Policies and Procedures

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General 

Communication: Compass Accounting Group relies on timely and accurate client communication and   information flow. It is inevitable that we will have questions while processing client information. We do our best to resolve these questions by reaching out to our clients as quickly as possible. Delays caused by slow client response often cause significant processing delays that are eventually perceived to be poor client service and/or additional expense. Most client relationship problems are caused by ineffective communication.

Legal: Compass Accounting Group does not provide any legal service or advice. We do provide advice and services regarding bookkeeping and accounting issues. If you are looking for an attorney, we will be happy to provide a referral. 

Client Bank/Credit Card Reconciliation

Purpose: Bank and credit card accounts contain the most reliable record of an entity’s income and expenses. Compass Accounting Group uses these accounts as a source to verify or construct accurate financial records. Each account must be reconciled periodically to insure that accounting records agree with the bank/credit card activity. 

Fraud Detection:Reconciliation is a good tool to detect unauthorized activity. This is especially true if a business has the same individual making deposits and issuing payments. Banks do not verify check signatures.

Client Billing 

Retainer: A $200.00 retainer is required to initiate service.

Pricing: See our website at https://compassaccountinggroup.com/pricing/ . Most items are priced by the minute. Payroll is an annual subscription that is billed monthly. Company setups are one time fixed fees. Short duration calls (less than 3 minutes) are free. 

Billing: There are 2 billing periods each month. The first period covers the first 15 days of the month. The second period covers the 16th of the month thru the last day of the month. Invoice packets are sent to clients 1 to 3 business days after the end of each period. All invoices are due upon receipt. Billing content includes an invoice plus a detailed time log report that contains a breakdown of time spent on specified tasks. Invoices and statements are generally emailed. If no email address is available, postal delivery is used. 

Payments are due upon receipt of invoice: Payment using credit cards is preferred. Company checks may only be used for accounts that are pre-approved.

Past due policy: Past due accounts will be suspended until account is current. Chronic past due accounts will be terminated.

Suspended service: Accounts that are past due or fail to maintain contact with Compass Accounting Group, will be suspended. All work, including payroll, will stop until the situation is resolved. Suspended clients will be solely responsible for any failed actions caused by the suspended service.

Terminated Service: Accounts who wish to terminate service with Compass Accounting Group must pay all unpaid Compass Accounting Group bills and sign an acknowledgment of receipt of accounting records before their accounting records will be supplied.

New Company Setup Service

Pricing: See our website https://compassaccountinggroup.com/pricing/. Company setups are one time fixed fees. 

Registration: Compass Accounting Group assists with the non-legal setup of new companies. This assistance includes state and federal registrations. Once registrations are completed, federal ID and state DFI numbers are immediately available. Sales tax and payroll withholding numbers are sent directly to the new company by the appropriate government agencies and must be provided to Compass Accounting group before payroll and/or sales tax can be processed.

Services and advice:  Compass Accounting Group does not provide any legal service or advice. We do provide advice and services regarding bookkeeping and accounting issues. To that end we help educate clients as to the tax consequences of the different business organization types such as corporations and LLCs.

Company Startup for Existing Companies

Startup costs: The cost of transferring an existing company to Compass Accounting Group is based on the existing accounting software platform (QuickBooks Online, Business Software, etc.), the new accounting software platform, and the amount of history that must be reviewed or transferred. In cases where no change in platform is required, the history review should be relatively inexpensive. Since most accounting software platforms do not automatically transfer detailed transaction history from one platform to another, transferring detailed history can take significant time to process. 

Transaction history load/review: All relevant monthly bank statements, monthly credit card statements, financial statements (Balance Sheet and Income Statements) and past 2 years income tax returns need to be provided to Compass Accounting Group for processing. If transferring software platform, spreadsheets from the old platform may be created to aid in history load and review.

Registering BOI

Compass Accounting Group does not offer registration of company and beneficial ownership information with FinCEN at this time. We recommend new and existing businesses review the BOI website to determine what action should be taken.

