Would you like to pay less Taxes Next Year?

Just when you thought you could tuck away the thought of taxes for while … here we are talking about it again.  Relax.  It’s all good and simple information that will make your tax season that much easier the next time around.

So how do you that?  Here are a few ideas from Forbush & Associates that will lower the stress and increase your success for holding on to more cash this year than ever before.

Celebrate the end of tax season.

You made it. Your taxes are done, the IRS is paid, and you can stash your shoe box full of receipts in your favorite spot for another year. Nuff said.

Start over. Really.

There’s no better time than now to take a good look at what your final net income was this past year and start to plan on how you can keep more money in your piggy bank next year. Think of it as New Year’s Day when you and your friends toss out new resolutions to make your life ahead a little better.  Use this time to set a new budget for yourself, household, or business.  There are lots of simple steps to make this process actually enjoyable.  For a good guide, you might want to invest in the book “All Your Worth: The Ultimate Lifetime Money Plan.

Think 50/30/20

We like the idea that is outlined in that publication so much so we’ll share our own insight on how to make saving money a simple process this year, and in years to come.

The 50% Rule ~ Your total expenses for the year on household goods, groceries, healthcare and personal care should not exceed 50% of your total gross income.  Take a look at your budget from last year and total up all of those expenses – and highlight them if you need to.  Then, review where you think you can cut while you save some income for the more critical life-supporting elements (re: health care, etc.)

The 30% Rule ~ Here’s where it gets real personal.  I call this ‘needs v/s the wants”.  Do you really need flowers or a few nice bottles of wine every week?  What about the cut of steaks:  do you really need Filet or can you enjoy a nice BBQ of New York’s instead? The fact is, once you review your standard purchases, we’ll bet you can find some things you really don’t HAVE to have every week. Try to trim these costs to just 30% of your income.

The 20% Rule ~ Ideally, you should designate 20% of your income to cover debt and increase your savings.  As noted in the book, a mortgage payment or minimum payment on credit card debt is actually a need (which counts toward your 50 percent), but anything beyond that is an additional debt repayment, which qualifies towards this 20 percent. You can learn more about that here.

Don’t wait. Plan now.


We realize that you are probably done with analyzing your finances for a while.  So take a month off – yet no more.  The longer you wait to evaluate your income v/s expense, the shorter the time you have to truly decide what you ‘need’, ‘want’, or ‘have to have’ to survive 2013 while you enjoy life along the way.

Need help?

At Forbush & Associates, we think like this all the time. In fact, we actually enjoy reviewing spreadsheet after spreadsheet.  Honestly, it’s an art to us.  If you can’t even fathom the thought of reviewing your expenses again, just give us a call.  We’d be happy to use our creative juices and professional insight to help you save money next year, and in years to come.

Call Forbush Associates today at 775-337-6001.

Who’s got your back?

Why small businesses should secure consultants in today’s economic times.

I don’t know if you have ever seen the movie “Blindside” yet there’s a great underlying theme about how the most successful teams take care of its players.  In today’s small business world in particular, nothing could be more important.  Long gone are the days of full-time Directors of various departments.  Today we need to seek out the best in the business and partner with those who do their job best.

Who Should You Have on Your Team?

Ideally, a well-rounded small business should have a hit list like this one to be the caregivers of its operation.  Sure, it’s important to have the contacts yet to be most successful, it’s critical for the owner of the business to develop and maintain close working relationships.  You never know when you may need to reach out and touch their talent; often it is when you least expect your need for advice.  Some team members are obvious, others are not: all are vital in today’s complex business world.

  • employees
  • a banker
  • an accountant/tax specialist
  • a lawyer
  • a sales and marketing professional
  • an IT specialist

The Employee

You’ve certainly heard the saying: “The customer comes first”.  I’m OK with that infamous business mantra yet fully believe it’s the EMPLOYEES that must come first.  They are the face of your company. This relationship could be the most important of all of the relationships for the owner of any business to cultivate.  The time and effort that you invest in your employees can be the best return on investment that a small business can make.

The Banker

Do you really know your banker?  Would he or she recognize you from a distance?  If not, it’s time to repair that relationship gap and get to know the person who can make or break your business in the best or worst of times.   Sure, the day to day banking support is a given, but what about when you need some serious cash for a capital investment, make a significant commercial real estate purchase, or need to get your credit in line?  Make your banker your best business friend.

