The Importance of Financial Accountants and Advisors for Your Business
As businesses grow and financial complexities increase, the demand for skilled financial professionals is skyrocketing. However, the supply of qualified accountants seems to be struggling to keep up with this rising demand.
The Accountant Shortage: Unraveling the Challenge
The shortage of accountants is not a new problem, but its impact is becoming increasingly severe in recent years. The reasons for this crisis are multifaceted:
Economic Growth and Complexity: As the global economy expands, businesses have to navigate complex financial regulations, tax laws, and reporting standards. These complexities demand specialized expertise from financial professionals.
Aging Workforce: The baby boomer generation is reaching retirement age, resulting in experienced accountants leaving the workforce. The number of graduates and new entrants into the accounting field is not enough to fill this gap.
Technology Advancements: Automation and artificial intelligence are reshaping the financial landscape, automating repetitive tasks that were once done manually. While technology streamlines operations, it also calls for accountants with advanced skills in data analysis and interpretation.
Changing Education Trends: Fewer students are pursuing accounting degrees, leading to a decline in the number of qualified professionals entering the industry.
When and Where Do You Need Financial Accountants and Advisors for Your Business?
Now that we’ve explored the accountant shortage, it’s vital to understand when and where your business needs the expertise of financial accountants and advisors. Here are some critical scenarios:
Startup Phase: When you’re launching a new venture, having a financial accountant is invaluable. They will help you set up your financial systems, create budgets, and provide insights into financial projections.
Tax Planning and Compliance: Tax laws can be complex and ever-changing. A financial advisor can help your business navigate tax regulations, minimize tax liabilities, and ensure compliance.
Financial Reporting: Whether it’s monthly, quarterly, or annual reports, having an accountant to prepare and analyze your financial statements ensures accuracy and provides valuable insights into your company’s financial health.
Business Expansion: When your business is growing, you need strategic financial planning to manage cash flow, assess investment opportunities, and optimize financial resources.
Mergers and Acquisitions: During business acquisitions or mergers, financial accountants and advisors play a crucial role in conducting due diligence, valuing assets, and assessing financial risks.
Download Your A-Team Checklist
To ensure your business has the best financial support, download our exclusive A-Team Checklist. This checklist will guide you through the essential qualities to look for in financial accountants and advisors, helping you build a solid financial team that drives your business forward.
Click here to download the A-Team Checklist and secure your business’s financial success!
The accountant shortage poses a significant challenge to the financial industry, but businesses must continue to thrive despite this obstacle. By recognizing the importance of financial accountants and advisors, businesses can make informed decisions, stay compliant, and achieve long-term financial goals. Thank you for reading, and we’ll be back soon with more valuable insights from the world of finance!
SOURCE: Creeana Jefferson, CEO of Capital Accounting Solutions, LLC | Instagram:@cashcowcree
Entrepreneurs
Female entrepreneur working at home office confirming the order on phone.
