Archives for September 2012

Global Opportunities: Small Businesses Make the Leap

Crowley Halloran Conference RoomIn today’s business environment, the more ways a company can share their product, the better for the company. Markets all over the world hold potential for small business, but what does it take to get into the foreign markets? Can small business take advantage of the global opportunities? The answer is yes. The global economy has never had more opportunities for small business, and with a strong global financial strategy, small businesses are competing in foreign markets.

To succeed globally, small businesses need to create a global financial strategy. Small businesses will face common issues and a few roadblocks in the global market, but having a well-defined plan can make the difference between being successful and failing in the new market

Some questions to consider when creating your plan are:

  • What performance indicators need measured for both financial and operation purposes?
  • How will accounts receivable and payable be set up and managed?
  • Is there enough support for multiple locations and countries?
  • How will the company keep control over the global financial process?
  • How are local tax regulations and requirements managed for each foreign location?
  • How are different currencies handled in foreign locations?

Being able to answer these questions and any other unique question regarding your company is the best way to start.

Some strategies that help in making a successful transition are setting up multi-entity accounting, understanding foreign tax laws and codes, managing multiple foreign currencies, and having local human resources. Businesses with multi-entity accounting have consolidated their business processes. By consolidating business processes, the company will eliminate duplicate work, create a standard workflow, and be able to support the demands of a more complex business model. Hiring a local accounting firm to help with all the local tax codes and regulations would be extremely useful when breaking into the global market. They will be able to navigate your business through the different regulations, and be able to keep up with the different currency fluctuations. They can also be part of your management team that will take care of the day-to-day running of the business.

Ventures into a new market are exciting new opportunities for small businesses. With a proper plan and a good management team, anyone, even a small business, can take advantage of the global business opportunities.

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.

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IRS Payment Plan

If you were unable to file your taxes by April 15, you are not alone. Around 5.5 million business tax extensions are filed every year. This extra six months is a nice cushion if you just couldn’t get everything done on time, but the next deadline, October 15, is coming. And since the IRS only allows one 6-month extension to file form 1040, it is time to scurry.

It is vital that you file on time or you may be subject to fees and penalties. If you are concerned that you will be financially unable to pay everything you owe immediately, consider the IRS’ installment agreement. Let’s look at this "payment plan" so you are prepared.

It is perfectly acceptable to make monthly payments with the IRS installment agreement if you are financially unable to pay your tax debt.

To proceed with this IRS installment agreement process, you must:

  • File all required tax returns
  • Consider other sources, like a loan or credit card, to pay your tax debt completely to save money
  • Figure out the largest monthly payment you can afford to make, with a $25 minimum payment, and
  • Understand that any future tax refunds will be applied to your tax debt until it is paid off

Next, you can avoid the fee for setting up an installment agreement if you pay the full debt amount within 120 days. If that is your plan, you will need to specify this option when you sign up. But you will still need to call if you owe more than $50,000.

The fees for setting up an installment agreement are:

  • Direct Debit – $52
  • Standard or Payroll Deduction – $105
  • Lower Income Level – $43

There are a few ways to apply for an installment agreement:

  • If you owe $50,000 or less (including individual income tax, interest and penalties), apply online
  • You may call the phone number on your bill or notice
  • You may mail the completed Form 9465-FS.

After all this work to file an installment agreement, be sure to keep your account in good standing. This is easily accomplished by:

  • Paying, at the very least, your minimum monthly payment when it is due
  • Including your name, address, SSN, daytime phone number, tax year and return type on each payment
  • Filing all tax returns on time
  • Paying all taxes you owe completely and promptly
  • Continuing to make all payments even if a refund is applied to the account balance

If you would like to know more, you may contact Crowley Halloran CPA’s at www.crowleyhalloran.com.

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.

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Tips for picking a CPA

Mike Crowley | Crowley Halloran CPA

Michael W. Crowley, CPA - Principal

One of the most critical decisions anyone can make is picking a good-quality, reliable accountant. There are several things to keep in mind when a business owner chooses an accounting firm. Many accountants are excellent, but are they going to meet your business needs?

There are a few basic tips to keep in mind, as a business owner, when choosing a CPA firm:

Certification: The CPA should meet all the states requirements and passed the required exam. It is important that an accountant has met all the requirements and even continues their education to stay certified. It is the best way to know that they are current in all the new procedures and tax laws.

Experience: Make sure the accountant or CPA firm is experienced in the business field that your business specializes in. It is important that they know what the unique business needs are and how to handle any problems that may arise. They should have worked with that business industry before or something very similar.

Size: While the larger, more popular CPA firms may be ok, do not over look the smaller firms. The larger firms can probably take care of all the business needs and more, but the smaller firms will offer a more personalized approach. Many of the larger firms will contract out the smaller firms to work on small accounts anyway, so why not start with the local, smaller firm and go from there. Just make sure they meet the requirements that your business needs.

Get a Referral: One of the most important factors to finding a good, reliable CPA is to get a referral. Ask your friends, family, co-workers and other business owners to see who they would recommend. The best reference usually comes from word of mouth.

Once all the references have been compiled, do some research on the CPA firm and then ask to meet them and conduct an interview. Ask questions and find the right fit for you. Remember your CPA is to be one of your most trusted advisors, so make sure they are the right fit for you and your business.

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.

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Want an Efficient Business? Consider Outsourcing

Small business owners have so much to try to balance to make their businesses successful. They have to do everything, from hiring employees to taking out the trash at the end of the day. Part of what makes a small business enterprise so challenging is the overwhelming nature of getting things started. Often, outsourcing certain tasks, such as your accounting and payroll, can free up some of your time to focus on marketing your company and serving your customers.

Freeing Time for More Important Endeavors

Outsourcing provides small business enterprises with several benefits. The first is the most obvious, and that is the time freedom that it gives. When you, as the owner of your business, are not spending your time on tasks that someone else can do, you have more time to focus on actually growing and marketing your business.

Improving Efficiency

Outsourcing improves efficiency. By outsourcing, you will not have to learn skills you do not have, but rather can let someone who has these skills handle the tasks for you. This makes your business run more efficiently, because you will not have a learning curve to deal with.

Saving Money

While it may not seem like paying someone to do something for your business would help you save money, it actually can. When you outsource, you do not have to pay an individual to come to your business, get trained, use an office and receive benefits. Instead, you can pay just for the services you need, and that cost is almost always much less than you would pay to hire a staff member to do the job.

Utilizing Experts

Finally, outsourcing allows you to tap into the knowledge of experts. For instance, if you outsource your accounting, you will have a fully trained accountant to help manage your books and payroll needs. Instead of relying on someone who might have good “business sense,” but not necessarily accounting training, you will have someone with all of the training necessary to do the job well. This allows your small business enterprise to act like a big firm filled with highly trained professionals, all while staying within your smaller operating budget.

Frankly, outsourcing some aspects of your business, especially those that are better handled by a trained professional, simply makes sense. As you are looking for ways to improve efficiency and compete with larger companies, consider finding ways to outsource tasks for your business.

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.

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