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27 01, 2023

5 Tax Season Preparation Tips

2023-01-23T22:15:02+00:00January 27, 2023|0 Comments

It’s that time of year again—tax time. Whether you’re doing it yourself or hiring a tax planning professional, like Todd Greene, tax prep can help make the process smoother. Here are five tax season preparation tips to help you get through this season with ease.

2023 tax season filing dates

First, it is important to know all the key filing season dates. Here are the 2023 dates to keep in mind this tax season.

  • January 13: IRS Free File opens.
  • January 17: Due date for tax year 2022 fourth quarter estimated tax payment.
  • January 23: IRS begins the 2023 tax season and starts accepting and processing 2022 tax returns.
  • January 27: Earned Income Tax Credit Awareness Day to raise awareness of valuable tax credits available to many people-including the option to use prior-year income to qualify.
  • April 18: National due date to file a 2022 tax return, request an extension and pay tax owed.
  • October 16: Due date to file for those who requested an extension on their 2022 tax returns.

Organize your tax paperwork

Currently, we are at the beginning of tax season. Businesses quickly began receiving and distributing essential tax documents during this time.

Making sure you have all your paperwork gathered and organized before filing will help you avoid surprises or delays later. A tax planning professional can help you categorize your documents and make sure everything is in place.

Understand the deductions and credits you qualify for

Tax deductions and credits are a vital part of the filing process. Deductions can reduce the amount of your income before you calculate the tax you owe, while credits can reduce the amount of tax you owe or increase your tax refund.

Get a better understanding of tax deductions versus tax credits by reading our blog about it.

For businesses, there are several business tax credits and deductions available. Be sure to check or ask your tax preparer before filing, and check out our blog, 4 Often-Missed Business Deductions at Tax Time.

Itemize business expenses

Another one of our tax season preparation tips includes itemizing your business expenses. Having your expenses itemized and categorized before tax day can save you time.

When working with an accounting team, they can help you claim the maximum benefit from your expenses. Check out the business expenses explainer from the IRS to learn more about what expenses can be claimed.

Know your state’s tax issues

Knowing your state’s tax issues is a key part of filing taxes for your business. Some states take out loans from the federal government to meet their unemployment benefit liabilities. If your state has taken out loans but not repaid them, there will be a reduction in the credit against the Federal Unemployment Tax Act rate.

This means that employers in those states have to pay more. There are a number of states affected by this, including North Carolina.

Having a tax planning professional helps during this time. They will prepare your state return as well as your federal return.

Summary 

Searching for a professional to help with your business tax prep? Contact Todd Greene! Please take note of our tax season preparation tips. These helpful reminders are sure to help make filing day a breeze.

Finally, continue reading our blogs to stay informed and up-to-date on more financial news.

28 12, 2022

7 End of Year Tax Planning Tips for Small Businesses

2022-12-28T15:17:20+00:00December 28, 2022|0 Comments

Put down the gifts. Let’s get ready to wrap up another year in business. These seven end-of-year tax planning tips for small businesses will help you finish strong and set you up for future success!

Get organized now.

Don’t wait until the last minute to organize your records. One way or another, planning ahead and getting prepared before filing time will pay off.

Make time in your schedule throughout the next few days this December to ensure your year-end tax planning is handled.

Review your statements.

Part of your year-end review should include looking over your financial statements.

Not sure what statements we’re referring to? Don’t panic! Read our blog, 3 Financial Reports Every Business Owner Should Know and Understand, to get started.

Make necessary purchases.

The end of the year is a good time to make certain tax-deductible purchases. Consider stocking up on necessary office supplies, equipment, or a company vehicle, for instance.

Know your tax deductions and tax credits.

Do you understand the difference between a tax deduction and a tax credit? Find out here and determine how they apply to your business.

Be sure to check out our blog, 4 Often-Missed Business Deductions at Tax Time, for more helpful tax deduction tips.

Re-evaluate your retirement plan.

This is one of the end-of-year tax planning tips for small businesses that may come as a surprise. However, it’s a good time to consider your options for establishing a retirement plan if your company currently does offer one.

Or, look over your retirement plan and make sure you are headed in the right direction.

Evaluate your accounting processes.

Again, the end of the year is the perfect time to review. This time, we’re referring to your accounting practices.

How you are managing your records? Do you manually enter information on a spreadsheet? Are you using accounting software, working with an accountant, or both?

No matter what your recordkeeping methods are, closely examining them to see if they are working in your best interest is a good idea. Then you can make any needed adjustments for next year.

Work with a tax professional.

There are several benefits to working with a tax professional. Higher tax refunds, lower liabilities, more profitability, more time, and peace of mind are just a few examples.

