SK CPAs & Business Advisors

Have you been considering creating a 401(k) plan as part of your employee benefits package but aren’t sure if it’s the right move? Offering a 401(k) plan to employees can be a good idea for small businesses for several reasons: Attract and retain top talent: Offering a 401(k) plan can make your small business more competitive when it comes to attracting and retaining top employees. Many employees consider a 401(k) plan an important benefit when choosing where to work. Tax benefits: Small businesses that offer a 401(k) plan may be eligible for tax benefits, such as tax deductions for contributions made to the plan. Employee savings: A 401(k) plan can help employees save for retirement, which can lead to increased job satisfaction and less financial stress. Employer contributions: Employers can choose to make contributions to employees' 401(k) accounts, which can help attract and retain top talent and show that the company values its employees. Employee education: Offering a 401(k) plan can provide an opportunity for employers to educate employees about retirement planning and investment options. The Department of Labor offers a great resource for questions about establishing a 401(k) plan. Need help creating and implementing a 401(k) for your business? The business advisors at Stitely and Karstetter can help. To learn more about our offerings and schedule a consultation visit our website (www.skcpas.com) or call us at (703) 802-2309 today!

Run Your Business with More Clarity – Outsourced CFO Benefits As a business owner, managing finances and making informed financial decisions are crucial for long-term success. However, few small businesses can afford a full-time Chief Financial Officer (CFO). That’s where outsourced CFO services come in. Outsourcing your financial management to a skilled and experienced CFO service can bring numerous benefits to your business. Streamlined Financial Strategy Outsourced CFOs bring their expertise and knowledge to the table, helping you develop a streamlined financial strategy for your business. They analyze your financial data, identify areas of improvement, and provide valuable insights to make informed decisions. With their assistance, you can set clear financial goals, allocate resources effectively, and optimize your overall financial performance. By outsourcing CFO services, you gain access to expert advice without the cost of hiring a full-time executive, allowing you to focus on running your business more efficiently. Cost Savings Hiring a full-time CFO can be expensive, especially for small and medium-sized businesses. Outsourcing this role allows you to save on recruitment, salary, benefits, training, and office space costs. These outsourced services typically offer flexible pricing options tailored to your business’s needs and budget. This cost-effective approach ensures that you receive professional financial guidance without the burden of hefty overhead expenses. You can redirect these savings towards business growth, innovation, or investing in other key areas. Need advice on outsourcing your financial services? Contact your small business advisors at S&K today: https://lnkd.in/eF8HBxW6

Steps for a Disabled-friendly Workplace How do you get the best employees to work at your company? Start by making your company more inclusive. Even though you are not discriminating against employees with disabilities, you might not being doing all you can to make your workplace as disabled-friendly as possible. Here are five simple steps your business can implement to make your work environment more inclusive: - Use technology, such as speech-to-text software to help a visually impaired employee, or captioning screens for people who are deaf or hard of hearing. Partner with a nonprofit job-training agency in your community that provides job coaching for people with disabilities. This will enable you to understand what support employees may need at your company. Include disability awareness throughout your company so that all employees understand the value of hiring a diverse workforce. You could include this information in diversity training, focusing on disability awareness and inclusion. - Make your office or facility an accessible environment by seeing that restrooms, hallways and storage spaces are accessible for people of all heights and mobility. - See that your online presence is more accessible by using alt tags that translate visual images and employs captioning on videos. Scroll through our blog to read more: https://lnkd.in/eDg39NWu

Last-Minute Tax Prep Tips for Small Business Owners As tax season approaches, small business owners often face the challenge of gathering documents, crunching numbers, and ensuring they’ve left no stone unturned. Whether you’re scrambling to finalize your tax return or just trying to avoid unnecessary stress, these last-minute tax prep tips will help you meet deadlines and avoid costly mistakes. Gather and Organize Your Documents The key to a smooth tax filing process is having all your documents in one place. Create a checklist of the essential records you’ll need, such as: Income statements (ex: 1099 forms or invoices) Expense receipts, including for travel, supplies, and meals Payroll records for employees Bank statements and credit card records Last year’s tax return (for reference) If you’re not sure what you need, consult with a tax professional, such as the tax experts at SKCPAs, to ensure you’re not missing anything important. Double-Check Your Deductions Maximizing your deductions can significantly reduce your tax bill, but it’s easy to overlook some write-offs in the rush to file. Make sure you’re claiming: Home office expenses: If you use part of your home exclusively for business, you may qualify for this deduction Vehicle expenses: Keep accurate mileage logs or calculate your vehicle’s use for business Retirement contributions: Contributions to SEP IRAs, SIMPLE IRAs, or solo 401(k) plans can lower your taxable income Professional fees and subscriptions: Costs for memberships, software, and training related to your business. Need Expert Help? Contact SKCPAs Today Don’t let last-minute tax prep overwhelm you. At SKCPAs, our small business accounting experts are here to guide you through the process, ensure compliance, and help you uncover opportunities for tax savings. Reach out today for personalized assistance and make this tax season your smoothest one yet!

