Education businesses in the United States face significant challenges as they may see the divide between their expenditures and revenue separate. This divide has required many entrepreneurs in the educational field to find creative financial management solutions to ensure the viability and sustainability of their business.
Education business CPAs are focused on costs and expenditures and look for creative education business tax planning strategies to minimize tax liability. Accounting software like Acumatica may prove to be valuable in helping many businesses achieve this goal.
Tax Management with Acumatica
Few would argue that education is an important service to help society grow. However, you may or may not agree that your education business is a business. Profitability may be key for your education business to deliver services to your students. Part of profitability is minimizing expenses, such as tax liability.
Acumatica is a cloud-based tax accounting software that allows you to configure tax rates, generate tax reports, and perform tax accounting in one place. It gives you or your education business CPA the financial management tools to effectively calculate taxes correctly for all of your transactions.
Even if your education business qualifies for the tax-exempt status defined by IRC Section 501(c)(3) because of its educational purpose, you may have to pay payroll taxes for your employees and tax on income from business, activity, or trade that is not substantially related to the education your business offers.
Acumatica streamlines your education business tax planning by offering several education business bookkeeping tools. The following list highlights a few key features:
· Track Project Costs– This feature gives you a global view of costs for materials, labor, services, and invoiced items.
· Accurately Bill- This allows you to vary billing rates by employee, project, or the type of work done.
· Budget Reporting- This feature lets you compare the actual cost of education projects and adjust budgets and forecasts based on real-time reports.
At Fusion CPA, our education business accountants can show you how Acumatica’s comprehensive tax accounting features may help save you time and money.
Use Acumatica to Streamline Your Education Business Bookkeeping
Acumatica can streamline and sometimes automate bookkeeping tasks for collecting, managing and reporting tax. Still, it should not replace your accountant. Acumatica’s financial management suite lets you store all of your tax information in one place, whether you have one school or various schools. Your education business accountant can easily create tax filing reports tailored to your business.
In addition to its automated features, Acumatica will allow you to make manual tax adjustments and then have this information posted on a general ledger tax liability account. The tax management module of Acumatica is integrated into all the modules of this software that require tax calculation. Accurate bookkeeping, accounting, and tax planning are essential for a large number of education businesses, especially if your business has achieved tax exemption. Each year you may need to show compliance with federal and state tax laws and may face audits and public reports. The automatic bookkeeping features of Acumatica can help your education business stay compliant with tax laws.
Education Business Tax Compliance: One question you may e asking is how to stay current with tax laws. Tax laws affecting education businesses typically change every year. However, not being aware of the change may not protect you from the financial and legal consequences of noncompliance. Here at Fusion CPA, we offer education business CFO business advisory services designed to help your education business stay up-to-date and compliant.
From budgeting to forecasting and accounting services to tax reduction strategies, Fusion CPA’s team of proactive education business financial advisers are committed to helping your education business leverage every deduction, incentive, and break available to you. We have extensive experience with wealth planning and minimizing tax liability. Are you looking for innovative financial and tax strategies to increase capital and grow your education business? If so, we are here to help. Let’s talk. You can learn more about our services by clicking the button below to schedule a complimentary discovery call today!
This blog article is not intended to be the rendering of legal, accounting, tax advice or other professional services. Articles are based on current or proposed tax rules at the time they are written and older posts are not updated for tax rule changes. We expressly disclaim all liability in regard to actions taken or not taken based on the contents of this blog as well as the use or interpretation of this information. Information provided on this website is not all-inclusive and such information should not be relied upon as being all-inclusive.