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4 Simple Ways to Cut Your Business Tax Expenses

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Business taxes are the sore spot of every business owner. If there were ways of legally cutting your business tax expenses, wouldn’t you want to take advantage of them? There are tax strategies that a qualified and experienced CPA can help with. Here are simple ways to cut your business tax expenses.

1. Take a Salary Cut

It may not sound like a good idea, but taking a salary cut can significantly reduce your business taxes in the form of the employment taxes you have to pay each month. FICA and state and federal taxes cost a considerable amount of change. If a salary cut is manageable, it’s worth considering, depending on how much you pay in income taxes every month. If you don’t want to take a permanent salary cut, you could opt to defer income for a temporary amount of time. If you’re looking for a short-term way to cut business tax expenses, a deferment of income is a good option to consider. 

2. Pay Down Debts Before the End of the Year

Depending on how your business is organized, you may have to pay taxes on annual profits. You can reduce business taxes and help your business by paying down debts early, by the end of each year. If you have recurring debts, you can make early payments in order to reduce your profits on paper and end up owing less in taxes. As long as you cut the check and mail it by December 31st, this strategy will work.

  1. Work With a CPA

There are numerous tax changes that occur throughout the year. As a busy business owner, it’s nearly impossible for you to keep up with them all. However, it’s the job of a CPA to stay abreast of all the tax changes as they happen. Your single best strategy for ensuring you get all the business tax breaks you’re entitled to is to work with a CPA.

4. Make Contributions to a Retirement Plan

Another smart strategy to save on business taxes is to make yearly contributions to a retirement plan. This reduces your business profits, yet gives you the benefit of tax-deferred earnings on your retirement plan. You have until March 15thto make the contributions. Your form of retirement plan may have limits on contributions. Consult with your CPA to learn more.

These are four effective ways to cut your business tax expenses. Your CPA may have additional strategies for you, depending on your business structure and individual situation. For more information, please contact us today.

Three Financial Strategies to Start 2019 Off Right

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Financial planning is not always easy, but a new year is a great time to recommit to it and do it in a way that works for you. Unfortunately, many people avoid this kind of planning because they are not sure where they should start or what decisions are most important. Here are three financial strategies you can consider right now, to help make your 2019 better for your bank account and your overall financial security.

1) Set Up a Realistic Budget

Having a budget is one of the best ways to see where your money is going and if there are areas where you can make changes. With the right financial planning, there is a much better chance of making your money work for you. A budget is a large part of that, because it gives you a plan and a way to see where adjustments are needed. You can save, spend as necessary, and plan for larger expenses so you can feel more financially secure.

2) Work With a Financial Planner

Remember that financial planning does not have to be something you do alone. It can be a great idea to work with a financial planner so you can get the tools you need for success. Working with a planner lets you ask questions, get the answers you need, and put those answers into action to improve your financial picture. Whether you are just starting to build a portfolio or you have a lot of wealth you want to protect, a financial planner can help you feel confident about your goals for the future.

3) Create an Emergency Fund

Everyone should have an emergency fund. For people who are just getting started financially it is generally recommended to save up enough money to pay bills and living expenses for a month. People who are older or who have more wealth, though, may want to consider saving six months or even a year of living expenses in case of job loss, medical problems, or other unexpected issues. An emergency fund can lower the risk of getting into credit card debt and experiencing financial difficulties.

With the right strategy, you have the opportunity to make 2019 a stronger financial year. Creating an emergency fund, talking to a financial planner (like the experienced team at Larry Turner, CPA) and developing a budget should all be part of that strategy. Not only can those things help you financially, but feeling more secure monetarily can reduce your stress and give you the opportunity to do more of the things you enjoy as well.

 

5 Simple Tips to Take Time Off of Taxes

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This tax season, be prepared well in advance. No one really enjoys doing taxes, but you can make everything easier by using these five simple organization tips to take time off of taxes. Implement one or all five and you’ll definitely see a big improvement over previous tax seasons!

1. Work With a Financial Planner

Since organization is the foundation of minimizing the time you spend on taxes, working with a financial planner is a must. A quality financial planner can offer you individual tax preparation services that will help ensure your taxes are done in a timely, efficient and accurate manner. There’s no better way to take care of your taxes, whether you have modest income or a large family estate to organize.

2. Log in Miles as You Go

If you use a company vehicle and you need to keep track of the miles for the deduction, keep track of mileage as you go. Don’t wait until tax time to go back and try to calculate the mileage for every company trip you made. Use whatever method you’re most likely to stick to. Ideas include using a mobile app, keeping a written logbook in your glove box, and using spreadsheet software to keep track of your trips.

