Category: Blog | Page 8 | McMill CPAs & Advisors

A Complete 10-Step Year-End Tax Planning Checklist for Your Small Business

Lynndsy Beckmann

Specializes in small business preparation and planning, investment advisory services, QuickBooks consulting

The approaching year-end signals the time to start preparing for tax season. Tax preparation and planning allow small businesses to stay ahead of the demands of tax season. For many of these businesses, year-end tax planning may be overwhelming and challenging, tempting you to procrastinate on the work that needs to be done. However, doing so would be detrimental to your success.

Sitting down with your trusted bookkeeper or accountant will help you begin to adequately plan for tax season so you can reduce your tax liability. The following 10-step year-end tax planning checklist will help you set your small business up for success come tax season. When you need trustworthy tax preparation assistance throughout Northeast Nebraska, our team of CPAs at McMill is one call away.

1. Set Your Deadline

Before the new year arrives, you have the period from October to December to make the necessary adjustments in preparation for tax season. Establishing a timeline should prompt you to set aside time to fully prepare before the tax period arrives. It also allows you to check and recheck any problematic areas in your record-keeping, as well as review your tax planning strategies.

2. Pull Together Financial Records

Over the course of the past year, you will have compiled some relevant documentation needed to successfully complete your taxes. These documents include your income statement, which summarizes the revenue and expenses, and the balance sheet, which records your assets, liabilities, and equity. Other records may include payroll documents, bank statements, asset schedules, and inventory records.

These documents give a snapshot of your financial health throughout the year. If you’ve been keeping accurate and consistent records, it shouldn’t be too difficult to gather these statements. Don’t fret if you haven’t started yet, as you still have until December 31 to be well-armed for the coming tax period.

3. Reconcile Loan Balances to Your Balance Sheet

This adds to the total amount of liabilities that will reflect at year-end. You can request a statement from the bank showing the year-end balance to compare it to your records to ensure they match.

Balance sheet reconciliation is crucial for you as a small business owner to ensure your finances are in order. It can help you:

Identify potential fraudulent activity
Catch accounting errors before it’s too late
Monitor transactions and ensure they are recorded properly

4. Separate Any Personal Expenses Paid From Business Accounts

The general rule of thumb is to keep personal and business transactions separate. Consistently take stock of any personal expenses that may be mixed with business expenses. This ensures you have an accurate record of allowable deductions, which reduces taxable income.

It’s also imperative you don’t lose your business records at any time. Always keep a backup of your QuickBooks accounts in a record-keeping system in case of a computer crash or any unforeseen event.

5. Compile Business Expenses

Business expenses can be treated as tax write-offs if they contribute to your business preservation. Keeping these expenses stored in one place, such as a cabinet of manual files or a software program like QuickBooks, will make year-end tax planning less hectic.

Expense records will include costs related to mileage, out-of-pocket expenses, meal reimbursement, utilities, advertising, and rent. The IRS categorizes most business costs as deductible. There are also proposed tax breaks specifically for small businesses that will go a long way to minimize your tax burden.

6. Take Advantage of Depreciation for Asset Purchases

Assets in a business such as furniture, vehicles, computers, and office machinery attract depreciation, which reduces their value over their useful life. Depreciation is an annual allowable deduction that can be offset against the business income.

Figuring out the depreciation of an asset can be confusing, but working with your accountant will help ease the process. You must have receipts indicating the purchase of the assets. This includes the purchase agreements for all major purchases. Typically, businesses use the straight-line method or accelerated method to calculate depreciation yearly. There’s also Section 179 and bonus depreciation which allows businesses to calculate a one-time depreciation against the total cost of a qualified asset in the year of purchase.

7. Note Ownership Changes

Sometimes a business can change ownership, which can include bringing in an additional partner or buying out a partner’s share. Any change will affect the equity, which reveals the value of the capital accounts of all owners.