Are you a small business owner seeking financial support to start, expand, or maintain your business operations? Understanding the various types of small business loans and financing options available can be crucial. Here, we’ll explore some common options, their eligibility requirements, and how they can benefit your business. Traditional Term Loans: As a small business, you may consider traditional term loans offered by banks. To qualify, you’ll typically need a good credit score and a solid business plan. These loans provide a lump sum that is repaid over a set term with a fixed or variable interest rate, making them ideal for long-term investments like equipment purchases or expansion. SBA Loans: The Small Business Administration offers loans that are guaranteed by the government, making them more accessible to small businesses. While they come with longer terms and lower down payments compared to traditional loans, the application process can be lengthy. Business Line of Credit: A line of credit works like a credit card, providing access to a set amount of funds that can be drawn upon as needed. Interest is only paid on the amount used, making it a flexible option for managing cash flow fluctuations. Invoice Financing: Also known as accounts receivable financing, this option allows you to borrow against unpaid invoices, providing immediate access to funds that would otherwise be tied up. Merchant Cash Advance: This option provides a lump sum in exchange for a percentage of future credit card sales. While easy to qualify for, merchant cash advances can be expensive due to high fees and interest rates. Understanding these financing options and their eligibility requirements can help you make informed decisions about funding your operations. By choosing the right option, you can access the capital you need to grow and thrive. If you need assistance in understanding and choosing the best option for your business, reach out to the experts at SKCPAs for guidance and support. To learn more about our offerings and schedule a consultation visit our website (www.skcpas.com) or call us at (703) 802-2309 today!

Do You Qualify for Employer Retention Credits? For a separate charge unrelated to your Total Accounting Care fee, the Stitely and Karstetter (S&K) team can meet with you to offer guidance on the requirements to qualify, as well as file your tax credit application. Are you confused about Employee Retention Tax Credit? The S&K Tax Division Team can help. The government recently released additional guidance on the requirements to qualify under “Partial Shutdown” rules. This means more clients may qualify than under original rules. Even if your quarterly revenue increased from 2019 to 2020 and/or to 2021, you may still qualify under the new rules. The IRS says if your business has suffered a *full or partial suspension* of operations in any calendar quarter in 2020 or 2021, then you may qualify. What IRS deemed a partial suspension/shutdown has been less than clear in the past. Currently, our federal friends define this as “more than a nominal portion of business operations are suspended by a governmental order.” They then define “nominal” in this new notice as less than 10% of either total gross receipts of the business operations or the total hours of service performed by all employees. What does that mean for you? More businesses may have been indirectly impacted by a governmental order, although they continued to operate. It will depend on whether the portions of your business that were affected by a shutdown order make up more than the “nominal” portion of your business. What should you do next? CONTACT S&K! We at Total Accounting Care, along with our friends at S&K, are here to help, as these credits are extremely complex and have many other rules to follow. We are rapidly assisting clients with applying for these credits and look forward to speaking with you and seeing if your business may also benefit from this additional guidance. Contact us today: 703-802-2309.

How To Use a Qualified Personal Residence Trust If you think you may face a gift tax issue, you may want a qualified personal residence trust—a type of irrevocable trust that can remove a house from an estate to reduce gift taxes when transferring it. Here's how it works: The taxable portion of your house is considered a future interest gift, but you can minimize it by using the estate and gift exemption. You, your spouse and any dependents can continue to live in the residence without any changes while it's inside the trust. You live rent free and continue to pay any normal operating expenses so you can claim all appropriate income tax deductions. But you only have a right to the residence for the trust-stated term, so your home isn’t as marketable as when you own your house outright. This of course increases the inconvenience to any creditors who can’t force you to sell your home. The longer the QPRT’s term, the larger your retained interest and the smaller the amount of gift tax exemption used. After expiration Once the term of the QPRT expires, you can still occupy your house, but you give up ownership to your beneficiaries. Then you pay a fair-market rent to keep living in your home, but that rent passes to the next generation without any gift tax implications. You’ll appreciate the financial perks—a QPRT removes all future appreciation from your taxable estate while using little of your lifetime gift tax exemption. You’ll also be hedging against possible decreases in the shared lifetime gift tax and estate tax exemption. You’ll lock in the value of your residence for gift and estate tax purposes. You won’t have to worry about how much your house appreciates in value. However, it's not without risk: The QPRT transaction will be completely undone if you die before the trust period ends. The value of your home will be reassessed and included in your taxable estate at its full fair market value as of the date of your death. To learn more about our offerings and schedule a consultation visit our website (www.skcpas.com) or call us at (703) 802-2309 today!

