Posted on

Case Study: Going from cost-conscientious to profit-booster on HR

schedule consultation

Case Study: Going from cost-conscientious to profit-booster on HR

He was on hand, hiring operations and running his business. He wanted to start hiring new employees asap. He was scrolling down on LinkedIn when he saw one post about hiring vs. outsourcing and decided to request our outsourced services.  

During the consultation, we spoke in depth about his business’ ins and outs and long-term goals. This allowed us to ask important questions and uncover hidden opportunities for his firm. His goal was simple: he wanted to grow his business to a specific revenue target and wanted to hire the best people to help him get there. 

We followed a simple yet structured approach to assess the financial impact the additional hires would have on the company and put together a viable implementation plan: 

1. We first classified roles that needed to be filled as either roles that were critical to the development of the product or as supporting roles. The critical roles would need to be filled with internal staff, and the non-critical roles could be outsourced, which could present saving opportunities.  

2. The second step was to determine the cost of each role and how much of that could be funded by the capital raised as of that point and for how long.  Since the company was not expected to break even for a couple of years, it was important to have a clear picture of whether and when the company would run out of cash if no additional capital was raised within two years.

3. We concluded that even if the company needed to raise a small round of funds or take out a small loan about 18 months later, it was necessary to take that risk and hire the resources needed to launch the new store timely and not slow down growth. 

Cashflow Video Guide

Learn the simple steps to prepare cash flow projections to improve your business cash flows.

The moral of the story?

When making hiring decisions, simply looking at employee salaries will not give you the full picture of the costs.

Secondly, accounting for your long-term goals is important when making hiring decisions.

Lastly, investing in things that boost your business (most importantly, the right people) is vital rather than having a penny-pinching mindset.

Hiring is one of the most important steps when building and scaling your business, but it’s not an easy task because you need the right talent for your company.

If I can give you one piece of advice, determining whether to align your HR strategy to your business goals comes down to a risk assessment of your business needs and possibilities. If you opt for outsourcing, don’t always expect the delegated responsibilities to be done more effectively at a lower cost. That will depend on the function or role you are filling for.

If you are growing and unsure how to structure your hiring or what area of your business you should be investing in, we can help. We offer fractional CFO services to help you put the right financial strategy in place to support your growth plans. Let’s talk.

If you enjoyed this article, don’t forget to subscribe or click on “share” to forward this article to someone who might benefit from it.

Recent Posts

Follow Us

JOIN OUR COMMUNITY
for THE LATEST UPDATES

Join our newsletter to be the first to know about the latest news and resources.

FiBrick | Accounting, Tax Preparation and Integrated Financial Solutions
  • 1 (646) 242-3326
  • Info@Fibrick.com
  • 349 5th Avenue, Suite 816, New York, NY 10016

Company

Resources

join our community

Posted on

A short case study: How a small business owner thrived during COVID

schedule consultation

A short case study: How a small business owner thrived during COVID

I want to share a story with you…

Back in 2020 (which feels like eons ago), as the pandemic progressed and small businesses nationwide were starting to really feel the effects, a business owner came to me for help.

Although her hemp stores were performing well pre-COVID, when I got on Zoom with her, I could feel the worry in her voice. She wasn’t sure how her stores would survive all the changes, uncertainty, and rounds of quarantine.

I quickly realized that the core of the problem was that she had no idea what her financial data was – her books were a mess, and she didn’t have data on individual stores’ performance. That’s why I preach the importance of financial data all the time, especially in uncertain times like these.

The solution to this business owner’s problem started with helping her gain visibility into her numbers – we helped her gain a granular view of the financial performance of each store and each product. We also helped her get a granular view of her expenses by location and category.

The results

  • Even during the worst times of COVID, she didn’t have to let anyone on her team go.
  • We advised her to switch her business legal entity to a better-suited option, which gave her additional tax savings and benefits (resulting in increased profits.
  • With the increased visibility, we were able to plan out the growth of each store strategically.

FINANCIAL KPIS OPT-IN

Learn the 7 KPIs all founders should use to assess their company’s performance to address areas where the company is underperforming.

The moral of the story?

