Tag Archives: filing

5 Practical Tips You Can Implement To Raise The Liquidity Ratio Of Your Business

Having a good liquidity ratio is exceptionally important for all business no matter whether they are big or small. In layman terms, liquidity indicates the company’s self sufficiency and whether it can make timely payments of bills and other expenditures incurred all round the year. As the old catch phrase goes, cash is truly kind and here are 5 ways you can improve the liquidity ratio of your business without making drastic changes in the way you run your business.

Roll Your Extra Cash into Interest Accounts

There will be times when you have a lot of extra cash on hand and there are not many expenses that you would have to pay for except for some of the fixed costs. This situation is favorable for your business because you can simply move that extra amount to an interest bearing account to make surefire profit from it without making a risky investment.

 Whenever you need the cash, you can move it into the current account as and when you need it. You will be amazed at how much extra income you have generated by just making this one smart move.

Review Overhead Costs From Time To Time

Another method you can adopt to improve the liquidity ratio of your business is to check the cost of your overheads from time to time on a regular basis. By doing so, you will actually be able to find a way to reduce the costs which will have a positive impact on the liquidity ratio inevitably. Some of the overhead expenditures that you can cut down on are advertising, professional fees, rent and indirect labor.

Say No to Unproductive Assets

One of the major reasons why some businesses tend to have bad liquidity ratios despite of having everything else in check is because they store unnecessary unproductive assets that the business is better off without. Remember that a smart businessman is one who spends money on assets that play a vital role in revenue generation for example, the office building, cars, trucks and equipment to name a few. If your business is still holding onto assets that are of no use anymore, it’s time to chuck them out and make some extra cash on the side.

Keep a Tab on the Account Receivables

In order to have an optimal liquidity ratio, the business owner must pay attention to all the aspects of running a business. One such aspect that needs to be monitored closely is the account receivables. You must make sure that timely payments are being made by all your clients and no bad debt is recorded.

Go Easy On the Drawings

In a sole proprietor business, the profit made by the businessman is ultimately his income and he may withdraw it at any time for his personal use. But in order to maintain a good liquidity ratio, it is advised that you go easy on the drawings for excessive amount of withdrawals can portray a negative impact on the liquidity ratio of your business unnecessarily. So be on the lookout when you withdraw amounts for your personal use to avoid cash drains.

If you have trouble with accounting and bookkeeping, then free yourself from your accounting responsibilities by hiring CFAs and CPAs from SK Financial CPA at highly affordable rates.

 

 

The 3 Most Effective Tax Planning Strategies for Small and Medium Scale Businesses

The prime focus of tax planning is to arrange one’s financial activities for the year in such a way so that the lowest possible amount for tax payment is incurred. Undoubtedly, the most difficult time for small and medium enterprise owners is the tax season in which they have to pay a taxable amount on all the income they’ve earned during the previous financial year.

Most business owners end up paying more than they should because they are not well aware of the legal tricks they can use to minimize their tax burden. But now, you can save up on taxes by following the three awesome tax burden reduction strategies mentioned in this blog.

Reduce Your Income

One of the key determining factors in figuring out the taxable amount is adjusted gross income also called AGI in short. Your tax rate and different tax credits also rely on AGI. Since the AGI play a vital role in the entire journey of determining and making tax payments accordingly, it is best to pick the adjusted gross income as the starting point of your tax planning process. If you are not sure what AGI exactly is, it is actually the entire income collected from all resources minus the adjustments made to the aggregate income.

Ideally, if your total income is high, your AGI will also follow the higher trend and if you make less income, your AGI for the year will decrease automatically. Therefore, the most effective method to minimize the tax load is to slash down your income. But how exactly can you reduce your income? The answer is pretty simple. Just set aside a large chunk of your income for your retirement plan by following the conventional IRA plan or 401k at work plan.

Boosting Your Tax Deductions

You can also smooth out your tax situation over all by focusing on your taxable income. Now the taxable income actually is the left over amount that is calculated once all the deductions and exemptions are cut off from AGI. Itemized deductions is what you should aim for in various categories such as interest on mortgage, charity, health care, tax planning and preparation expenses, local as well as state taxes and expenses linked to investments.

The best way to do this is to record all your itemized expenses incurred throughout the year in an excel spreadsheet and review it from time to time. By recording all these expenditures, you can easily compare your standard deduction with the itemized expenses incurred within the one year time frame. Remember to always consider the higher of your standard deduction or itemized deduction. When itemizing your expenses, make sure you pay more attention to three main categories; donations to charity, state taxes and interest on mortgage.

Using Tax Credits To Your Advantage

Once you have adjusted your taxable income to reduce your tax burden, the next step is to take full advantage of the tax credits. Some tax credits that can help in minimizing the taxable amount considerably are going to college, adopting a child or setting aside money for retirement.

SK Financial CPA is where you should get help from when filing for taxes by letting professional CPAs and CFAs give you advice on how to present your accounting statements for the year.

