Part-time CFO | Impacting Cash Flow With Tax Strategies
How business owners can positively impact the cash flow in their business says part-time CFO is through tax strategies. One of the most important attack strategies that business owners can utilize in their business, is by deciding how theyíre going to take money out of their corporation. When business owners take money out of their corporation, they have to declare it as a salary or dividends, or combination of the two. How they end up doing that, becomes a text strategy that can impact the business and to the business owner.
By how much money and taxes that a business owner saves themselves in their corporation can significantly impact their business. How business owner can come up with that strategy is by hiring the right part time CFO for their business. Business owners should be themselves is one of the most common questions that accountants see in their entire practice. While this is an extremely common question, the answer needs a lot of time and a lot of consideration to come up with. Any accountant that is able to answer that question quickly, is in taking the necessary time understand the entire situation.
Many people claim that the salary, dividends and corporate tax rates are integrated, many business owners want to know if thatís correct. Part time CFO says that while that is a common theory, it doesnít actually work in reality because of the amount of variables that an entrepreneur and their business face in real life. Only the works in theory is that since dividends are non deductible, a business owner pays will corporate and personal tax, and if you have those two weeks together it should equal the amount on the salary. Since business owners and their accountants need to take into account several factors including spouses, children, divorce agreements as well as potential future losses as well as supplier contracts, this question is far more complicated to answer then with the simplistic formula.
When business owners are new in their business, they often start out by hiring an inexpensive accounting service in order to save money where they can. However what that ends up doing this is part-time CFO is having them Efficient tax strategy that can be costing them thousands of dollars a year, for over what they could by paying in good accounting fees. This is owners should hire the right part time CFO is going to take the time to understand the entire situation before coming up with a great taxes strategy.
If business owners are wondering if they had any efficient tax strategies in their business at the moment, they could easily review their last yearís tax return, or their current financial statements to see if they are being paid either 100% in the salary or dividends. That can be a sign that not enough thought went into the decision on how the business owner should be paying themselves. By working with a great accountant, part-time CFO says entrepreneurs can ensure that they are utilizing the most effective tax strategy possible.
Business owners need to declare if they are taking money out of their corporation through salary, or dividends for very simple reasons as part time CFO. Whenever they take money out of their corporation, one or the other in order to pay taxes on it. While it may be nice to take money out of the business tax free, thatís ultimately not allowed business owners are going to have to pay taxes sooner or later. Because the decision between salary versus dividends ends up being tax question, how they take it ends up being part of an efficient tax strategy.
In order to come up with a great taxes strategy, business owners need to work fairly closely with part-time CFO is going to take the time to understand their business. Business owners should resist the urge to try and hire the most cost-effective accounting service that they can find, because they should always keep in mind that and getting what they pay for, what they can save and accounting services, is far outweighed by how much extra they can end up paying in taxes than if they hired the good accountant from the beginning.
Some warning signs that business owners can look for to decide if the accountant they are talking to is the right one for them or not. Anyone who answers the question what they should be paying themselves in business, simply, or without trying to get additional information is not going to be understanding with the situation as well as they should. If business owners already have accountant theyíre trying to figure out if they are utilizing efficient tax strategies for, and easily for entrepreneurs to check is to review their financial statements. If they are getting paid percent dividends are hundred percent salary, that could be a clue to entrepreneurs that their accountant is not enough thought into their tax strategy. Most efficient tax strategies have a combination of both dividends and salaries based on a number of factors.
Chartered professional accountants at Spurrell and Associates have undergone several years of school, and have many years of creating efficient tax strategies for their businesses says part-time CFO. Not only do they have lots of experience, but they also have created some formalized processes when it comes to tax strategies. In order to be able to get not only a lot of information from the client, but the right information, they created processes that help them discern the information. Once they have the information, they also have developed processes that can help them create their grades tax strategies with the information they received. Because of those processes, they can eat great tax plans very efficiently.
By saving thousands of dollars in taxes a year on great tax strategies, entrepreneurs can use the increased cash flow in their business to avoid running out of money in their business says part-time CFO.