5 Small Business Accounting Issues for Summer 2020

The COVID-19 pandemic threw the world economy into chaos. Small businesses were some of the hardest-hit in the United States, and the government responded with a stimulus package to help keep small businesses afloat. In today’s blog from LongSchaefer, we examine five small business accounting issues to keep an eye on during the summer of 2020.

Related Post: Reasons You Should Hire a Small Business Accountant

1. Cash Flow 

Cash flow is foremost on the minds of small business owners. Robust and accurate data is the first step to figuring out the best way to move forward. You need accurate numbers in terms of revenue, expenses, and staffing. Once you reach a certain threshold, you must add or subtract your costs as needed. Small business accounting can help you measure and interpret your data to give you an idea of when to take action. 

2. Tracking Business Losses From COVID-19

Small business accounting software gives you tools to track all of your financial data. The more information you have, the better prepared you are to make decisions about the coming months. Track your business losses from COVID-19 correctly. Business losses offer some opportunities for relief. No one wants to default on business loans. However, if you have strong data you can give to your bank, the financial institution might be willing to work with you with regards to delaying payments on loans you received before the pandemic happened. 

If you received SBA loans as part of the CARES Act, you might be able to delay making payments on the loan for up to six months. Our small business accounting experts can help you navigate your debts and help you discuss the situation with your bank. 

3. Employee Numbers

Staffing and labor costs are the number one line-item expense for many small businesses. You need to know how many employees you can afford to keep, how many hours you can afford to pay them, and what rates you can pay your workers. Talk to your employees. Get a feel for how things are going. Was their stimulus payment enough to cover any gaps they have in unemployment or reduced hours?

4. SBA Emergency Funding Forgiveness: Yes or No?

Staffing numbers were a major factor in how much money you received for the SBA’s Paycheck Protection Program (PPP) loan. How your staffing levels affect the loan forgiveness process can help you save money on staffing expenses in the future. Small business accounting experts help you meet your loan obligations if you want to have the best chance for loan forgiveness. The SBA’s regulations may change with regards to the emergency funding, and LongSchaefer is staying on top of the evolving situation.

5. Tax Deadline of July 15

The tax deadline for federal and Ohio filers was extended to July 15. Amid the coronavirus pandemic, filing taxes is probably the last thing on your mind. Small business accounting pros at LongSchaefer have an easy way for you to submit your documents to us ahead of the filing deadline. Our TaxCaddy portal makes it easy to submit your documents and information. Let us know if you need further assistance!

Related Post: Seven Common Small Business Tax Myths

LongSchaefer: Here for You

Our mission is to help you achieve your definition of success. LongSchaefer aims to be a calming force in the storm of financial calamity after COVID-19. We’re staying on top of new information as it comes out, and we offer expert, qualified advice for your small business accounting needs. Contact LongSchaefer or call (513) 245-0300 to see how we can help your business.

How Does Tax Preparation Work With Businesses?

For most businesses, accurate and efficient tax preparation is extremely important. When businesses make mistakes in their tax preparation, it can lead to serious financial penalties, criminal charges, and even the loss of a business license. In today’s blog post, LongSchaefer explains the basics of business taxes and how to know if your business needs professional tax preparation.

What Type of Business?

The type of business you own will play a role in how your taxes are prepared. Small business filings are different from those of large corporations. If your business is a corporation, it might be a C-corporation or an S-corporation. C-corporations are recognized as a separate taxpaying entity. S-corporations elect to pass income, losses, deductions, and credits through to their shareholders, then the shareholders report the income on their personal tax returns. Nonprofit entities have a completely different filing process altogether. A properly structured business with appropriate tax preparation can substantially lower the tax burden.

What Are My Options?

For some corporations, tax preparation may involve an in-house department devoted to tax prep. Other corporations that value efficiency may have their tax preparation handled by a third-party firm like LongSchaefer. Many small business owners file on their own, but there are a lot of details to deal with. From deducting expenses to depreciating assets, from payroll recordkeeping to renewing your ITIN, small businesses often struggle to check the boxes at all, let alone maximize their deductions. If you are unsure of your options, the team at LongSchaefer is happy to provide a no-pressure assessment of your business’ tax needs.

