How a CPA Can Help Your Nashville Small Business Grow in 2022

 

The COVID-19 pandemic changed virtually every facet of life all over the world, and for businesses, it was even more impactful. According to Statista, an October 2021 survey found that more than 22 percent of surveyed small businesses said that the pandemic had a significant negative effect on them.

In Nashville, small businesses that need support can apply for Economic Injury Disaster Loans with the US Small Business Administration. If you're one such business, or you hope to gain more stable footing in 2022, hiring a Nashville CPA can have amazing benefits for your business. Here's how.

Making better business decisions

A Nashville CPA can furnish you with the information you need to facilitate better decision-making in your company. When considered within the context of the pandemic, information is your best asset for recovery and growth.

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Cash Flow Statement: A Guide from a Trusted Nashville Accounting Firm

 

If you’re starting a business in Nashville, one of the most important tools you’ll need in managing your finances is your cash flow statement. This report details your cash position at any given time and shows how money goes in and out of your business. 

The cash flow statement may be prepared monthly, quarterly, semi-annually, or annually, depending on how often you need it. Your accounting firm can do the report for you, but you can also do it on your own, especially if you use accounting software, such as QuickBooks. Ask your CPA for guidance on how to set up your software and virtual books so you get accurate financial statements every time.

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Pro-Tip from a Nashville CPA: Take Advantage of These Exemptions

 

Everyone knows that taxes are one of life’s unquestionable certainties. What most people don’t know, however, is that there are many exemptions you can claim to lower your tax bills.

Whether it’s credits for your dependents or deductions for certain loans, you can find ways to pay less come tax season with the help of your trusted CPA. If you’re in Nashville, here are just a few of the exemptions you can explore:

Student loan interest — If you have a college degree, there’s a big chance that you carry student debt. Indeed, about one in eight Americans take out a loan to attend university, with the average amount being a whopping $28,950. The good news is that you can deduct up to $2,500 worth of interest from your taxes. Surprisingly, only one-third of people who qualify for this benefit ever claim it.

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Trusted Nashville CPA Warns Freelancers of Common Money Mistakes

 The way we work is changing and freelancing is one of the factors leading this revolution. As an article from CNBC.com notes, almost one-third of Americans now do freelance work—a trend that was only further accelerated by the current pandemic.

If you're self-employed, however, you're also responsible for tracking and reporting your cash inflow and outflow. As Nashville CPA Evan Hutcheson notes, both longtime and neophyte freelancers should avoid these money mistakes:

Not setting up a corporation

As a freelancer, the line between what's business and what's personal is very slim. However, it is in your best interest to set up a separate corporate entity to represent your freelance operations. This way, if you get sued or have outstanding financial obligations, only your business' assets will be on the line and not your personal assets (such as your home).

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How a Nashville Accounting Firm Can Help You Survive Financial Woes

 

According to AccountingToday.com, microbusinesses continue to face bookkeeping challenges throughout the pandemic. They cited a survey conducted among 1,008 microbusinesses, which indicated cash flow as one of the major pain points. Problems in cash flow were caused by overdue customer payments.

A closer look at the problem showed limitations in payment methods offered by businesses. Prior to the pandemic, most of these businesses only accepted cash or check payments and did not rely on an accounting firm for financial resolution strategies. 

When it comes to cash flow challenges, a CPA can be one of the most qualified to help your Nashville business. With their help, you can identify problems that limit your cash flow and implement immediate solutions to prevent further financial distress.

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Nashville CPA Tips on Improving Business Cash Flow Post-Pandemic

 

With the continuous roll-out of COVID-19 vaccines, businesses are expecting to get back on their feet this year. Some businesses may have struggled staying afloat, and this is where a Nashville CPA can help.

You may think hiring an accountant might just be another overhead expense, but it comes with a number of financial benefits, especially if you want to improve your cash flow. Payroll and tax preparation are just a couple of the areas that can be looked into to help your business overcome financial challenges. 