The point is that you don’t have to be at the whim of what the markets do. If I had one piece of advice, it would be to organize your financial data so that you can have a crystal clear picture of how your business is really performing. Your individual financial statements may not be as accurate and may not be giving you the full picture of what’s really going on. Getting clear and detailed financial data is the only starting point that will allow you to make effective decisions for your business.

🔍 Here are some resources that can help:

1. On Thursday, September 1st at 11 am EST; I am hosting a Live Q&A to show you how to improve your odds of financial success in your business. I’ll be answering any specific questions you have about business finance, accounting, taxes, recession, etc.

I’m limiting the RSVPs to 30 people since we only have an hour, and I want to make sure we have time to address your questions. So RSVP now before space runs out.

2. The 7 KPIs (Key Performance Indicators) download is a resource we created as a quick guide for business owners to know what numbers are most important to track (and what those numbers mean). If you haven’t seen it before, I recommend downloading it and giving it a read. You can find it here.

3. Schedule some time to chat with us. If you are at the growth or scale stage, it’s time to consider adding a CFO to your team. As you know, having an internal CFO can be extremely expensive and stressful to hire. Our Outsourced CFO service allows you to get my expert experience (20+ years of financial executive experience) for a fraction of what you would normally pay. Let’s jump on a call to chat more about the value and ROI.

The original article was published on LinkedIn on August 30, 2022.

Follow me on LinkedIn Ramona Cedeno.

Recent Posts

Follow Us

JOIN OUR COMMUNITY
for THE LATEST UPDATES

Join our newsletter to be the first to know about the latest news and resources.

FiBrick | Accounting, Tax Preparation and Integrated Financial Solutions
  • 1 (646) 242-3326
  • Info@Fibrick.com
  • 349 5th Avenue, Suite 816, New York, NY 10016

Company

Resources

join our community

Posted on

The Complete Business Guide for Latino-owned Businesses

Latina entrepreneur who is looking for funding opportunities
schedule consultation

The Complete Business Guide for Latino-owned Businesses

Latina entrepreneur who is looking for funding opportunities

Latinx-owned businesses in the U.S. are growing, but many Latina entrepreneurs face challenges. Check out these tips for business success.

Being a Latina business owner could not have happened at a better time for me. I immigrated to the U.S. in my late teens and spent most of my career struggling to be heard in environments where diversity was low. It didn’t help that I didn’t feel I fit in. But as a woman and a Latina in today’s environment, I feel empowered and supported to pursue my entrepreneurial dreams.

What changed? I believe it’s been a series of big and small events, some of which might seem unrelated initially. Overall, there is a big push by the government and society to support minorities and women. On top of that, members of these groups are making it a priority to help each other.

It gives me great comfort to hear other Latinas say, “the future of U.S. businesses is Latina.” Not because I think we should take over (every group has the same right to own their well-earned share of U.S. markets) but because it boosts my confidence in the power of self-motivation and encouragement.

But what does the business landscape look like today for Latinos? 

Latino-Owned Small Businesses Are Growing at a High Rate

The Latino population has become the United States’ largest ethnic minority, constituting over 17 percent of the nation’s total population. Similar growth can also be seen in the Latino entrepreneur community.

Hispanics showed the highest growth in entrepreneurship of any U.S. racial group between 1996 and 2014, according to American Express’ 2018 State of Women-Owned Businesses report. This is excellent news for Latina entrepreneurs.

Latino business owners generated about $500 billion yearly income during the pre-pandemic period and hired 3.4 million people. (The State of Latino Entrepreneurship, 2020).

As we grow in the business arena, more resources are available to support us.

Many Latino business owners reported that they failed due to the inability to access capital and resources. ( The State of Latino Entrepreneurship, 2020)

We also hope to support one another as fellow entrepreneurs by providing advice and resources or being reciprocal customers.

Funding Is Still a Challenge for Latina Entrepreneurs

Many Latinas use what little they have in savings to fund their businesses and most seldom seek outside funding until it’s already too late. This lack of planning and poor cash flow management can result in business failure. As their personal funds diminish, they must apply for loans, often denied or with high-interest rates—improper funding results in slow or no growth and business shutdown.