When You Need Professional Tax Help

Tax preparation is a difficult and delicate process for businesses. Even for a small business, it is almost always worth it to outsource your tax work. When you hire a tax preparation company like LongSchaefer, you can be sure that your taxes will be handled properly, so you can focus on what matters. 

Contact LongSchaefer for More Information

For more information on tax preparation, give LongSchaefer a call today at (513) 245-0300 or contact us online today.

Common Businesses That Need Tax Services

For businesses, there are few administrative tasks and processes more important than tax work. Tax mistakes, even when unintentional, can lead to lengthy battles with the IRS with dire consequences such as tax fraud charges. Under-reporting income, over-reporting expenses, and even not reporting taxes such as sales tax or payroll taxes can lead to big problems with various taxing authorities, including the IRS. Therefore, businesses must consider professional tax services when there are questions or concerns. LongSchaefer looks at three common business types that can benefit from tax services in today’s blog. 

Law Offices

Legal practices already utilize tremendous amounts of administrative and clerical work. Few businesses have more paperwork floating around than a law office. Because of numerous tasks to keep track of, law firms may overlook proper tax work. Even if law offices stay on top of their finances, they won’t be able to complete it with the same level of expertise as a professional tax office. Attorneys and their firms should consider professional tax services to prevent tax problems and avoid hassles with the IRS.

Dentists

Dental practices already have enough on their plates when dealing with private insurance companies, as well as patients with Medicare and Medicaid. Think about how much more administrative paperwork a dentist’s office has to deal with when it comes to tax time. With professional tax services, dentists can delegate that work to a skilled accountant and stay focused on what is most important: their patients. 

Small Businesses

Small business owners can’t leverage the same type of financial resources as larger businesses and corporations. That means they have smaller staffs and have to carry more of the day-to-day workload. Owners juggle finances, daily tasks, employee schedules, problem-solving, and delivering products or services to customers. It’s far easier for small businesses to make tax errors because owners try to juggle tax filings along with their already heavy workload.  At LongSchaefer, our team helps small business owners avoid trouble with the IRS thanks to our professional tax services. We make your life easier by allowing you to focus on your business instead of taxes. 

Contact LongSchaefer for Tax Services

If you need tax professionals on your side, LongSchaefer has the experience you require. For more information on our services, give us a call at (513) 245-0300, or contact us online today. 

Reasons You Should Hire a Small Business Accountant

Reasons You Should Hire a Small Business Accountant

Whether you are starting a small business or running one that has been established for years, you should consider hiring a small business accountant. In this blog, the team at LongSchaefer presents a few reasons why you should hire a small business accountant.

Make Intelligent Financial Decisions

Even if you feel like your business is doing fine, an accountant could allow you to bolster your billing systems, and increase your receivables and time payable. An accountant could also help you by consulting on financial decisions. They helpl monitor your financial reports, and provide valuable analysis.

Protect Your Business

If you hire a reputable professional, you know that your financial information is protected and you are on track to accomplish your goals. If you are feeling overworked, and you worry about how much your responsibilities will grow as your business grows, it is the right time to hire an accountant. If your business is in its infancy, you should hire an accountant to help you prepare your business plan and apply for commercial financing. We could help you to structure your business, to optimize for tax and revenue. When acquiring new assets or selling existing assets, consulting with your accountant could maximize your returns. We are dedicated to supporting the financial success of your business.

Contact LongSchaefer Today

If you are looking for an experienced accountant to help your business, at any stage, look no further than the experts at LongSchaefer. The LongSchaefer team has been supporting business owners in the Cincinnati, OH, area since 1981. Contact us online or call us today (513) 854-0217.

May 2020 COVID-19 Update

In order to comply with the Ohio Health Department Order & CDC social distancing recommendations, our offices are closed until further notice. Rest assured that our established protocols and available technology will allow us to provide the same level of service and quality you expect from LongSchaefer during this time.

The SBA has announced details of how it’s helping small businesses through the Coronavirus outbreak. The IRS is sending payments to families affected by this crisis. 

Please click on our Coronavirus information pages for more information.