Martin LeFevre - What You Need to Know about Business Financial Statements

Martin LeFevre is an accounting professional with over ten years of experience. He has prepared and audited multiple statements for business and individuals during his career.

There are three primary business financial statements.

The income statement shows the revenues from sales and other income. The statement of cash flows indicates cash inflows and outflows during a certain period. The balance sheet is a statement of financial condition that shows assets and sources of assets for a business at the end of a certain period.

To understand any of these statements for a business, you need to have an understanding of how the business functions. You first need to know whether the business sells products or services. For example, financial statements for a dry cleaning service are going to be different from the ones from a bank.

The form of a financial statement usually follows the function of the business and the way the business makes a profit.

Dollar amounts in financial statements are usually rounded off. They either do not present the last three digits or the last six digits. Many smaller companies choose to include amounts out to the last dollar or even the last penny. The more digits there are in a dollar amount, the harder it is to comprehend the amount. Financial statements are formal documents. They do not use professional slang or street language. They also rarely include any graphics or artwork in the statements themselves, even though many big public companies include a lot of visual information in their financial reports. This is done by graphic designers and experts once accounting professionals like Martin LeFevre finish preparing the actual reports.

Martin LeFevre - A Brief Overview of the Responsibilities of Accounting Departments

Martin LeFevre is a gifted accountant who has worked at a number of accounting firms during his career.
Accounting extends into many areas of life for both individuals and organizations. You may not realize that when you make entries in a checkbook or go over your online bank statements, you are doing accounting. When you get a personal loan or a mortgage on your home, you are dealing with methods that lenders use to calculate interest rates and fees, which is also accounting.

Accountants that work for organizations do not just prepare financial reports and statements. They also create internal control systems for the bookkeeping processes. The goal of such systems is to decrease the number of errors in the records of the organization’s activities. Internal control systems also detect theft, embezzlement, fraud, and other potential issues and problems.

 
Most people do not realize how important an accounting department is for any organization. Everyone understands that a business can’t exist without sales, but the necessity of accounting is often not obvious. Accountants create and control many of the back-end systems in an organization.
Here are some of the responsibilities of a typical accounting department:

Payroll. Accountants calculate or monitor systems that calculate total wages and salaries for all employees during all pay periods.

Cash processing. Accountants identify and record all cash from all business activities, including sales and other sources. They also make sure that cash is deposited into proper accounts and that sales people have enough cash to give change to customers.

Inventory. Accountants usually keep track of all purchase orders and inventory for an organization. They also track other products and services that the organization buys, from paper clips to warehouse trucks.

Many accountants, including Martin LeFevre, perform other functions as well.
​

Martin LeFevre - The IRS Warns Tax Preparers

As an accountant who follows the IRS’s rules and regulations, as well as a reader of the IRS journals, Martin LeFevre understands how dangerous some of the new phishing scams are.

Phishing Scams Are Old
Most people who have Internet access and an email account know about the mysterious Nigerian prince who left most of his fortune to what seems to be the whole population. This email has been around for decades now. The latest bogus emails are similar in nature, promising great benefits in return for sensitive personal information.

The Reason Why the IRS Warns Against Scams
The reason why the IRS is concerned about phishing scams is simple: some of these emails are asking taxpayers to update their IRS e-services information and Electronic Filing Identification Numbers (EFIN). Now the IRS of course would never ask the taxpayers to do that, and certainly not through e-mail.

If tax preparers ever see an email that was seemingly sent by the IRS, and that asks for the update of any personal information within the message, or on a separate site, there is an extremely high probability that the email is part of an elaborate scam that tries to obtain valuable personal data. To help the IRS fight such phishing scams, you can send suspicious emails directly to the IRS, to the department that deals with scams.

Martin LeFevre is an accountant who likes to stay up to date with the latest accounting news, including the everyday activities of the IRS.

Sources:
https://www.irs.gov/uac/newsroom/irs-warns-tax-preparers-to-watch-out-for-new-phishing-scam

Martin LeFevre - The History of the US Tax System

As an accountant, Martin LeFevre is very interested in the American Tax System. He often reads about it and studies it. American tax laws have changed significantly in the last 100 years, but it’s important to understand the origins of the tax system.

Colonial Era

During the vast majority of American history, taxpayers did not really have much contact with the governmental tax authorities. The taxes came from tolls and customs duties. As ridiculous as this may sound today, the government did not really need to develop a way of obtaining financial resources.

The War

As usually is the case, war — the American War of Independence — has changed everything. England needed the money to fund their war against France, which led to the implementation of certain taxes that were imposed on American colonies.

