We held a 🎄“Christmas in July”🎄 toy drive and challenged our staff to collect as many toys as we could for pediatric patients at Faith Regional. The generosity of our employees and their families was clearly displayed as we were able to donate over 300 toys! Thanks to our employees and their families for supporting the community that we love! 🥰 We hope this will brighten the day for many young patients! 🧸🪀
Our largest camp yet, 80 kids attended! Campers raised $955 for the Norfolk Library Foundation!
Jared Faltys (CPA, PFS, CPFA) McMill CPAs & Advisors Partner, Paul Feilmeier (MS) NECC Vice President of Technology Services, and Nicole Sedlacek (CEcD) NPPD Economic Development Manager present the basics on cryptocurrency. Recorded 5/19/2022
Save the Date – Wednesday, August 3, 2022
We are looking forward to hosting Lemonade Camp 2022! McMill CPAs & Advisors has a mission to educate and bring simple, proven financial principals to the community, especially the local youth. Lemonade Camp is one of our favorite ways to do that! Incoming 1st through 6th graders are invited to attend a free, educational and fun Lemonade Camp to learn what it is like to be an entrepreneur.
Check out the story in the recent Norfolk Now magazine, featuring details about the fun and learning that happens at our Lemonade Camp each year.
Read the article.
McMill CPAs & Advisors is a great place to begin your career. We are proud to partner with Northeast Community College in offering internships to students and keeping our graduates in our area of the state!
Check out the story in the recent Northeast Community College Graduate Employment Report, featuring our very own payroll team staff member, Morgan Haner.
Read the article.
Clint Weeder and Andrew Steffensmeier discuss the Nebraska Property Tax Incentive Act that went into effect last year and the online look-up tool that helps you generate the info to give your tax preparer. This will help to complete your taxes properly and make sure you receive any tax credits you are due.
Look-up tool: https://revenue.nebraska.gov/about/nebraska-income-tax-credit-school-district-taxes-paid-nebraska-property-tax-incentive-act
Recorded in 2020.
McMill CPAs & Advisors, one of the largest financial firms in Northeast Nebraska, is excited to announce the addition of a new shareholder, Andrew Steffensmeier. He becomes a shareholder alongside Nancy Brozek, Jared Faltys and Clint Weeder.
A native of Lincoln, Andrew now resides in Norfolk with his wife, Cortney, and their two daughters, Sunny and Scottie. Mr. Steffensmeier keeps busy with his girls by venturing around town exploring playgrounds and other activities for the kids. When not busy with his family, he enjoys the outdoors and working on his golf game. Andrew joined the firm in 2013 as a staff accountant. In his nearly 10 years with the firm, Andrew has been driven to helping his clients achieve financial success. As a result of this dedication, he has established a strong client base that depends on his expertise and appreciates his personable demeanor. McMill CPAs & Advisors is proud to have Andrew on our team of 13 CPA’s, offering a combined 300+ years of experience in accounting, business consulting, tax planning and wealth management. Clint Weeder, shareholder, states “We are excited to add Andrew as a shareholder. His focus on leadership and the community is evident in how well he serves his clients and their families. Their continued success is always his number one priority.”
Andrew has a Bachelor of Science degree in Accounting and a Master of Public Accountancy from the University of Nebraska in Lincoln. Andrew specializes in corporate taxation, wealth management, income tax planning and preparation, and business consulting. Professionally, he is a member of the Nebraska Society of CPA’s and American Institute of CPAs. Locally, Andrew is involved with the Norfolk Area Chamber of Commerce, Leadership Norfolk, and the Norfolk Area Community Foundation. Andrew sees the importance of educating the youth in our community on how to set themselves up for financial success. He has presented financial literacy lessons at multiple local schools, as well as at our annual Lemonade Camp.
McMill CPAs & Advisors was established in 1948 and has enjoyed serving Norfolk and the surrounding communities over the years. The firm specializes in serving businesses, their owners, and the complete ecosystem those owners care about. Services provided by McMill include tax planning and preparation, wealth management, estate planning, payroll and bookkeeping services, QuickBooks consulting, auditing and assurance services and company retirement plans. McMill is a family firm that believes in the power of a close community supporting itself by caring for each other.
