Professional Services

Empowering Your Professional Services Organization for Growth

At Atherton and Associates, we understand the unique challenges faced by professional services organizations. After all, we are a professional services firm like you and take on the same challenges daily. Beyond the daily grind, you’re constantly strategizing to expand your client base, optimize operations, and maximize profitability. That’s where we come in.

We’re more than just accountants; we’re your trusted financial partner. We offer a comprehensive suite of accounting services designed to streamline your finances, empower data-driven decisions, and fuel your organization’s growth.

Here's how we can help you:

Industry-Tailored Solutions: Our experienced professionals understand the complexities of the professional services industry. We’ll provide accounting solutions customized to your specific needs, whether you’re a law firm, an engineering consultancy, or a marketing agency.

Focus on Your Core Business: Free yourself from tedious financial tasks. We stand ready to assist you with tasks such as bookkeeping and payroll, freeing up your valuable time to focus on client service and business development.

Tax Optimization Strategies: Our tax experts stay on top of the latest tax regulations specific to professional services organizations. We’ll help you minimize your tax burden and ensure compliance, saving you money in the long run.

Why Choose Atherton and Associates:

A Team That Gets You: We have a proven track record of success in helping professional services organizations achieve their financial goals.

Focus on Growth: We’re passionate about your success. We’ll partner with you to develop strategies to increase profitability and achieve your long-term vision.

Proactive Communication: We believe in clear and consistent communication, keeping you informed and involved as regulatory and industry landscape changes.

Ready to Focus on What Matters Most - Your Clients?

Contact Atherton and Associates today for a free consultation and discover how our comprehensive accounting services can empower your professional services organization to soar.

Let us handle your finances, so you can focus on what you do best – serving your clients and building your dream business organization.

Natalya Mann, CPA, MST

Tax Partner

Jackie Howell, CPA

Tax Partner

Rebecca Terpstra, CPA, MST

Tax Partner

Construction

It’s a general requirement for construction contractors in the state of California who sell or lease personal property to register with the California Department of Tax and Fee Admission.

Typically, if construction contracts are performed for the U.S. Government exclusively, you aren’t required to have a seller’s permit. The same goes for if you’re a general contractor who hires subcontractors. A safe rule of thumb is, if you earn gross receipts of $100,000 annually, then you must be registered for a Consumer Use Tax Account.

But once you have an account, then what? How do you then estimate the total costs and revenue for your annual gross income? In construction, as in any creative industry, a contract is integral. A contract can vary in duration, from only a month to one that begins in one taxable year and ends in another.

When utilizing contracts, gross profit is tracked, computed, and revisited at the completion. This lays the burden on the contractor to review the contract and compare estimates to actual gross profits—and the resulting taxes paid. Each contract must go through this process: and this process is known as percentage of completion.

What is Percentage of Completion?

This percentage of completion method (PCM) became mandatory with the Tax Reform Act of 1986. Reviewing contracts as a rule was crucial to avoiding inaccurate estimates—such as if a contractor did not anticipate profits of a certain size and taxes were not properly paid on the actual amount of profit made.

Accounting in construction can be complicated—particularly when considering scope creep and other pitfalls associated with contract work. For more information about the specifics of taxes in construction, contact Atherton & Associates, LLP.

Jackie Howell, CPA

Tax Partner

Marissa Williams, CPA, CFE

Assurance Partner

Loren Kuntz, CPA

Assurance Partner

Atherton and Associates has been our CPA firm now for many years and we have built a very close working relationship. The Atherton team has had a great understanding of both our business and the construction sector in general. They are always happy to assist when we have a problem or need assistance. We feel very comfortable when working with them and we look forward to many great years ahead with them.

Brett Hill, Vice President, Modesto A-1 Glass Company

Real Estate

There are many for whom real estate taxes—or “property taxes”—are of interest. Whether it’s for a main home, a vacation home, or land owned, this property can become a deduction based on its value.

Although it’s never assured that this will yield a deduction, seeing as tax reforms have changed the climate of this and many taxes, it’s still worth the initial talk with an accountant. Below are some of the IRS’s most frequently asked questions pertaining to real estate taxes.

Is the Mortgage Interest I Pay on a Second Residence Deductible?

The IRS’s response is “yes and maybe.” As a general rule, state and local property taxes are deductible, and mortgage interest on a second residence should therefore also be deductible—so long as the residence wasn’t rented during the tax year. Presuming that you are renting the second residence, it must be used for more than two full weeks, or over 10 percent of the number of days it is being rented out.

Is Interest on a Home Equity Line of Credit Deductible as a Second Mortgage?

Interest that is paid on home equity loans and credit lines is not deductible—not unless these proceeds are used to buy or improve the taxpayer’s home. If, let’s say, the interest is used to build on an addition to an existing residence, it can therefore be deductible.