AgLaunch Accelerators – AgLaunch programs are designed for entrepreneurs who are early in their business formation and who have not raised funding from outside dilutive sources. Companies should be in the ag or ag tech space. Apply by 5/31/22 – https://aglaunch.com/entrepreneurship/
Amazon’s Black Business Accelerator – Dedicated to helping build sustainable equity and growth for Black entrepreneurs by enabling their success as sellers. Grow your business with access to financial support, strategic business guidance and mentorship, and marketing and promotional support. https://sell.amazon.com/programs/black-business-accelerator
Bronze Valley Accelerator – Bronze Valley Accelerator works with venture-bankable startups led by female entrepreneurs and entrepreneurs of color with a preference for those located in Alabama. Participants can be innovating in any industry vertical. Apply by 5/27/22 – https://www.gener8tor.com/gbeta/bronze-valley-accelerator
EmPOWERED to Serve Accelerator – The EmPOWERED to Serve Business Accelerator in coordination with the American Heart Association is looking for a diverse pool of social entrepreneurs and organizations who are driving change through health justice in their communities. Applications will be accepted from social and health tech entrepreneurs, non-profits and for-profits making a health impact. Apply by 6/3/22 – https://www.empoweredtoserve.org/en/capital-access-grant-funding/business-accelerator-program/application-hub
Finnovation Fellowship – Fellowship program helps build leadership and entrepreneurial skills in early-stage social entrepreneurs. Must be US resident – FINN Fellowship requires you to be located in the Twin Cities area during the program term so you can work out of the FINNOVATION Lab space in downtown Minneapolis. Receive a $50,000 stipend. Apply by 5/15/22 – https://www.finn-lab.com/fellowship
Juntos Crecemos Hispanic Digital & Delivery Program – PepsiCo is inviting Latina entrepreneurs who work in food service to apply for eight weeks of personalized expert consultation, including best practices across operations, technology, marketing and digital presence. https://pepsicojuntoscrecemos.com/jefaowned/
Watson Accelerator – The Watson Accelerator is a hybrid program designed for impact-driven entrepreneurs seeking to elevate their ventures with access to a global network, training designed to strengthen skills, and mentorship with seasoned professionals, venture capitalists, and enterprise executives. Through this 18-week program (3 weeks in Boulder, CO and 14 weeks virtual), fellows will engage in courses in areas such as leadership development and applying practical entrepreneurial skills to their ventures alongside a global community of like-minded changemakers. Funding up to $17,500. Apply by 6/1/22 – https://watson.is/watson-accelerator-application/You Glow
Girl Women Entrepreneur Grant – Grant for $10,000 is open to all women entrepreneurs in the US. Apply by July 1. Top 25 will be announced for round 2 on July 8. Top 10 will be announced for round 3 on August 1. Winner announced mid-August. https://www.eatmeguiltfree.com/pages/youglowgirl
Small Businesses
Typical brick building with 5 story houses and small businesses.
Driving Small Business Forward – Ten $25,000 grants will be awarded to Hispanic Small Businesses to use towards the purchase of a commercial vehicle. Apply by 6/17/22 – https://helloalice.com/partners/progressive/
eBay Up and Running Grant – Business sellers will be asked to share details of their small business and how they plan to use the grant to accelerate their growth. eBay is looking to identify sellers who represent a diverse range of backgrounds, bring their unique experiences and inventory to the marketplace, and are committed to their communities and the eBay ecosystem. Grants for $10,000. Apply by 6/10/22 https://helloalice.com/partners/ebay/
Fearless Strivers – Open to black women who are legal U.S. residents (including DC), 18+ and the principal owner of a U.S.-based small business. Grants for $10,000. Apply by 12/31/22. https://www.fearless.fund/strivers
Hello Alice Small Business Grants – Hello Alice is continuing the Year of Small Business celebration by awarding 50 small business owners with $5,000 grants. Apply by 5/20/22 – https://t.co/irmKalmxYH
HerRise Micro-Grant – Each month a $500 micro-grant will be awarded to a for-profit small business owned by women of color. Past recipients used their growth grants for computers, equipment, marketing materials, software purchase, website creation and more. https://www.hersuitespot.com/herrise/
HomeTeam Advantage Small Business Contest with Mastercard – Small business owners in Atlanta, Boston, Los Angeles, and New York City can enter for chance to pitch for $10,000 prize. Apply by 5/15/22 – https://www.mastercard.us/hometeamadvantage/en/home.html