Specializes in financial planning, business tax planning, investment advisory services
EmailAs a Norfolk small business owner, there are a lot of responsibilities that you have to juggle. Dealing with accounting and bookkeeping only adds to the stress and can be an extremely challenging space to navigate. This guide will help you learn about different business accounting services that are available and useful for different industries to help you navigate your small business accounting more effectively. Let’s dive in!
Business valuation services help you prepare for the future and understand the health of your organization. They help ensure your business stays viable and give you a plan for potential future decisions.
A business valuation is the process of evaluating the economic value of a company. Business valuation services come into play to find the true value of a business due to several reasons including:
There are multiple factors that go into the business valuation. These typically include:
To learn more about what a business valuation is and how it is conducted, read this comprehensive article that will tell you everything you need to know about business valuation services.
Many optometrist practices are either unsure of what their business is worth or utilize the wrong valuation techniques, therefore, having a false understanding even though having a proper valuation is a crucial component of a healthy retirement plan. Here are some ways to plan ahead and make your business more valuable.Â
EBITDA stands for earnings before interest, taxes, depreciation, and amortization and is a comprehensive measure of a business’ worth. Buyers will typically want three to five years of history to see what the overall trend of the business is and if it’s trending upward.
Tracking your company’s EBITDA over multiple years will put you a step above most of your competition and can highlight how well your company has been doing in comparison to the industry standard.
Once the numbers are compared to the benchmarks, the industry, and other similar practices, then EBITDA tends to come into play to where a “multiple” is applied. A multiple is a runway of time. This is the amount a buyer is willing to pay for a business based on EBITDA, typically anywhere from two to nine times EBITDA, as the multiple.
To break it down further, this means the buyer is willing to pay two to nine years’ worth of earnings the practice has generated.
It is essential to understand why you are selling in the first place. If you’re still having fun or if you still feel that the future of your company is extremely positive, then I want you to take a step back and just do a soul search to determine if this is the right decision of going down the road of merging with a practice or selling.
Understanding the value of your business will help you understand its health. It can help you make big decisions for your future and determine when the right time to sell is. For more information about business valuation methods for optometrist practices, read this blog.
Another option for ensuring you are receiving the largest ROI on your land is to take advantage of land depreciation. In this instance, the IRS allows you to allocate the depreciation cost over the life expectancy of an asset.
Land does not have a defined useful life, making it nearly impossible to account for depreciation. And depending on certain factors, its value may either rise or fall over time. Although land cannot necessarily be depreciated, certain altercations you make to it can be. Some examples include:
To properly account for land improvements, a business needs an account entry in the general asset ledger. Any improvements that you make will debit your expense account and credit the land improvements account.
The main reason you would want to account for land depreciation is that it helps you make and save more money. It can also help display aspects causing the expansion of your business.Â
Land depreciation can be a confusing topic to fully understand. For more information on it, check out this informational article.
From a high-level view, purchasing a farm may seem like a good investment. However, the net return is often much lower than originally anticipated. To counteract this, there are certain items you may depreciate or amortize to gain back some of that return.
When you purchase a farm, you also gain multiple assets that will deteriorate over time. Oftentimes, their cost can be expensed based on that life expectancy. You can do this in two ways:
Amortization is a way to calculate the total cost of an asset over its useful life. However, amortization is used for intangible assets, unlike depreciation.
Depreciation is a way to calculate the total cost of an asset over its useful life. It is used to establish the cost of obtaining the asset compared to the income it provides. Depreciation is used for tangible assets.
The most common depreciating asset on a farm is specific structures that may be deteriorating. Some of these structures may include fences, grain bins, farm sheds, irrigation systems, and other tools and equipment. Having the ability to write off these assets when tax season rolls around will help you offset the amount you are paying for the farm.
In certain circumstances, you can count dirt on a farm as an amortizing asset. To do so, the first step is to determine if there are more fertilizer nutrients in the ground than what is considered average. To check the levels of your land, you can hire an agronomist to collect soil samples from areas around the farm to analyze the nutrient values.
After a sample is collected, you’ll need to compare it to the average in your area. If you have any values that are above average, you can typically amortize your soil.