3. Invest in Accounting Software

Even though you’ll probably be using a financial planner to actually prepare your taxes, everything will go much smoother if you use accounting software throughout the year. Accounting software like Quickbooks or Quicken not only helps you organize your finances for tax time. It also helps you to set and monitor financial goals. Best of all, you can run reports to see how your finances have improved over previous years.

4. Designate a Space for Taxes

When you sit down to prepare your taxes, you’ll be pulling all kinds of documents from your files. To eliminate the possibility of something being misplaced, designate a special area in your home just for your tax preparation work.

5. Start a Tax Filing System Early in the Year

Get ready for next year’s tax return by making a folder for it as early in the year as possible. Then, when you accumulate receipts and other documents, you can just slip them into the folder and they’ll be all in the same place, ready to be entered into your accounting software.

Whether you choose to do all of these tips or just a few, this next tax season will definitely be an improvement over other years. And remember, the more organized you are with your finances, the sooner you can file and get back any tax refund you might have coming to you. Remember that you don’t need to go it alone. The professionals, friendly team at Larry Turner, CPA would be glad to assist with your business or individual Taxes.

Why Financial Planning Is a Great Investment

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One of the best things you can do for your future is to have a solid financial plan, for both short- and long-term goals. With expertly advised financial planning, not only are you significantly more likely to meet those goals, but you will also have security knowing that you are prepared for unexpected expenses, should the need arise. Here are a few reasons why working with a CPA to create a financial plan is a great investment.

Build Up Savings & Investments

Creating a financial cushion provides peace of mind for when life inevitably hands you the unexpected, such as hospitalizations, extended illness or loss of income. Financial planning allows you to look at your cash flow and monitor your spending habits to determine a budget and create savings. A CPA can also help in making sure you have sufficient insurance to cover the cost of unplanned events. With a plan in place, you will be financially prepared in case of an emergency.

Create and Achieve Long-Term Goals

Whether you wish to prepare for retirement, purchase a house, or cover large expenses such as a child’s education, having a solid financial plan is essential in successfully meeting long-term goals. A CPA can assist you in creating a specific time frame for your goals, as well as determining a realistic plan for meeting them successfully. By cutting down on unnecessary spending and prioritizing your goals through a financial plan, you can take much of the stress and worry out of planning for your future.

Work With a Financial Consultant

It can be daunting to know where to begin when deciding on investments. There are many factors involved in investing to create wealth and improve your financial well-being. A CPA can take into consideration your risk tolerance, goals, needs and capital in order to assist you in making the wisest investment decisions for your financial future. The assets you create through investing will grant you greater financial security as well as aid you in reaching your long-term financial goals.

Financial planning is the first step in reaching your goals and preparing for the future. Whether you are creating a financial plan for the first time or reevaluating your financial situation or investments, an experienced Certified Public Accountant is an invaluable investment in successfully meeting those goals. Larry Turner, CPA, has been providing expert financial advice in Gilbert for 25 years. Contact us today to begin the process of securing your financial future.

New Tax Laws You Need to Know About

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There are changes to the tax laws coming for the 2018 tax year, which will be used by filers who are getting their taxes ready in April of 2019. For those who have someone else handle their individual tax preparation, these laws may not seem to matter much. Someone else will be handling the details.

Still, whether you pay someone to do your taxes or handle them yourself, it is a good idea to know what kinds of changes you will see to the laws that affect your finances. The two biggest changes you will want to be aware of will be lower income tax rates and changed ranges of income for tax brackets. Both will benefit many people.

Lower Tax Rates Mean You Can Keep More of Your Money

The tax rate is lower than it was for the 2017 tax year, meaning that nearly everyone will pay less in taxes for the same amount of income. That is good news, since it means more of the money you make will stay in your pocket or bank account. While it is not a big change, both single people and those who are married and filing jointly will see breaks.

Married people who file separately and those who file as head of household will also see their taxes decrease a little bit, provided they don’t have any big changes to their statuses or income levels between the 2017 and 2018 tax years.

The Income Tax Brackets Have Been Adjusted for 2018

When you look for someone to handle your individual tax preparation, you want to make sure he or she puts you in the right income tax bracket. These brackets still start at 10 percent, but now they move to 12 and 22 percent, instead of 15 and 25 percent. Some of the higher tax brackets have also been lowered by a couple of percentage points each.

People who might have been in a particular tax bracket for 2017 can find themselves in a lower bracket for 2018, and the difference between paying 12 percent and 15 percent can really add up. These changes will help many people keep more of their hard-earned income.

At Larry Turner, CPA, we have been serving Gilbert for 25 years. We know the tax laws and keep up with all the changes, so you can feel good about getting your taxes prepared by us. With extensive formal training and experience with the changes in the new tax law, we can address any and all concerns you have about the laws and how they will affect your personal financial future.