If there’s any change, it’s important to notify the tax preparer. The IRS readily provides guidelines on such a matter including relevant information returns for small businesses to be ready for the tax season.

8. Summarize Estimated Tax Payments

Small businesses are among those required to make estimated tax payments per quarter. Estimated tax payments are useful in reducing the tax liability when it’s time to file income taxes. Provide your tax preparer a listing of your estimated payments and date paid so they can be properly accounted for to reduce your overall tax liability.

9. Summarize Year-to-Date Investment Activity

As the current fiscal year comes to an end, you need to take time to monitor the progress of any investment activity to take advantage of tax planning opportunities. This also involves keeping track of investment activities from the start of the year to date and taking note of any tax deductions. This includes investment accounts such as IRA and 529 plans.

529 plans are not tax-deductible against federal taxes, but some states allow state deductions. It’s also important to be up to date with any employment taxes.

10. Meet With Your CPA

As your business winds down its current year’s activities, your tax planning strategy must be in place. A CPA has the experience to summarize all the important business activities and processes to ensure you will be ready for the tax period. If you think you still need more time, the CPA can help to determine if you can obtain an extension.

Conclusion

This checklist should help make your tax preparation easy and boost your business’ bottom line. However, tax planning needs to be a continuous process throughout the year to minimize stress and workload as tax season approaches. Hiring a CPA will further reduce time spent on tax preparation so you can focus your energy on your business. As a small business owner in Northeast Nebraska, we know that you’re wearing many hats and tax planning is an extra burden. With our team of qualified tax professionals, we will assist you in implementing the necessary year-end tax planning checklist as the tax deadline looms. Do not hesitate to contact us today.

How Will the Proposed Biden Tax Plan Affect Nebraska Business Owners?

Andrew Steffensmeier

Specializes in small business preparation and planning, investment advisory services, business tax planning services

As a small business owner, you have spent countless days worrying about your business as you grow it from the ground up. You’ve also likely faced the devastating effects of COVID-19 for almost two years now.

As you focus your time and energy on growing your revenues, growing a team, and working on your personal goals, the current proposed Biden tax plan may be far from your mind.

However, the plan is a response to the damaging effects of the pandemic, particularly on families and small businesses. The key purpose of the plan is to impose high taxes on wealthy individuals and large firms to level the playing field for small businesses. It’s also a form of poverty reduction program which may benefit your family.

Admittedly, the proposed changes can be tough to navigate, especially as a small business owner. Here at McMill CPAs & Advisors, we’re here to help small business owners throughout Northeast Nebraska understand exactly how the proposed changes could impact them.

What’s Included in the Proposed Biden Tax Plan?

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.

The American Jobs Plan

This is a proposal by President Biden put forward on March 31, 2021, aiming to allocate $2.3 trillion towards the country’s physical infrastructure and job opportunities for the next 8 years. The effect is an increase in taxes on corporate profits involving a higher corporate income tax.

The proposed major changes are as follows:

C corporations will now be subject to a statutory tax rate increase from 21% to 28%.
Companies reporting over $2 billion in net income will be subject to a 15% minimum tax on corporate book income.
Multinational corporations will face an increase in taxes from 10.5% to 21%.
Removal of special tax treatments for fossil fuel companies.
Minimizing tax loopholes that U.S. corporations take advantage of.
Reforming the foreign-derived intangible income deduction (FDII) to limit tax breaks enjoyed by corporations and redirecting investments to R&D incentives.

The breakdown of the plan’s trillions will have an encompassing impact on America’s economy. This includes transport infrastructure ($621 billion), community infrastructure ($689 billion), R&D ($580 billion), and eldercare ($400 billion).

This is part of Biden’s promotion of his “Build Back Better” program. So, for the next decade, C corporations are expected to brace themselves for an increase in corporate taxes.

American Families Plan

This plan is the third proposal which was announced on April 28, 2021, with American families in mind and will cost $1.8 trillion. It covers three aspects; education, health care, and child care. However, this plan targets businesses not operating in the corporate world. It intends to rely on taxes from wealthy individuals.