Accountant or Tax Specialist

If you have a knack of balancing your own books, that’s a bonus when running a small business. Yet what time do you really have to allocate to this critical component of  your business operation?  Having an accountant and/or tax specialist in your back pocket is one of the best investments you can make. It also helps your credibility with your bank and other financial partners.  When you have an accountant that you can trust to handle the intricacies of your day to day operations, you’ll have more time to focus on your  future.  And that alone is worth the partnership with a financial specialist.

Lawyer

I know lawyers in general don’t have the best rep, yet they should. They have brought some of the best advice to our business and can do the same for you.  Be it a liability attorney, business lawyer, or legal firm, find one that fits your personality and business style and keep their number handy.   With all of the challenges that come with owning your own business, it just makes good sense to have a friend who can offer some sound legal advice when you need it most.
A Sales and Marketing Professional

Many of the world’s largest companies continue to trim from the top and with that, many of the finest sales and marketing professionals in the world have opened their own consulting firms.  And that’s a great thing for the small business world.  Today you can contract with someone who used to hold a Chief Marketing Officer position, spend a few hours a month to tap their brain and voila ~ you receive their professional opinion at a fraction of the cost that you would have paid if they were a full time employee. Run, don’t walk, to partner with a marketing consultant today.

An IT Specialist 

With the ever-changing world of information technology (IT), you’d have to be extremely savvy in the art of IT to handle your computer needs in-house.  Similar to the situation just noted above, there are endless professionals in the field who can make your life a lot easier. From the basics of keeping your computer alive and on-line, to elements that are just as crucial to keep your business competitive, your operating costs in line, and productivity in full motion, IT specialists can watch your internal operations so you can continue to concentrate on your company’s external products and services.

So Who’s Got Your Back?

As a small business owner, it seems like the list of “must haves” to succeed are never-ending.

Don’t let this short list stop your progress.  In fact, when you have business specialists by your side to do their best on your behalf, you will have more time to do what you do best. And isn’t that why you got into your business for in the first place?

We do.

When you’re ready for some more advice about how small businesses are truly succeeding in today’s challenging business times, call us at Forbush and Associates.

 

 

 

Featured CPA – Brent Forbush

This article was posted in NevadaCPA.org

Brent Forbush, CPA

Forbush and Associates

Reno, NV

Why did you decide to go into the accounting profession?

I entered college as a music wonder kid, graduating from high school after achieving various accolades within the state in both vocal and trombone performance. As would be anticipated from a band nerd, everyone expected me to pursue music as my chosen career at college. After one semester at BYU and two years living in Venezuela, I returned to Reno to spend the three week Christmas break.  During this time, I got my first taste of accounting working for the firm my father started in 2001.  After another semester at school, I returned to Reno and completed a quasi-internship at my father’s firm that summer, where I did everything from payroll to clerk work. Most importantly, I sat in on meetings with clients and watched how decisions from tax planning to business strategy could make significant impact on the performance of their business.  I fell in love with numbers, with the interaction with the clients, and how I could become a truly trusted advisor.

What do you like about your job?

I love getting to work with clients each and every day. From the firedrills to the mundane, each day provides a unique experience and another story to tell.  I value the relationships with other business professionals, with my clients, and with my colleagues.  I enjoy working with clients and knowing that they value my experience and lean on me in their critical decision making process.

What advice would you have for those considering entering the CPA profession?

I would say don’t be afraid to dive in with your feet first.  A CPA provides an excellent credential and opportunity to understand the entire business, not just how one enters an invoice and writes a check.  During my time at PwC, I watched the entire manufacturing process of a fortune 50 computer manufacturer, from arrival of inventory to the package being shipped out the door. CPAs must understand the operational, marketing and administrative side of the entire business.  CPAs have a much more expanded breadth and depth of knowledge because of their inherent need to know the business.  No other profession can provide you the access to the entire business like being a CPA can.

What do you think are the most important skills CPAs should have to be successful?

I would say the three most important skills that any CPA could have include: 1) Relationship building – build repore with colleagues, clients, suppliers, and prospective clients; 2) Communication – understanding the different forms of communication and different styles of communication can make you a more effective leader and team member; and 3) Stay current – as a CPA you will be the first one asked about economic changes, trends, forecasts, and law changes, so stay relevant and up-to-date. Five-to-10 minutes a day with the AICPA’s daily digests is a good first step.

How do you balance your personal and professional life? And does that change during the busy times of the year?