After the War

After the adoption of the Articles of Constitution in 1781, the government realized that if they ever wanted to become a strong state, they could not rely on the help of foreign governments. They needed to create their own resources, which is why the Government came up with the very first version of an extensive tax system.

Another War, 16th Amendment

After the Civil War started, the Congress came up with the Revenue Act, which was basically the reintroduction of certain taxes to create additional revenue. Later, with the 16th Amendment, the government created the flat rate Federal income taxes. Many different tax rates were introduced since, as Martin LeFevre knows, and many more will likely be introduced in the future.

Sources: http://www.policyalmanac.org/economic/archive/tax_history.shtml

Martin LeFevre - Small Business Accounting

As Martin LeFevre so often experienced while working as an accountant for small businesses, the owners of these ventures make daily decisions that often influence the economics of their companies to a high degree. This is one of several reasons why, as a small business owner, it is important to know what you are doing, or else hire expert help in the form of an accountant who possesses the necessary expertise to clarify your financial situation.

Before You Start Your Small Business

Let’s presume you haven’t opened your business yet. This is the time when you can set your venture up for a straightforward and transparent financial future. For that to happen, you need to invest in certain areas of the business.

Open a Bank Account

This should be fairly obvious, but people often use their own, personal bank account to handle the finances of their business. This shouldn’t happen.

Help the Accountant Track Your Expenses

It is important to work together with your accountant, letting them know about your expenses. For best results, develop a system right at the start. You can go old school, using a notebook, or invest in a computer. The latter will happen sooner or later anyway, so you might as well start with a computer.

Determine Your Payment

When your business takes off the ground, you have to determine the way or ways in which you’ll accept payments. There are services today (like Shopify) that do not require you to set up a merchant account just for this purpose.

As an accounting expert who worked with several small businesses throughout the years, Martin LeFevre hopes that future business owners won’t ignore the tips above before starting a venture.

Sources: https://www.shopify.com/blog/15334373-small-business-accounting-101-ten-steps-to-get-your-startup-on-track

Martin LeFevre On Why Soccer is the Best Sport in the World

Soccer is the most popular sport in the world, and Martin LeFevre understands the allure quite well. He was one of the players who participated in the Dixon soccer team’s greatest season in team history, a record that still hasn’t been beaten. They won no less than 22 games out of 27, while scoring 110 goals and conceding only 20 throughout the whole season. They played at a very high level, winning the Sectional and qualifying for the State Championship.
 

Martin LeFevre

 

The World’s Most Popular Sport

While America is the exception that proves the rule, there is no doubt that soccer - or as they call it in Europe, football – is the most popular sport in the world. Played by more than 3 billion people for fun and a couple of millions professionally, the sport regularly beats attendance and viewership records while offering the biggest salaries in the sport world.
Top Reasons For Its Popularity

Traditions

Soccer is one of the oldest modern sports. It seems to have been around forever.

Best Announcers

Soccer has some of the best, most experienced announcers in the world. The sport that brings the most revenue in can offer salaries others cannot, and that lures in the best talent, not just among the players, but also among the commentators.

The Players Are Global Icons

In soccer, the best players are also global icons, capable of attracting tens of thousands of people to the stadiums every weekend.
While Martin LeFevre never had the opportunity to play soccer at a professional level, he remains a fan of the sport, and fully understands why soccer is the most popular sport in the world.

Sources:
http://www.thesportster.com/soccer/top-15-reasons-soccer-is-the-worlds-best-sport/

Martin LeFevre - How to Get Ready for Tax Season

Tax season is a hectic time for accountants as well as individuals and business owners. Martin LeFevre is experienced in tax preparation and is well versed in tax laws and regulations. He is an accountant and has worked with a variety of accounting firms. He is a competent professional who works hard to hone his skills and knowledge. There are several things you can do to get ready for tax season.

One thing you can do to prepare for tax season is keep records. If you are a business owner, you should track all of your expenses. If you work for a company, you should keep track of your travel and other work expenses. Keeping good records can help tax season go a little more smoothly. It is important to keep records in order accurately calculate your expenses and deductibles. You should also keep impeccable records in case you are audited by the IRS at a later point.

Another thing you can do to prepare for tax season it to work with an accountant. Tax preparation should be a continual practice. If you run a small business, you should meet with your accountant once a quarter. Your accountant can make sure that you have all of your information in order. An accountant can be a valuable resource for preparing for taxes. Martin LeFevre is a competent professional in the accounting industry. He is an accountant located in Florida and he has experience with helping his clients prepare for tax season.