Kapitus Building Resilient Businesses Grant – Create an original video, no more than 2 minutes in length, telling your small business story and how $100,000 can help you continue to write that story. Not for businesses based in CO or VT. Apply by 6/30/22 – https://kapitus.com/brb/
48 in 48 Website Build Hackathon – Social Justice Event – The event is designed to support and promote nonprofits in marketing and technology. They are gathering teams to build websites for nonprofits with social justice missions. If you are interested in either being part of a team or are a nonprofit looking for free website development check the website by June 3, 2022 – https://48in48.org/social-justice-event/
Colocation America STEM Innovation Grant – This STEM Innovation Grant was created to fund programs that inspire and encourage Pre-K-12 students to pursue their interest and curiosity in STEM. Open to nonprofits and school districts and awards up to $7500. Apply by 5/13/2022. https://www.colocationamerica.com/stem-grant/?mc_cid=f6bf62d366&mc_eid=a05d277bb9
Justworks Grant for Nonprofits – Supporting incubators and other non-profit organizations that help underrepresented founders access the fundamentals of entrepreneurship. Grants for $50,000. Apply by 5/27/22 – https://justworks.com/lp/justworks-org
Truist NonProfit Grant – The Truist Foundation supports nonprofits with grants that target leadership development, economic mobility, thriving communities and educational equity. Quarterly deadlines – https://www.truist.com/purpose/truist-foundation/grant-applicationDollar General Youth Literacy Grant – For Schools, public libraries, and nonprofit organizations who help students that are below grade level or having trouble reading are eligible to apply. Grant for $4,000. Apply by 5/19/2022. https://www.dgliteracy.org/grant-programs/?#youth-literacy-grants
Tech Startups
Group of young business people concentrating at their work while sitting at the large office desk in an office together
AWS Impact Accelerator for Black Founders – Designed for U.S.-based Black founders who are the CEO and/or CTO of an innovative tech or tech-enabled startup. Should be pre-seed startups with a solution already built and underway. The program is industry and vertical agnostic, and welcomes both technical and non-technical founders who are leveraging cloud technologies or plan to. Apply by 5/13/22 – https://aws-startup-lofts.com/amer/program/accelerators/black-founders
Comcast RISE – Marketing and Tech Support and Investment Fund – There are separate applications for the marketing and technology services awards and the Comcast RISE Investment Fund. Eligible business owners may apply for either, or both programs. (Note: We have had several students in the program win these awards!) Apply by 6/17/22 https://www.comcastrise.com/apply/
Plaid Accelerate – Plaid Accelerate is a fintech accelerator program supporting early-stage fintech founders who are Black, Indigenous, or People of Color. Apply by 5/31/22 – https://plaid.com/accelerate/
Black Founders & Owned Businesses
AT&T Black Future Maker – Black Future Makers are dedicated individuals pursuing greater possibilities for the greater good. Submit a video of 30-60 seconds, or photo, on your Instagram feed explaining how you are pursuing greater possibilities for you and the community. Grants for $10,000. Apply by 12/31/22 – https://www.attdreaminblack.com/contest
Black Girl Ventures (BGV) Fall 2022 Pitch Program – If you’re a Black/Brown woman-identifying founder in Austin, Chicago, Detroit, Houston, Los Angeles, or Miami, you can apply by 7/1/22 – https://www.blackgirlventures.org/apply-to-pitch
National Black Business Pitch competition – The National Black Business Pitch (NBBP) is a competition designed to connect Black-owned businesses to corporations who seek to expand and diversify their supply chain with new products and services. Winner receives $10,000. Apply by 5/23/22 – https://nationalblackbusinesspitch.com/
Pathways to Black Franchise Ownership – Organization that vets, trains, and partners with individuals from underserved communities to own and operate competitive businesses. They strive to remove barriers to Black ownership entry and accelerate ownership outcomes for those seeking new opportunities to own, manage and expand their careers through foodservice franchisee ownership. https://mfha.net/pathways-to-black-franchise-ownership-program/
Visible Hands – 14-week, virtual-first accelerator will give you the opportunity to work alongside a cohort of exceptional underrepresented founders to build or scale your venture-backed startup. Preference given to women, non-binary and trans people, and Black, Latinx, and Indigenous American people. Apply by 5/13/22 – https://www.visiblehands.vc/apply
Wish Local Empowerment Program – You must be a Black-owned business with a brick-and-mortar shop within the United States and less than 20 employees. If selected for the program, you must join Wish Local (which is free). Grants for up to $2000 – https://www.wish.com/local/empowerment