Is there a balance? With a small, growing firm, it is always difficult. But, one thing I do is to set aside time in the calendar.  I physically set an appointment to do things like leave the office, or time with the family or each individual child, so that I know I cannot plan over it.  When I get home, work is set aside and is not picked up again until the kids are in bed and the dishes are done. During busy season, we set a goal to have a lunch or dinner date as a family once a week where they come see me at the office. Recently, I also took to picking the kids up from school once every other week just so they know they are important for me to spend my lunch hour with them.

What is your most meaningful volunteer experience?

My most meaningful volunteer time has been the last four years teaching high school kids in an early morning bible study seminary class.  I am out the door at 6:15 am and teach for one hour from 6:45 to 7:45 each morning. I cherish seeing the faces of 14 to 18 year old high school students who are sacrificing their time to learn religious topics.  I truly believe I can make a difference in at least one of their lives.

What major obstacles do you think the CPA profession faces today and in the future?

I think it depends upon the area the CPA practices. I believe one of the strongest challenges, but one I believe younger CPAs will thrive with, is globalization.  As more and more businesses expand their footprint whether through technology, infrastructure or operationally, CPAs must be proactive and knowledgeable in regards to both domestic and international matters.

HOW HEALTHY IS YOUR BUSINESS?

With the holidays now behind us, and 2013 in full swing, it’s the ideal time to put your business in fast forward and focus on the health of your business.  At Forbush and Associates, we’re finding that our clients are tapping into our resources as Chartered Global Management Accountants and what we can bring to their table to ensure sustainability this year, and in years to come.

What’s the big deal about our certification?

The Chartered Global Management Accountant (CGMA) is a globally recognized professional designation that underscores the financial and non-financial skills and experience that CPAs bring to critical business decision-making and strategic management.

How do you benefit?

Management accountants are trusted to guide critical business decisions and drive strong business performance.  As such, we combine our financial expertise and business insight to achieve sustainable business success for our clients.

In a nut shell, we understand how the different parts of the business need to come together.

How does your business benefit?

While many CGMAs around the world work in the finance department, others put their broader business training to use across the organization, including the roles of Board Director, Chairman and CEO.  Depending on the organizational structure of your business, we have the wherewithal to evaluate many of the intricacies that make your company tick.

We evaluate your business strategy.

Is not uncommon for us to explore our clients’ approach to business and recommend improvements to streamline their systems, safeguard their finances, or advise them on major business decisions.  Some examples of our services follow:

  • Analyze the corporate environment
  • Evaluate strategic options
  • Design and run performance management systems
  • Apply risk management techniques to your IT and IS environments
  • Model and forecast cash flows and other finances

We assess your management practices.

This is where we take a look at your business from a personal level. Our review may include the review

of your company’s personnel or marketing practices. In this assessment, we ask questions:

  • How recently have you analyzed your competitive environment?
  • How do plan, set-up and execute projects?
  • Does your staff negotiate and communicate effectively?
  • How do you evaluate the performance of your team members, and company overall?

We review your operations. 

Your day to day activities are the heart beat of your company’s health.  As such, we always

recommend a review of the internal operations. Some of the subjects we evaluate include:

 

  • Staff awareness of efficient and quality issues
  • Systems for evaluating capital expenditures
  • Key marketing issues and competitive trends
  • People management
  • Management of short term finances
  • Preparation of basic tax computations

Want more advice?

According to CGMA’s official definition:

Management accountants are trusted to guide critical business decisions and drive strong business

performance. Their skills encompass a mix of operations, management and strategy.”

Quite frankly, that pretty much wraps it up.  When you’re ready to take a real good look at the health

of your company’s operation and strategic direction, we’re here to help.

CALL US TODAY

775 337 6001

www.forbushandassociates.com

Cliff Notes for Small Businesses “ there’s change in the air”

With a new year comes the opportunity at Forbush and Associates to pull up our shirt sleeves and get down to work especially on the Fiscal Cliff and the American Taxpayer Relief Act (“Fiscal Crisis Bill”) and what they really mean to small businesses in particular.

 

Are we worried? Not in the least. In fact, if we all live by the advice of Charles Darwin, we should be just fine by the time that ball drops again in NYC.

 

“It’s not the strongest species that survives, nor the most intelligent that survives.

 It is the one most responsive to change.”

Things will change in 2013 and as your advisor and friend; I’ll go out on a limb for you to shed a little light of some of the highlights of what all this chatter is about – for small businesses in particular.

Tread lightly.

In today’s economy we never recommend that any business make any great leaps and bounds to change their business operation.  And today that couldn’t be more important.  Yet we never advise any company to remain stagnate and stale. We live by the saying that if a company is not growing and changing it is dying and shrinking.  Start with your employees; ask them things that could be improved to increase efficiency, sales, and profit.  I guarantee they have great ideas they have held back on.