If you have other questions regarding real estate taxes, visit the IRS website.

We excel in assisting clients with general financial help, such as by analyzing accounts receivable, accounts payable, and competitors in your market. For more information about the specifics of taxes in real estate, contact Atherton & Associates, LLP.

Natalya Mann, CPA, MST

Tax Partner

Jackie Howell, CPA

Tax Partner

Rebecca Terpstra, CPA, MST

Tax Partner

Not For Profit

Nonprofits are a significant benefit to the community at large—and thankfully, due to this, can receive tax breaks from the Internal Revenue Service (IRS). Section 501 of the tax code provides exemption from federal taxes to qualified nonprofit organizations. These organizations are typically defined as engaging in activities for both public and private interest without seeking monetary gain.

To be considered tax-exempt under section 501(c)(3) of the Internal Revenue Code, organizations must be operated for their exempt purposes only. Absolutely none of its earnings should go to a private shareholder or individual. This organization also cannot, in any form, attempt to influence legislation—i.e., participate in a campaign involving political candidates.

Those organizations that meet the criteria listed in section 501(c)(3) of the tax code are referred to as “charitable organizations” and are eligible to receive tax-deductible contributions (in accordance with section 170 of the Code). If, for any reason, a charitable organization monetizes a service in some way, such as selling t-shirts for a program they run, that income may be subject to an income tax.

In terms of federal taxes, nonprofits are exempt from sales tax and property tax. Although, while this is true, there are still employee taxes to contend with, such as Social Security and Medicare—which is the same as for-profit companies. To learn more about tax issues for nonprofit organizations, visit the IRS website.

We excel in assisting clients with general financial help, such as by analyzing tax breaks and where our clients might find them. For more information about the specifics of taxes in nonprofit organizations, contact Atherton & Associates, LLP.

Jackie Howell, CPA

Tax Partner

Marissa Williams, CPA, CFE

Assurance Partner

Loren Kuntz, CPA

Assurance Partner

Healthcare

When you think of the healthcare industry, you might not immediately think of accounting. However, accounting is the veritable backbone of a medical office, seeing as tight accounting will allow an organization to thrive and provide for its clients. Often times, an accounting department is the key element that keeps healthcare organizations operating in a way that’s efficient.

In terms of industries, healthcare is by and large the largest. This means that any and all accounting taking place in the field can tend to be incredibly complex. A healthcare accountant should have a specialized knowledge in the field, and be able to assess the proper annals to keep a healthcare organization running smoothly.

Also, considering the sizable cost of healthcare to the individual, a healthcare accountant must also have information enough about the industry to ascertain that the providers are being held accountable for their costs. They also ensure that strict guidelines are followed in an industry where fees, fines, and even lawsuits can occur.

It’s crucial to remember that, in the healthcare industry, the patient’s satisfaction is key—and this satisfaction and the financial function of the facility must be balanced. This is why strong accounting departments or consultants are necessary to both keep on top of issues facing the industry as well as to keep informed about the field of efficacious accounting.

For more information about the specifics of taxes in healthcare, contact Atherton & Associates, LLP.

Natalya Mann, CPA, MST

Tax Partner

Marissa Williams, CPA, CFE

Assurance Partner

Loren Kuntz, CPA

Assurance Partner

Food and Beverage

The food and beverage industry comes with its own set of trials and tribulations—not the least of which are food safety issues, international competition, and the constant flux of legislation.

As with every industry, knowledge of the operations is key to providing premier accounting strategy. Our specialists work with clients to provide industry-specific solutions that they can use to find confidence in their company’s direction.

We can help with:

Worker’s Compensation
Budgeting
Forecasting
Inventory Controls
Cost Analysis
And more.

The supply chain for food and beverage processors is quite long and is comprised of many situations unique to their particular industry. Our specialists have experience in a myriad of companies, such as fruit and nut processors, and we can accurately say where gaps exist in processes to maximize growth potential.

Guiding Your Business

We work with clients and industry providers to accumulate ideas that best address a client’s situation. Our experts are knowledgeable about best practices due to keeping up to date on our client’s industry.

We also excel in assisting clients with general financial help, such as by analyzing accounts receivable, accounts payable, and competitors in your market. For more information about the specifics of taxes in the food and beverage industry, contact Atherton & Associates, LLP.

Natalya Mann, CPA, MST

Tax Partner

Craig Schaurer, CPA

Tax Partner, Managing Partner

Transportation

Transportation accounting is an industry that is multifaceted and crucial. It’s a field that includes monitoring freight costs, freight payment benefits, freight invoices, expected costs, invoice consolidation, and so much more.