Choosing the Right Structure for Your Business Sole Proprietorship: A sole proprietorship is the simplest form of business structure. It’s easy to set up and gives you full control over your business. However, you’re personally liable for all business debts and obligations. Accounting tip: From an accounting standpoint, keep your personal and business finances separate. This helps track business expenses accurately and simplifies tax preparation. Limited Liability Company (LLC): An LLC offers a balance between simplicity and liability protection. It separates your personal assets from your business liabilities, reducing personal risk. It also allows for flexible tax treatment – you can choose to be taxed as a sole proprietorship, partnership, or even a corporation. Accounting tip: Maintain clear records of business transactions and keep up with required state filings. S Corporation: An S Corporation combines the limited liability of a corporation with the tax benefits of a partnership. Owners, also known as shareholders, report their share of business income and losses on their personal tax returns. This structure requires adhering to specific regulations, such as having a board of directors and holding regular meetings. Accounting tip: Proper documentation of these activities is essential. Partnership: Partnerships involve two or more individuals who share the responsibility of running the business. There are general partnerships, where partners share equal responsibility and liability, and limited partnerships, where one partner has more control and liability than the others. Accounting tip: It’s crucial to draft a partnership agreement that outlines each partner’s role, profit sharing, decision-making processes, and procedures for conflict resolution. To continue reading our blog, visit: https://lnkd.in/e6XwYQmd To learn more about our offerings and schedule a consultation visit our website (www.skcpas.com) or call us at (703) 802-2309 today!

As a small business owner, you understand the importance of making every penny count. But did you know that giving to charities and nonprofits can not only make a positive impact on your community but also offer significant tax benefits? Learn how strategic giving can benefit your small business and your bottom line. 1. Fulfilling Corporate Social Responsibility (CSR): Today’s customers are more socially conscious than ever before. Supporting charitable causes aligns your business with a higher purpose, showcasing your commitment to making a difference in the world. This can enhance your brand reputation and attract customers who value businesses with a strong sense of CSR. 2. Tax Deductions: Donations to qualified charitable organizations can provide valuable tax deductions for your business. By giving to charities and nonprofits, you can potentially reduce your taxable income, which in turn lowers your tax liability. This means you can allocate funds you’d otherwise pay in taxes to causes you care about. 3. Employee Engagement: Engaged employees are more motivated and productive. Encouraging your staff to participate in charitable initiatives, whether through volunteer work or donation matching programs, can boost team morale and foster a positive work environment. Plus, it’s a great way to involve your employees in your business’s charitable endeavors. To continue reading, visit: https://lnkd.in/erkCiH2a

Handling Foreign Assets Do you hold foreign assets outside of the United States? Under the Foreign Account Tax Compliance Act (FATCA), US taxpayers holding financial assets outside the country must report those assets to the IRS using Form 8938, Statement of Specified Foreign Assets, which is attached to your annual return. The IRS limits your responsibilities in order to make reporting easier. First, the aggregate value of your foreign assets must exceed $50,000 to be reportable. Additionally, you don’t have to file Form 8938 if you don’t have to file an income tax return for a tax year, regardless of the value of your specified foreign assets. Just a warning…the forms are long and complicated, so bringing in a financial professional may help. Form 8938 is three pages long, but the instructions are 14 pages long and define the strict procedures for properly filling out the form. For example, you have to convert the value of foreign holdings into US currency, and the IRS has specific rules on how to calculate the value of assets and what exchange rates to use. Also, the IRS clarifies what is and is not a foreign account — the dividing line can be difficult to find. Sometimes, an account may appear to be foreign, but the IRS considers it to be domestic, and thus it is not reportable on that form. For instance, an account at a foreign branch of a US bank is not reportable, and neither is an account at a US branch of a foreign bank. Also, you may also have to file FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR). The Financial Crimes Enforcement Network is a bureau of the US Department of the Treasury that collects and analyzes information about financial transactions to combat domestic and international money laundering, terrorist financing, and other financial crimes. The FBAR can also be complicated, but like the IRS, FinCEN permits you to hire a tax preparer to file it on your behalf. Take reporting seriously To learn more about our offerings and schedule a consultation visit our website (www.skcpas.com) or call us at (703) 802-2309 today!