Why You Shouldn’t Procrastinate Your Tax Filing in 2020

May 21, 2020 in Accounting, Resources, Taxes

You may have months left to file your taxes, but processing them as soon as you can leave your feeling relaxed and far from bouts of headaches. You’ll be saving more than just your head, however, as the sooner you file, the sooner you’ll know if you have any money returning. You’ll also be protecting your business from any fraud.

If you’re not convinced and would rather wait for the tax season, consider how filing your taxes early can help protect your company and your investment. Here are several tips why you shouldn’t procrastinate tax filing, taken from the experts.

Reason #1: You’ll reduce the risk of exposure to tax-related identity theft

Just over a month into the 2019 tax season, the IRS identified more than 3,500 tax returns that claim a total of $15.8 million in fraudulent refunds. The statistics show the agencies the IRS managed to catch, but unfortunately, plenty of them remain rampant. These identity thieves use Social Security numbers (SSN), which they steal to file fraudulent tax returns and get a refund from the government. Tax season is a gold mine for identity theft, as millions of SSN just float about. If you wish to protect yourself and your company from these threats, file your taxes during the low season!

Reason #2: If you’re getting money back, why not get it early?

Most taxpayers get a refund and out of 155.9 million tax returns filed in 2019, 111.8 million qualified for a refund. If you file your taxes earlier, you’ll be able to get the money back sooner. Why is this crucial? As a business owner, this means three more months of investing, which allows that money to gain value and returns. It could also mean paying debts three months earlier, which cuts down interest rates that would have led to more costs. While it may not seem like much in hindsight, three months of every single year is a lot for business growth.

Reason #3: The IRS will favor you more

While plenty express contempt for the IRS (Who likes taxes, anyway?), it’s one of the most underappreciated agencies in the government. Contrary to what the public regards them as, the people behind the IRS work with all taxpayers, especially those struggling with their bills. There are structured payment plans available, usually offered with generous terms and grace periods. IRS loves helping you pay your taxes, but filing those taxes is another story. Taxes for entrepreneurs is an incredibly complicated process, and the people behind the agency will not be able to help you during a hectic tax season. If you wish to ask them for help, do so in February and March!

Conclusion

It might seem reasonable to just go ahead and file your taxes when it’s due. Never overlook the stress and pressure tax season can bring, however, as the last-minute stress is real. You’ll do well to wrap your taxes in advance, as you’ll be saving plenty of time.

You’ll also be able to protect yourself from identity theft, get your money back early, and become friendly with the IRS. For business owners, hiring a tax service may be the best option. This could mean saving so much more, as taxes tend to be much more intricate when it comes to businesses.

We offer the best accountants for entrepreneurs in Boston, as we focus specifically on businesses like yours! Let us take the stresses of taxes and bookkeeping away from your shoulders.

How to Find & Hire The Right Tax Advisor For Your Business – What to Know

March 18, 2020 in Accounting

How to Find & Hire The Right Tax Advisor For Your Business – What to Know

It’s no secret that one of the trickiest parts of running a small business is dealing with taxes — or everything that’s related to finance, for that matter. If you’re a small business owner, you have to wear many hats. You have to be in charge of operations, marketing, sales, customer service, and so much more. You may not have the additional bandwidth nor enough knowledge to manage your taxes, which is why it’s recommended that business owners work with a tax advisor. 

A small business tax advisor eases you of the burden of preparing and filing your taxes, as well as offer you sound financial advice so you can save more and help your business not only stay afloat but also thrive. If you’re going to hire a business tax advisor, you must first have a thorough understanding of what they do and what makes a good one. 

What is a small business tax advisor?

In a nutshell, a business tax advisor is a certified professional who can offer you help in all the tax-related needs of your business. They can do things like bookkeeping, manage, prepare, and file taxes, handle payroll filings, conduct budget analysis and review, and represent the business in the event of an audit. They not only work with you during the tax season but also all year round. 

Tips for finding the right small business tax advisor

Go for someone with experience.

