Industries
Professional Firm Taxes
Entity filings, payroll, and tax preparation for professional practices in California.
Professional practices often have an entity, owner draws, and payroll for staff. We prepare the business return and the payroll filings from the books you keep, or from books we maintain.
Meet by appointment in San Pablo or Concord, or remotely. We do not give legal advice about your license or your engagement letters.
Services that usually fit
Documents to start
- Entity formation documents
- Prior business return
- Payroll reports
- Accounts receivable list
- Owner draw and contribution records
Your chart of accounts, built for professional services
Stanza creates and maintains a chart of accounts so the deductions you are allowed to claim are identified and documented.
We set up income, cost of goods or job costs, and expense accounts organized around this industry’s deductible categories and the tax form lines they map to (Schedule C, or Form 1065 or Form 1120-S when the business files as a partnership or an S corporation). Sub-accounts separate items with a special tax treatment, so a repair is not mixed with a capital purchase and a liability is not booked as an expense.
Software
Practice software and subscriptions used in the business are generally deductible. A personal app is not.
Professional dues
Dues to a professional body for the practice are generally deductible. Dues to a club organized for pleasure are not.
Continuing education
Education that maintains or improves skills you already use in the practice is generally deductible. Education that qualifies you for a new profession is not treated the same way.
Retirement plan contributions
Contributions to a SEP, SIMPLE, or similar plan may be deductible when the plan and the amount meet IRS rules. The account records the contribution. It does not set the limit.
Contract labor
Amounts paid to contractors stay apart from wages so Forms 1099 can be prepared when they are required.
Professional insurance
Professional liability and other business premiums are generally deductible. Personal life insurance is not a business expense.
Research and references
Research tools and a professional library used for clients are generally deductible when they are for the practice.
Office rent
Rent for the office is generally deductible. A home office still has to meet the regular and exclusive use rules.
How it is managed
- Each month we categorize transactions and reconcile the accounts to the bank.
- Receipts and mileage stay with the transactions they support.
- Personal spending stays out of the business accounts.
- Capital purchases are reviewed against repairs before anything is expensed.
- Vendors are tracked so a Form 1099 can be prepared when a form is required.
- A quarterly review of profit can be used to adjust estimated tax payments when those payments apply.
- At year end we review the accounts with the preparer so deductions are captured and the records support them.
Whether a deduction is allowed depends on your facts and on IRS and FTB rules. We help you claim what you are entitled to and keep records that support it. We do not guarantee savings or a dollar amount.
Book bookkeeping and QuickBooks setup with Lucia Leiva, Certified QuickBooks ProAdvisorCommon questions
- We can list questions and the filings each choice creates. An attorney or CPA should review the legal choice. We do not guarantee a tax result.
- Yes, when payroll service is part of the engagement and you approve the amounts.
- No. Both offices are by appointment only, and remote appointments are available.
- Contributions to a SEP, SIMPLE, or similar plan may be deductible when the plan and the amount meet IRS rules. The chart records the contribution. The limit depends on the plan and on net earnings. Software, dues, and continuing education stay in their own accounts because they are ordinary expenses only when they are for the practice.
Offices in San Pablo (510-778-1579) and Concord (925-349-6924). Remote work is available in California.
Ready when you are
Ready to get organized? Book an appointment today.
Pick a time that works for you — in person at San Pablo or Concord, or fully remote.