To read a more in-depth analysis of depreciation and amortization when purchasing a farm, please take a look at this helpful guide.Â
Ensuring that your HVAC business is functioning at its highest level of production is essential to preparing for the future. With all of the moving pieces that accompany this industry, it is crucial that everything is working as efficiently as possible.
The National Association of Productivity & Organizing Professionals (NAPO) defines the role of productivity consultants as the support for “evaluation, decision-making, and action around time, energy, and resources; helping clients achieve desired outcomes regarding goals, effectiveness, and priorities.”
A productivity consultant can help your business target areas where it can increase productivity. They will evaluate your current processes and help you create a plan to increase productivity and efficiency in the areas that need help.
Productivity consulting is especially beneficial for HVAC companies because each job requires a certain process to be done correctly. They can help you increase productivity for:
A consultant can take planning and organization off your plate so you can focus on other areas of your business. To learn more about how a productivity consultant can help your business, read this article.
Starting a small business is challenging and the majority have to close their doors because of a lack of cash flow within the first year. One solution to this problem is cost segregation. A cost segregation study usually results in greater tax savings and financial leniency for businesses.
A cost segregation study refers to the process of splitting elements of a property into categories for tax reporting purposes. Essentially, the study accelerates depreciation so that the owner can take out a higher tax deduction immediately.
The process of a study includes:
The greatest benefit of a cost segregation study is alleviating some of the financial burdens that fall on new businesses. Additional benefits can include:
For more information about cost segregation studies, read this all-inclusive guide to cost segregation studies.
Specializes in small business preparation and planning, investment advisory services, business tax planning services
EmailFinancial planning can be a headache. From dealing with inflation to organizing a will, there are many financial responsibilities you have to deal with. Knowing where to start can be a challenge all on its own, which is why we developed a comprehensive financial planning handbook, so you can reference a guide on how to handle different financial tasks. Keep reading to dive into our helpful guide.
A personal financial specialist is a certification for certified public accountants that allows them to include financial planning and wealth management in their catalog of services. Business owners are also able to take advantage of a PFS to help their organization build wealth and remain financially sound. To know if you are ready to take the next step and hire a PFS, here are some questions you should ask yourself.
Understanding your investment strategy is a key component of understanding whether or not you should hire a PFS. How often are you monitoring and adjusting your investments? Are you setting goals and objectives? A financial specialist can help you determine your goals and ensure your investment strategy aligns with those goals.
As your portfolio continues to grow, it may get more challenging to keep it all organized. Financial specialists can help you keep track of your different financial assets and consolidate them when it makes sense. They are also knowledgeable about what investments to make while mitigating any potential risks.
Hiring a financial professional when dealing with a huge change like the selling of a business is a smart move for you. They are educated on the tax implications that accompany this type of scenario and can help talk you through decisions to ensure you’re making the right one.
Tax planning and financial planning are interconnected and working with a professional that can assist with both is a smart move for your business. They will help you avoid financial mistakes that will result in large taxes and can help take some of the load off your plate when tax season rolls around.
A PFS will work with you on your goals for the short and long term. This way they can help you develop a comprehensive plan to help you get there. Retirement planning is evolving which makes an educated professional who understands the changing landscape a huge asset to have in your court.
For more information about the questions, you should be asking before hiring a professional financial specialist, read this helpful article.Â
Many business owners have been concerned about rising inflation and what that means for them. You may be wondering where you should put your money and what other changes accompany this new landscape we are dealing with. Here is what to expect.
Rising inflation has been inevitable since the start of the COVID-19 pandemic. It has been most prominent in the food, automobile, energy, and housing markets however, it has been said that it should be short-lived and may actually have a positive impact in the long run.
The government has made it clear that they don’t believe this rising inflation is here to stay and hopefully things will go back to normal as people head back to work. However, with that said, the question remains; how long will that take?
Unfortunately when inflation spikes, small businesses are hit harder than large corporations. It costs more to purchase the same things and therefore, your purchasing power is cut. There are two ways you can act proactively:
It is essential to stay in the stock market to protect your long-term assets. While inflation may hinder your stocks right now, it is typically beneficial in the long run.