To bring some positive options into the never-ending gloom and doom of the media, here are a

few pieces of forward-looking advice from our home-grown 50+ years of experience as CPA’s in Reno, Nevada, who live and breathe the opportunity to help small businesses prosper.

 

Stay Conservative

If you had planned to expand your staff, extend a lease or make a purchase on a significant piece of equipment, stand by the numbers. Often times decisions becomes based in emotions instead of the business case. The path that has kept the business strong and alive today began by analyzing the decisions based upon the business case with the tax effect as a calculated variable.  We always recommend analyzing the business case and never make the decision based purely upon the tax consequence. Thanks to the law passed on January 2, 2013, Congress left us a little wiggle room when it comes to tax variables.

 

If you can’t live without that new technology upgrade, there may be some hope. Section 179 allows small businesses to deduct rather than depreciate the cost of many types of equipment, at $500,000 for 2013. Thank Congress; it was scheduled to fall to $25,000.

If you still need some personnel assistance, consider part-time, staffing agencies or even temp hires can be a good alternative between now and then. If business continues to grow into the second quarter, we might offer some altered advice. 

Watch The Net

We’ve all heard that money is not necessarily the guiding light to keep your staff happy.  However, the payroll tax holiday that was scheduled to expire January 1st was not extended, causing a 2-percent point increase in the Social Security payroll tax withholding which means an employee who is earning $50,000 a year will have $1,000 less in take-home pay. Keep an eye on morale. We have fielded many questions from our client’s employees as to why their net pay decreased.  Be proactive explaining the change to your employees.

In addition, as a small business owner, be aware that many people will respond to this cut by cutting back on discretionary spending.  Keep an eye on your sales as you might be indirectly affected.

Conversely, the bill extended long-term unemployment benefits which will keep those who seek work seeking goods and services to keep their heads above water and life moving forward as best as it can.

Watch your Wake

With all the unsettled news about which axe will fall next within the world of economics, it’s important as leaders in your business to remain strong, calm and collected around the water cooler.  Much like the wake of a large boat, business leaders should be aware of the wake that they leave when they depart a room or business meeting.  Your impact may be much larger than you think.


Still on Edge?

You’re not alone. There are pounds of pages that we have absorbed on your behalf so take advantage of our offer.  For cutting-edge advice on how to run a better business or see a better bottom line in 2013, call us today for a free consultation

CALL NOW

 

775 337 6001

www.forbushandassociates.com

IS YOUR BUSINESS READY FOR 2013?

Ahh, the holidays … a time when money may be going out the door faster than it’s coming in.  If you have planned for this, you’re on track and are probably enjoying what the holidays are all about.  If you have not, it’s time to look forward now and build your budget for 2013 before this year is over – so you can relax a bit as you enter the new year knowing where you expect to be next year at this time.

Building a Small Business Budget For 2013

The first thing you need to realize is that most of the information you are going to need to build your budget for 2013 may in fact be sitting next to you, or at least close by.

The second thing you should recognize is that your budget can be as simple or as complex as you want it to be – as long as it makes good financial sense.   If this all seems overwhelming to you, no one ever said you had to build the entire budget in one day. 

Much like a good ball game, the best results come from single and double plays.  Don’t think you need a home run in 24 hours.

At Forbush and Associates, we have been helping businesses just like yours with accounting, bookkeeping and overall business consultation for more than ten years to help our community grow and prosper.  As our gift to you, we are offering these guidelines to jump-start your business in 2013.

Ready. Set. Go!

The easiest way to prepare a budget is to build it step by step – or perhaps just quarter by quarter – if that makes it easier for you to get through the process.

1)     Look at your business from the 30,000’ level.  With over 30 years of experience in providing financial advice to small and mid-size businesses, we have found that it’s common for our clients to be way too close to their businesses.  That’s why we always recommend that before you start the budget process, you take a global look at your future.

This first step is all about R & D: collect all the data you will need to help you project what your company may look like 365 days from today.

  • Look inside: Ask your staff for their insight: How do sales/expenses look for 2013?
  • Look outside: Is there a new competitor setting up camp down the street?
  • Look around: Has your product/service outlived its attractiveness or purpose and if so, what does your company need to do to meet your financial goals next year?

2)     Do your homework.  I know, you thought you got rid of that word years ago. However, it’s critical to completing the project at hand. Make a list of your common annual expenses and revenues.