How Business Tax Changes Will Affect You

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If you own a small business, you will want to be sure your taxes are being paid properly. That way, you reduce your risk of encountering problems with the IRS, and you can also have peace of mind knowing your business is paying taxes and addressing financial issues in the best possible way.

Whether you handle taxes yourself or you hire someone to do it for you, understanding changes to the tax law can help you be an informed participant in your business tax preparation. Here’s what you need to know about the most recent changes for tax year 2018.

Major Tax Revisions Require Formal Training and Experience

At Larry Turner, CPA, we have served the Gilbert area for 25 years and have seen a lot of major tax revisions during that time. Our extensive formal training and experience with changes in the tax law make us a great choice for your business tax preparation needs. One of the most important changes to the tax law is the effective dates for filing. You don’t want to miss a deadline, or you could be fined by the IRS.

If you have a sole proprietorship or a single person LLC, you need to have your taxes filed by April 15, 2019. For an S Corporation or a partnership, though, the deadline is a full month earlier, on March 15, 2019. Corporations can file their taxes on or before April 17, 2019, to avoid IRS penalties. 

Tax Rates and Mileage Rates Are Changing

Anyone who is working on business tax preparation should know their tax rates, and there have been some changes to those rates for 2018. The business tax rate starts at 10 percent and rises to 15 percent. From that point, it continues to rise incrementally until it reaches 39.6 percent. That is an adjustment that will last until 2025 when the tax rates will be revisited and potentially changed.

The mileage rates have changed for 2018, as well. They are now 54.5 cents per mile for business and 14 cents per mile if you’re driving for a charitable organization. With all the different ways you can receive deductions for your business and the rates and filing deadlines that have to be considered, it’s important for you to ensure you understand your business’ taxes, rights, and responsibilities.

By hiring a tax professional to take care of your business, you can feel comfortable at tax time. That lets you focus on the day-to-day operations and growth of your company, so you can get more done.

Getting Your Business Financially Ready for Next Year

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As the year draws to a close, it is crucial to the success of your business to prepare financially for the upcoming year. The holiday season is one of the busiest times of the year for many businesses, which can easily lead to essential year-end tasks being overlooked or put off. Financial consulting can ensure that you complete those important to-dos and avoid the hassle of extra, unnecessary work or even a potentially undue tax burden. Here are a few ways to make sure your business is financially ready for next year.

Run Year-End Reports

By running three main year-end financial statements, you can quickly get an idea of how successful your business was this year, as well as get a picture of its overall financial situation. A P&L (profit and loss) statement will outline the accumulated income and expenses for the past year. A balance sheet lists what is still owed to investors, along with liabilities and assets. A cash-flow statement shows how much cash entered and left your business throughout the year, indicating how well funds were managed. A CPA can assist you through financial consulting by analyzing these reports to determine the health of your business and plan for the upcoming year.

Create a Plan for the Upcoming Year

After analyzing the year-end reports for your business, create a financial plan for this next year. If your business was less profitable than expected, reevaluate your budget, and adjust costs and expenses where possible. If, instead, profits were higher than projected, consider making investments with the additional revenue, or purchasing needed tax-deductible items or equipment before the end of the year to avoid jumping into a higher tax bracket.

Assemble and Prepare Tax Documents

Most importantly, gather all necessary tax documents. Collect all financial statements, payroll and business expense information, and any other records that may need review. Determine which tax forms are needed for your employees and prepare to send them out by the end of January. When preparing to file taxes in the new year, a CPA can ensure that everything is documented and filed correctly in order to maximize deductions where possible

Financial consulting can significantly ease the work and stress that come with getting your business successfully prepared financially for the new year. Larry Turner, CPA, has been providing businesses with expert financial accounting and tax preparation services in Gilbert for 25 years. Contact us today for financial consulting to get ready for the new year.

Steps to Finding the Right Wealth Management Firm

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Every person has different financial goals for their futures. Some people start early and have built up a substantial portfolio by their 40s or 50s. Other people will go through a drastic financial change. Either way, they may want to alter their wealth management process to better fit their current lifestyle.

Whatever your situation may be, you’ve come to the point where you need outside help. A wealth management firm provides financial services through which they can help you decide on the best financial goals for your budget. Use these steps to help select the right firm.

What Services Does the Wealth Management Firm Offer?

Wealth management firms come in all shapes and sizes, so you will want to find out the specializations that they focus on. Some firms focus on high-asset clients with wealth averaging from $50,000 to $1 million, as they may have a set minimum that their clients must have in assets to gain their services. In addition, a wealth management firm may offer products based solely on investments, or they may branch out into additional services such as tax assistance, estate planning or insurance products.

It’s best to consider the types of services that you desire. Then you can whittle down your list of options to find the wealth management firm that best aligns their services to your particular needs. Also, consider a wealth management firm that has scalable services in case your financial situation changes in the near future.