McBride Sisters SHE CAN Fund in Food and Wine – SHE CAN Fund invests in the professional advancement and career growth of high-potential, professional women, with a particular focus on women of color. Mission is to close the gender and race gap in leadership positions in wine & spirits, hospitality, and finance industries by providing professional development – https://www.mcbridesistersfund.org/grants
More
AT&T Black Future Maker – Black Future Makers are dedicated individuals pursuing greater possibilities for the greater good. Submit a video of 30-60 seconds, or photo, on your Instagram feed explaining how you are pursuing greater possibilities for you and the community. Grants for $10,000. Apply by 12/31/22 – https://www.attdreaminblack.com/contest
Black Girl Ventures (BGV) Fall 2022 Pitch Program – If you’re a Black/Brown woman-identifying founder in Austin, Chicago, Detroit, Houston, Los Angeles, or Miami, you can apply by 7/1/22 – https://www.blackgirlventures.org/apply-to-pitch
National Black Business Pitch competition – The National Black Business Pitch (NBBP) is a competition designed to connect Black-owned businesses to corporations who seek to expand and diversify their supply chain with new products and services. Winner receives $10,000. Apply by 5/23/22 – https://nationalblackbusinesspitch.com/
Pathways to Black Franchise Ownership – Organization that vets, trains, and partners with individuals from underserved communities to own and operate competitive businesses. They strive to remove barriers to Black ownership entry and accelerate ownership outcomes for those seeking new opportunities to own, manage and expand their careers through foodservice franchisee ownership. https://mfha.net/pathways-to-black-franchise-ownership-program/
Visible Hands – 14-week, virtual-first accelerator will give you the opportunity to work alongside a cohort of exceptional underrepresented founders to build or scale your venture-backed startup. Preference given to women, non-binary and trans people, and Black, Latinx, and Indigenous American people. Apply by 5/13/22 – https://www.visiblehands.vc/apply
Wish Local Empowerment Program – You must be a Black-owned business with a brick-and-mortar shop within the United States and less than 20 employees. If selected for the program, you must join Wish Local (which is free). Grants for up to $2000 – https://www.wish.com/local/empowerment
McBride Sisters SHE CAN Fund in Food and Wine – SHE CAN Fund invests in the professional advancement and career growth of high-potential, professional women, with a particular focus on women of color. Mission is to close the gender and race gap in leadership positions in wine & spirits, hospitality, and finance industries by providing professional development – https://www.mcbridesistersfund.org/grants
Learn step-by-step how to establish business credit
When it comes to business credit, most business owners do not realize the benefits. One of the biggest benefits of business credit is that it is entirely separate from your personal credit. However, to be able to leverage the many advantages business credit has to offer, your business needs to have a solid foundation. A solid business foundation includes entity formation, bookkeeping, and an active business bank account.
The first step in building a solid business foundation begins with the formation of your entity. The most common entity types are Limited Liability Company (LLCs) and Corporations. When you first start your business, it is important to register your business, apply for an Employer Identification Number (EIN), and apply for a DUNS number. Your EIN is a number similar to your social security number. It is how the IRS identifies your business. Your DUNS number is how your business is identified with the credit reporting agency Dun and Bradstreet.
Another important step to take before applying for business credit is to set up proper bookkeeping for your business and open a business bank account that can be linked to your bookkeeping software. Having proper bookkeeping in place will make it easier for you to prove that your business has adequate cash flow. Similarly, a business bank account separates your business expenses from your personal expenses which to accurately prove profit and loss
Next is to establish trade lines with your suppliers. If you buy supplies, ingredients or other materials from third-party vendors, those purchases could help build your business credit. Many suppliers extend trade credit, which means they allow you to pay several days or weeks after you receive the inventory. If you have this type of accounts-payable relationship, ask your supplier to report your payments to a business credit bureau. Your business credit score will get a boost as long as you stick to the terms of the trade agreement.
