The past 10 years have seen a growth in the number of minority-owned businesses in the United States. Data compiled by the Business Journals show that in 2017, there were over 11 million minority-owned businesses. These employed over 6.3 million people and generated more than $1.8 trillion in annual revenue. Some of the biggest challenges facing minority-owned businesses are navigating the bookkeeping, accounting, and tax planning aspects of business ownership.
The Role Of Tax Planning In Minority-Owned Businesses
Minority owned business tax planning allows entrepreneurs to grow their company while reducing anxiety. Minority owned business bookkeeping is key to lessening overall tax liability. It provides minority owned business accountants the tools needed to prepare taxes strategically and professionally. Minority owned business bookkeeping helps identify tax credits and deductions that minority-owned businesses have available to them.
Minority owned business tax planning is difficult because of complicated and changing tax regulations. The core responsibility of Minority owned business CPAs is staying on top of these adjustments and help their clients plan for fluctuations in tax laws.
When a business gets fined because they failed to meet filing deadlines, they are throwing away money. Success depends on business owners being able to work with minority owned business accountants when filing quarterly payments, calculating sales tax, and calculating payroll tax.
Business Accounting & Bookkeeping Terms You Should Familiarize Yourself With
Essential financial tools allow business owners to understand the financial position of their company. Being financially informed and seeking advice from small business CFO advisory professionals can help business owners make sound business decisions.
Some terms to remember:
• A balance sheet lays out a company’s total assets, liabilities, and capital.
• Profit and loss or income statements show the revenue and expenses generated during a particular time frame.
• Cash flow statements detail cash flow coming into and leaving out of the business.
This information will make it possible to prepare a business budget that will estimate future expenses and the income needed to sustain operations. A well-documented plan is essential when seeking funding or investments.
What Is Involved in Minority Owned Business Bookkeeping?
Minority owned business CPAs stay on top of business accounts. The ability to keep on top of daily transactions, including sales and purchases, makes it easier for a business to watch its cash flow. Using accounting software like QuickBooks Online, which can automate some processes, saves time on data entry.
Bookkeeping is about keeping track of business records and identifying inconsistencies. When you find inconsistencies between the books and the business accounts, it is imperative to resolve these discrepancies quickly.
Tax laws are sensitive. One mistake and the IRS or the SEC will be breathing down a business’s neck. Good advice from minority owned business financial advisers can help businesses make sure that their business practices are in harmony with relevant laws.
When bookkeeping is not a priority, filing deadlines can slip under the radar. However, when you keep records accurately, your taxes get filed on time.
Many minority owned business financial advisers encourage clients to link their bank feeds with the software used in their business bank account. This allows bookkeepers, accountants, and business owners to see all transactions made in real-time.
Accurate bookkeeping means being able to prepare invoices and send them to clients quickly. This is integral to receive payments on time. It makes managing the accounts receivable ledger simpler. It also makes following up on any payments that are due easier. Here at Fusion CPA, our experienced minority owned business accountants can help stabilize your finances and provide accurate reports. We offer minority-owned business CFO advisory services to small and medium-sized enterprises around Atlanta and other parts of the US. Our services include tax planning, bookkeeping, and general accounting. 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.