Not sure where to begin? Talking to an expert (like us!) is a good place to start your tax planning journey!

Summary

Last but not least, when it comes to end-of-year tax planning tips for small businesses, stay proactive. Keep your records organized. Book your free consultation with us. Those are just a few ways to start 2023 off with a bang! For more tax tips, keep reading our blogs. Wishing you all a happy, healthy, and prosperous new year!

28 11, 2022

Shifting Our Focus to Small Business Tax Planning at Todd Greene, CPA, PLLC

2022-11-22T21:15:29+00:00November 28, 2022|0 Comments

Big things are happening around our office! One of those things involves a shift in focus specifically to small business tax and tax planning at Todd Greene, CPA, PLLC, to better serve our growing client base. With that comes the hiring of two new team members!

A new direction

Our company is focusing on a new direction, which is small business taxes, tax planning, and shorter turnaround times.

With the 2022 tax filing season right around the corner, we are getting ahead of the game now! To ensure a smoother tax season, we have hired two new team members.

Please join us in welcoming Angie Heidel, operations manager, and Jackie Salazar, bookkeeper.

Meet Angie Heidel

Originally from Michigan, this mom of two shifted gears with a recent career change of her own. She has lived in the Carolinas for 15 years and primarily worked as a listing manager in real estate, handling the operations side of things.

Now, at Todd Greene, CPA, PLLC, Angie will help us organize and track our client files while managing our day-to-day operations.

In her spare time, Angie enjoys traveling, watching her kids play sports, being active, cooking and watching football.

Meet Jackie Salazar

Jackie is a multi-tasking wizard. Not only is she working toward earning her bachelor’s degree in finance and accounting, she is also working toward a master’s in business administration. Currently, she helps provide excellent customer service and assists our team in gathering all the information and documents needed to prepare clients’ files.

Soon, she also will be teaching our clients how to use QuickBooks and analyzing data to help provide potential solutions for an improved workflow for us and our clients.

Jackie said joining Todd Greene, CPA, PLLC has taught her a wealth of valuable information. “I am so happy to be part of the team,” she said recently.

More about tax planning

With our new focus and team members, small business tax planning at Todd Greene, CPA, PLLC, is our top priority!

We will continue to take the same proactive approach to tax planning, which means going beyond “tax season.” We work with our clients all year to create a custom plan that will effectively manage tax obligations. What’s more—we’re always committed to pinpointing opportunities to save our clients money on their taxes, which we believe is especially important for the small business owner.

Summary

When it comes to small business tax planning at Todd Greene, CPA, PLLC, it all starts with a free consultation. From there, strategic tax planning—and a better understanding of your taxes—begins. To find out more about us, our team and our services, continue to read our blogs!

28 10, 2022

8 Funding Options for Small Businesses

2022-10-27T21:36:29+00:00October 28, 2022|0 Comments

Starting and maintaining your own business is no easy task. Money—or lack thereof—can be a major issue. When it comes to funding options for small businesses, here are eight viable options to consider.

Banks

Banks are good funding options for small businesses that usually offer competitive terms and low interest rates. However, bank loans can be hard to qualify for.

Qualified applicants could receive typical business loans, equipment loans or commercial real estate loans, for example.

SBA loans

SBA loans are federally backed, which makes them less risky for lenders to lend you the capital. What’s more, the interest rates tend to be low, and there are multiple types of SBA loans.

On the other hand, SBA loans may require a down payment or collateral up front. They can also take a long time to process.

Credit cards

Applying for a business credit card can be a good option if you are looking for short-term funding needs. Business credit cards typically have higher credit limits than personal credit cards.

The catch is paying off the debt before the interest begins to accrue.

Grants

Next among funding options for small businesses is free financing in the form of grants! Grants can be issued from government agencies, corporations, nonprofits and economic development groups.

Funding varies along with the qualifications and application process. The application process can also be competitive.

Equity investors

Equity investors, or individuals, could support small businesses by purchasing shares of the company. Investors generally enjoy some sort of financial gain or return for a specific amount of time.

Crowdfunding

Is your product a crowd-pleaser? If so, crowdfunding is an option worth considering. GoFundMe is an example of a crowdfunding platform. Often, it’s a way of receiving capital without racking up debt.

It gives businesses a chance to test their product while also increasing brand awareness.

Online lenders

Before moving forward with online lenders, do your research. Take your time to find the right fit. Compare lenders, look at reviews and read the fine print.

Make sure you understand the actual cost to your business in terms of fees, interest rates and other possible penalties.