You need at least three tradelines to get a Dun & Bradstreet Paydex score, which measures past payment history. Even if you don’t work with a lot of suppliers, you can set up tradelines with any small vendor, such as your water or office supplies distributor. If those vendors don’t report to a credit bureau, you can list them as a trade reference on your account, and Dun & Bradstreet will follow up to collect your trade data.
A business credit card can be one of the best tools for building business credit. Additionally, many business credit cards offer benefits and rewards for your spend, from cash back to travel points.
If you have thin or poor personal credit, you may want to begin your card search by improving your personal credit score, since many card issuers will use your personal history to evaluate creditworthiness. If that isn’t possible, applying for a secured credit card will likely be your best choice.
While secured cards typically don’t offer rewards and may have a low ceiling for how much you can spend, they can still be valuable for contributing to your business credit profile. And some issuers will allow you to upgrade to an unsecured card if you can demonstrate a consistent pattern of responsible repayment.
In conclusion, having a good foundation for your business is the key to being granted business credit. Once given, you can then leverage your business credit to scale your business. If you need help building your business’s foundation, apply to become a client of Fola Financial!
We are thrilled to highlight Maya Portorreal’s feature on CNBC Make It! Maya is a valued Fola Financial client, and we are always excited to celebrate her success! Check out her interview and be sure to support her yourself by shopping Kitten Co Jewelry 🙂
Remote or hybrid work is the new standard for employers who want to attract and keep top talent. But does having a remote or hybrid job mean that you can qualify as “Working From Home” when it comes to filing your taxes?
The IRS has specific requirements for individuals to qualify for the home office deduction. Let’s review some of them below:
The home office deduction is only available to qualifying self-employed people.
You must use your home “regularly and exclusively” for business during the tax year.
Here is a quick chart from the IRS that helps guide you to see if you may qualify for the deduction:
If you are able to meet these requirements, you may be able to deduct part of the cost of your home expenses. Identifying which expenses you can include can be a bit challenging, so it’s always recommended that you review your proposed deductions with at CPA to make sure that you are maximizing your opportunity to claim your business expenses.
For many people who are now working remotely, this deduction will not apply to them because the work that they are doing is as an employee.
However, if you are currently an employee that is considering transitioning to a more independent option such as becoming an independent contractor, or starting a business in your spare time, you may have opportunities to deduct other expenses that are related to your business operation.
Whichever category you qualify for, it’s always important and beneficial to create a tax plan ahead of tax season, and to review that plan during the year to make sure that you are sticking with it!
Fola Financial is here to help you create a plan to meet your personal and professional goals, and evaluate how you can reduce your tax liability and maximize your deduction whether you file taxes as an employee or a business owner.
The Great Resignation has resulted in many former employees considering or becoming their own boss. While this shift in one’s title is a level up in many ways, it comes with an increase of responsibility when it comes to paying taxes that many people aren’t aware of. This additional responsibility can actually provide benefits that W2 employees cannot take advantage of.
Let’s review some things that everyone should know if they want to work for themselves.
Tax Payments
Self-employed people receive compensation that does not withhold their required tax payments. Instead, they are responsible for paying quarterly estimated taxes on their income. Due to this, it’s important to track monthly and quarterly income and set aside money for tax payments.
Instead of receiving a W2, the self-employed receive a Form 1099 from each entity that has paid them, this document details the amount they have earned. Making accurate quarterly estimated tax payments throughout the year can reduce tax liability at the end of the fiscal year.
Self-employment taxes are 15.3% of earned income, of which 12.4% goes toward Social Security and 2.9% goes toward Medicare.
Tax Savings
Self-employed people benefit from being able to claim deductible business expenses on their taxes. They can write off half of the self-employment levy, phone bills, internet expenses, costs associated with a home office, and more.