Here are a few tips on how to improve your cash flow post-pandemic:

1. Evaluate your expenses regularly.

While many have implemented salary cuts and retrenchment to help mitigate the impact of the health crisis, businesses should also look at small scale financial losses.

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Top 5 Reasons Why You Need a Nashville CPA Firm for Your Bookkeeping

 

Starting and managing a business is a tough job, let alone bookkeeping for your business. Bookkeeping is a different ball game and something that needs to be handled with complete accuracy. If your Nashville business doesn’t have the in-house expertise for it, you may be better off outsourcing bookkeeping to a trusted CPA firm in the area.

There are many things to consider in bookkeeping, such as the type of business you run and the types of services your business would need. Small to medium-sized businesses have varying needs that range from consultancy and training to the actual accounting practice. Specific services you need to look into include payroll, tax returns, and financial reports.

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Missed the Deadline for Filing Your Taxes? Call a CPA Immediately

 The last day to request for an extension in filing your taxes in Nashville was May 17. If you haven’t filed your taxes and missed the deadline, it’s best to call your CPA immediately and get guidance on what to do next.

The IRS does not take nicely to taxpayers who fail to file and pay their taxes on time. You need to have a very good reason or a “reasonable cause”, such as a natural disaster of getting incapacitated, for not meeting your tax obligations within the annual deadline. 

Outside those causes, not filing and paying your tax returns is considered a criminal offense which might get you jail time of one year for every year you failed to pay your taxes.

That said, you can avoid a stiff punishment by filing your returns even after the deadline. While you can avoid going to jail, however, you have to face penalties and interests for late payments.

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Why You Need an Accounting Firm When Starting Your Small Business

 Now that the Nashville economy appears to be headed to recovery, it’s a good time to think about starting that business you’ve always wanted to do. In drawing up your plans, you’ll need the help of an accounting firm who can provide you with guidance on crucial financial matters, from funding your business to setting up and implementing your accounting systems.

This raises the question, should you work with a CPA for your small business or would a non-certified accountant meet your requirements? 

Here are some things to consider.

Do you need to hire a CPA for your small business?

You are not required to hire a CPA or even a non-certified accountant. If you have the knowhow, you can even do your own bookkeeping, payroll, and other everyday accounting needs, especially when you have an efficient accounting software.

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Acquire an Existing Business with the Help and Guidance of Your CPA

 

As a result of the shutdown of Nashville’s economy, many small business owners feel it is now time to throw in the towel and start fresh somewhere else. In particular, baby boomers who have been considering getting out of the game even before the pandemic may want out now more than ever. 

If you think you have what it takes to keep a small business going and give it new life, especially after the pandemic, don’t hesitate to consult a CPA to get crucial financial advice and guidance on your next steps. Keep in mind that any investment involves risk. To minimize that risk, it’s important to work with a financial professional.

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Get Guidance from a CPA Firm on Selling a Business Amid the Pandemic

 If you’re like many small business owners in Nashville, you’re probably seriously considering selling your company after the economic downturn brought about by the pandemic. It’s not always easy to part ways with a venture you’ve nurtured for years. But there’s also no shame in wanting to sell and start fresh, perhaps with another project or a different career.

If your business took a big hit in the previous year, you might think it’s not worth selling and it would be best to simply close it down. But you just might find that many enterprising individuals are looking to buy a business just like yours. Get professional advice from a CPA firm on the best course of action.

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Consult Your Accounting Firm About the New Round of PPP Funding

 On January 11, 2021, the federal government rolled out the new version of the Paycheck Protection Program to further help small businesses survive the COVID-19 crisis. If you’re a small business owner in Nashville looking for funding to support your business, consult your accounting firm immediately to find out if you’re eligible for the program and start the application process.

Here are some of the most important things you should know about this new version of the PPP.

There are two types of PPP loans

In the latest round of funding, you can either qualify for a first draw loan of up to $10 million or a second draw loan of up to $2 million. First draw loans are earmarked for businesses who have not received a PPP loan previously, while second draw loans are for those who have received funding from the first round of PPP. 

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