The main benefits of the plan will be affordable education, tax credits for workers and families, and job security for families.

The proposed changes are:

The increased individual tax rate on wealthy individuals from 37% to 39.6%.
Increase in capital gains tax rate from 20% to 39.6% on families making over $1 million.
An imposed net investment income tax on earnings of over $400,000

These changes largely target high-income individuals. However, there is a rise in concern among small businesses.

Individual Income Tax Proposals

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.

However, businesses have shared concerns over how it impacts their operations, including individuals and small businesses. Courtney Titus Brooks, a senior manager at the National Federation of Independent Business points out that small business owners might be constrained in expanding their workforce and operations.

How Does the Plan Affect Nebraska?

Despite some raised alarm over the Biden tax plan, small businesses are likely bound to benefit. But specifically, how will it impact your business in Nebraska?

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.

How Might Nebraska Businesses Benefit?

1. The American Jobs Plan gives hope to Nebraska families and small businesses as workers, communities, and infrastructure will be given priority. This is a promising rescue plan to cushion the state from the effects of Covid-19.

Any small business that experienced significant revenue decline and loss of workers due to COVID will be given a new lease of hope as the government will be focusing on taxing the highest-income individuals and C corporations.

2. The hefty proposed taxing of high-income individuals and corporations will help sustain the program and enable small businesses to operate in a stable environment. This will help you as a small business owner to increase investments in your operations and even hire more workers. In turn, Nebraska’s economy is set to grow.

3. As a small business owner, your business goals are likely tied to your personal finance goals. You may aspire to leave a legacy for your family. Biden promises to protect family-owned businesses and farms from capital gains tax hikes. This bill proposes that no taxes will be paid when your heirs take over the business. With the proposed tax plan, the government wants to elevate families and businesses over the highest-income individuals.

What Does This Mean for Small and Medium-Sized Businesses?

The proposed tax plan should be viewed as an opportunity for small and medium-sized entities aiming to scale up their businesses. The main promise of the plan is to protect families, workers, and small businesses from tax effects.

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.

Going forward, small and medium-sized businesses should expect significant impacts from the tax proposals. Amid changing legislation, now is the best time to partner with a CPA who can stay on top of these changes and act proactively on your behalf versus reacting to certain changes when it’s too late.

Conclusion

The proposed Biden tax plan is bound to cause a wave of impacts on individuals and businesses, including small businesses across the United States.

If you run a small business in Nebraska, you’re right to have worries over how your business will perform in the next five years. This can cause you to have doubts about managing your business’ income, bills, emergencies, employees, and your retirement plans.

You are also probably overwhelmed in keeping track of constant changes in tax laws and policies. The proposed changes according to the Biden tax plan will require being proactive when they become implemented. This calls for your attention to work with a partner that cares about your vision and plans for your business.

McMill CPAs & Advisors has experienced CPAs and tax professionals who can competently answer any questions you have about the proposed Biden tax plan and the impacts it has on your Northeast Nebraska business. We offer personalized consultation and tax services to help your business manage tax planning and achieve financial success. Please contact us today.

What Does Rising Inflation Really Mean for Consumers?

Clint Weeder

Specializes in business tax planning, investment advisory services, business valuations

Chances are, you’ve been worrying about the potential for rising inflation since the pandemic — and what this means for your purchasing power. This may also have you wondering where you should put your money, and you’re not the only one. The truth is, rising inflation is here, and small businesses everywhere are asking for more guidance on the topic.

In fact, the U.S. Bureau of Labor Statistics reports that “in July [2021], the Consumer Price Index for All Urban Consumers rose 0.5% on a seasonally adjusted basis; rising 5.4% over the last 12 months, not seasonally adjusted. The index for all items less food and energy increased 0.3% in July (SA); up 4.3% over the year (NSA).”