When you invest in a mutual fund, you contribute to a pool of money alongside other investors, managed by a team of professionals looking to purchase securities. More specifically, when you take a Passive Asset Class Management Approach, you go the route of broad diversification and a controlled-risk environment.
Rising inflation is a concern of many small business owners. For a deeper understanding of what rising inflation means for you and how you can act proactively, take a look at our informative guide.
Planning for your child’s future is a big task, and with college tuition on the rise, it is more difficult than ever to properly prepare for this future. Luckily, college planning consultants are available to assist you with the planning process to help you bypass making mistakes along the way. Here are three main mistakes a college planning consultant will help you avoid.
There is a common misconception that community college is less valuable than other colleges and universities. This idea is simply incorrect. Community colleges can be a great way to reach the same end goal, more affordably. Even just starting the first two years at a community college has numerous benefits including:
The financial burden of higher education can be one of the most intimidating factors when it comes to college planning. While income shouldn’t be the only determining factor for what your child wants to major in, it should be a factor. Your child should understand that if they have to take out a loan to pay for school, certain career choices will put them deeper into debt than others and some careers will make it more difficult to pay off student loans than others.
While the Free Application for Federal Student Aid (FAFSA) is typically used for students who need free financial aid, it can also be beneficial for gaining access to The Stafford (Direct Federal Loan) and other scholarship opportunities. All too often families think they won’t be eligible so they don’t even apply which leaves money on the table.
There are many mistakes families make when planning for their children’s college education. To learn more about these mistakes and see one more, check out this article.Â
Small businesses that hope to protect the longevity of their company need to implement a buy-sell agreement. This will protect the continuity of your organization if anything happens to any of the shareholders. Keep reading to learn more about what a buy-sell agreement is and whether or not you need one.
A buy-sell agreement is a legally binding contract between two or more shareholders that defines how their portion of ownership should be handled in case of a triggering event. This will streamline the process so there isn’t confusion if something goes wrong.
Triggering events are the events that activate the buy-sell agreement. Some of these can include:
Every organization owned by two or more parties should have a buy-sell agreement. Here are a few reasons why:
A buy-sell agreement protects you and your partners in the instance of a life-altering event. Without an agreement, your company could be in jeopardy if something catastrophic happens.
There are multiple kinds of buy-sell agreements. These include the cross-purchase agreement, entity-purchase agreement, and hybrid agreements.
It is never too early to have a buy-sell agreement.
Your agreement should be precise with what qualifies as a triggering event and exactly what will happen.
How will the value of the portion be determined?
Life insurance policies should be taken out on each of the partners so that in case of an emergency, the other partners have the funds to purchase the share of the company.
Research the different tax implications for different buy-sell agreements to determine which is right for you.Â
For more information about a buy-sell agreement, visit this blog.
When you hear the term estate planning, oftentimes people think it is only for the wealthy and that your family doesn’t need to worry about this. However, everyone should have an estate plan. Here is why.
The term estate refers to assets such as real estate, vehicles, business ventures, and cash. An estate plan is composed of documents that outline your intentions for these assets when it comes time for them to be passed on. These plans ensure your assets are passed on the way you intended when the time comes and relieves stress on your family members who are left to handle them.
An estate planning firm is a collection of licensed professionals who can assist with the creation, maintenance, and execution of an estate plan. They are educated on legal jargon that accompanies these types of plans and can help you draft a plan that prioritizes your goals. These firms can also assist you in navigating the taxes that come with estate planning so you can be sure you are remaining compliant.
An estate planning firm will assist you in drafting and seeing your estate plan through. They are a team of professionals who have your back and can help you prioritize and execute your goals.Â
To dive deeper into what an estate planning firm is and how you can benefit from working with one, take a look at this guide.
At least 68% of Americans do not have a will or power of attorney which means they are not prepared for the future. Without a will and power of attorney, an immense burden may be placed on your friends and family to settle your affairs when you pass away or if you become unable to care for yourself. Here is what could happen without a will or power of attorney.
A will is a legal document that details what should happen with any children or property if you pass away. This document should be extremely detailed so there is no confusion when it comes time to handle your assets.