It’s essential that Latino entrepreneurs seek advice from the many free and accessible resources available to them as soon as they think of starting a business. It’s also important to continue doing so through the early stages of the business. As they plan for growth, they should engage appropriate professionals and advisers who can assist them during the growth stage.

Latinos Have Entrepreneurial Spirits

Latinos are quite the entrepreneurial type in their countries of origin. This often comes out of necessity, as jobs are not necessarily the order of the day in our countries. That entrepreneurial spirit frequently translates to Latinos starting businesses when they immigrate to the U.S.

Let's talk

We would love to support your business’ financial success

But the problem is that their common approach is “let’s jump in the water and see what happens.”

It’s the philosophy of learning to swim when you see the shark coming. This might work in some cases, but it’s a risky approach in business.

Programs that educate Latino entrepreneurs on proper business management at all stages are key to the survival of their businesses. There is a lot of effort being made to create programs that support minority- and women-owned businesses. However, I notice that many Latinas are not aware of these programs. As much focus should be given to raising awareness as it is to create them.

Funding for Latino Entrepreneurs

  • Latino Community Foundation helps Latino-led organizations leverage and find investors in California.
  • Aspec Capital Fund offers funds and resources to help you grow your business in all ways properly and financially stable. It specializes in Hispanic and minority-owned businesses. Aspec Capital Fund also serves as a bridge between Latino startups and Latino businesses that want to invest.
  • Kapor Capital focuses on Latino and African American communities that lack funding. This organization offers to help tech companies in the seed stage who are looking to close gaps in their local community.

Training Resources

  • Ascent for Women is an educational platform by the SBA for women entrepreneurs. 
  • Core Woman: Founded in Colombia to empower women with business development training and other resources, this organization is now launching in the United States to help American Latinas.
  • National Hispanic Media Coalition (NHMC): This coalition offers a Policy Fellowship Program each semester through which at least one student is selected to receive training and development in legal and policy research, analysis, writing, and public speaking.
  • National Latina Business Women Association (NLBWA): This empowerment and networking group provides support to Latinas in business and professional careers. Its Business Management Academy offers in-depth, hands-on training that teaches how to be a successful small business owner and manager. In addition, emerging and aspiring entrepreneurs can take advantage of the six- to eight-week Emerging Latinas Program which teaches the steps to start or grow an existing business.
  • Positive Directions Co.: This company offers skills training and development to help Latino-Americans advance in their professional and business careers.
  • Ser Mujer E-Learning Programs for Entrepreneurs: This program empowers Latina entrepreneurs by providing access to in-depth online training.
  • We All Grow Summit: A Latina-blogger-founded effort that hosts events around the country to empower women with all types of businesses.
  • Women’s Business Border Center: This organization offers a variety of courses to help Latinas overcome challenges such as language and receive proper training on all aspects of running a business.