While rising inflation does present some unavoidable challenges for business owners, our team at McMill CPAs & Advisors is here to help you thrive. Here’s what rising inflation really means for consumers.

THE CURRENT STATE OF RISING INFLATION

Since the pandemic, rising inflation has been nearly inevitable as businesses struggled with inventory and employees came in short supply for most of 2020 and 2021. Inflation has been most prominently observed in food, energy, homes, and new automobiles (all consumer necessities). However, many are promising that the current inflation should be short-lived and positively impact the bottom line in the long haul.

With a focus on CPI inflation, in particular, Forbes explains that “weird price movements were an inevitable side effect of closing down the economy to quash the virus, so they shouldn’t be totally unexpected. Luckily, they’re likely to be short-lived though may persist while the Fed works to get people back to work.”

Nancy Davis, the founder of Quadratic Capital Management, told the magazine, “I believe the Federal Reserve is more focused on the employment part of its dual mandate and will remain accommodative for as long as it takes to ensure the economy returns to full employment.” The so-called ‘easy money’ being pumped into the economy to encourage activity is likely to stay around, and “businesses (and their stocks) may continue to grow.”

Knowing this, the Fed has been clear that they don’t think inflation will stick around once people get back to work. Although this still leaves many wondering how long consumers will deal with the inflation spike in the meantime.

HOW CAN YOU ACT PROACTIVELY?

When inflation kicks in, smaller businesses are often in a tighter spot than larger businesses that are more prepared for the ebbs and flows of inflation and purchasing power. The truth is when the same sum of money you have today can’t get you the same inventory it could previously, the value of that sum of money decreases — decreasing your purchasing power, as well.

Right now, the U.S. is full-on experiencing this spike in inflation and shrink in purchasing power. Fortunately, there are at least two ways you can be proactive:

Stay In The Stock Market

When it comes down to it, it’s crucial that you stay in the stock market to protect your long-term assets. In many cases, inflation may hinder your stocks in the short term but can actually level out and be beneficial in the long term. Although it may go without saying, being careful not to make any drastic changes in your portfolio is important.

Amy Arnett, a portfolio strategist at Morningstar, reminds consumers that “stocks can be good as a long-term inflation hedge but can suffer in the short term if inflation spikes.”

Mutual Fund Investing

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. What your money is invested in depends on the type of mutual fund investing you decide to participate in.

More specifically, you’ll want to take a Passive Asset Class Management Approach. This approach emphasizes broad diversification and market returns in a controlled risk, low cost, tax-efficient environment.

Among this approach’s many advantages, you will quickly benefit from lower costs, lower portfolio turnover, greater tax efficiency, broad diversification/risk reduction, long-term perspective, control of asset allocation, passive asset class funds, and academic research (focus on the importance of asset class selection, not market timing or security selection).

TRUST A FINANCIAL PLANNER

There is no better time than now to put your trust in a financial planner to help guide you through the rising inflation and keep your business on top of the ongoing challenges the pandemic has put on you and the economy.

McMill CPAs & Advisors has been working hard for individuals throughout Northeast Nebraska looking for comprehensive financial planning assistance, making sure you and your finances are prepared for inflation. There’s nothing more important than protecting your savings and assets — and you don’t have to go at it alone. Here at McMill, we understand the challenges and fears that come with rising inflation. We also know the best strategies for getting through these uncertain times and keeping your small business on track. To gain more insight and resources into what you can expect from rising inflation, contact us today and follow our webinars and blog for more tips.

Lemonade Camp 2021

McMill CPAs & Advisors hosted 1st-6th grade children in August 2021 to discover how to be an entrepreneur by learning how to start and run their own business – a lemonade stand. Nearly 60 campers were able to raise $798 for the Norfolk Arts Center!

Lemonade Camp 2021

All of our campers’ hard work paid off. Not only did they hit their goal, but they surpassed it!

Lemonade Camp Goal: $715

Actual Amount Raised: $798.75

All proceeds raised went to the Norfolk Arts Center.

