Considerations for Restructuring Your BusinessPosted on November 1st, 2017
As a company grows and changes, it may need to transition into a new entity structure, such as going from a partnership to an LLC. When you are planning to restructure your business, there are several factors that need to be considered, including:
Impact on Taxes
The main reason owners decide to give their entity a new structure is because of corporate tax rules. For example, new business owners who began their company as a sole proprietorship or a partnership may want to try to avoid double taxation as they grow their company. These individuals might then focus their business strategy on becoming an LLC or S-corporation.
However, not everyone understands how these new tax rules might actually affect them. Pass-through entities have their corporate income tax paid on their owners’ personal income tax returns, so there can be situations where an LLC can be more expensive to operate than the C-corporation that experiences double taxation. If you are caught in this situation, the restructuring will not be advantageous to you.
Another complication pass-through entities tend to deal with is the set of regulations that counterbalance their tax advantages. Sole proprietors and partners have their personal assets at stake if their company faces a debt that cannot be effectively paid. LLCs and S-corporations avoid double taxation and keep the owner’s property separate from the business property, but they are affected by such rules as limits to the number of shareholders they may have.
At a certain point in their operation, many businesses will not be able to grow in the manner they need without the assistance of bank financing. By obtaining a loan, a company has more opportunities for growth than might have otherwise been possible. There are several considerations financial institutions use to determine whether they feel confident in lending your business money, and one of them is your choice of entity.
If you at a point where a lending agreement is a more effective way to grow your business, then you need to look at whether your entity is the kind that encourages trust from a bank. Sole proprietors are not always seen as having the resources to effectively pay back a loan, but corporations can encourage more confidence in a lender.
Contact Us for Financial Planning
Appel CPA provides personal and business financial planning services in Portland, Beaverton, and Lake Oswego, including business restructuring consultations. For more information about how business entities affect your corporate and personal finances, call our firm today.
Why Should Someone Else Should Prepare Your Taxes?Posted on October 16th, 2017
Tax return preparation is a cornerstone service that many CPA firms offer to their clients. However, many individuals and business owners believe that the availability of tax software means they no longer need the help of an accountant during tax season. This simply is not the case.
Regardless of whether you know how to prepare and file, having a tax and accounting firm like us prepare your taxes for you is valuable.
Maximized Tax Returns
In order to prepare tax returns effectively, you need to know about tax law. Because software programs help their users keep track of the basic rules, many self-preparers think they are in a good position. Unfortunately, tax law is more complex than a self-service program can often represent. Not only are self-preparers more prone to filing an incorrect tax return that leaves them vulnerable to an IRS audit, but they can also miss out on several deductions for which they may have qualified.
You get the most out of your rebate when you entrust an accounting firm with your personal and business taxes. Every current exemption available to you is known to us because Appel CPA keeps track of the various changes in tax law that occur every year. We are also able to prevent mistakes on your return through a proofing process not available to you when you do your own taxes.
With our tax services at your disposal, you can take away more money from your tax return.
Planning for Next Year
While your tax preparer tries to claim every deduction that is available to you, there are some deductions that require precise timing and other stringent criteria in order to be claimed. You could become eligible for these during future tax years, but doing so would require a plan of action developed in advance.
One of the many forms of assistance our firm can is developing a tax plan. We help you strategize for next year to minimize your obligations and improve your rebates. If there were deductions you missed this current year but could be eligible for next year, we help you determine the best ways to apply for these. We also help you put away money earlier to make sure taxes owed do not put an unexpected limit on your finances.
Contact Us for Tax Services
Appel CPA provides tax services in Portland, Beaverton, Lake Oswego, and all surrounding communities. Whether you are looking at sales taxes, your company’s payroll taxes, or your personal income taxes, our firm files these and help you plan ahead for them. For more information about how we help you overcome your tax challenges, call us and schedule a free consultation today.
The Benefits of Outsourced AccountingPosted on October 2nd, 2017
Proper accounting is one of the more difficult tasks facing a brand new company. Many business owners struggle to fulfill various accounting roles, especially when other priorities interfere with creating an internal department. If you do not have staff dedicated to handling bookkeeping or payroll, consider outsourcing these functions to a CPA firm.
Outsourced Accounting Saves Time
The nature of being a small business owner makes time one of the most precious resources you may have. Dealing with an additional time-intensive function means having fewer opportunities to grow your venture by improving the quality of your services. Any service that meets a managerial need effectively while saving a company owner time will be beneficial for their long-term success.
The key advantage of outsourced accounting is freeing business owners up to be more productive. You do not have to worry about managing the books or calculating withholdings on your own, each of which can be a significant time sink. By utilizing a CPA firm to handle these functions for you, you can get back to doing what made you become an entrepreneur in the first place.
Keeping Your Information Accurate
Performing your bookkeeping functions correctly without the assistance of an accounting expert can be difficult. There are several different accounts to keep track of at once and any imbalances can create potentially large problems for your business. Payroll can be just as problematic, as inconsistent records will lead to inaccurate withholding payments, an area where many small businesses run into trouble.
You can prevent these issues by outsourcing your accounting. Independent CPA firms specialize in bookkeeping, payroll, and other aspects of corporate finances, so they are best positioned to maintain accurate balances across the board.
Your Information Stays Safe
A common area of concern when discussing outsourced business functions is keeping confidential information secure. Owners want to know that their records are being handled with the utmost care, and are worried that an outside accounting department will not maintain the same level of discretion they expect from bookkeepers or payroll managers inside their organization. Our CPA firm is well aware of this concern, which is why we take as much precaution with your company’s financials as we would with our own. Every book we balance and each employee hour we record are kept both safe and accurate.
Contact Us for Accounting Support
Appel CPA provides outsourced accounting services in Portland, Beaverton, Lake Oswego, and the surrounding communities. We can take care of bookkeeping and payroll management for you in part or in full, depending on your particular needs. For more information about how we can help your business, call us and schedule a free consultation today!
Hello world!Posted on June 23rd, 2017
We’re excited to announce the official launch of our blog.
We’ll be posting helpful news from the financial industry, updates from our practice, and more about the latest in keeping your personal and business finances in the best shape possible. We built our practice on the notion that we’re there for our clients when they need us and we want our online presence to be a reflection of that principle.
We hope this blog provides an extra level of service to our current and future guests. If you would like to stay up to date, simply click the RSS “Subscribe to feed” link located on our website and subscribe. Our subscribers will be updated when we make a new blog post.
Here’s to your best financial future ever!