Top Abilities That Should Be Present In Every Human Resource Manager

A Human Resource manager tackles numerous management and leadership facets within an organization. Therefore, it is very difficult to pinpoint the number of areas that a human resource manager should work on. However, there are some qualities, which are important in every manager in order to be successful at their job.

The biggest challenge in management success is the fact that a manager should be the kind of an individual everyone must love to follow and admire. Every action taken by a manager decides whether other people would like to follow him/her or not.

Following are some of the traits of successful Human Resource managers:

1- Ability to build interpersonal relationships

An effective manager should always be able to build responsive and effective interpersonal relationships with people in a business organization. Therefore, a manager in the true essence is the “people’s person”. Giving respect to executives, colleagues, and staff members is a quintessential in building interpersonal relationships.

Apart from that, a good manager also cares about people and tries to offer them support and assistance whenever required. Attentiveness is a key quality of a good manager as he tries to collaborate with the staff members, enabling them to reach their true potential.

2- Ability to communicate

Let it be in person, email or print, a good Human Resource manager knows how to communicate well and effectively with everyone present in a business organization. Ability to listen to people is also an important characteristic of good communication and must be practiced in a well-settled organization.

 A manager will not be able to get his message across or motivate his team until he listens to their problems and then effectively communicates the solutions to them.

3- Team building

The ability to build a team, motivate it, and lead it are all prime characteristics of a successful Human Resource manager. Under such a manager, the staff tends to be more productive, creative, and effective at their work. Inducing motivation in the staff is the fundamental job of the manager as this is the only thing that can work towards increasing their productivity levels.

4- Financial management

Financial management is an important aspect of a HR manager’s job and hence he/she is responsible to measure and set financial goals for a business organization. Analyzing and documenting the success and progress of the employees is also extremely important in human resource management.

5- Positivity

It is absolutely normal for business organization to sometimes fall into the pits of negativity and hence the role of a successful human resource manager is to foster recognition and positive morale in employees to keep them motivated so that an organization can reach its desired goals. If the workforce is recognized for their hard work, it will automatically be motivated to perform better for the business.

6- Promoting growth

An effective human resource manager is more interested in polishing out skills and natural talents present in the employees rather than giving them strict commands.

10 Most Tax-Friendly States in the U.S and 10 Least Tax-Friendly States in the U.S.

Taxes

1. Delaware

State income tax: 2.2%-6.6%
State sales tax: None
Gas taxes and fees: $0.23 per gallon (National average is $0.31)

2. Wyoming

State income tax: None
State sales tax: 4%
Gas taxes and fees: $0.24 per gallon

3. Louisiana

State income tax: 2%-6%
State sales tax: 4%
Gas taxes and fees: $0.20 per gallon

4. Mississippi

State income tax: 3%-5%
State sales tax: 7%
Gas taxes and fees: $0.18 per gallon

5. Alabama

State income tax: 2%-5%
State sales tax: 4%
Gas taxes and fees: $0.21 per gallon

6. Arizona

State income tax: 2.59%-4.54%
State sales tax: 5.6%
Gas taxes and fees: $0.19 per gallon

7. Nevada

State income tax: None
State sales tax: 6.85%
Gas taxes and fees: $0.33 per gallon

8. New Mexico

State income tax: 1.7%-4.9%
State sales tax: 5.125%
Gas taxes and fees: $0.19 cents per gallon

9. South Carolina

State income tax: 3%-7%
State sales tax: 6%
Gas taxes and fees: $0.17 cents per gallon

10. West Virginia

State income tax: 3%-6.5%
State sales tax: 6%
Gas taxes and fees: $0.36 cents per gallon

10 Least Tax-Friendly States in the U.S.

1. California

State income tax: 1%-13.3%
State sales tax: 7.5%
Gas taxes and fees: $0.50 per gallon (National average is $0.31)

2. Connecticut

State income tax: 3%-6.7%
State sales tax: 6.35%
Gas taxes and fees: $0.49 per gallon

3. New Jersey

State income tax: 1.4%- 8.97%
State sales tax: 7%
Gas taxes and fees: $0.15 per gallon

4. New York

State income tax: 4%-8.82%
State sales tax: 4%
Gas taxes and fees: $0.48 per gallon (varies by county)

5. Hawaii

State income tax: 1.4%-11%
State sales tax: 4%
Gas taxes and fees: $0.48 per gallon (varies by county)

6. Rhode Island

State income tax: 3.75%-5.99%
State sales tax: 7%
Gas taxes and fees: $0.33 per gallon

7. Maine

State income tax: 6.5%-7.95%
State sales tax: 5.5%
Gas taxes and fees: $0.32 per gallon

8. Minnesota

State income tax: 5.35%-9.85%
State sales tax: 6.875%
Gas taxes and fees: $0.29 per gallon

9. Vermont

State income tax: 3.55%-8.95%
State sales tax: 6%
Gas taxes and fees: $0.33 per gallon

10. Illinois

State income tax: 5%
State sales tax: 6.25%
Gas taxes and fees: $0.39 per gallon

 

Ten steps on how we save you money

Save_Money1

Ten steps on how we save you money:

1. We save you money by automating your accounting department. By doing so, you save on direct/indirect payroll, overhead costs as well as technology costs. Your data is saved on our dedicated secure server in an SAS70 certified data center. You will have absolutely no computer or software costs. We also eliminate your hiring and training headaches. Our skilled, experienced professionals handle your daily accounting and bookkeeping. We will help you develop standardized and consistent policies and procedures to streamline the accounting process for you.