Not only did the campers learn entrepreneurial skills by planning and running a lemonade stand, but they also took on an art project from the Norfolk Arts Center.

See highlights from the day in this video

Lemonade Camp 2020

During the summer, McMill CPAs & Advisors host a Lemonade Camp. We teach kindergarten through fifth-grade children to be an entrepreneur by learning how to start and run their own business – a lemonade stand!

Here are some photos from the 2020 Lemonade Camp.

Inflation Concerns Webinar

Jared Faltys

Specializes in financial planning, business tax planning, investment advisory services

Business Valuation Services: Why You Need to Know Your Value?

Clint Weeder

Specializes in business tax planning, investment advisory services, business valuations

The COVID-19 pandemic, uncertain market conditions, and potential tax law changes continue to impact small business owners and their families nationwide, and our community is no different. It has left many owners unsure of what the future may hold for their business and what planning they should consider to keep their business viable for years to come.

Business valuation services will help you get your footing as we slowly but surely put the pandemic behind us and as we learn more about the potential tax law changes. A business valuation gives you the state and health of your business and can assist you with many planning tools as you continue to grow your business and as you start to plan for your exit.

Most importantly, it can provide an essential component of your legacy planning for you and your family.

Warren Buffet quotes that “valuing a business is part art and part science.” Here at McMill CPAs & Advisors, we’re proud to combine art and science to offer complete business valuation services to business owners in Norfolk and throughout Northeast Nebraska.

What Are Business Valuation Services?

A business valuation is a 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.

Determining The Sale Value

A business valuation protects you from short-changing yourself during a company sale. It ensures that the asking price is ideal for prospective buyers while you receive the best return on your investment as possible. We’ll help you analyze your business compared to peers, including metrics that set you apart so you can negotiate favorable terms.

Estate Planning

In the uncertain tax world today, it will be as important as ever to understand how your business will be treated as part of your estate, to ensure the legacy you want to leave behind holds intact. A business valuation can provide an estimated value of your business, so you can make the appropriate decisions when planning for the future and potentially avoid a costly estate tax bill.

Litigation

During court cases such as divorce or injury, where settlements are due, a business valuation is vital. You will need to determine the company’s value to avoid an unfair determination.

Planning an Exit Strategy

If you are looking to sell your company, establishing a base value is important. It helps you understand the financial strengths and weaknesses of your company so you can plan on how to increase the company’s overall value. We can assist in generating a plan forward, including tracking key performance indicators (KPIs) that are essential in your industry.

Business Buying

Buyers and sellers may voice different opinions on the true value of a business. A business valuation indicates the amount a potential buyer should pay for a business. The valuation looks at potential income and market conditions to ensure you don’t get overcharged.

Partnerships

When you want to incorporate with other members, a business valuation helps determine the value of your ownership. A valuation is an essential component of any buy-sell agreement, and it should be one that is easy to understand. This will avoid potential disputes in the future between members. It will provide for the smooth transition of new members into the company and the exit of existing members. It will also protect the families of those members on both sides of the table.

Strategic Planning

A business valuation helps entrepreneurs come up with a plan to boost their ventures. Present-day valuations will help you determine the business’s state and the decisions you need to make to improve it.

Funding

Before facing investors and banks for funds, you need a business valuation to enhance your credibility. It helps gain investor’s trust when they know how much your company is worth and it will help the bank better understand your financial position.

How Is a Business Valued?

There are various elements of a business valuation that establish the worth of a business. They include the following:

Net Assets

Valuators use the asset-based approach to gauge the value of a business that is asset-intensive. Under this valuation method, the spotlight is shined on the business’s net asset value. The value is determined by assessing the fair market value of all assets less liabilities.

The Market Value Compared to Peers

The market value approach method entails assigning the business a value comparable to that of similar businesses in the market (relative to size, sales, and industry). The transactions used for comparison can be a previous transaction with the same company, transfer of ownership involving comparable companies, and a market quotation from listed securities by a company in a similar industry.

