There’s one distinguishing difference between tax planning and tax preparation: December 31st. In order to be beneficial, tax planning must occur before the end of the year while tax preparation can only take place after year’s end. Although we can’t promise to eliminate taxes, our tax planning and preparation services will help you minimize them.
Tax planning is an important step in reducing taxes. Together, throughout the year, we will discuss various tax strategies that could potentially save you thousands of dollars. This will enable you to make all the necessary adjustments before the end of the year so that you have some control over how much you pay in taxes.
Then, after year’s end and with your help, we will see that your taxes are professionally prepared in a timely fashion in order to avoid late fees. In order to provide you with such services, we have certified Professional Tax Preparers on staff that will assess your tax liability.
We trust that if you were forming a team for an upcoming golf tournament, you would want to recruit an expert like Tiger Woods.
Although we may not be the golfer Tiger Woods is, we do take our job as your Profit and Growth Expert just as seriously. While our goal is not to minimize your golf swings, we do aim to maximize your profit dollars. This entails a monthly analysis of your financial results, consultation in areas of profit improvement, and the implementation of strategies designed to lower your tax liability.
Together, we will examine past experiences, determine where you want your business to go, and discuss how that can happen. That’s our role as your Profit and Growth Expert.
Being in the black can mean a lot of different things. For most business owners, it means being profitable. When a business owner sets out on a new venture, establishing a profitable business is one, if not the only, driver. Unfortunately, too many entrepreneurs get lost in the day-to-day tasks of running the business and forget their main purpose.
As your accounting professional and Profit and Growth Expert we apply The Universal Business Model to help maximize the profitability of your business. Each month we apply our financial expertise, combined with access to a variety of analytical tools, to assess your business’s financial position and progress.
With our help you can improve your business’s financial position using The Wisdom Pyramid. Here’s a short list of what you will accomplish:
- Know how your business stacks up against the competition using the professional business assessment we provide.
- Recognize your business’s strengths and weaknesses, and use that awareness to improve your profitability. Consider this a Day with your CFO.
- Identify trends that expose what is both helping and hindering to your business.
- Take advantage of tax benefits through regular reviews of your tax position.
By gathering the necessary information through the bookkeeping and accounting process, we will analyze the data and help you make the changes required to improve your business’s profitability. Whether you need a financial audit or review, we can help move your business forward.
Only about 1 out of 30 businesses are required to have an audit performed by a Certified Public Accountant, CPA. Some businesses have them performed because the bank from which they seek financing requires it. Other businesses seek audits because they plan to be publicly traded. Regardless of the reason, an audit can be costly.
An audit must be performed by an independent CPA — one that is not presently involved in the business in any way. Although, as your Profit and Growth Expert, we can’t perform the audit, we can assist you in locating an auditor who will provide this service in a professional and cost effective way, if you find your business in one of these relatively rare situations.
We have qualified individuals on staff with various levels of experience and credentials–from Certified Professional Bookkeepers to Professional Tax Preparers to QuickBooks Specialists–all of which can provide you with the peace of mind you deserve.
Too often business owners are so preoccupied with select parts of the accounting process that they don’t realize just how valuable all that financial information can be. Some business owners focus on preparing the yearly tax statement. Others may worry about that and their cash flow. And others still may just balance their checkbooks. If you choose to have us do your accounting, we can do all that and more. And most importantly, we can help you become more profitable.
It really is quite simple. First you need a reputable accountant, what we like to call a Profit and Growth Expert, to determine your business goals. These goals may include, but are not limited to, growth expectations, marketing plans, profit margins, and overall labor expenses. We ask important questions like, what do you want? And why do you want it?
Here is a technical way of looking at bookkeeping:
Bookkeeping: The practice involved in the systematic recording of transactions affecting a company, beginning with the data-entry process and ending with the preparation of financial statements. The art, practice, or labor involved in the systematic recording of the transactions affecting a business.
In layman’s terms, bookkeeping is the practice of determining which numbers are important to you and your business. Once that’s decided, we can set up a customized system that will organize the information you want and need. This is how we will come up with Your Accounting System.
In today’s competitive environment, information is power!
You’ll uncover a goldmine of profit-building information as you assess your financial standing, and when used properly, this information can help you better plan for your business’s success.
Call today for a free consultation. There is absolutely no obligation of any kind.
It will be well worth your time!
Do you have a customized accounting or bookkeeping system? Take This Quiz:
Can you answer these 10 questions about your business?
- Were my total sales up or down last month? And where they designated by category?
- What was my total gross profit last month? And was it designated by sales category?
- What is my gross profit per item?
- What were my expenses by category last month?
