Your Books Are the Foundation. If They Are Wrong, Everything Built on Them Is Wrong.
Messy books lead to wrong taxes, missed deductions, payroll errors, and IRS notices. LMN Tax handles bookkeeping cleanup, monthly reconciliation, and payroll processing for small businesses that need these things done right and connected to their tax return.
Is This the Right Service for You?
Bookkeeping and payroll at LMN Tax is for small business owners who need their financial records kept correctly, consistently, and in a way that supports their tax return.
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You are running your business out of a spreadsheet or not tracking at all
If your bookkeeping is a folder of bank statements and a best guess at the end of the year, you are likely missing deductions, unable to see how your business is actually performing, and creating extra work for yourself at tax time. LMN Tax sets up proper books and keeps them current.
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You have QuickBooks set up but it has never been properly organized
QuickBooks is only as useful as the setup behind it. Uncategorized transactions, a chart of accounts that does not match your business type, duplicate entries, and months of unreconciled accounts are common. LMN Tax cleans up what is there and establishes a usable going-forward structure.
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Your personal and business accounts are mixed together
Using a personal account for business expenses, or running personal purchases through the business account, creates problems at tax time and makes it hard to know what the business is actually generating. LMN Tax separates the mixed transactions and establishes the correct categories going forward.
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You have employees or contractors and payroll is not set up correctly
Payroll is one of the most compliance-heavy areas for small businesses. Tax deposits, 941s, state unemployment filings, W-2s, and 1099s all have their own deadlines and penalties. LMN Tax processes payroll through Pensoft and keeps the compliance calendar current so nothing is missed.
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You are approaching tax time with no clean financial records
Every year the same scramble: finding statements, trying to reconstruct income and expenses, handing a preparer something incomplete. LMN Tax catches up the books, hands clean financials to the tax preparation process, and sets up a structure so next year is different.
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You paid contractors this year and are not sure about 1099 requirements
If you paid independent contractors $600 or more during the year, 1099-NEC forms are generally required by January 31. Missing this filing carries its own penalties. LMN Tax tracks contractor payments throughout the year and prepares the 1099s at year-end so the deadline is not a surprise.
What LMN Tax Handles
Bookkeeping and payroll services cover the full range of ongoing financial record-keeping and payroll compliance for small businesses.
Why Books and Taxes Work Better Together
When bookkeeping and tax preparation are handled by the same firm, the books are built to support the return from the start.
No gap between books and return
When the bookkeeper and the tax preparer are different firms using different systems, inconsistencies appear at year-end. When LMN Tax handles both, the chart of accounts is set up to match the return, the numbers are consistent, and year-end is not a scramble.
Payroll errors become IRS problems
Late payroll tax deposits, missed 941 filings, and incorrect W-2s are among the most common sources of IRS notices for small businesses. LMN Tax runs payroll on a consistent schedule and tracks the compliance calendar so deposits and filings happen on time.
Clean books all year means no scramble at tax time
Monthly reconciliation means there is nothing to reconstruct in February. The financials are current, the deductions are captured as they happen, and the tax return can be prepared from accurate records rather than assembled from statements at the last minute.
How Bookkeeping and Payroll Work at LMN Tax
Four steps from first contact to clean books and running payroll.
Call or send a message. Tell Nausheen what software you use (if any), how far behind the books are, whether you have employees or contractors, and what the payroll situation looks like. No need to have everything organized before reaching out.
Nausheen reviews the current state of the books, identifies what needs cleanup versus what needs a new setup, and determines the scope of catch-up work needed. Bank statements and records are shared through the Verifyle secure portal.
Outstanding reconciliation is completed, transactions are categorized correctly, and the books are brought current. If payroll is being set up, the Pensoft system is configured and the first payroll run is reviewed together. The compliance calendar is set for upcoming 941 and state payroll filing deadlines.
Once current, bookkeeping is maintained monthly: transactions categorized, accounts reconciled, and financials kept ready. Payroll runs on the schedule your business requires, with tax deposits and filings handled on time. At year-end, W-2s and 1099s are prepared from records that are already accurate.
Bookkeeping and Payroll Questions
I have been using QuickBooks but it is a mess. Can you clean it up?
Yes. QuickBooks cleanup is one of the most common bookkeeping requests at LMN Tax. The typical issues are uncategorized transactions, a chart of accounts that does not fit the business, duplicate entries, personal expenses mixed with business, and months of unreconciled accounts.
LMN Tax reviews what is there, fixes the structure, categorizes transactions correctly, reconciles the accounts to match the bank and credit card statements, and hands you books that actually reflect what the business has done.
Do I need payroll if I am the only person in my business?
It depends on how your business is structured. Sole proprietors and single-member LLCs taxed as disregarded entities do not run payroll for the owner. The business profit flows to your personal return through Schedule C, and self-employment tax is calculated there.
If your business has elected S corporation status, the IRS requires that any owner who works in the business pay themselves a reasonable salary through payroll. Taking only distributions without a salary is one of the most common S corp compliance issues and an audit trigger. LMN Tax can help determine what applies to your situation.
Source: IRS: S Corporation Compensation and Medical Insurance Issues
What is a 1099-NEC and when do I need to file one?
A 1099-NEC (Nonemployee Compensation) reports payments made to independent contractors for services performed in the course of your trade or business. If you paid a contractor $600 or more in a calendar year, you are generally required to file a 1099-NEC by January 31 of the following year, sending a copy to the contractor and filing with the IRS.
Missing or late 1099s carry penalties that increase with how late the filing is. LMN Tax tracks contractor payments throughout the year and handles 1099 preparation at year-end so the deadline is not a surprise.
My books are more than a year behind. Can you still help?
Yes. Catch-up bookkeeping for books that are one, two, or more years behind is something LMN Tax handles regularly. The process involves gathering bank and credit card statements for the full period, categorizing and reconciling transactions, and producing clean financials for each year.
Once caught up, a going-forward process is set up so the books stay current and do not fall behind again. If the catch-up period covers tax years that still need to be filed, the clean books feed directly into the tax preparation process.
Can bookkeeping and tax preparation be handled by the same firm?
Yes, and for small businesses it is often the more efficient approach. When the same firm handles both, the chart of accounts is set up to match the tax return from the start, the year-end numbers are consistent between the two, and nothing falls through the gap between a separate bookkeeper and a separate preparer.
LMN Tax coordinates bookkeeping and business tax preparation for clients who want both handled in one place, which means tax season is a handoff from clean books, not a reconstruction project.
Also Relevant to Your Situation
Ready to Get Your Books in Order?
Call or send a message. Describe where the books stand, whether payroll is involved, and how far behind things are. Nausheen will respond directly and let you know what getting current looks like for your situation.
LMN Tax Inc. • 10432 Balls Ford Rd, Suite 300, Manassas, VA 20109 • (By Appointment Only)