This Podcast Is Episode Number 0229, And It Will Be About Secret To Highly Profitable Contractor Is The Construction Accountant   Contractors Need Help Understanding Role of Accountants Contractors should have two primary accountants. One is the Tax Accountant the other is your Construction Accountant. Tax Accountant who does the Annual tax return for your business and your personal tax return. These are two of the Five Board Of Advisors Successful Highly Profitable Contractors Use To Operate And Grow Their Contracting Company Cash Flow And Profits. Why You Need A Tax Accountant? It is the role of the Tax Accountant to Roll Your Numbers up into a tax return. The first (2) pages of your annual tax return is a summary of all the pages, worksheets that follow. Everything must roll up to those two pages. That means that you could have multiple numbers from multiple pages that might go on a single line. The Tax Accountant manages those numbers. Remember when you were single and could use the EZ form? Then you got married and maybe were still able to file using the EZ form. Add buying a house, and having children and things got a little more complicated.   Now you are a business owner. You owe more taxes. The bottom line is that every missed personal deduction; every missed business expense costs you money.        The Tax Accountant takes all of the summary numbers from your business return (the 1120s – S-Corp) and put them in the appropriate places on your personal return. If you are a Sole Proprietor or an LLC that is taxed as a Sole Proprietor than a Schedule C is part of your personal tax return. When you are a Sole Proprietor or an LLC that is taxed as a Sole Proprietor, you will have the additional taxes in the form of Self Employment Taxes. Self-Employment Taxes are payroll taxes on your net profit. Self-Employment Tax is a separate tax from your Federal Income Taxes. You could owe “No Federal Tax” after all of your personal deductions are applied but still owe Self Employment Tax. It is a Different Line. The Tax Accountant has one goal – Roll all the numbers up (no matter how many pages it takes) to find the answer to How Much Do You The Contractor Owe In Taxes? Taxes from one year impacts the Estimated Taxes Due The Following Year. The IRS has an expectation you will do equal to or better than the previous year and need to pay Estimated Taxes accordingly. Sharie’s Nickname for Self-Employment Tax is “sneaker tax” Almost every Contractor knows how much their Federal Income Tax Rate is and can project about what the tax owed is. The Self Employment Tax is often a forgotten tax and comes as HUGE Surprise (unlike Christmas morning – it is not a fun surprise when you owe money instead of getting a refund to something fun). Based on the tidiness of your paperwork how easy it is for the Tax Accountant to do their job. The last thing any Tax Accountant knows about let alone wants to show their lack of understanding about what you do is to talk about is your job costing, job profitability reports or anything else related to your numbers. Why You Need A Construction Accountant? Now let’s chat about what should be the Other Accountant in your life.  We are Construction Accountants, and our role with your numbers is exactly the opposite of the Tax Accountant. QuickBooks is designed to serve a dual function. Roll up the numbers for the Tax Accountant.  Be able to drill down on any number or group of numbers to give the Tax Accountant the answers needed to be able to take every deduction allowed. The more important part of a Construction Accountant is making the numbers so you The Contractor can see quickly see the numbers in a way that makes sense to you.  The answers are in QuickBooks. The good (money in), the bad (money out), the ugly (maybe more unpaid bills are left over than cash in the bank) Many contractors run their accounting software like an...