While there’s no doubt that newly-minted tax advisors are very much capable of managing your tax-related needs, you’ll be better off hiring someone with years of experience. Ideally, this advisor has gone toe-to-toe with the IRS and has the specific expertise in your area of tax need. There’s no rule when it comes to the number of years of experience you have to look for, but you should opt for someone who has previously handled a situation like yours. 

Work with someone who understands your business and its needs.

The ideal business tax advisor is someone that knows and understands what you need, because sometimes, even you don’t understand exactly what you need. They should have in-depth knowledge about the industry you operate in, as well as the managing taxes businesses similar to you. They should be capable of recommending the best practices and specific steps on how to save you money in the long-run. 

Hire someone that offers a wide range of services.

Most businesses only turn to tax professionals for tax preparation and filing services and look somewhere else for other needs because said professional doesn’t have a lot to offer beyond tax season. The tax advisor you end up hiring should be skilled in different areas such as budgeting, payroll, strategy, and growth, so you don’t have to jump from one expert to another for your tax-related needs. 

Having to hire a business tax advisor is tough because you need one that is the right fit for your business. Accountrepreneur just so happens to be an excellent candidate. We take bookkeeping, taxes, and CFO-related issues off your shoulders, so you can focus on growing your business. 

If you’re looking to hire a professional tax advisor for your business, get in touch with us now and see how we can help you!

3 Benefits of Hiring a CFO For Your Business – What to Know

March 5, 2020 in Accounting

3 Benefits of Hiring a CFO For Your Business – What to Know

Every business needs a chief financial officer (CFO) somewhere down the line, especially when a company experiences rapid growth. A CFO plays a pivotal role in creating sustainable financial success and developing easy-to-follow plans from a complex concept and process, making them a key player in business operations. 

What is the Role of a Chief Financial Officer (CFO) in a Business? 

The role of a CFO is not an open position that anyone can just grab as they provide a significant contribution to the overall workflow of the company. A CFO is responsible for providing strategic financial plans, including budgeting, forecasting, managing mergers, acquisitions, and compliance issues. 

They have an in-depth knowledge of your business, knowing its different facets like the back of their hand, from the business model, banking relationships, down to auditors, the board of directors, and more. They have a direct influence on your financial health, management reports, policies, and even payroll. 

What are the Benefits of Hiring the Right CFO for Your Business?

Benefit #1: Manage Growth, Profitability, Cash Flow, and Overall Expenses

If your business sells physical goods or services, this means that your company will experience a higher marginal cost. A CFO plays a pivotal part in accurately projecting the sales revenue of a business, which allows the rest of the sales team to properly identify the right target audience. 

Not only does the CFO help you have a full overview of the sales process, but they also keep you in line with the company’s cash flow and ensure you won’t lose track of the numbers. In addition to having better financial reports and marketing strategies, a CFO can also help owners make well-informed decisions based on the company’s financial status. 

Benefit #2: Boosts Productivity and Keep You Focused on Core Business Needs 

The right CFO can juggle different hats, one of which includes streamlining a company’s resource allocations to boost productivity. This includes optimizing different areas to ensure the resources are given a suitable process and timeframe, which facilitates smooth-running operations. 

Not only does it enhance productivity, but it also minimizes the risk of bottlenecks and saves money in the long run as CFO prevents the resources from falling into the wrong hands. With a CFO, you can expect an agile cashflow and more room to focus on core business functions as an owner. 

Benefit #3: Enhances Accounting and Provide Valuable Financial Insight 

CFOs are responsible for managing the company’s financial health and ensuring that all data are accurate and presented in digestible nuggets. This is because stakeholders, shareholders, strategists, and business owners use the financial reports given by the CFO as a basis for making decisions. 

This includes financial forecasting, budgeting, investment analysis, financial projects, and presentation of financial reports. The CFO also handles the capital structure and promotes sound financial forecasting to drive growth for the company’s bottom line. 

The Bottom Line: CFO Plays a Starring Role in the Growth of a Business

Hiring the right chief financial officer (CFO) can leave a significant impact on your business as they can make or mar your core functions – from increasing sales, reducing productivity wastes, enhancing process inefficiencies, and boosting sales. 

If you’re looking to outsource a CFO for your bookkeeping, get in touch with us to see how we can help.