Ask Your CPA: What Do the Tax Reforms Mean for Your Small Business in Nashville?

The last few weeks of 2017 brought sweeping changes to the country’s tax laws, leaving no taxpayer unaffected. Though not all reforms included in the new Tax Cuts and Jobs Act take effect immediately, you should consult your trusted CPA and tax adviser about what the new provisions could mean for your small business in Nashville.

Cuts with conditions

The new tax bill particularly hits small firms because it allows “pass-through” entities – which are taxed on the individual owner’s level, rather than the corporate – to deduct up to 20% of their income. But the exact percentage of deductions depends on several things. Read more from this blog post: http://bit.ly/2BqIjUT

CPA Firm: Three Quick Tips to Make Computing Personal Taxes a Breeze

Although the April 17, 2018 deadline for tax returns is still a few weeks away, there is definitely nothing wrong with getting a head start with your computation. After all, it’s better to start early since this will give you enough time to properly compute the taxes you owe and make any adjustments as necessary.

Unfortunately, not everyone understands the intricacies of computing taxes, which may lead to mistakes in the computation. This may seem like an innocent error, but these mistakes could lead to the IRS knocking on your door and asking for an explanation—and that’s a kind of stress you’re better off avoiding. One of the best ways to do that is to employ the assistance of a respected Nashville CPA firm, like Evan Hutcheson, CPA, LLC.

Of course, there are other steps you can take to help ensure that you file an accurate tax return and reduce the amount of stress that you have to face.

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3 Questions to Review with an Accounting Firm as You Set Up Your Nashville Business

It’s easy to imagine working with an accounting firm once you have your small Nashville business up and running. But the truth is, you might need to start consulting an accountant – and particularly, a tax guru – even when your startup is still in the conceptualization phase.

Understanding how your business can be taxed is just as essential as strategizing on how your product or service will turn a profit. Here are three questions you can review with an accountant to help you determine your company’s relationship with taxes and gain an edge for your business.

How will you structure your business?

The type of business you establish, legally speaking, determines the kinds of taxes you will file. For startups, the common forms of business entities are:

Sole Proprietorship
Partnership (general or limited)
C Corporation
S Corporation
Limited Liability Company (LLC)

Sole proprietorships and partnerships are the simplest for small startups, but they come with inherent risks. For example, as sole proprietor, you could end up mixing personal and business funds to support your fledgling company. Alternatively, you and your partners might encounter issues about the distribution of roles and profits. Both scenarios could make tax-time a messy period, which is why it’s essential to clarify the responsibilities attached to each business type.

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Small Business Owner in Nashville? Why You Should Forge a Partnership with a CPA

In 2016, small businesses in Tennessee accounted for 96.8% of businesses in the state, making the sector a major contributor to the rising growth and employment rates in the region. More recently, Nashville in particular has taken the lead on this economic high streak for small businesses, garnering a perfect score on business optimism and topping the nationwide chart for small business health.

As a small business owner in the city, this should be music to your ears. It should also herald a time where all your decisions must position you for maximizing the success and growth projected for your business sector. To do this, it helps if you have a CPA firm by your side.

Having an expert in charge of your tax preparation, bookkeeping, payroll, and other business functions is only the beginning. Your partnership with a CPA firm also has many other benefits, like potential savings, business focus, and financial advice regarding risks and opportunities.

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CPA Firm Names Top Three Signs That You Are Doing Your Tax Preparation Wrong

It has been said that ‘to err is human, to forgive divine’. However, some people have found out the hard way that the IRS is less forgiving when that mistake involves a person’s tax return. Though the government might offer some kind of leniency to those who take the necessary steps to fix the mistake immediately, it can still invite an IRS Audit, especially if your total income is between $200,000 and $1 million. The IRS is even stricter with those who run their own business since there are some who wrongfully declare their business’s income and expense to claim exemptions.

Despite the fact that hiring a qualified tax preparer from a reputable CPA firm does not guarantee that your return will be 100% error-free, it can still greatly reduce the probability that you’ll be committing these tax filing mistakes. It will also help you avoid the possibility of seeing the IRS on your doorstep.

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Let an Accounting Firm Help Improve Your Business and Its Operations

Running your own business is certainly a dream come true. After making your debut, however, it’s time to get serious and start on real work. Brainstorming, marketing, and operations are all crucial elements of keeping a business afloat. At the core of it all, however, are the finances.

Much in the same way that you needed capital to get the business up and running, making sure that you have enough cash to continue operations is just as important, if not even more so. For every financial transaction your company makes, you should have proper documentation of all receipts, billings and invoicing, purchase orders, and more.

These are important because this will give you a clear picture of your company’s financial standing. While start-ups tend to think that there’s nothing much to account for yet anyway, it would be ideal if you work with an accounting firm as early as possible. Read more from this blog. http://bit.ly/2uMTYes

Costly Accounting Problems That a CPA Firm Can Help Your Business Avoid

When a business starts to grow, accounting tasks get even more complicated. It might be overwhelming for businessmen who aren’t that knowledgeable about bookkeeping and accounting, but it’s a good sign. It means that your business is growing.

While this growth is something to be happy about, keeping up with the ensuing challenges can be tough. Problems may arise, especially if you don’t have a team of accounting professionals to help you manage them. Working with a CPA firm, however, can help you avoid costly mistakes that could put your business at risk.

Failure to Keep Track of Receivables

Every invoice comes with a record of a receivable, which indicates that you’re supposed to be paid by a customer. Once the customer has paid, the invoice should be marked as paid. It sounds like an easy task, but updating them becomes more difficult as you begin to collect more receivables. Read more from this blog. http://bit.ly/2v1pS77