An Analysis of Cash Flow

The discounted cash flow method (DCF) method is one of the most effective approaches to a business valuation. It looks at the potential future earnings of the business to establish worth. The approach can either analyze historical cash flows, or forecasted/budgeted cash flows to estimate the future cash flows of the company. The method is widely used for service-oriented businesses, and with businesses where cash flows can be projected with a higher degree of certainty.

The McMill Way

McMill CPAs & Advisors use the above methods to estimate your company’s business value. A business valuation helps you to assess the current “health” of your business, assess the viability of business deals, and plan for the future. Our professional team will help you understand your business and its value so you can make the best decisions for you and your family. Contact us with any questions you may have regarding our business valuation services and how they can assist you and your business in Norfolk and surrounding communities today!

5 Questions to Ask Before Hiring a Personal Financial Specialist

Jared Faltys

Specializes in financial planning, business tax planning, investment advisory services

As a business owner, if you are considering partnering with a personal financial specialist (PFS), you are on the road to mastering your financial future. You may have reached a position in your small business where you have accumulated enough assets and feel the need to work with an expert.

And most importantly, you want an expert that understands you and your family — your goals should become their goals.

You are also likely consciously living to a financial philosophy of saving and investing for retirement. Many people are usually unsure about the right time to start working with financial planners as they have many presumptions. While nothing is ever assured with the volatility of the market, it’s natural to have reservations.

With that in mind, it is always prudent to first do some research geared towards getting your business to a good financial position. Certainly, you can approach a financial planning agency, but how can you be sure they are right for your business? You will be involving a third party to manage significant aspects of your business’s finances, from investments to retirement planning.

Personal financial specialists can give business owners peace of mind that their finances are in good standing, even amid a volatile market. Couple that with the expertise of a CPA, and your business will be in good hands. Here are five questions you need to ask before hiring a personal financial specialist to understand if you are ready for the partnership. To learn more about how we help serve small business owners throughout Norfolk, Nebraska and the surrounding communities, browse our additional resources.

1. What Is Your Investment Strategy?

This is a critical question as it gives you a quick snapshot of your position in terms of savings and investments. It guides you on which assets and goals can gradually build a portfolio.

A successful investment portfolio comprises four elements — diversification, passive allocation, tax efficiency, and cost-efficiency. However, there is no standard portfolio as your objectives and goals will keep changing.

So, how often do you monitor and adjust it? Are you setting SMART goals and objectives? Anytime you decide on a strategy these are the kind of questions to ask among others.

Bringing in a financial planner will ease the pressure of ensuring your strategy aligns with your objectives. The key is to generate the long-term plan and adjust as needed with the guidance of a financial planner.

2. How Organized Are Your Finances?

In a 2019 CNBC and Acorns Invest In You Savings Survey, it was reported that 75% of Americans were managing their finances without professional help. While working with a financial planner is a personal decision, one may be essential regardless of how organized your finances are.

As your business portfolio keeps growing, you may struggle with managing the planning, risks, and budgeting. A financial planner not only has experience and knowledge, but they are also a trusted fiduciary. Having the fiduciary quality means they are professionally and ethically obligated to you.

Your personal financial specialist will recommend high-quality investments while lessening any risks that could erode them. In addition, you get to be in the driver’s seat of your investments as the planner handles all the complex tasks.

Lately, there is an increasing trend of unconsolidated 401ks and IRAs of millions of Americans due to moving jobs and other life changes. As a result, they lose out on capitalizing on their retirement accounts, likely because they have no idea what to do.

A financial planner can help you decide on the best options, such as rolling over an old 401k to an IRA while dealing with technical tax matters. They can also help you consolidate your 401ks, IRAs, and other investment accounts. Overall, having an organized financial plan will help you have a good idea of where you stand regarding your finances.