Networking Resources

  • The Business of WE (Women Entrepreneur) is a community of entrepreneurial women who work together, co-create together and leverage their business.
  • The National Association of Women Business Owners (NAWBO) is an organization dedicated to representing business women from all industries.  NAWBO is an inclusive and diverse organization that welcomes women from all backgrounds.
  • I fund women is another inclusive organization that aims to help women advance their businesses and get funding for their businesses.
  • Association of Latino Professionals in Finance and Accounting (ALPFA): A networking organization of finance and accounting professionals and entrepreneurs, ALPFA offers a number of benefits including annual conferences, networking events, initiatives, and programs. Among these is the Women of ALPFA (WOA) program, which supports Latina professionals in building their professional careers.
  • Hispanas Organized for Political Equality (HOPE): This organization offers leadership development programs to enhance Latina skillsets and empower them to reach leadership positions in government.
  • Hispanic IT Executive Council (HITEC): A membership-based network of Hispanic senior business and IT executives, HITECH offers a number of skill-development programs.
  • Latinas in Business (LIB): LIB is a networking and support group for Latina professionals and business owners.
  • Latina Style Business Series: This networking opportunity provides a platform for Latinas to meet and discuss issues within the industry. Founded in 1998, its goal is to empower all Latina entrepreneurs.
  • Mana – A National Latina Organization: Mana is a network of Latina professionals offering personal and professional development programs in financial literacy and leadership.
  • Mestiza Leadership International (MLI): This leadership development network offers support, leadership development, mentor opportunities, and other resources for Latina professionals and business owners.
  • National Association of Hispanic Nurses (NAHN): NAHN is a network of support for Hispanic nurses. It also advocates for continued education, training, and advancement of Hispanic women in the nursing field.
  • National Association of Latino Independent Producers (NALIP): A membership-based support network for Latino content creators, NALIP offers a number of networking events, conferences, creative workshops, and other programs. These include the organization’s Diverse Women in Media Initiative, which focuses on the advancement of multicultural women to positions of power in the media.
  • National Conference of Puerto Rican Women (NACOPRW): This membership-based networking group caters to Puerto Rican and other Latina women with a focus on professional skill and leadership development. It offers training, educational workshops, and information sharing, among other resources.
  • National Hispanic Leadership Agenda (NHLA): NHLA is a national nonprofit dedicated to creating opportunities for Hispanic women to influence public policy and gain professional leadership positions that allow them to impact public society for the greater good.
  • Suits, Stilettos, and Lipstick: This organization offers fun, useful, and empowering workshops to help connect and teach Latinas all they need to know about starting a new business.

Latest Grants and resources for business

Looking Toward the Future for Latina Entrepreneurs

Overall, the outlook for Latina business owners is positive. There is still a lot to be done to provide the right support, training, and funding to improve the success rates for Latina-owned businesses. Latina entrepreneurs should seek training and capital to create and grow their businesses.

Meanwhile, government agencies should continue to implement support structures and resources for them. Making these programs known to the community is also key. Increasing publicity and accessibility of these programs is also crucial.

Last, it’s crucial that Latino business owners support each other by mentoring one another, cross-selling, and being ambassadors for fellow business owners.

In the monthly newsletter, I send out every month, I share relevant and useful resources for business owners. Take a look at the latest and are still effective. Join our newsletter for tips, deadlines, grants, and other resources for you and your business.  

The original article was published on Centsai. It has been updated as of June 23rd, 2022.

Recent Posts

Follow Us

JOIN OUR COMMUNITY
for THE LATEST UPDATES

Join our newsletter to be the first to know about the latest news and resources.

FiBrick | Accounting, Tax Preparation and Integrated Financial Solutions
  • 1 (646) 242-3326
  • Info@Fibrick.com
  • 349 5th Avenue, Suite 816, New York, NY 10016

Company

Resources

join our community

Posted on

Tips to Improve Cash Flow Management

schedule consultation

Tips to Improve Cash Flow Management

When running a startup company or a small business, proprietors face many hurdles when getting started. While the initial costs are cumbersome to most, running the company requires plenty of business cash flow management to ensure continuous growth. Finances are often the most challenging aspect of tech startups and other young companies, and getting money matters right can help operations.

Small business accounting considers cash flow improvement to ensure timely cash going in and out of the company. The trick to making profits is ensuring client invoices are paid in full and on-time, all while investing money into the right areas. Here are ways to better manage business cash flow for all startup companies:

Prepare Cash Flow Strategies Through Projections

It always pays to put things into writing, so having a cash flow projection sheet for the coming year, each quarter, or even weekly. Accurately listing down business cash flow can help you see when trouble is brewing in your company’s operations, which gives you a starting point to fix things.

These projections aren’t future glimpses. They’re more educated guesses made through various metrics in your company’s operations. Seeing invoices and payment histories, successfully tackling upcoming expenditures, and other aspects of being a startup company can help push your business into a better position.

Another thing to consider when projecting cash flow is listing down all possible upcoming expenditures. This list will include rent, inventory, salaries for workers, and other taxation items that need to be accounted for at all times. Ensuring all these are noted for the coming months will help you make more educated decisions about your startup company’s future moves.

Improve the Way You Conduct Receivables

In business, not all sales made will constitute an instant payment. If this were the case, cash flow would never be an issue. However, you can employ some strategies to improve how you manage receivables. Everything boils down to moving things at speed, which means creating more products and turning these products into cash.

