FINANCIAL TIDBITS!

Tax Deadlines for 2023

March 15th - S Corp Returns and Partnership Returns due

April 18th - C Corp and Single Member LLC's returns due

Quarterly Tax Payment Dates for 2023:

1Q — April 18, 2023

2Q — June 15, 2023

3Q — September 15, 2023

4Q — January 15, 2024

As a single-member LLC business owner, compensating yourself may or may not be a write-off for your business.

Listen to the financial tidbits shared by Founder & President of McMurtry Financial Services, LLC, Cheryl McMurtry, as she explains how the IRS determines whether paying yourself is a viable tax-deduction for your business.

Here are some things to consider:

1. For tax purposes, your business is a disregarded entity

2. Have you taken advantage of the S-Corp tax election?

3. Single-member LLC business owners are double taxed.

Are you ready to expand your business?

Here are a few tips to get your next customer in the door and grasp the business you need!

-Build a sales funnel

-Utilize online customer management software

-Research competition

-Implement customer loyalty program

-Build an email list

Like anything else in life or in business, you have to put in the time if you're looking toward the benefits. Don't focus on the short-term outcome of your work. Look to the long term. Build sincere value and look to help your customers. Genuinely care. That should be the foundation!

As more people join the world of entrepreneurship, it is important to remember that running a business for longevity takes more than a good product or service. While designing a brand, choosing a name, and developing a project can be exciting, entrepreneurs must put some time aside to work on good financial management. This is important for having money to produce new ideas, market current products, and get the word out about your company.

Here are five skills to all entrepreneurs should know:

1. Managing Cash Flow: Cash has been proven to be the most critical for new ventures with limited lines of credit and difficulty financing. Without this necessary cash, it can be extremely difficult to grow your business with supplier, inventory, and new customers.

2. Maintaining a Balance Sheet: The balance sheet, or a snapshot of a company’s position at a particular time, allows potential leads to quickly see the resources available to them and how those resources were obtained, and financed. Another important aspect of the balance sheet is the way it allows business owners to keep their business in check efficiently. Keeping an eye on liabilities simultaneously with sales will be important for proper growth.

3. Identifying Path to Profitability: This may seem like an obvious skill for those who are trying to start a business must obtain, but many times we see business owners fall short of their profitability goals which can hinder the success of a business. Often, business owners will take a loss in the early stages of their business to increase customer reach, visibility and more. But remember that this is not a long-term strategy and may do more harm than good if a path of profitability is not created.

4. Communication About Company’s Profitability: When dealing with financials of your business, it is vital to have solid communication skills. “Clear communication, especially in relation to terms of payment and scope of work, allows you to ensure that all parties are properly aligned, protecting you and your business from assumptions or miscommunication”.

5. Business Forecasting: An entrepreneur must be capable of making predictions about the future of their business to grow properly. Accurately predicting your businesses future will allow investors, funders, clients, and employees to create long-term commitments to your company.

There is a payroll tax deferment that began September 1st. Do you have questions about whether your business is required to defer this tax or whether you qualify for it as an employee?

1. Only Social Security tax is deferred from September 1st-December 31st 2020.

2. It applies to employees that receives $4,000 or less in a given pay period.

3. It has to be withheld and paid by April 30, 2021.

As we have been navigating through covid19 with small businesses and non profit organizations, there was a discovery of the need to have ongoing maintenance of the financial records for their business. We have received several calls from organizations looking for accounting services after a realization that they don't have what is needed to apply for assistance that is available during this crisis. Preparation is the remedy for a crisis! What financial records should a business always have in place?

1. A current balance sheet and profit & loss statement

2. Payroll records

3. Tax filings, i.e. 940's and 941's, Form 1120, 1120-S, 990 or Schedule C (whichever is appropriate for your type of business) prepared and filed

Let's not find ourselves unprepared the next time a crisis hits. Invest in an accountant today it will cost you less in the long run!

Have you wondered the correct way to classify a worker? Are they an employee or independent contractor? The IRS has common law rules to determine this:

1. Behavioral-Do you control or have the right to control what the worker does and how it is done?

2. Financial-Do you control how the worker is paid?

3. Type of Relationship- Are there written contracts or employee type benefits?

I know many individuals that have their own business or they're a leader of an organization but only engages with an accountant during tax season. I'd like to believe it is because they don't understand the #value of working with an accountant throughout the year. What value do we bring?

1. An accountant ensures that a company or organization is operating as fiscally efficient as possible while remaining compliant with all regulatory agencies.

2. Your accountant will provide you with your organization’s profitability, the value and nature of your organization’s assets, liabilities and owner’s equity.

3. They will reveal resources available to you, the means employed to finance those resources and the results achieved through their use.