3. Are You Making a Life-Changing Decision?

Involving a PFS in significant financial milestones and decisions such as selling your business or buying new machinery is sensible. For instance, with selling a business, you have to consider multiple factors such as the correct business valuation and taxation issues.

A financial planner has the patience and skills to read through the fine print to avoid being shortchanged. Also, they will ask the right questions which will give you a unique perspective about any important financial moves. They will help you avoid making potentially costly mistakes such as undervaluing your business or missing tax-saving opportunities.

4. Is Tax Planning Becoming Overwhelming?

Financial planning and tax planning are interconnected. Taxes are part of everyday life and unfortunately, many small businesses tend to overlook their tax planning.

Currently, advisors are influencing their clients to take prompt action after President Biden proposed the doubling of the capital gains tax from the current 15-20%. If it passes, you will pay double the tax after selling an asset.

At this point, a financial planner is valuable as they engage in wide areas including income tax planning, estate tax planning, and individual income tax return preparation. You will be able to stay on top of strategies such as claiming tax credits and minimizing taxable income.

Your planner will be in the middle of managing important financial decisions that have tax implications. If it is a solo project, you can easily overlook costly tax mistakes accompanied by complex jargon and policies affecting your business’s longevity.

5. What Is Your Retirement Plan?

Do you know where finances will come from when it’s time to retire? Are those finances substantial enough? Having a clear picture of your retirement assures you of a comfortable future.

When a PFS comes into play, they will have to ask questions about your goals, objectives, and vision. This helps them customize a comprehensive financial plan for your retirement. It will guide them on which investment allocation is most suitable depending on your income level and the time factor.

As more people continue to work beyond the retirement age of 65, retirement planning is evolving too. What matters is that your plan is safe from market changes, ensuring that you will enjoy a golden retirement.

Ready for a Personal Financial Specialist?

The road to financial independence is not an easy one, but it is possible. It is worth noting that anyone can benefit from a financial planner, despite their income level and net worth.

You are also right to question the credentials and commitment of a financial planner to your financial goals and plans. Does their financial philosophy match yours? Are they capable of streamlining your investment strategy, retirement plan, and tax planning?

Hiring a financial planner is a personal decision that requires careful consideration, and asking the above questions will guide you to choose the best one. At the end of the day, the planner becomes an extension of your family.

McMill CPAs & Advisors in Norfolk has helped many business owners and their families work on their financial and wealth plans. Beyond offering investment advisory services, we help our clients manage complex tasks such as tax planning, estate planning, and business consulting services.Our client-friendly online platform will help you get acquainted with our resources, services, and our industry-wide experience. As financial planners, we understand any concerns you may have about your financial plans. If you are looking to work with dedicated and experienced financial planning experts in the Norfolk, NE area, please contact us.

5 Compelling Reasons Why Small Businesses Need a CPA

Andrew Steffensmeier

Specializes in small business preparation and planning, investment advisory services, business tax planning services

Many small businesses lack the capacity and the financial muscle to manage specific functions effectively. Preparation of financial statements and complying with the federal tax laws are among the most challenging functions that can put small businesses at risk.
As a business owner, do you find yourself wondering if your business is maximizing profit? Do you struggle to take advantage of the always-changing tax laws? Is your business running as efficiently as it should?
What’s more, the IRS has a string of tax-rel ated penalties that can result in substantial fines and cripple your business. How do you avoid these penalties while ensuring you’re maximizing your earning potential?
Partnering with a Certified Public Accountant (CPA) can help comply with IRS regulations, improve efficiency, and be accurate in your operations. Here are some of the ways we help business owners in Norfolk and surrounding communities throughout Northeast Nebraska.

1. Improve Efficiency

Preparing the book of accounts, end-of-year reports, or taxes is a complex and time-consuming operation. Businesses without the requisite set of skills cope through experiments and consultation.

Accountants possess a unique set of skills to incorporate historical data, dissect numbers, and give sound financial advice. Certified public accountants can also analyze data for the decision-making process.