What Are Their Qualifications and Track Records?

Just because the wealth management firm is handling billions of dollars in assets doesn’t mean that they are handling them well. You want to evaluate the company’s history and qualifications. Check out the background of the firm, read past reviews, and look over disclosure form ADV, which a financial advisor files with the United States Securities and Exchange Commission (SEC). This form provides information regarding company history, services, billing practices and any judiciary actions that were levied against them due to misconduct.

How Do They Get Paid?

There are no basic fee or cost rules that every wealth management firm adheres to when offering services. Some companies charge by commission while others charge a flat fee for services. You may also find a firm that charges an hourly rate or a retainer. Review the fee structures of the wealth management firm as well as your budget.

Once you locate the right company, you will be able to grow and maintain your finances for your future lifestyle as well as provide an estate for your heirs. Use the above steps to find a financial consultant that has your financial interests in mind.

Taking The First Step

If you’re looking for help with wealth management, then contact the friendly professional team at Larry Turner, CPA. They offer a wide range of services and would be happy to discuss how they can help you.

3 Financial Planning Tips for Your Business

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When it comes to building wealth through your business, your most valuable partner is your CPA. As an expert in financial and tax matters, your CPA can offer advice, help and recommendations to help your business thrive. Here are three financial planning tips for your business.

1. Ask for Help When You Need It

Your CPA may have resources available and information that you don’t know about. If your business is ever in financial trouble, or you fear some upcoming event, speak up about it. Chances are, your CPA has already recognized the impending dangers and has broached the subject with you. Don’t worry about appearing weak or inexperienced in front of your CPA. Part of smart financial planning is taking care of situations well before they become dire. Your CPA might be able to help you secure a line of credit or have other suggestions for increasing cash flow and getting you out of a situation.

2. Don’t Mix Business With Pleasure

You’ve probably heard it before, but it’s worth repeating: Never mix business and personal financial transactions. There are many reasons why. First, it’s a lot easier for your CPA to help you if they don’t have to guess with each transaction if it’s business or personal. Second, the tax man can never accuse you of wrongdoing if you take care to keeps things separated. Third, mixing business with pleasure is a slippery slope. If you do it once, you’ll be more inclined to repeat it, and that’s a mistake you don’t want to keep making. Finally, you might miss out on valuable tax deductions if you make a habit of mixing business transactions with personal ones. Your CPA can’t be expected to pick needles out of haystacks, after all!

3. Plan Early for Retirement

Many people take special care to plan for personal retirement. But they often overlook making plans for the succession of their business. Work together with your CPA to figure out exactly how you want to run, sell or pass on your business enterprise when you’re ready to retire. Planning now will help to control tax costs associated with inheritance and selling your business. Done correctly, you could minimize capital gains tax and other costs so that your business is worth more at retirement.

Not Sure Where To Start?

Larry Turner, CPA has been serving Gilbert for 25 years and would be happy to provides expert tax and financial advice for your business. Contact us today to learn more about maximizing the potential of your business by taking these important financial planning steps. 

 

Developing the Best Financial Strategy for Your Business

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One of the most important things you can do for your business is to create a thorough and thoughtfully developed financial strategy. If your business is still in the planning phases, now is the perfect time to put some real thought into what you want your financial future to look like. If you have already gotten your business off the ground but have not yet actively developed your business financial strategy, don’t worry—now is still a great time to get everything in order and start actively working toward a healthier financial business future. Here are some useful tips to help you get started.

Don’t Put Off Planning Your Financial Strategy

Whether this is the first you’ve heard of the importance of having a financial strategy in place for your business or if you were already aware that this type of planning is very beneficial for businesses in general but hadn’t considered it an immediate necessity…it’s time to stop procrastinating now. Without a plan in place to guide you, it will be more difficult to make good decisions if unexpected financial concerns do turn up. 

Remember That the Plans You Make for Your Financial Future Need to Be Flexible

Where do you want your business to be financially two years from now? Or what would you like to see in your business financials five years from now? A good financial strategy will take these projections into account, but you’ll need to think about more than just your best-case scenario—consider your worst-case scenario as well. Being mentally prepared for both really can make it easier to handle either in the future. 

Hiring an Experienced CPA or Financial Planner is Worth It

When it comes to the development of your financial strategy, one of the best pieces of advice you can follow is this: get a good CPA. A good Certified Public Accountant (CPA) with experience can be an invaluable member of your team. In addition to working with you to develop your business financial strategy, your CPA can also help you ensure you continue to work toward achieving your financial goals. And in the event something unexpected throws a wrench into your plans along the way, you’ll have a trusted advisor to turn to who will be able to help you determine what your best options are to recover and revise your strategy accordingly.