A power of attorney is a legal document that gives another person the power to make decisions for you if something happens that makes you unable to care for yourself. You want to choose someone who will act in your best interests.
Your power of attorney provides you protection during your lifetime, whereas your will provides protection to your assets after you are gone. Together, they work to protect you and your wishes during your lifetime and after.
Without a will or power of attorney, if something happens to you a huge amount of stress will be placed on your family and friends. Here are some specific downsides to not having a will or power of attorney.
A will and power of attorney are necessary documents to have at any age to ensure your wishes are taken into account during and after your life. For more information about these two essential items, read this informative article.
Specializes in business tax planning, investment advisory services, business valuations
EmailSmall business owners deal with a constantly changing list of tasks and responsibilities. Having to balance books, prepare for tax season, process payroll, and numerous other financial tasks on top of running your business can take away even more time and cause frustration. Hiring a certified public accountant (CPA) can help you better manage your time, so you can focus on your business operations while having a trusted advisor to help you manage your finances and grow your business. This guide will walk you through why you need a CPA, and how they can benefit your business in and around Norfolk.
As a small business owner, you already have enough responsibilities to manage. Trying to add the balancing of financial statements, keeping up to date with federal and local tax laws, and maximizing profits can be overwhelming and take focus away from other important tasks. Partnering with a CPA can help ensure that your finances are being taken care of so you are free to focus on growing your business. Here are some reasons why small businesses need a CPA.Â
CPAs can handle all the financial responsibilities that accompany running a business. From bookkeeping, creating year-end reports, or handling the taxes, a CPA will take these time-consuming tasks off your plate so you can spend more time on other aspects of the business operations.
CPAs are certified individuals who have gone through training and certification programs designed for these specific tasks. That means they possess a set of tools that most small business owners do not. They understand the laws and regulations around small businesses taxes and know how to navigate the often confusing landscape.
Understanding how to optimize resources is an essential part of running a successful company. CPAs can provide you with advice on how to file taxes to receive the largest return. There are also plenty of CPA firms that you can outsource rather than hiring a full-time, in-house accountant which will help save you additional funds.
CPAs are experts in their field which means they can offer unparalleled insights into how your business is operating year over year. They can assist with big purchasing and hiring decisions to help you make the best decision based on your finances and trends.
To learn more about how CPAs can help your small business, read this helpful article.
President Biden’s tax plan aims to fix some of the damage that has been caused by the ongoing pandemic and level the playing field for small businesses by imposing higher taxes on large organizations and the wealthy. These changes can be difficult to navigate as a small business owner, so here is a quick rundown of what you need to know. For a more in-depth look at the Biden tax plan, take a look at this helpful guide.Â
Biden’s proposed tax plan entails tax proposals under the American Jobs Plan and the American Families Plan. In addition, the administration is involved in making changes to individual taxes that affect income-earning individuals.
Under the American Jobs Plan, Biden aims to allocate $2.3 trillion to building infrastructure and job opportunities for the next eight years. This means higher corporate tax rates.
Under the American Families Plan, Biden aims to cover education, health care, and child care. This is planned to be funded by increasing taxes on wealthy individuals.
The Biden administration aims at heavily taxing high-income persons through the proposed hike of 39.6% for both capital gains tax and individual income tax rates. Currently, the top tax rate for individuals starts from $523,601 and $628,301 for married taxpayers filing jointly.
Small businesses are more likely to benefit from this tax plan. In Nebraska, 99.1% of businesses in the entire state are considered small businesses. This means small businesses drive Nebraska’s economy and the expected benefits from the tax plan will further elevate their growth. These benefits include:
This plan should be viewed as an opportunity for small to medium-sized businesses that are hoping to scale. One of the advantages is $998 billion in refundable tax credits for low-income to middle-income families. This means more money will trickle to the grassroots level, enabling your businesses to gain leverage over constant market changes.
Planning for year-end taxes can be an overwhelming process. Oftentimes, small business owners will procrastinate, adding even more stress. Following these 10 steps will help you get ahead and eliminate some of the concern that accompanies this process.
Setting a timeline and deadline will deter you from procrastinating and will help hold you accountable for getting things done.