Credit union financing

Credit union financing is similar to funding for banks, but it’s usually just for members. Credit unions offer favorable rates and loans backed by the SBA.

Besides a typical loan, they can offer lines of credit as well as business credit cards.

Summary

Are you ready to launch your own business? Hopefully, these funding options for small businesses will help you get started. For additional help when it comes to business planning, schedule a free consultation with us. For more financial news, keep reading our blogs.

28 09, 2022

The Qualified Business Income Deduction: Is Your Business Eligible?

2022-09-28T19:41:48+00:00September 28, 2022|0 Comments

You might remember the 2017 tax reform called the Tax Cuts and Jobs Act. Part of that legislation includes the qualified business income deduction, which applies to certain businesses and self-employed people.

What is the qualified business income deduction?

In a nutshell, it allows eligible businesses to deduct up to 20 percent of their total taxable income.

In general, qualified businesses include those with pass-through income. Pass-through income refers to business income that is reported on an individual’s personal tax return.

This includes partnerships, S corporations, sole proprietorships and limited liability companies, for example. It does not include C corporations or money earned as an employee.

How is it calculated?

Typically, the qualified business income deduction is the smaller amount between one of two options.

First, it’s 20 percent of your qualified business income plus 20 percent of other income such as real estate investment dividends or publicly traded partnership income.

Or, it’s 20 percent of your total taxable income minus net capital gains.

Of course, figuring out if your business qualifies isn’t always so cut and dry. There are certain limitations that could affect if, or how much, you can claim.

What are the limitations?

For starters, there is the income threshold. To qualify for the full 20 percent deduction for 2022, for instance, your taxable income must be under $170,050 for a single filer. That figure jumps to $340,100 for joint filers.

However, once you pass the limit, the qualified business income deduction begins to decrease or possibly disappear altogether. At this point, things also get more complicated due to other factors.

So, it might be a good idea to work with a tax professional if your qualified business income is higher than the initial limit.

Summary

If you want to find out if your business is eligible for the qualified business income deduction, request your free consultation with us today. We can talk about topics like this and much more. Meanwhile, find additional business accounting tips and other news by reading our blogs.

29 08, 2022

4 Often-Missed Business Deductions at Tax Time

2022-08-24T16:58:41+00:00August 29, 2022|0 Comments

Keeping track of business deductions throughout the year is vital for reducing the amount of taxes you owe come tax time. But with so many possible write-offs, how are you supposed to keep track of them all? If you want to offset the cost of keeping your business open, knowing what deductions you qualify for is important. Check out these four often-missed business deductions at tax time.

Auto mileage

 The tax deduction for using vehicles for your business can sometimes be a significant amount. So, it is crucial to know what counts and what does not count as a qualifying tax deduction.

What counts:

  • Business vehicles are cars, SUVs, and pickup trucks that are used for business activities.

What doesn’t count:

  • Vehicles for hire, such as taxis and airport transportation vans.
  • Vehicles used as equipment, such as dump trucks.

For IRS purposes, it is very crucial that you keep a detailed log of your business miles. In June 2022, the IRS increased the federal auto mileage deduction for the remainder of the year to 62.5 cents per mile. To determine the number of miles driven for your business, you need to know two numbers: the total number of miles driven during the year and the total number of miles driven just for business. Miles that count as part of your business mileage deduction only include the number of miles actually driven for business.

What counts as business mileage:

  • Visiting a customer or meeting a client.
  • Going to the bank, office supply, or computer store.
  • Meeting with your lawyer or accountant on business matters.

What doesn’t count:

  • Driving from home to work and back—this is called commuting.
  • If you stop at a store on the way home from a business trip, this is considered personal mileage.

Home office

 The home office deduction allows businesses to deduct certain home expenses when filing taxes. To claim this deduction, the business must regularly or exclusively use part of its home or structure on its property as its place of work.

Here are some things to help you know if you can claim home office:

  • The home must generally be the employer’s primary place of business.
  • The term “home” includes: houses, apartments and condos, mobile homes, and other structures on the taxpayer’s property, such as an unattached garage, studio, barn, or greenhouse.
  • Employees are not eligible to claim the home office deduction.

Businesses can use the simplified method to calculate their home office expense deductions. The simplified method has a rate of $5 per square foot for business use of a home. The maximum size for this is 300 square feet.

Retirement contributions

 When owning a business, it is up to you to establish your retirement contributions. You can deduct the amount you contribute to a tax-qualified retirement account from your income taxes.