Some ways to convince customers to ride in on the trend are to offer discounts to those who pay bills early or quickly, ask for prompt deposits during orders, or do credit checks. Other strategies can include liquidating old and outdated products as soon as possible and identifying slow-paying clients while shifting to a “cash-on-delivery” process to ensure payment.

Cashflow Video Guide

Learn the simple steps to prepare cash flow projections to improve your business cash flows.

Employ Strategies to Survive Rough Times

Lacking cash to do business is a typical instance that many companies face, especially startups. Small business accounting services always recommend returning to everyday business practices to help manage your company’s shortcomings. By being aware of what you need to do, you can create a plan of action to ensure that the way out is clear. 

One way to navigate a difficult financial situation is to seek help from entities like your business’s suppliers. These people have interacted with you and similar startup companies, helping them lend money to keep your enterprise alive. They might also provide more flexible terms than other lending institutions. Keeping your startup company thriving will be challenging during low points, but sticking with a concrete plan can help you get past low periods. 

Conclusion

Cash flow improvement is essential to make a startup company survive. Every single bit of cash that goes in and out is vital when financial security isn’t fully developed, which is why small business accounting services always recommend being meticulous. Startups might have to change some policies, employ various strategies, and be more assertive when demanding payment from clients to survive the oversaturated market that is extremely brutal for most.

To get more details on accurately making cash flow projections for your business, watch this step-by-step video tutorial, where I talk through each step of creating an adequate cash flow projections document. The guide also includes a template that you can download and customize for your specific needs. Watch the Cashflow Projections Video Guide now.

Recent Posts

Follow Us

JOIN OUR COMMUNITY
for THE LATEST UPDATES

Join our newsletter to be the first to know about the latest news and resources.

FiBrick | Accounting, Tax Preparation and Integrated Financial Solutions
  • 1 (646) 242-3326
  • Info@Fibrick.com
  • 349 5th Avenue, Suite 816, New York, NY 10016

Company

Resources

join our community

Posted on

Three Strategies to Protect Your Business From Cyber Attacks

schedule consultation

Three Strategies to Protect Your Business From Cyber Attacks

I must confess that I love asking Siri to change the songs or dimmer my living room lights. Siri is on all the time, and so is my microphone. We are asked to check the box that asks, “I agree to this privacy policy,” without even reading it. But should we as business owners worry about our data if there is so much control on the internet? The answer is definitely.
As a business owner, your data is your most important asset. Your systems are packed full of confidential financial information about you and your clients. If this information isn’t secure, then you could lose the trust and reliability you have spent your entire career building. Additionally, your client’s private financial information could be left completely exposed.

Cyber attacks happen to small and medium companies

Data breaches are the most common form of cyberattacks to occur to businesses. Small to mid-sized companies are even more exposed. Often, these businesses will utilize outdated software to protect their data, but these can be highly vulnerable to cyber attacks of any kind. 

Okay, so now that we know the risk, how do we prevent this? The first and most important thing to ask yourself is where my data is most vulnerable. By assessing your current protocols, you will fully understand where you need the most protection.

Cashflow Video Guide

Learn the simple steps to prepare cash flow projections to improve your business cash flows.

After doing this try the following steps:

  1. Encrypt and back up your data: Encrypt your data in a way that will secure your more sensitive data, make sure to have digital copies of this data as well.
  2. Train your employees: It is integral to this process that your employees have had in-depth training in data protection.
  3. Reassess and revisit: Continually assessing your protocols and updating them based on the changes in cybersecurity is the best way to ensure your business is as secure as possible.

Implement these solutions to protect your company from cybersecurity attacks. If you don’t have a procedure for handling the security of financial information within your business, it is vital to consult a professional to ensure that you are protected. Get in touch with us if you have any questions.
PS – I share news, articles, tips, and free guides on financial planning, taxes, cash flow and other finance topics for business owners on these channels. Let’s connect!

To be the first to know about new financial news, resources, and tools, sign up for FiBrick’s newsletter.