Estimate your costs for insurance, rent, utilities, office supplies, payroll, etc.  Review the list with those who are closest to the subjects to see if you need to plan for any radical change. Ask questions. Is there a need to hire more staff?  Will new health care laws impact your employee expense?  What about marketing and advertising? And don’t forget to include costs and depreciation for your property and equipment.

And then there’s our favorite part: the revenue.  Work with your sales team to get a good birds-eye-view of what your revenue may look like for 2013.  Don’t forget to include dividends, interest and any other sources of income.

3)      Identify your ‘bell-curves”.  It’s not uncommon for businesses throughout the region to be dependent on tourism or weather.  If that’s the case with your company, you should build your expenses and revenues according to the seasons or reasons that guide your bottom line.  Plan for the obvious and chart your numbers accordingly.

4)     Do the math.  Although building a budget can seem overwhelming, it’s really just collection of pluses and minuses.  If you have done your research, completed your home work, and reviewed all of the content with a good ‘reality check’, the final step of building the actual budget may be the easiest step of all.

Remember:  A budget is simply a forecast of all of your business cash inflow and expenditures. It’s not set in stone yet it is a dynamic and vital component that will serve as your future’s guideline to success.

5)     Keep it handy and Compare.  Once you have completed the budget, make sure to keep it nearby.  Input the budget into your accounting system so you can easily track what is actual happening to what you created in the budget. Alas, don’t be afraid to change the budget in the middle of the year if there are significant changes, whether growth or reduction, in your business. Using the budget and making it a living, changeable document will help provide clear management insight into the success of your business.

Overwhelmed?  Need a little more advice? At Forbush and Associates we provide our clients with valuable business insight and solutions. In fact, we often learn about our clients’ companies so intimately, we become an integral member of their management team. And because we work with such a variety of businesses across so many industries, we see an evolving array of what works, what doesn’t and how to avoid potential obstacles.

LET OUR EXPERIENCE HELP YOU RING IN THE HOLIDAYS

WITH A LITTLE PEACE OF MIND.

CALL US TODAY

  775 337 6001

www.forbushandassociates.com

 

California Prop 30, Nevada Margins Tax and Our Unique Opportunity

We have a very unique opportunity in Nevada over the next coming months/years. Thus, I want to be very up front that this means there will be some tough decisions but also some very important decisions.

This comes from a couple conversations I have seen on facebook re: margins tax in Nevada and what occurred in California with Prop 30 and Prop 38.

Basically Prop 30 was approved to increase tax on income over $250K, Prop 38 was to increase tax on all. Of course when you ask a voter – do you want tax increased on you or increased on others – the answer is others and that is what happened Prop 38 failed and Prop 30 passed.

This is what Nevada is facing with the petition signing for the next election of the margins tax. The question is do you want tax increased on you as an individual or small business with revenues less than $1 million or on businesses over $1 million in sales. The answer is “others”. The unintended consequences will be far reaching even down into the people who voted to tax the others by them losing their jobs.

Let me over simplify this to illustrate the point – For every million in sales that is $20,000 in new taxes. I have a retail client with $3 million in sales that pays all their employees between $8.25 and $10 an hour. This new tax conservatively will make them pay at least $20,000 a year (but you could see it could make them pay upwards of $60,000 $3M * 2%). This business has a net of between 2 and 5% that it uses to pay back debt on the purchase of the business, and return money to the investors that gave some of the initial cash to get the business running and expand its operations and buy assets. Thus, this tax could effectively make the business not profitable or down to 2% to 3% profitable at the extreme high end of their operations. Thus, this company will have to let go between one and 4 of its employees to have sufficient resources to pay the tax. (8.25 * 2080 = $17,160). This business and its investors are privately held and owned 100% locally. As a side fact, the owner/president of this business only takes less than $50K salary and has no benefits and offers no benefits to its employees because the costs are so high and competition is so tight.

So the question is this – Do we want Nevadans to make the same decision and tax others like California did with Prop 30? Do we want such an open ended initiative like Prop 30 is and like the Margins tax is written that says – we increase this tax and it can be used by the legislature as they please but we will say it is for education but the initiative is open ended, vague, and funds are not sequestered to funding education?

This is our unique opportunity. We can make the tough decisions to 1) change funding allocations and priorities, or 2) we can make the decision to fund education by increasing taxes together or 3), we can all share the burden in some other form.

