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IRS Announcement: Automatic $1,400 Stimulus Payments for Eligible Taxpayers in 2025 Key Details: 1. The IRS is issuing $1,400 stimulus payments automatically to eligible taxpayers who missed the Recovery Rebate Credit in 2021. 2. Payments began in late December 2024 and will continue until January 31, 2025. Eligibility Criteria: 1. Filed a 2021 tax return. 2. Did not claim the Recovery Rebate Credit on that return. 3. Provided accurate bank account details or address on your 2023 tax return 4. Income falls within IRS-defined limits. - The income limits for eligibility for the $1,400 stimulus payment are based on the 2021 Recovery Rebate Credit thresholds. The limits vary based on your filing status and adjusted gross income (AGI). Here’s a breakdown: Full Payment Eligibility (a) Single Filers: AGI up to $75,000. (b) Married Filing Jointly: AGI up to $150,000. (c) Head of Household: AGI up to $112,500. Reduced Payment Eligibility If your AGI exceeds the thresholds above, the payment is phased out gradually: (a) Single Filers: Payment phases out completely at $80,000. (b) Married Filing Jointly: Phases out completely at $160,000. (c) Head of Household: Phases out completely at $120,000. If your income is above these ranges, you are not eligible for the payment. Payment Methods: 1. Direct Deposit: Sent to the bank account provided on your 2023 tax return. 2. Check by Mail: Mailed to the address listed in IRS records. Status of Payments: 1. Payments started reaching some taxpayers in December 2024. 2. Remaining payments will be processed and delivered by January 31, 2025. What to Do if You Haven’t Received Your Payment: 1. Check your payment status using the IRS “Get My Payment” tool at www.irs.gov. 2. If you still have concerns, contact the IRS directly for assistance. Why This Initiative? An IRS review identified taxpayers who: 1. Missed claiming the Recovery Rebate Credit on their 2021 return. 2. Made errors like entering the rebate amount as $0. Important Notes: 1. All eligible taxpayers will receive a notification letter from the IRS confirming their payment amount. 2. Ensure your records are updated to avoid missing future IRS communications. This initiative ensures eligible individuals receive financial relief without additional steps. Expect your payment by the end of January 2025! #irs #ustax #2025tax

BREAKING: Bench, an outsourced accounting solution, is shutting down. 35,000 customers are now stranded--here's what happened:. We just witnessed the worst-case scenario: a major outsourced accounting provider shut down on 12/27, leaving thousands of business owners scrambling to retrieve their books. Yes, Bench is gone—here’s what you need to know and what to do right now: 1. Cheap Services Can Be Costly Everyone loves a “$300/mo” service—until the model implodes. If the price is suspiciously low, that might mean minimal oversight, thin margins, and a weak safety net. When these firms collapse, you’re on your own. 2. Proprietary Ledgers Are Risky Bench used its own platform, not QuickBooks or Xero. When that proprietary site goes dark, your financials go with it. Takeaway: always have your own data, in your own hands, or on a standard, well-known software. 3. Human Oversight Still Matters Automation is great, but it can’t replace a real bookkeeper or CPA who understands your business. AI-driven tools often misclassify transactions; a qualified accountant can catch errors and provide real strategic insight. Next Steps: A Step-by-Step Guide: 1. Download Everything Now Deadline: Bench says you have until 12/30 to start exporting, with final shutoff in March 2025. Action: Grab your P&L, Balance Sheet, Trial Balance, Vendor & Customer Lists, plus any supporting documents (invoices, receipts, 1099s). 2. Store Documents Safely Tool: Use a cloud-based file system like Google Drive or Dropbox. Format: CSV or Excel is easiest to import into other platforms (e.g., QBO, Xero). 3. File Extensions with the IRS (If Needed) Why: Bench recommended a six-month extension for 2024 taxes. If your records are incomplete, filing an extension may be wise. How: Use Form 7004 for business entities or Form 4868 for personal returns if you’re a sole proprietor. 4. Choose a New Provider ASAP Research: Look for a reputable bookkeeping or CPA firm (local or remote) that uses recognized software and can offer references. Vetting: Ask about data access, oversight (human vs. automated), and contingency plans if the firm shuts down or changes ownership. 5. Clean Up Your Ledgers Reality Check: Don’t assume your Bench data is flawless. Consider an initial “clean-up” project with your new bookkeeper to ensure correct balances and transaction history. 6.Ask for Help Community: As of today I'm seeing tons of CPAs and bookkeepers are jumping in on LinkedIn to help stranded Bench clients. Don’t be afraid to DM or email them for help. Bottom Line: Don’t gamble your financials on bargain-basement providers. If you’re navigating the chaos left by Bench’s shutdown, focus on immediate data exports, careful new-provider vetting, and long-term stability. It might cost more upfront, but reliable bookkeeping pays off in peace of mind—and that’s priceless. If you are (or can recommend) a reliable bookkeeper please drop in the comments below to help others.