Follow me on Instagram or LinkedIn. Check out my website.

Recent Posts

Follow Us

JOIN OUR COMMUNITY
for THE LATEST UPDATES

Join our newsletter to be the first to know about the latest news and resources.

FiBrick | Accounting, Tax Preparation and Integrated Financial Solutions
  • 1 (646) 242-3326
  • Info@Fibrick.com
  • 349 5th Avenue, Suite 816, New York, NY 10016

Company

Resources

join our community

Posted on

Case Study: Maximizing Your Tax Savings

schedule consultation

Case Study: Maximizing Your Tax Savings

Did you know that you can save on business taxes? Many business owners spend most of their income on taxes. Having the right expert, strategy, and planning can help you save thousands.

By Q4, a single-member LLC owner reached out to me through LinkedIn. He was looking to reduce his tax bill. His business was doing well, but he was also worried about his future as he didn’t have a retirement plan.

After our complimentary consultation, we found his short and mid-term business goals, strategized the plan of action, and we were able to help him save thousands of dollars.  Let me share with you how we did it.

Our client, a single-member LLC that provides consulting services to government agencies, was expecting to generate $400,000 in net income for 2022. To help him reduce his tax bill, we recommended setting up a SEP retirement account. This allowed him to contribute up to $61,000 towards his retirement savings, which would be a tax deduction for the company and tax-deferred at the personal level until retirement.

This not only reduced the amount of tax due in the current year but also provided the opportunity for investment earnings that would only be taxed in retirement.

In addition to the SEP retirement account, we recommended the election for the state pass-through entity tax. This allowed the company to pay taxes to the state at the entity level, making them a tax deduction for the company, which reduced the net taxable income at the federal level for the owner. These two strategies resulted in our client’s tax savings of nearly $30,000.

FREE 7-DAY EMAIL COURSE: TAXES & PROFITS

Learn the steps to plan for a profitable year by getting the most out of your taxes now!

Moral of the story?

Designing a tax strategy might sound overwhelming, but you can achieve significant tax savings with the right expert and guidance. In this particular story, our client not only saved money; he was able to strategize and be advised on the best tax plan based on his business goals and model.

A good tax strategy will help you achieve your company goals and find ways to secure your future by setting up a retirement account for your business.

Ready to take your tax savings to the next level? At FiBrick, we specialize in helping growing companies tailor the most suitable tax strategy and secure the financial future of their owners. Learn more about how FiBrick can propel your business forward.

*** Disclaimer: Please be advised that each company’s financial and tax situation is different. You should consult your tax advisor before implementing these strategies, as their applicability will depend on each tax situation.

The original article was published on LinkedIn on February 3,  2023.

Recent Posts

Follow Us

JOIN OUR COMMUNITY
for THE LATEST UPDATES

Join our newsletter to be the first to know about the latest news and resources.

FiBrick | Accounting, Tax Preparation and Integrated Financial Solutions
  • 1 (646) 242-3326
  • Info@Fibrick.com
  • 349 5th Avenue, Suite 816, New York, NY 10016

Company

Resources

join our community

Posted on

4 Types of Tax Deductions Your Small Business Can Claim

schedule consultation

4 Types of Tax Deductions Your Small Business Can Claim

Tax is one thing we cannot get away from in life, whether it is on a personal or business level. But while personal tax is one matter, business-related tax is another. The latter can be a bit complex and downright confusing. It can be all the more complicated when you own and run a small business, where you’re required to prepare and file taxes for compliance purposes. But did you know that there are practical ways to reduce your taxes?

Here are 4 types of tax deductions your small business can claim:

  1. Home office

Did you know that you can have tax deductions for your home office? Unfortunately, some small business owners are afraid of doing so due to the fear of going through an audit. Keep in mind that this fear shouldn’t stop you from claiming legitimate deductions. As long as you’re running your startup clean, there’s nothing to worry about. Just be sure to file and organize your tax records to take advantage of this benefit. Finally, ensure that your office is apart from your living space and you have only one computer at your home office.

