Benefits of a Part-Time CFOPosted on November 19th, 2019
Are you ready to take the steps necessary to grow your business? Wondering how you can implement tax-saving strategies, analyze your financial reports, and make important decisions based on your cash flow and forecasts?
If your business is feeling some growing pains, it might be time to hire a part-time CFO. Unlike a salaried Chief Financial Officer, a part-time CFO can provide financial advice that is both strategic and affordable. Here are some of the benefits of hiring an experienced part-time CFO.
Help with Accounting, Banking, and Controller Services
From reconciling bank accounts and resolving financial discrepancies, to negotiating loans and enhancing internal controls, a part-time CFO provides your business with specialized skills and knowledge exactly when you need it. You get more time and the peace-of-mind you need to grow your business successfully.
A part-time CFO can manage the financial side of your business, contributing as much or as little as you require. Services can be tailored to meet the needs of your unique situation, making a part-time CFO an affordable solution for every growing business.
Finding Beneficial Strategies
CFOs oversee the financials for a company, but their role goes beyond simple record keeping. Based on your financial records, a part-time CFO can develop and implement strategies for smart growth and expansion.
To help you decide what steps to take for growing your business, a CFO must be knowledgeable in all of the financial dealings of the company and be able to identify risks based on a detailed financial analysis. Because decisions are made strategically, they will not only spur growth but also reduce waste and improve financial reporting.
Efficient Cash Management Processes
If you have plans to sustain or grow your business, you need to have someone on your team who can manage the cash.
A part-time CFO will have an in-depth understanding of your profit and loss statements and will be able to problem-solve based on the entire financial picture, not just your short-term profitability. Their job is to know the backstory behind the numbers on the page, allowing you to develop cash-management strategies.
At Katherine Lei, CPA, PLLC we provide part-time CFO services to businesses in Las Vegas, Henderson, and Summerlin. We’d love to work with you to help your business grow and prosper.
5 Tips for Improving the Tax Plan of Small to Medium-Sized BusinessesPosted on July 16th, 2019
Taxes for small to medium business owners can make or break a company’s plans for success. Closing-out each tax year strong, so your business is in great shape for future profits is foundational to strategic growth. Here are five tips that can ease stress and help your business operate optimally.
- Year-Long Tax Planning: This is the most important way you can help your business prosper. You cannot accurately account for a year’s worth of expenses, credits, and deductions at the last minute. You are bound to miss important savings and commit inaccuracies that can lead to IRS scrutiny. Employing the help of a CPA that specializes in business taxes can also help you stay organized, seize savings opportunities, and avoid costly errors.
- Deduction Claims: You are entitled to dozens of tax deductions that can reduce your adjusted gross income (AGI) and provide money that could be invested in your future growth. Transportation, education, and home office deductions, as well as expenses for health insurance and general equipment, are just some of the areas that you can claim deductions.
- Year-End Expenditures: Finishing the calendar year strong can mean deferring some profits to the following January, so you decrease your taxable income. Purchasing necessary equipment or attending a trade show in December can also give you deductions that create big savings. It is important to think about the tax implications of your financials, so you make decisions that are the most beneficial to your business.
- IRS Forms: It is crucial that you fill out the appropriate tax forms on time. With so many different forms and varying deadlines, this can prove to be a real challenge. The system is complex, and the regulations often change. Tax obligations depend on factors like business structure, number of employees, and the industry type of your business. There are also important deadlines that must be met to avoid paying late fees.
- Retirement Contributions: If you are close to or above a tax threshold, an easy way to lower your income is by contributing to a retirement plan. You may be able to adjust your income so that you qualify for the full 20% on deductions on your pass-through business income.
For peace of mind, schedule a free consultation with Katherine Lei, CPA, PLLC. You might be surprised to see that the savings benefits she discovers can exceed the amount you pay for her services. Contact us today for an informative consultation.
Tax Strategies for International BusinessesPosted on March 25th, 2019
The US provides a great opportunity for foreign investors to make significant profits in our country; however, the tax obligations of foreign investors are complex, and they need to be taken seriously.
Foreign Investors Are Subject to Different Laws
A citizen or a legal resident in the U.S. must disclose the sourcing of their investment earnings. A U.S. person is taxed on their worldwide income, but a foreign investor may not be subject to certain tax laws. It is important that you know for certain the status of your residency, as it is very common for foreign nationals to presume they are not U.S. persons, when in fact, they are.
Wide Range of Tax Liabilities
It is essential to understand that the type of investment you make determines your tax liability. Tax laws vary greatly and are based on the nature of the investment, such as:
- Interest Income
- Personal Services
- Rents and Royalties
- Sale of Real Estate
- Sale of Personal Property
- Income from Sale of Inventory
Withholdings from Investment Sources and Taxation from FIRPTA
Most U.S. banks withhold 30% of the money invested by foreigners to cover tax expenses if your business fails to pay taxes. Additionally, the Foreign Investment in Real Property Tax Act or FIRPTA requires foreigners to declare capital gains on real estate sales, which is unlike other investments where capital gains are excluded from tax bills.
Estate Planning Considerations
Non-U.S. persons are also limited in the exclusions they are permitted on estate taxes. Foreigners are only entitled to a baseline exclusion of $60,000, which can cost beneficiaries up to 40% on any capital gain exceeding $60,000. This threshold is in stark contrast to the generous exclusions permitted by U.S. persons.
International Business Expertise
When you need help planning and investing in the United States, give Katherine Lei, CPA, PLLC a call. We have extensive experience in international accounting policies and can help you strategically navigate through the tax forms, and laws required by foreign investors.