Naturally, as a company utilizing transportation grows larger, freight costs will also go up. It’s crucial to keep track of these costs to analyze if there is a particular pattern or predictability to the numbers. If, for example, you notice spikes in freight costs, it’s important to notice this early so that it doesn’t cut into your profits. This is where an experienced accountant becomes invaluable to the process.

Components of Transportation Accounting

Having an insider’s knowledge and experience with the transportation industry and its accounting and finance departments is imperative for a consultant, controller, or CFO. This ensures that processes are efficient, errors are minimized, and costs stay strategically low.

There are several crucial components of transportation accounting, including freight costs, invoices, invoice auditing, freight payment, and invoice consolidation. Although they might sound intimidating to the layman, sitting down with an accountant can provide invaluable insight into these processes.

We excel in assisting clients with general financial help, such as by analyzing accounts receivable, accounts payable, and competitors in your market. For more information about the specifics of taxes in transportation, contact Atherton & Associates, LLP.

Natalya Mann, CPA, MST

Tax Partner

Craig Schaurer, CPA

Tax Partner, Managing Partner

Manufacturing

Much like the industry itself, manufacturing is a complicated field for accounting. A manufacturing business has a variety of fronts, but what is most commonly dealt with are inventory valuation and the cost of goods—elements that are relatively unique from other industries except on a more basic level. Other areas include:

– Direct cost assignment

– Overhead cost assignment

– Impairment testing

As with any business that deals with inventory, the accounting is incredibly detailed. For some companies with an excessively large inventory, this can be an ordeal. Workload can be maintained with the proper management of inventory on hand. Other methods for reducing investment in inventory is to encourage on-site inventory ownership from suppliers or to employ drop shipping.

It goes without saying, but all this inventory must also be carefully tracked to determine the valuation. Periodic inventory systems are maintained by physical inventory counts, which are incredibly time-consuming. With careful record-keeping and cycle counting, inventory counts can be maintained in a far more efficient and accurate way.

A manufacturing company concerns itself with producing goods for resale—but this process incurs a cost. Therefore, a cost of goods manufactured account is employed which tracks three types of inventory:

– Direct Material

– Goods in Process

– Finished Goods

There are, of course, many methods used to track manufacturing processes and tax liabilities. We excel in assisting clients with general financial help, such as by analyzing accounts receivable, accounts payable, and competitors in your market. For more information about the specifics of taxes in manufacturing, contact Atherton & Associates, LLP.

Jackie Howell, CPA

Tax Partner

Rebecca Terpstra, CPA, MST

Tax Partner

Marissa Williams, CPA, CFE

Assurance Partner

Loren Kuntz, CPA

Assurance Partner

Craig Schaurer, CPA

Tax Partner, Managing Partner

Agriculture

We have extensive experience in the farming and agriculture industry, developing connections with bankers, attorneys, and other providers in the industry. Our team of experts aim to ensure your agricultural business is successful.

At Atherton & Associates, LLP, we endeavor to serve our client’s every need—especially when it comes to the challenges presented to businesses in the agricultural industry. These include, but are not limited to:

Cash flow analysis
Supply chain knowledge
Insight into agribusiness tax methods

Although an accountant’s job remains roughly the same, regardless of industry, each industry deviates slightly, necessitating the use of different methods. In fact, agriculture is an industry that’s especially unique.

Ag accountants work with farmers, vineyards, ranchers, and the like, using specialized knowledge to analyze cash flow and supply chain knowledge. A specialized ag accountant stays informed about proclamations from the United States Department of Agriculture (USDA), the Food and Drug Administration (FDA), and the Environmental Protection Agency (EPA) to ensure clients are confident and positioned to take advantage of tax laws and incentives.

Guiding Your Business

We work with clients and industry providers to accumulate ideas that best address a client’s situation. Our experts are knowledgeable about best practices due to our extensive experience in agribusiness.

We also excel in assisting clients with general financial help, such as by analyzing accounts receivable, accounts payable, and competitors in your market.

For more information about the specifics of taxes in agribusiness, contact Atherton & Associates, LLP.

Our company has been with Atherton and Associates for over 40 years. It has been nothing short of excellence. The many services offered by them, including financial advice, have been invaluable to our company and families. With the uncertainties of the markets and institutions, it is great knowing they are looking out for our company’s future and wellbeing.

Jim Frazier, Frazier Nut Farms, Inc.

Natalya Mann, CPA, MST

Tax Partner

Jackie Howell, CPA

Tax Partner

Rebecca Terpstra, CPA, MST

Tax Partner

Marissa Williams, CPA, CFE

Assurance Partner

Loren Kuntz, CPA

Assurance Partner

Craig Schaurer, CPA

Tax Partner, Managing Partner