2. Travel costs

It’s common for small business owners to travel regularly for business purposes. What’s good about business-related taxes is that their expenses are tax-deductible, including your airfare, hotel fees, car rental, and travel expenses such as laundry costs. Even food expenses involved in traveling can be deducted, although this will only be up to 50 percent. Just be sure to keep receipts and records showing the reason for purchases so that you can file these to the IRS as tax reimbursements!

3. Technology purchase

We can no longer deny the need for tools and technology in today’s business landscape. As a small business, it’s imperative to invest in some of these technologies, such as computers, printers, fax machines, software, and even business vehicles. The good news is that equipment expenses are considered tax-deductible under Section 179 of the tax code. That said, be sure to check this provision and see what types of technology you can file for tax deductions.

4. Car donation

When it comes to getting rid of your business vehicle, you have the option to junk it or find a buyer who might be interested in it. However, there’s one excellent choice you can resort to—that is to donate your car. Aside from the ease of disposal and the opportunity to help others, there’s one benefit you can get by doing so. As with those above, you can claim a tax deduction by donating your car correctly and filing for this when applicable!

At FiBrick, we’re specialized in accounting and bookkeeping, tax planning and compliance, as well as fractional Chief Financial Officer (CFO) and advisory. Our tax planning strategies include comprehensive business compliance and return preparation services. If you need a tax specialist to deal with the deductions of your small business, we’ve got you covered!

Cashflow Video Guide

Learn the simple steps to prepare cash flow projections to improve your business cash flows.

Conclusion

At this point, we’ve covered four types of tax deductions your small business can claim—home office, technology purchase, travel cost, and car donation. Be sure to consider all these options to see how you can reduce your small business taxes. Most importantly, work with an experienced tax accountant so that you can save money on your taxes while finding ways to grow your small business!

FiBrick is currently accepting new tax clients. If you are looking to maximize your tax savings and have a great tax strategy for the year, schedule a consultation with us by clicking this link to see how we can help.

Originally published on LinkedIn on February 2, 2022.

 

Recent Posts

Follow Us

JOIN OUR COMMUNITY
for THE LATEST UPDATES

Join our newsletter to be the first to know about the latest news and resources.

FiBrick | Accounting, Tax Preparation and Integrated Financial Solutions
  • 1 (646) 242-3326
  • Info@Fibrick.com
  • 349 5th Avenue, Suite 816, New York, NY 10016

Company

Resources

join our community

Posted on

New York’s Pass-Through Entity Tax (PTET) for S Corps and partnerships

New York’s Pass-Through Entity Tax (PTET) for S Corps and partnerships
schedule consultation

New York’s Pass-Through Entity Tax (PTET) for S Corps and partnerships

New York’s Pass-Through Entity Tax (PTET) for S Corps and partnerships

The New York PTET is a relatively new tax elective, which was initially implemented in the 2021 tax year, and serves to help certain individuals bypass the $10,000 federal limitation on personal state and local tax deductions, by making deductible tax payments through the business.

S corporations and partnerships pay an entity-level tax to New York State, which is deductible as a business expense for federal tax purposes. The federal deduction reduces the taxable income passed through to the shareholders and partners and reduces adjusted gross income subject to federal income tax. The tax payment is eligible as a credit on the personal state income tax returns of the shareholders and partners of the entity.

If your New York S-Corporation or Partnership anticipates a profit in 2022, you may benefit from electing into the PTET.

SCHEDULE A CONSULTATION

Let’s see how we can align your financial goals with your financial plan

The deadline to elect into New York’s PTET for 2022 is March 15th, 2022. To opt-in by filing the election, S corporations and partnerships must use their Business Online Accounts with the Department of Taxation and Finance. Note that, only an authorized person can make the election on behalf of an eligible entity. Tax professionals may not make the election on behalf of their clients. Once the election is made it is irrevocable for that tax year.

Electing entities can opt-in on their Business Online Account using the link below:

https://www.tax.ny.gov/online/

For those pass-through entities electing in, PTET estimates will be due on the following dates in 2022:

March 15th, June 15th, September 15th and December 15th.

Estimates must equal 90% of the current year’s tax due or 100% of the prior year’s PTET (if opted in), to avoid underpayment penalties. If you elect to opt-in and need assistance calculating estimated payments, please contact us at rcedenco@fibrick.com.