Another unfortunate example of outsiders thinking you can fully automate accounting. Bench, and those similar, have an unscalable model. Why? To have a large enough TAM and attract VC investments, they must charge rock bottom prices. Otherwise they are unaffordable to many small businesses and TAM shrinks. To make money charging rock bottom prices you have to automate your way to profitability. But outsiders seemingly don’t understand it’s nearly impossible to automate accounting to the degree they need to (at least as of now). Accounting is heavily reliant on the inputs from the client. Garbage in = garbage out. Automations don’t fix this. So to ensure quality, you hire accountants, likely offshore. But labor costs significantly compress margins. A typical Bench engagement might yield $250/mo in revenue but cost, in direct labor, $80 to prepare and $40 to quality check. You then need someone to own the account and deliver the work… if you include that in your $40 quality check you’ll see significantly less quality output. So roughly 50% gross margin… but if you are Bench you also have a ton of embedded costs that most accounting firms don’t have (sales, marketing, technology dev, account managers, legal (quality issues), refunds (quality/service issues), internal finance, etc.) You just can’t make money in this model… at least not until AI can truly automate most of the accounting work. Interestingly I think a well staffed and solidly built CPA firm could figure out how to move down market and crush it. Why? Because unlike tech companies, the CPA firm’s goal is to be profitable from day 1. If a CPA firm goes down market, they’d prioritize profitability over top line growth. But that’s a boring VC story.

Wish you all a great festive season from India 🎁🎄

Let's explore "offshore accounting" services. I've heard and experienced horror stories, but I've also heard of ways to make it work. Companies, CPA firms, full-time & fractional pros, and bookkeeping/CAS have been trying to figure it out because the cost of domestic labor is so high. I mostly hear how it doesn't work: -Time zone differences -Language barriers -Lack of quality I have experienced these, and have trust issues from being charged hours of work for something that should take minutes resulting in no time savings and less quality. It made me question competency at best, but also suspect opportunistic billing. Conversely, I have colleagues running CAS firms that love their offshore bookkeepers and controllers. I have talked with CPA firms who are so grateful for offshore auditors and tax professionals. I have met full-time and fractional CFOs whose staff are all over the world, and it works very well. Why does it work for them, but not so many others? In each success case, it seems to come down to systems: the right combination of people, processes, and tools. They have hiring systems. They have training systems. They have quality control systems. They have communication systems. I'm interested to see how AI will play into offshore services, and the affect both will have on domestic prices/salaries, service approaches, and student enrollment rates. It seems like AI and offshore services are very similar: do more for less money and time (domestic labor), but both are still lacking unless it's set up properly. I think both will expand, and I think the domestic finance & accounting professionals will transform to be financial managers, architects, and quarterbacks. The next decade will require domestic professionals and universities to elevate or become irrelevant and overpriced. But I don't think offshore accounting or AI will take our jobs. I think it will enhance our jobs if we adapt. What's your take?

Wishing you all Happy Holidays in advance from Indian HQ Gurgaon of Team CA4CPA® ❤️ 4 Pillars on which our Indian CAs work with CPAs across US, UK, Europe, Canada and Australia 1. Accuracy: Precision in every calculation and report. 2. Efficiency: Streamlined processes to save you time. 3. Expertise: Specialized solutions for complex needs. 4. Trust: Transparency and reliability, always. Joshua “JJ THE CPA®️” Jenson CPA Ontario CPA Australia CPA Ireland Hardik Chhabada Arun Mehra FCA

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🚀 Revolutionizing Accounting Outsourcing: Are You Ready? 💼 Outsourcing accounting tasks isn’t just about saving money—it’s about leveraging cutting-edge technology to boost efficiency and stay ahead of the curve. Discover how top firms are transforming their operations with: ✅ Cloud tools like Xero and QuickBooks for seamless collaboration 🤖 AI-powered automation that slashes repetitive tasks 🔒 Bulletproof IT security practices for data protection 🧩 Blockchain technology ensuring data integrity and reducing fraud 📊 Practice management software to streamline onshore and offshore teams 💡 Ready to elevate your accounting game? Don’t miss these practical insights and tools to take your practice to the next level! 📖 Read the full article here #AccountingTech #Outsourcing #CloudAccounting #AIinAccounting #DataSecurity #Blockchain