You’ll need to compile your income statement, balance sheet, payroll documents, bank statements, asset schedules, and inventory records.
Doing this will add the total amount of liabilities that will reflect at year-end.
You should be keeping personal and business records separate but during this time, double-check to make sure they are separated.
Business expenses can be used as tax write-offs. Keep these expenses stored in one place to make it easier to compile them at the end of the year.
Many business assets lose their value over time and become an allowed deduction during tax season. Working with a knowledgeable accountant can help you determine which assets you can use.
A change in ownership can affect the equity of a business which needs to be documented during tax season.
Estimated tax payments are useful in reducing the tax liability when it’s time to file income taxes. Be sure to list these payments and date periods so they can be accounted for and help reduce your overall tax liability.
Investment accounts including IRA and 529 plans need to be tracked. Keep track of your investments and any deductions you make.
Your CPA will be able to gather all the important information you need to file your taxes and they can assist with any questions that may pop up along the way.Â
For a more detailed look at these 10 steps, take a look at this helpful guide.
Of the nearly 25,000 people living in Norfolk, Nebraska, at least 6.5% (or about 1,625 people) classify themselves as self-employed in their own business. This number is expected to continue rising as more people gravitate toward freelance, gig work, and opening their own businesses.
However, one struggle many self-employed individuals face is filing taxes. The process is more confusing and tedious and can be unclear, leaving you with questions and concerns as tax season approaches. Keep reading for the basics of filing self-employment taxes.
Self-employment (SE) taxes refer to the amount of Social Security and Medicare taxes you owe the government. These aren’t the only taxes you are responsible for, but they are mandatory for most self-employed individuals.
There are two qualifications that require you to pay SE taxes: earning more than $400 or making at least $108.28 as a church employee.
It is also essential to understand what kind of business structure you are filing under as there are different requirements depending on if you are filing under an LLC, a partnership, or sole-proprietor.
To file, you will need your social security number or individual taxpayer identification number. The total amount you will pay depends on your deductions, state taxes, licenses, fees, and permits. However, the SE tax rate is 15.3%.
Use this formula to calculate your income:
Gross Income — Business Expenses = SE Income
Next, apply the 15.3% rate to determine how much you owe in federal tax.
If you are filing as a sole proprietor, you will also need to use an IRS schedule C, or form 1040, to report your business’s income or losses.
Filing your self-employment taxes property is essential to the livelihood of your business. To learn more about filing SE taxes, read this guide.Â
QuickBooks has become one of the top must-haves in the accounting software space. It is user-friendly and very efficient for small business owners to handle basic bookkeeping and accounting needs. Here are some tips on where to start and how to get the most out of QuickBooks for your small business.
QuickBooks has the ability to track different aspects of your business to make your year-end more streamlined. These tracking options include:
Compiling your yearly income and expenses is one of the most time-consuming and tedious tasks when it comes to tax preparation. QuickBooks can help you do this so when tax season rolls around, all you need to do is print your financial statements.Â
QuickBooks allows you to track and run payroll automatically to save you more time and money. It also offers features to help you track employees’ hours, time-off management, and shift scheduling.Â
More small business owners are relying on QuickBooks to assist with accounting services. For more information about how QuickBooks can help you, take a look at this blog.
While their responsibilities may seem similar, tax advisors and CPAs are two different resources for you as a small business owner. A tax advisor is specifically trained in tax accounting and law and is more invested in your long-term goals and success, unlike a regular accountant who may only help on one specific project or a certain time of the year.Â
Now that you understand what a tax advisor is, it’s time to dive into the ways they can help you and your small business.
Since tax advisors are experts in taxes and tax law, they know how to save you the most money when it comes time to file taxes.
Tax advisors are also available to help you year-round. They are familiar with the in’s and out’s of your company and are comfortable giving you advice about different aspects.
These professionals are intimately familiar with you, your business, and therefore your personal goals. This allows them to help you create plans for your future based on your financial goals.
Improper financial management can be the ruin of a small business. Tax advisors will help you avoid these detrimental pitfalls, therefore ensuring the long-term success of your organization.Â
You don’t need to wait until the end of the year to start focusing on your finances. To learn more about the benefits of a tax advisor, read this informative article.