Retirement plans:

  • Pension Plan: An employee benefit plan established by an employer or an employee organization that provides retirement income.
  • IRA: A trust or custodial account set up for the benefit of an individual.
  • SEP: Simplified employee pension is similar to an IRA, but instead of being limited to an annual contribution, you can invest up to 25 percent of your net profit every year.
  • SIMPLE IRA: Savings incentive match plan for employees is another type of IRA that may be established by an employer for its employees.
  • 401(k): A retirement saving and investing plan offered by employers. This is a feature of a qualified profit-sharing plan that allows employees to contribute a portion of their wages to individual accounts.

Self-employed health insurance deduction

To wrap up these four often-missed business deductions at tax time, let’s talk about health insurance for the self-employed.

If you are self-employed, you may be eligible to deduct the premiums you pay for medical, dental, and other qualifying health coverage for yourself, your spouse, and dependents. Self-employed health insurance deductions cannot exceed the amount of earned income that you collect from your business. For example, if your business generated a tax loss for the year, you are not allowed to claim the deduction because the business did not generate any positive income.

This deduction must be in box one of your W-2 if you are taxed as an S corporation.

Summary 

Feeling overwhelmed trying to keep up with your business and what deductions you qualify for? Don’t stress! With the help of our team, you’ll never have to worry about these four often-missed business deductions at tax time or any others.

Schedule your free consultation today to get started discussing your next stress-free business plan. Continue reading our blogs to learn more about business financials and tax planning.

29 07, 2022

Tax Deductions vs. Tax Credits for Businesses: What’s the Difference?

2022-07-29T15:27:54+00:00July 29, 2022|0 Comments

Saving money is a good goal in business. Knowing the difference between tax deductions vs. tax credits for businesses is a good example of how doing a little math up front may save you more later.

What’s a tax deduction?

For starters, let’s look at what a tax deduction is. A tax deduction reduces your total taxable income. For instance, your new business has a taxable income of $70,000.

A small business tax deduction of $1,000 would bring your taxable income to $69,000.

What’s a tax credit?

On the other hand, a tax credit is a dollar-for-dollar discount. A tax credit directly lowers your tax bill by the specified amount.

For example, if you owe $35,000 in taxes, but you apply a $1,000 tax credit, your tax bill will then be $34,000.

There are certain tax credits that refundable, which can also help increase your tax refund.

What’s the difference?

In a nutshell, both tax deductions and tax credits can lower what you owe on a business tax return. The difference is in how they do it.

To simplify, a tax deduction saves you indirectly while tax credits are direct savings. The credit will save you instantly by lowering what you owe. Deductions save you by lowering what can be taxed.

Which is better?

Unfortunately, there is no cut and dry answer here. It depends. You can claim a tax credit. You can claim a tax deduction. In fact, you can do both.

But you can’t make two claims for the same expense. Thus, understanding tax deductions vs. tax credits for businesses will help you decide which will save you more.

A quick example would be in the case of education expenses. You can look at a variety of education-related tax credits that could reduce your tax bill by about $2,000 to $2,500.

Or, consider a tuition and fees tax deduction that could lower your taxable income by up to $4,000. This option could result in more money back on your refund.

Summary

Bottom line, it may help to talk to an expert when it comes to figuring out which tax deductions vs. tax credits for businesses are best for your business. If you are ready to crunch some numbers, start by calling us at 704.919.3226. Meanwhile, discover more small business tax tips and other industry news by reading our blogs.

29 06, 2022

3 Business Financial Reports Every Business Owner Should Know and Understand

2022-06-29T14:07:32+00:00June 29, 2022|0 Comments

Sometimes when it comes to business accounting, it’s good to start with the basics. Let’s review three business financial reports every business owner should know and understand as part of the essentials.

The basics

Before we jump into the first of three business financial reports every business owner should know and understand, we need to share the basic accounting formula.

Simply put, the accounting formula is Assets = Liabilities + Equity. To further clarify, we’ll briefly share what each element is.

First, assets refer to items such as bank accounts, fixed assets and accounts receivable. Secondly, liabilities include things like credit cards, long-term notes and accounts payable.

Lastly, equity is capital contributions, dividends and distributions. With these basics explained, we can move onto the first of the essential financial reports.

Balance Sheet

The balance sheet is a report that summarizes all of a company’s assets, liabilities and equity in two columns. The first column reflects assets with the second column showing liabilities and equity.

Generally, the balance sheet is created around the end of a specific time frame. For example, they are often produced quarterly or annually.

Ideally. total liabilities and equity should equal assets. Hence, the two columns represented on a balance sheet should match.

Income Statement

Next up, income statements. An income statement basically reflects the business’s income and expenses. The three main elements on this report are revenue, expenses and profit.