Here’s how partnering with a CPA can improve business efficiency.

Take over Financial Tasks: Bookkeeping is a daily task that a business must undertake to track performance and prepare financial reports. The daily entries include entering checks and deposits, invoicing customers, reconciling the bank account, and maintaining other sub-ledgers.

Partnering with an accounting firm takes away the burden and time required to perform these tasks. Consequently, the business owner and the employees can focus on the core operations of the business. In addition, a CPA will take minimal time to prepare the books and other statutory reports, effectively improving business operations.

2. Increase Accuracy

A regular employee or business owner dispenses duties to the best of their knowledge. On the contrary, a Certified Public Accountant operates by following a code of conduct set by the American Institute of Certified Public Accountants, among other professional bodies.

As a result, a professional accountant must demonstrate competence and due care to clients. They must also uphold professionalism and integrity while performing their duties. The accountants can face disciplinary action that includes license revocation for failure to follow the code.

Besides professionalism, a CPA increases accuracy through:

Provision of Core Services: A business owner who combines running the operation and doing the work of an accountant is likely not operating at an efficient pace. On the contrary, a CPA specializes in maintaining financial records and statements. A CPA is, therefore, best suited to analyze trends and make sure the books are up to date and accurate.
Accurate Accounting: Professional accountants have a set of tools that enhance the accuracy of their work. Some of the items they employ include a double-entry system, trial balances, balance sheets, and financial ratios. Ultimately, an accountant has knowledge, skills, and tools that’ll help your business achieve accurate books and reports.

3. Saves You Money

Running a profitable enterprise is among the top objectives of every business owner. Resource optimization also complements efforts to run a healthy business. Therefore, when you partner with an accountant, the business greatly reduces mistakes that waste money.

Here’s a breakdown of how an accountant can save you money:

Tax Advice: The failure to file the proper taxes on time can attract considerable penalties for a business. Tax is also applied differently to entities like corporations, sole proprietors, or partnerships. Accountants, in general, offer essential insights like tax planning, business consulting, deadline management, and transactions that can mitigate your tax bill. These matters affect your bottom line, which is why it’s critical to involve an accountant.
Outsourcing: Hiring an internal accountant has additional costs like benefits, welfare costs, and office space. You can bypass the associated labor cost by partnering with a firm that offers you accounting services on demand.
Optimize Your Time: Time that is improperly utilized equates to lost money. For example, if you suspend your operations every two weeks to prepare books, you’ll lose an opportunity to close sales or concentrate on your operations. An accountant frees the schedule of an employee or a business owner, effectively saving money.

4. They Are Experts

A Certified Public Accountant undertakes professional exams and is registered independently. As such, CPAs perform their work in conformity with IRS rules and global standards of financial reporting.

Here are some of their skills that can add value to your business:

Industry Knowledge: The subscription to professional bodies offers them constant updates and changes in reporting standards. They also work as a network which boosts their knowledge of the practice.
Time Management: By partnering with a CPA, you will be able to focus on growing your business by outsourcing the routine financial tasks that a CPA can manage.

5. Gain Unparalleled Insight

An accountant has analytical skills that they can apply to analyze financial data. Business owners can tap on the professional relationship to gain valuable insights on how to improve their businesses.

For example, CPAs can analyze year-over-year trends to determine if you are spending too much on payroll or if a business owner needs to raise their bill rates.

Partner With McMill to Ease Your Operations

A professional accountant brings years of experience, reporting standards, and a supporting team. Therefore, your business will gain from improved efficiency, reduced cost of doing business, accurate financial reporting, and tax planning.

Here at McMill CPAs & Advisors, we are proud to serve Norfolk and all of the Northeast Nebraska community. We treat your family like ours and can’t wait to help you improve your operations. We serve clients ranging from medical, construction, specialty contractors, family farming operations, manufacturers, among others. Contact us for more information.