Self-employed people are eligible to open a simplified employee pension plan, known as a SEP IRA. Through this plan, 25% of net earnings from self-employment can be saved.
Health insurance premium payments can be claimed as a tax deduction for the self-employed.
Entrepreneurs with businesses filed as pass-through entities, including S-corporations and LLCs may also benefit from the 20% qualified business income deduction that is subject to limits based on income level and industry.
Of course, everyone’s individual situation will vary, which is why speaking with a CPA can help you to create a plan that will help you plan your tax strategy before tax season even begins.
If you recently made the transition to being self-employed and want to prepare for the upcoming tax season, consider scheduling a consultation call with Fola Financial to learn more about how our services can help you to create a smart tax strategy and reduce your tax liability. Click here to get started!
Thinking of transferring your real estate property to your business entity? While Fola Financial does not assist with real estate transactions, here is some insight to consider: You will have to transfer the deed for your property.
A deed transfer can be done with a Quitclaim deed via a title company in the state of which you purchased the property. Doing so will notify the state that you are transferring the real estate property from personal ownership to be owned by your business entity.
Transferring ownership does not transfer your mortgage.
While transferring your property ownership to your business will provide protection and leverage capabilities, it will not transfer your mortgage. Be sure to contact your lender first to make sure they are aware of the transfer of ownership and will allow you to complete the transfer, while still being personally liable to the mortgage.
What purpose does this property provide for your business?
The purpose of the investment property will need to be added to an operating agreement for your company. You will need to have a drafted operating agreement for the company that includes the purpose of the investment property. This can be done by contacting a lawyer or by using operating agreement contract templates.
Update all current contracts that involve the property.
Once the deed transfer is complete, any contracts that involve the property will need to be updated to list your business entity information as the owner of the property.
The entire process has a few steps, it usually is pretty quick once your lender approves the transaction, and you create a contract for your title company.
While Fola Financial is not a licensed real estate company, its Founder and CEO, Sheneya Wilson is an active real estate investor and emphasizes the ability of real estate ownership to create generational wealth.
Interested in learning how to get started in real estate investment?
Join the Real in Real Estate master class, led by Sheneya Wilson on August 3 and 4th!
Starting a business can be greatly rewarding and a lot of fun. But there’s one aspect that most small business owners and entrepreneurs dread – doing taxes.
One survey asked small business owners what made owning a business great for them. Almost everyone (96%) said they loved the flexibility of owning a business and the feeling of control it gives them.
When asked what they really don’t like about business, the majority singled out bookkeeping and taxes as being especially draining. In addition, the more time they had to spend on these tasks, the more they loathed doing them.
But no matter how you may feel about taxes and tax planning, these activities are important for all businesses, and can be the difference between failure and survival. In fact, businesses that take the steps to implement good tax planning not only increase their chances of survival, but also thriving.
If you’ve not paid much attention to your tax obligations as a small business owner, it may be time to turn a new leaf. In this article, our tax experts explain what tax planning means for small businesses and how it can be the key to achieving a stellar financial year.
What is tax planning?
Although there are a lot of technical definitions for what it means, tax planning really only boils down to being savvy about your tax obligations. Since taxes are an obligation no one can really escape from, tax planning means learning the tax rules and making them work for you.
Businesses that make the effort to understand and plan their taxes are able to manage their tax liability in the most favorable way possible. In addition, with proper tax planning, they are not only able to reduce the taxes they have to pay, they can even make money on their taxes.
Here’s how it works. Federal, state and local tax codes include a lot of rules that specify what taxes businesses have to pay, the exact rates of these taxes and when the taxes are due. These codes also include specific rules for how these taxes will be paid and on what they will be paid.
However, while the tax codes take with one hand, they also give with the other by providing credits, deductions and rules that let businesses reduce their tax liability. By utilizing these rules, credits and deductions, businesses can reduce how much they have to pay on taxes, sometimes even into the negative – meaning you get a refund instead.
