penalized the business for reporting employees as independent contractors. Indeed, Jeanne and Paul were facing some
potentially big problems for their international business, and they
were in serious need of sharp certified public accountants familiar with the payroll tax audit process!
Contacting Bookkeepers and Certified Public Accountants before the Dreaded Payroll Tax Audit
Having sought the
help of a number of bookkeepers and certified
public accountants, Phil came by referral. Paul immediately
felt confidence in Phil, and he showed him the disorganized situation.
Unperturbed, Phil sorted through the bookkeeping
data he needed to get everything organized and up to date.
Recreating the accounting records on the Peachtree Complete Accounting double-entry
bookkeeping system, Phil quickly had the books in great
order… coincidentally, just before the California Employment Development Department came in for a payroll
tax audit, wanting to audit
the general ledger, the payroll tax
and earnings records and the company's hiring practices!
Looking through the five
years’ worth of accounting records, the EDD
auditor found everything documented properly and thoroughly,
to the penny! Because the accounting was in such conscientious order,
the auditor concluded that, even though Paul had made some prior year
mistakes in payroll accounting practices, the company would have no fines or penalties
assessed. She simply instructed management to change the way it
compensated workers in the future, feeling confident that the business
was being run well.
Phil's
Accounting Skills Earn Client's Loyalty
This was all Jeanne and Paul
needed to declare undying loyalty to Phil. From 1990 until 2007, Phil
had maintained the records of accounting, he prepared their sales and
payroll tax returns, and he even maintained the fixed assets inventory
for their specialized machinery, assuring them that every aspect of
their business was on a firm footing.
In due time, company staff began
to learn to perform the basics of doing their own bookkeeping, on Quickbooks,
and, later, Phil suggested a more orderly
fashion of maintaining those Quickbooks accounting records.
Jeanne and Paul appreciate the seriousness with which Phil treats his
profession: he knows that the best way is to follow all the rules and
meet all the deadlines; basically, to do it right, the first time. They
trust Phil’s knowledge of
all the accounting procedures and relevant laws that ensured
their business could keep running without a snag, which provided a
stability for their business and perfect peace of mind.
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