The Problem: Client started a new business but was struggling to understand tax requirements of the entity type and specific to the industry and did not know his financial position. He also had many questions regarding onboarding employees and contractors, insurance, leveraging use of credit cards versus equity, whether to put himself on payroll or pay himself as a draw, but didn’t know if he needed a personal financial advisor or bookkeeper or CPA for tax. Additionally, the business had too many workers comp claims, so he was required to get a PEO.
Analysis of Alternatives: Hire a bookkeeper to keep the books, a personal financial advisor for tax advising, & a CPA for his 1120S tax preparation and filing, and individual tax filing. Manage on his own.
Recommended Solution: Work alongside our team who wants small local business to succeed and have
access to same resources as other big corporations, to grow and further help the community. We were able to connect our client with some of the partners within our network, such as insurance, to support and grow his business.
Implementation: Prepare financials for client and educate him on a macro-level on what each means as far as financial performance, profitability, & long-term growth. Educate client on his entity structure and what that means for tax on his personal side as a pass-through entity. Develop a policy and procedure for onboarding contractors, tracking purchases & expenses, & investing in fixed assets. Discuss options to help maintain the business during COVID with resources & programs.
RESULTS: Understanding the needs of a client running & building a new business support in creating a solid foundation to effectively handle sales growth from X to Y to handle residential business and extend beyond to commercial moving. Additionally assisted in obtaining SBA lending during COVID to provide working capital.