- Who owes me money and how much?
- Who’s behind in paying me and by how much?
- How much inventory do I have, in total and by item?
- To whom do I owe money and how much?
- What was my profit last month?
- How much do I OWN, and how much do I OWE?
Were my total sales up or down last month? And were they designated by sales category?
You need to know: If your sales are up, you’ll need extra cash to buy replacement inventory. If your sales are down, you’ll want to pull back on inventory purchases. Sales increases in a category can indicate a new growth opportunity. Sales decreases need to be investigated to determine the reason for the loss.
What was my total gross profit last month? And was it designated by sales category?
You need to know: Gross profit shows the profit remaining from sales after subtracting the cost of the products and/or services you sold. Changes in gross profit indicate whether or not your pricing strategies are working. Cutting prices to increase sales can hurt you if it reduces your gross profit.
What is my gross profit per item?
You need to know: Pricing should be based on profit goals rather than simple conjecture. By raising the prices on some items and selling others near or below cost, you can change your inventory mix and increase gross profits. An increase of just 1% may add thousands of dollars to net profits. You can give sales incentives that will cause employees to sell the most profitable items instead of the easiest ones.
What were my expenses by category last month?
You need to know: Are payroll costs too high? What about other costs, such as insurance and utilities? In order to cut back on expenses, you must first know which costs are excessive. Also, recording your expenses each month ensures that you get the maximum tax deductions.
Who owes me money and how much?
You need to know: You can’t expect to get paid in full unless you tell customers exactly what they owe. An itemized, neatly printed, and up-to-date monthly statement tells customers that you expect to be paid on time and according to your payment terms.
Who’s behind in paying me and by how much?
You need to know: Customers who fall behind need to be contacted immediately and continuously so that it doesn’t become a habit. Also, before you approve a new order from a customer, you’ll want to know if that customer paid you on time for the last one.
How much inventory do I have: in total and by item?
You need to know: If you’re running low on an item, you can reorder in advance and never run out. Plus, you can avoid rush delivery charges. If you have too much of one item, or too much inventory in general, you can cut back on your inventory investment. Also, you can compare a physical count with the books and identify a shortage before it threatens to put you out of business.
To whom do I owe money and how much?
You need to know: Many vendors offer discounts for paying bills in less than 30 days, which can add up to big savings on an annual basis. Paying your bills on time will also increase your chances of qualifying for business credit. Plus, you can plan for your cash requirements and reduce the need to borrow from your own funds or a bank.
What was my profit last month?
You need to know: A monthly profit figure gives you the financial bottom line and lets you know where you’ve been and where you’re going. Plus, you can save thousands of dollars on year-end tax return fees and plan for taxes in advance.
How much do I OWN, and how much do I OWE?
You need to know: Keeping track of your current assets and liabilities allows you to plan for your cash needs and helps you stay in compliance with loan agreements. Plus, you’ll be ready to respond to questions on demand from suppliers or potential customers.
Which of the following best describes Your Accounting System?
I do it myself
Your time is so much more valuable than that! You are the world’s #1 expert in running your business. While you are busy managing the books, your competitors are designing new products and services, preparing new advertising, collecting past-due accounts, and shopping for less expensive suppliers. These tasks are essential to the growth of your business. Are you sure that your accounting system conforms to proper rules and procedures? Even more importantly, do you get all of the valuable information described here from your system?
I have an accountant
Does your accountant or bookkeeper provide you with all of the information described here? Does your accountant take the time to explain what the numbers mean and how you can use them to manage your business more profitably? Do you feel you are getting the best possible value for the fees you are paying?
I don’t have a system
There isn’t a better time than now to get started! Studies have shown that small businesses often fail because they don’t have a good accounting system in place. We will work with you to develop a system for your specific business that is so easy to use that you’ll be amazed. If you can drop a piece of paper into a file folder, you already have the necessary skills to use it! You can obtain all of the valuable information described here. Plus, you will understand what the numbers mean and how you can use them to manage your business more profitably and better control your future.
You probably visit your doctor for a physical examination every year or so. The purpose of that visit is to alert you to health concerns, discuss life changes, and identify remedial action required before it becomes too late.
Allow us to be your Chief Financial Officer (CFO) for a day. In this capacity, we can perform a financial examination that will assess your business’s fiscal health. In most cases, we will meet with you following an in-depth analysis of your financial results and share concerns as well as ideas on how your business can achieve better fiscal health. At the same time we can discuss any future business changes you may anticipate and determine how they can best be handled. As your Profit and Growth Expert, we are committed to elevating the health and vitality of your business.
It’s amazing how much difference we can make in just one day!
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