Tag: business accounting

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2020- Why This is the Year You can Profit from a CPA Partner

Do you fit in one of the following categories?

  • A business owner (regardless of size)
  • Self-employed
  • A business owner who received COVID-19 related SBA loan proceeds
  • An employer who took advantage of COVID-19 payroll tax incentives
  • An investor
  • A real estate owner
  • A recipient of income from partnerships and/or s-corps
  • An individual with significant out of pocket medical expenses
  • An individual who received and/or sold inherited assets

If you fit into any of the above categories, or believe that your accounting/tax situation includes some complexity this post is for you.

We all know that this has been a crazy year in terms of not only our national public health, but also in terms of our economic and business environment. During 2020 we have all seen an abundance of tax-related legislation introduced surrounding the COVID-19 pandemic crisis response. By now we have all grown familiar with hearing the terms PPP, EIDL, payroll tax deferral, employee retention credit, sick and family leave credit, and many more. Prior to 2020, these were unknown terms. Much of this legislation has also been revised a few times throughout the year, and has continued to grow increasingly more complex as 2020 has advanced.

If you are a complex individual, a business owner, or even someone with a “side gig” who has thought many times about extending your business partner reach by working with a CPA firm for accounting and tax preparation, this may be the right time. Due to the newly enacted tax regulations surrounding all things COVID-19, as well as the continuation of the regulations put in place through the Tax Cuts and Jobs Act (TCJA) this is a great time for you to establish a relationship with a trusted advisor who can help you navigate these complex times.

Why a CPA Firm?

I get the question quite often, “Why a CPA firm? Can’t someone who is a tax preparer just do my taxes?” Although it is true that someone who is a “tax preparer” can prepare and file your taxes for you, the greater question you should ask yourselves is, “What level of education, professionalism, and proven dedication to a profession should be important to me in such a volatile season while I am considering a partner?”

CPAs have not only achieved a great deal of formal education and certification that proves their dedication to a profession of serving the best interest of clients, but CPAs are also required to obtain 80 hours of continuing education every two years to maintain licensure. It is through our continuing professional education requirements that we focus on learning complexities of the ever-changing tax law/accounting regulations and how to apply these to best assist our clients in their unique situations.

Only CPAs are held to this high standard of continuing education.

I’m Interested, What Next?

Our firm, Bynum CPA, PLLC and our bookkeeping subsidiary company Arc Accounting, PLLC, would like to earn your business as your trusted advisors during this season. If you are interested or know someone who may be interested in tax planning, tax preparation, business bookkeeping, or payroll services please reach out to us.

You can email us directly at info@bynumcpa.com or head over to our website and fill out a contact form. Following that, we will reach out to you to arrange a time to chat about your needs either in person or via video conference.

As always, we are striving to serve our clients well and would welcome you as one of our own.

-Wes

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COVID-19 and the Gig Economy

As in all areas of our daily lives, technology has had a tremendous impact on how we define jobs, work, and professional development in recent years. As early as ten years ago, the typical professional career ladder looked very traditional beginning with gaining an education and ending thirty-something years later with some earned level of manager role inside an organization.

As technology and app-based tools were put at the fingertips of the masses, it became obvious to many that it doesn’t take a Zuckerberg level idea to be able to leverage technology in order to earn money. This realization has completely morphed our ideas of both work and earning money. Those that have embraced starting a “side hustle”, or even completely taking the plunge into self-employment while utilizing modern technology tools are referred to as “Gig Economy Workers”.

The “Gig Economy” is the fastest growing sector of our economy in terms of people becoming freelancers, independent contractors, and online small business owners. Gig economy workers often enjoy independence from traditional employment, creative freedom, and thrive in high levels of niche specialization. Examples of gig economy workers we interact with in our day to day lives can include the Etsy shop owner, Uber Eats driver, Lyft driver, freelance web designer, and a physician contracted in telemedicine.

Our current economic struggles associated with the COVID-19 pandemic have increased the interest of individuals to become more self-reliant and will likely cause an even more powerful surge in the gig economy following our nation’s recovery from the pandemic. Our view of remote work arrangements, as well as personal and professional priority balancing has rapidly changed as an entire society during this time. These effects will be long-term and will forever change the ways that we work.

As more people find themselves laid off from traditional employment or decide to walk away from corporate work and enter the gig economy, we will likely enter a period of innovation and strong entrepreneurship. The challenges that many people face when finding start-up success as a self-employed business owner, freelancer, independent contractor, or gig worker are associated with the legal and financial management of their businesses.

Self-employed individuals often need professional advice on entity selection and creation, accounting requirements and record keeping, payroll services, cash flow management, tax planning, estimated tax payments, and even personal budgeting. These are just a few examples of the many important aspects of joining this new economy as a successful entrepreneur and are issues which should be handled through working with a trusted professional. It is important to team up with a CPA and/or business attorney who operates as a licensed professional and keeps your best interest in mind.

Thinking about starting a small business and looking for a forward-thinking accounting firm? Contact us at info@bynumcpa.com for more information, or check out our sister companies at www.bynumcpa.com and www.arcactg.com for more information.

-Wes

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PPP Loan Update- New Forgiveness Rules

During the COVID-19 pandemic, many small businesses were able to work through their local banks and SBA lenders to access funds through the Payroll Protection Program (PPP). In response to a national emergency, this program was created quickly and many revisions to the terms have been made along the way. The most recent changes to the forgiveness terms were passed in the Paycheck Protection Program Flexibility Act and signed into law on June 5.

Many of my small business owner clients and friends were able to obtain funding through this program, and are now preparing to apply for forgiveness. If you are a small business owner and have not yet applied for the PPP program and feel like you might be eligible, act quickly. The deadline to apply through an approved SBA lender is June 30. I wanted to share with you some of the most important term revisions that the June 5 Flexibility Act created.

  • Extends the deadline to use PPP funds from June 30 to December 31, 2020.
  • Reduces the proportion of the loan that must be used for payroll-related costs from 75% to 60%.
  • Payback terms extended from two years to five years. No retroactive application of this rule for notes that were in place prior to June 5.
  • Eliminates the original forgiveness penalty based on businesses being required to maintain employee headcount at the same level as pre COVID-19.
  • Gives businesses 10 months to apply for loan forgiveness with their loan originator.
  • Defers loan payments of any kind until a forgiveness decision is made on each case by the SBA and original lender.
  • The period of time allowed to spend funds on allowable business expenses and apply for forgiveness is extended from the original 8 week period to 24 weeks from the date of loan issuance.
  • Businesses who received PPP funds can now utilize the payroll tax deferral rules that were included in the CARES Act and previously excluded PPP borrowers.

Your CPA business advisor can be a valuable resource in helping you with the application for PPP loan forgiveness.

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Check out www.bynumcpa.com and www.arcactg.com to learn more about professional services offered.