2. We save you money by implementing numerous tax strategies. You save on taxes with our proactive accounting and tax advice and guidance. We have more than 100 tax planning strategies, which we will gradually implement as we monitor the progress of your business. You will be amazed to see how the implementation of just one, sound tax strategy can help you save way more money than our fees for the entire year.

3. We save you money by not allowing you to pay any penalties to the IRS or state authorities. You are guaranteed never to pay any penalties due to our strict adherence to deadlines. We will handle all your required filings in the most efficient and timely manner. If we don’t file any forms or make a tax deposit on time, then we will pay any tax penalties on your behalf.

4. We save you money by valuing your time. Your phone calls and emails will be returned within 24 hours. We will finish any tasks requested by you within 48 hours. We are easily accessible through phone, email, chat, Skype and other social media. We will complete your bookkeeping by the end of every month, or you will not be charged for that month.

5. We save you money with our audit protection plan. If you get audited or receive a notice from the IRS, all you have to do is just forward it to us, and we will take care of the rest. We will represent you and correspond with the IRS on your behalf. You will not have to pay any fees for our additional work.

6. You save money by automating your payroll and HR process. We process your payroll online with direct deposit, make tax payments electronically, prepare quarterly payroll tax returns, 1099s and sales tax returns and submit them electronically. We will also automate your time sheets, vacation benefits, expense reimbursements and HR functions through our Human Resource Information System (HRIS).

7. You save money by having a CPA firm by your side throughout the year. We provide unlimited consultation regarding accounting, tax, marketing and business matters throughout the year.  You also have access to our resource library and your own online portal.

8. You save money with our marketing consultation. We meet with hundreds of entrepreneurs throughout the year, and will share with you the many outstanding marketing strategies that are being implemented by other successful businesses.

9.We save you money by automating your A/P and A/R departments. All you have to do is to scan, fax, or email your paperwork to us, your capable accountants, and your hassles are no more. For A/P (bills) we keep track of all your due dates, set an approval process and automatically pay on the scheduled date. For A/R (invoices), we email or post your invoices, so you have no more hassle with printing, postage and mailing.

10. Your savings will be significantly higher with our accounting packages than with any other accounting firm. You will know what your fees will be well in advance, so there will be no unpleasant surprises. On average, our fees are far less than our competitors’. So you receive superior quality of work for a low, fixed monthly fee.

Sitting Down with a Tampa CPA and Preparing for Next Year

 

Tax time can be a stress filled time of the year for everyone. For both business owners and individuals alike, the race is on to file on time and accurately, to maximize deductions and to minimize penalties. The slightest mistake on tax forms can cause a company to lose out on valuable deductions, and being late by a week can add up in interest. Whether it is business taxes, personal taxes, or both, between January and April, everyone is pressed for time, trying to get all their paperwork in order to meet that April 15th deadline. After everything is filed, all that needs to be done is to wait and see if everything goes through as planned. By the time September rolls around, often the last thing on peoples’ minds is sitting down with their Tampa CPA and reviewing their tax plan for next year.

With no deadlines looming, September is the perfect time to do a financial performance review with your Tampa CPA.  With the details from last year’s returns, including any missed opportunities and prior losses, fresh in mind, it can be beneficial for everyone to start thinking now about what they want for next year’s taxes. For both business owners and individuals, starting the tax planning process in the fall works greatly to their advantage in the spring.

Having regular quarterly consultations with your Tampa CPA can benefit any business.  From planning for any potential tax issues that may come up, to doing a financial check up and ensuring your business is on the right track, to doing tax research on your behalf, so that you and your business can maximize your after-tax income. A consultation ahead of time can help you plot your course for next year.

And even if the taxes that need to be planned are strictly personal taxes, a consultation with a Tampa CPA months ahead of time, can yield great results. From income splitting to maximizing family and household deductions, being proactive with tax planning can pay off for individuals.  CPA’s can help structure your cash flow to help you pay for things such as vacation homes, education, and discovering which investments are best for you.

And, if you are in the market for a new Tampa CPA, now is the best time to look. As many offer free consultations, you can shop around and see which one meets your business, personal, or family’s needs, without the rush or pressure that comes from looking at tax time. You will have the opportunity to review their credentials ahead of time and ask around and determine which CPA you chose to hire. The right CPA is as crucial to your financial health as a doctor is to your physical wellbeing.

Tax time doesn’t need to be stressful. Sitting down with a Tampa CPA now, in September, rather than waiting until March or April, can benefit anyone. With no deadlines looming and no pressure to file on time, individuals and business owners alike can take the time to make the right decisions for their specific needs.