The income statement can be referred to as a profit and loss statement as well. Like the balance sheet, it is produced at a specific time such as monthly, quarterly or annually.

Projected Cash Flow Statement

Finally, the third must-have financial business report is the projected cash flow statement. Typically, this report illustrates a list of expected cash flow—both inflows and outflows.

Once again, it also involves a specified period of time. Usually, projected cash flow statements tend to reflect a 12-month period. Items included in the projected report are your opening balance, sales, expenses, uses of cash and a closing balance.

Summary

Now that we’ve covered the basics of three business financial reports every business owner should know and understand, are you left with more questions? That’s what we are here for! Schedule your free consultation today to discuss in greater detail these essential business reports and much more. For more industry news and guidance, keep reading our blogs.

27 05, 2022

S Corp vs. Sole Proprietorship Taxes: Explaining the Differences

2022-05-26T16:54:26+00:00May 27, 2022|0 Comments

Let’s get down to the business of starting a business. There’s much to consider before launching a new business, including how it’s structured. To get started, we’ll look at S corp vs. sole proprietorship and what makes them different.

What’s a sole proprietorship?

Basically, a sole proprietorship is owned and operated by you—the sole owner. In a way, this is business at its simplest. You are a self-employed business owner. All business assets belong to you. You make all the business decisions.

On the other hand is the big risk. You may be solely responsible for any damages caused by negligence. With sole proprietorship, there is generally no personal liability protection. If you decide sole proprietorship is best for you, you might want to consider liability insurance.

What’s an S corp?

A sole proprietorship can be organized as an S corporation with a sole owner. However, you would be considered a shareholder. But with sole ownership, you would still act as the president, executive and business manager.

The main difference between an S corp and sole proprietorship is the limited liability protection for shareholders. (There can be up to 100 shareholders; limited to individuals) Generally, shareholders are not responsible for corporate debts.

However, there are loopholes. That is one among many reasonswhy working with a team of experts who are familiar with the ins and outs of setting up a business is a good idea.

At Todd Greene, C.P.A., we start with listening to your needs. Then we offer guidance, answer your questions and work together to create what’s best for you and your business.

Tax time

In terms of taxes and S corp vs. sole proprietorship, think of it this way. As an S corp, the business owner pays FICA and income taxes on a “reasonable salary” and income taxes on distribution.

With a sole proprietorship, the business owner pays self-employment taxes and income taxes on the net profit of the business. Sole proprietor tax reporting is more streamlined and simpler.

Another important point is that LLCs can be taxed as either S corps or sole proprietorships.

Below is a table comparing the two in a basic scenario to help clarify the tax differences between them.

S corp vs. sole proprietorship

Summary

When it comes to S corp vs. sole proprietorship, this is just the tip of the iceberg. If you are ready to discuss the details, we are ready to listen. It starts with a free consultation. Keep reading our blogs for more money matters, tax planning and other financial information for businesses and high net worth individuals.

28 04, 2022

Exploring Todd Greene, CPA’s New Business Planning Services

2022-04-27T21:05:52+00:00April 28, 2022|0 Comments

Are you kicking around the idea of starting your own business? If you are ready to take your idea next-level, start by exploring Todd Greene, CPA’s new business planning services before jumping in the game!

Starting a new business

We get it. Starting a new business can be exciting and thrilling, but it can also be overwhelming. We’ve all heard the old saying, “The devil is in the details.”

That’s why exploring Todd Greene, CPA’s new business planning services should be number one on your to-do list.

A solid foundation

Our team of experts is ready to consider every detail of your proposed business. Then we can begin to help you get organized.

This includes deciding how you want to structure and legally set-up your new business.

We can review and explain the various types of business entities and what each would mean for you and your business in terms of taxes and more.

Strategic tax planning

Again, our experts stay on top of the latest developments and regulations when it comes to new business ventures.

We can help you maximize your profits while minimizing your tax liabilities, for instance.

Setting up accounting services

Start your new business on the right foot when you know we’ve helped you correctly structure important aspects such as payroll, Social Security and insurance from the beginning.

Securing funding

Struggling to secure funding? We can help with that too. From reviewing your business plan to structuring your existing finances, we’ll help you present the information clearly to those who can help you move forward.

Growing your business

Did you know you can incorporate in a state other than your own? We can explain why this might be a good idea—and we can help you expand your business to other geographic areas!

Summary

Finally, exploring Todd Greene, CPA’s new business planning services can help you find short-term solutions with long-term goals in mind. We offer free, confidential consultations for new clients. Call us today at 704.919.3220 to learn more about our new business services and scheduling your consultation.

For more money matters and tax planning, keep reading our blogs!

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