Unfortunately, too many small business owners and entrepreneurs fail to recognize the value of tax planning or make the effort to implement a plan. While some of this is down to a simple lack of interest, many businesses do not have proper tax planning because the rules are so complex.
Tax codes typically run for thousands of pages and include a lot of financial and accounting jargon – definitely not suitable for public consumption. But hard-to-read tax codes should not deprive you of the benefits of proper tax planning. Certified Public Accountants (CPA) or other qualified professionals are there to help businesses understand these tax rules and put them to work in the most favorable ways.
Why tax planning is important for small businesses
Apart from the obvious fact that good tax planning helps you stay on top of your tax obligations and ensure you’re not owing taxes, there are several other benefits.
Tax planning and cash flow management often go hand-in-hand. Cash flow management paying attention to how money moves in and out of your business, so you always have enough left over for other things.
If you’re not implementing proper cash flow management, your outgoings can be more than your incoming, leaving you exposed at crucial times – such as when taxes are due. In like manner, inefficient tax planning can leave you with a larger tax liability than you expected, leading to difficulties with paying your taxes and, ultimately, a negative cash flow.
Due to the fact that tax liability means money is going out of your business, it’s in your best interest to ensure as little as possible is going out. Other benefits of tax planning include:
Being able to reduce the amount you pay on taxes, meaning you have more to grow your business
Taking advantage of tax rules that let you grow your business and still save on taxes, the perfect two-for-one
Giving you granular control over your tax liabilities so you’ll never be surprised by your taxes again
If achieving financial freedom is one of the reasons you started your business, implementing proper tax planning will be one of the first steps to reaching your goal.
Now that you understand what tax planning is and why it’s important for your business, let’s quickly look at ways you can make the most of your tax planning this year.
Tips to make the most of your tax planning in 2020
Good tax planning is about learning exactly what the tax rules are and being smart about how you take advantage of them. To get you started right, here are some tips that underlie smart tax planning.
Understand your tax obligations: It’s impossible to make the most of the tax rules if you don’t know them. Learn what taxes apply to your business, the applicable rates, the periods when they become due and everything else about your tax liability.
Maintain proper financial books and records: Taxes are a levy on your business activities and profits for a year. If you don’t maintain accurate records of your business transactions through the year, it’s the IRS that’ll be telling you what you owe – which is never a good thing. Open and maintain proper accounting books to ensure you’re on top of your transactions and have all the paperwork to back them up.
Implement tax forecasting: Tax forecasting is simply the practice of estimating what you have to pay on taxes either monthly, quarterly or yearly. It’s a good practice because it keeps you aware of what to expect and also gives you a dollar figure you can immediately start working on reducing or reorganizing to suit your business.
Set aside your taxes every month: We can’t stress this enough. Failing to set your taxes apart routinely is critical to ensuring you’ll always be ready to meet your tax obligations, especially as a small business. Plus, you can even make money on those funds by locking them up in a high-yield savings account and earning some tidy interest.
Take advantage of deductions and credits: As mentioned earlier, deductions and credits are expressly provided in the tax codes for your benefit. Failing to take advantage of them would be illogical. Keep a regularly updated list of those deductions and credits that apply to your business so you can use them as they were meant to be.
Let an expert help you: If you’re looking at all of these and wondering where to start, it might be in your best interest to speak to a professional CPA. Even if you think you might be able to go it alone, having a CPA on your side significantly increases your chances of successful tax planning. In addition, leaving things in the hands of an expert frees you up to grow your business and make more money.
Contact Fola Financial for help
At Fola Financial, we have worked with small businesses and entrepreneurs from all over the US to implement profitable tax planning strategies. We keenly understand the tax rules and can employ this knowledge to help ethically and legally reduce your tax liability. Get in touch with us today to speak with one of our financial advisors.