Payroll

Compass Accounting Group uses ADP and Paychex payroll platforms. Each is an annual subscription service billed monthly. Once the service is started it cannot be turned off until the current year is closed. For pricing information see our website https://compassaccountinggroup.com/pricing/ . Payroll frequency does not affect pricing. All taxes and government reports are handled automatically. Employer and employees have online access to appropriate information. There is no charge for payroll setup or history load.

Payroll history load:Payroll can be started any time of the year. Once all verified company and employee paperwork is received, allow 5 business days before starting payroll processing that involves 20 or less employees. Allow 1 additional business day for companies with more than 20 employees.

Processing: Client can run payroll with or without Compass Accounting Group involvement. If client chooses to have Compass Accounting Group run their payroll, the normal minute rate will be charged for the actual time spent running payroll.

Scheduling: Compass Accounting Group will process client payroll using a schedule determined by the client. Payrolls are made available to employees on Fridays. Normal payroll data should be submitted to Compass Accounting Group Monday or Tuesday of the same week payroll is to be processed. 

Owners Payroll: Owners of S-Corporations must take payroll if the company has a profit. The gross pay amount should be comparable to that of someone working for another company, performing similar tasks. The source and amount of comparable payroll gross should be recorded in the Corporate Minute Book. Owner’s draws should not be taken until owner’s annual payroll requirements have been met.

NSF Fees: Sufficient funds to cover payroll and taxes must be available at time of payroll processing. Fees for non-sufficient funds involving payroll are substantial. Fees start at $75 for the first violation. Subsequent occurrences result in significant service processing limitations. It is the client’s responsibility to notify Compass Accounting Group of any potential deficiency before payroll processing begins.

Accounting Software Platforms

Business Solutions Software: Cloud based accounting software. Training provided online by Compass Accounting Group staff (billed at normal per minute rate). System allows client and Compass Accounting Group employees to work concurrently. All drivers are provided no charge, runs on Windows and Apple computers. Automatic data backup is performed hourly. System prevents inadvertent out of period posting by requiring a month end close process once accounting activity is complete. No fee is charged if monthly Compass Accounting Group billing exceeds $25.00. No charge for BSS updates.

Quickbooks OnLine: Cloud based accounting software. Monthly fee based on number of users.

Other Platforms: Compass Accounting Group has experience with several software products. If you need something specific, we may be able to help.

Owner’s Distribution Concepts

Tax affect: When an owner takes an allowable distribution, the distribution is not an expense to the business nor income to the owner. The business is taxed on its profits even if the owner does not take a distribution. If an owner takes a distribution without proper “basis”, the owner could be subject to capital gains tax.

Personal expenses: Business and personal records should be kept separate. Paying personal bills with company money could produce undesirable tax results if audited.

Loans and Capital Contributions

Loans: Loans involving the company should be documented defining the terms of the loan including repayment with reasonable interest. You can contact Compass Accounting before taking out loans, buying assets greater than $2500, purchasing a vehicle, etc., to insure the recorded properly in the company’s financial records.

Capital Contributions:Contributions that are not to be repaid and are used for such things as asset purchases, working capital etc. should be documented. 

Income Tax Preparation

Tax Preparer vs Accountant: If you meet with a tax accounting professional once a year, you have a tax preparer. If you meet with an accounting professional frequently though out the year, you have an accountant. Tax preparers are focused on reporting historical information and projecting changes for the next year. Accountants work with clients in real time.

Default Tax Preparer: Compass Accounting Group has contracted with one of the larger CPA firms in Green Bay to prepare business and personal income tax returns. We have been working with this firm for over 20 years. They provide dedicated tax preparation staff that work seamlessly with us throughout the year to support the tax preparation needs of our clients. 

Other CPA’s: “We play nice in the sandbox.” If you already have a tax preparer, we will happily work with them. However, to prevent misunderstanding, other tax preparers must work with us if there are changes to financials. We will not honor requests for credits solely on the basis of the tax preparer’s opinion.