Archives for August 2012

Small Business Tax Deductions- What to be Thinking About before Tax Time

Since the year is now more than half way over, it is important to keep in mind the different tax deductions that can help your business. There are a few basic tax deductions that small business owners need to think about before tax season approaches. As a business owner it is important that you help your business in every way possible.

Here is a list of a few tax deductions that are easy to keep track of and can help when tax time approaches.

  • Mileage – If a car is used for business purposes then mileage can be recorded. The reimbursement rate for mileage is 55.5 cents per mile. Parking fees and business related tolls may also be deducted. Make sure that you are keeping a mileage log for record all the mileage used for business purpose. No not count any mileage that is personal use.
  • Books and Professional Fees – Spending money on books, including books on legal or tax information, to help you run your business can be very helpful when starting a business. All of these books are deductible at tax time. Also any fees spent on lawyers, tax professionals or consultants can be deducted in the year that they occur.
  • Travel – With some business, travel can be very important in building client relationships. Many business related travel expenses, including plane fare, rental car expenses, taxies, lodging, meals, shopping for business materials, cleaning clothes, phone calls, faxes and tips are all deductible. When combining business and pleasure id ok as long as the main reason for going is business. If the family comes along their expenses are not deductible.

Business Entertaining- Another way to build client relationships is to take them out for a meal. When entertaining a client or perspective client 50% of the check can be deducted at tax time, if business is discussed before, during or after the meal. Make a note on the bill to remember which client and the purpose of the meal.

There are many deductions that can be taken during tax time, and these are just a few. Remember that a good tax professional will guide you through tax time and what you will need.

Here at Crowley & Halloran CPA’s, our consultants would be happy to help you plan and manage your business budget. Click here to request a proposal.


Will Your Business Last? Succession Planning Can Help!

Many business owners are so focused on the day-to-day operations of their business and their short-term goals that they don’t think much about what will become of the business when key people leave. Retirement and moving on to other opportunities are realities, though, and it helps to have a plan for who is going to fill in the gaps and how the company will be managed when this happens. That way you can have a graceful transition from one leader to another without having to scramble.

The biggest component of succession planning is in terms of leadership. Especially in a smaller business where you run most of the arms of the business, it may be difficult for any of the existing employees to transition up into your position. In a larger company, you’ll have many levels of successors, often having one or more people selected to fill each of the major leadership positions in your company. You may even choose to promote several people to retain their hierarchy while moving them all up.

The other component of succession planning is with regard to finances. When you have such a large stake in the ownership, you need to determine how it will transfer when you pass away, retire, or sell the business. Hiring a CPA to determine the overall value of the business is one important step to go through if your company is not publicly traded. Your stake may get divided among other partners or all go to a single successor. You also will want to outline methods by which stakeholders can buy and sell shares to change patterns of ownership. There are also many other components of business assets to consider, like life insurance policies, retirement schedules, and…

If you have never run a business before, succession planning may seem like a daunting task. That’s where Crowley & Halloran CPA’s come into the picture. Succession planning is one of our specialties, and sometimes getting an outside perspective on potential successors and necessary financial steps is just what you need. We can walk you through each step of succession planning and help you develop a plan that is likely to bring your business far into the future.

Here at Crowley & Halloran CPA’s, our consultants would be happy to help you plan and manage your business budget. Click here to request a proposal.


Why You Need Professional Budget Planning and Management Services

Most businesses manage to pay their bills on a regular basis, but that doesn’t mean they’re doing the best possible job of managing cash flow on a monthly basis. Just as in households, having a smart business budget is one of the keys to eliminating cash leaks and increasing the amount of profits you get to turn around into expanding your business. Budget planning and management can help you achieve some of these results: [Read more…]