I believe the opportunity is #1 – make the tough decisions and make Nevada a darling to all those income earners and business owners sitting in California looking at their taxes about to increase at minimum 1% in California and at minimum 3% federally and make Nevada the destination for them to move. The increase of them moving will provide increased property tax receipts and thus increase funding to our education system.

I agree with Paul Kempler – what is our plan? Are we prepared? We have to make the most of this opportunity as Nevadans.

When Is The Last Time You Asked Your CPA A ‘Smart’ Question?

We have all heard the old adage, “There is no such thing as a stupid question”.  That would be good advice to keep in mind when meeting with your CPA.  It is never too late to start a new and continuous practice of preparing a list of questions before your meeting.

This is especially key at this time of the year.  While the majority of people are looking ahead to the holidays and shopping, you can turn your mind towards huddling up with your CPA and making year-end tax moves towards trimming back Uncle Sam’s funds request.

Pre-preparing the questions you want to ask assists in directing your meeting with your CPA and helps to keep things steadily moving while staying on track.  If time doesn’t allow for everything on your list to be addressed, you can start your new list with what was left out of the discussion.

What would be a possible number one question on your list? How about, “What are my projected taxes this year and for the next two years?”

These estimates from your CPA make it possible for you to formulate knowledgeable decisions on whether you should defer or take income, and if you should accelerate or cut spending. All are priority decisions to be completed before attending any New Year’s Eve celebrations.

Would it be helpful to know what tax strategies you’re CPAs other Clients are employing?  If their profiles are similar to yours, then their tax moves might be useful considerations for integration into your current strategies.

A proven smart move by one Client can easily become the next shrewd tax move by you.  Since your CPA already has a Client that is running smoothly after making a switch the error factor is lessened for you to try the same strategy.  For instance, a Client has moved into a high deductible health plan and realized a cut in taxable income through the addition of contributing to the employees’ health savings accounts. In this type of move there may also be industry-specific strategies.  It is worth asking your CPA for their insight.

Do you have any excess inventory that has just been lying around?

If you have been trying to sell excess inventory items at full price, tax laws prevent you from taking a write-down.  Turn this around by asking your CPA if you can take a write-down if you can provide proof that you have been offering the items at discounted prices.  Proof can consist of such things as an email advertisement, distributed flyers, or personally written invitations to your client list.  If you meet the burden of proof, the inventory itself doesn’t have to move or show any decrease for you to be able to claim it as a write-down.

Do I have to depreciate the computers I purchased, in the same year they are purchased?  Not necessarily.

Tax code section 179 maintains that you can immediately deduct up to $108, 000 worth of new business equipment and property as long as it is placed in service by the end of the year in which you procured it and are claiming it.  Does it matter whether you paid cash or placed it on your credit card?  No, but this deduction does have some restrictions and will require a discussion with your CPA to know which will apply to you.

Putting my kids on the books, should I or shouldn’t I?  They actually do work!

Well, the reality of them emptying the garbage, cleaning the business site inside and/or out, or if they are modeling for your product catalog all leads up to their ability to earn up to $3,300 without paying any income taxes.  In this case you will be responsible for covering payroll taxes around 20%, but you can still come out ahead if your business falls into, approximately, the 35% tax bracket.

What is the manufacturer’s deduction and is my company eligible to take it?

There was a tax change in 2005 regarding the tax code that lets companies deduct a percentage of their profits for products they’ve made in the U.S.  As an example, the 2006 deduction was 3 percent and increased in 2007 to 6 percent.  Ask your CPA for today’s deduction percentage and whether you are eligible.

Is there an advantage to buying a hybrid as a company car?

This appears to be a good move for your money holder and the environment.  Just take a look at the quickly vacillating gas prices across the nation and see if that helps you decide.  Ask your CPA what tax credits, if any, are available from the IRS.  It seems that the amount has quantifiable components such as the make, model and year of the vehicle.  There might be a component related to how many hybrids the car manufacturer has sold for the given year.  Your CPA has the current guidelines, just ask him.

Are my QuickBooks an advantage for my CPA when preparing my tax returns?

QuickBooks are only an advantage if the person operating the tool is doing a great job of tracking income and expenses.  If the tool information you provide your CPA is inaccurate, it is a waste of your CPA’s premium time during tax season.  Give your CPA plenty of time to review your QuickBooks information ahead of meeting and set deadlines so they can review and make any necessary mistake fixes.

Conclusion

The best source of up-to-date and credible information is your CPA.

 

Before making any changes or long-range plans it is good advice and simple wisdom to ask your CPA first.

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