The due date of the 2022 PTET return is March 15th, 2023, although electing entities can apply for a six-month extension.

For more information on the New York PTET, please visit the link below:

https://www.tax.ny.gov/bus/ptet/#optin

***Updated on May 26th, 2022

News alert: NYS has extended the deadline to make the PTET election for the tax year 2022 until September 15th, 2022. 

Recent Posts

Follow Us

JOIN OUR COMMUNITY
for THE LATEST UPDATES

Join our newsletter to be the first to know about the latest news and resources.

FiBrick | Accounting, Tax Preparation and Integrated Financial Solutions
  • 1 (646) 242-3326
  • Info@Fibrick.com
  • 349 5th Avenue, Suite 816, New York, NY 10016

Company

Resources

join our community

Posted on

7 Financial Strategies for Future-Proofing Your Business

financial strategy
schedule consultation

7 Financial Strategies for Future-Proofing Your Business

financial strategy

You’ve worked hard to build your business from the ground up. Things are going well. You are profitable. Work with great clients. Have an amazing team of people by your side. And yet, it’s hard to enjoy your success without constantly questioning it. Will you continue to be profitable? What will your business look like in five, ten, or twenty years?

If you’re a business owner, you probably ask yourself these questions quite often. You are not alone. The world throws a lot of curveballs, and there’s no crystal ball to help you see them coming. But there are some ways to protect yourself if they do. Here are 8 financial strategies you can use to future-proof your business.

Keep Your Taxes In Check

Only speak to your accountant during tax season? It might be time to take your relationship to the next level. Working with a CPA throughout the year can help you mitigate future surprises. Otherwise, you could find yourself in some hot water both legally and financially. 

This means keeping your records pristine. But it could also mean managing and understanding payroll taxes, as well as reporting income accurately against all 1099-MISC forms you receive. No one wants to get audited, and certainly no one wants to get charged back taxes. Other tips to avoid future surprises include keeping your personal and business expenses separate, and making sure your business is correctly classified.

Explore New Revenue Streams

The best way to stay future-forward is to maintain a growth mindset. That could mean expanding your current offering. But it could also mean providing new offerings. You already have a network of people or businesses that turn to you to solve a problem. Now might be the time to ask yourself, “what other problems can I solve for my customers?”

Consider digitizing or productizing a current service you already offer. You could also look at vertically integrating by taking over another level of the supply chain. Speak to your customers and see what they need. By diversifying, you can future-proof yourself against any one of your revenue streams failing.

Find New Ways to Finance Your Business

Maybe you bootstrapped your way through the first few years. Or borrowed money from family members. Or took a loan from the bank. However you got here, you’ll likely need some cash to go further – and you’ll need that cash to be cheap. 

Try restructuring your existing debt by seeking out loans at a lower interest rate. You never know – since taking out your original loan, you’ve likely built up credit for your business. Now’s a great time to use it. You might also consider equity financing through an investor or a new partner. However, you structure your debt, make sure the terms won’t cause you turbulence down the road.

Cashflow Video Guide

Learn the simple steps to prepare cash flow projections to improve your business cash flows.

Mitigate Risk

Of course, there are forces of nature that you can’t control. Factors like a volatile economy and rising interest rates can have a massive effect on how you run your business. However, by investing in the right insurance, you can weather the storm. 

Workers’ compensation can help you and your employees generate income in the event of an accident. Property insurance protects your physical assets from theft or damage. Professional liability insurance can cover your business against negligence. 

Not to be overlooked, business interruption insurance can get you through a natural disaster that forces you to pause operations. Some of these options may seem extreme, but having them in your back pocket can guarantee the longevity of your business. 

Keep A Close Eye On Your Costs

We all know how important it is to manage costs. But that doesn’t just mean rethinking where you order lunch. To really future-proof your business, you need to make sure that your high level expenses are as low as they can possibly be. Failing to do so can cause you cash flow issues in the future.

To slash expenses, try consolidating any services or software you pay for. You’d be surprised how much money you save. Similarly, get vendors to pitch for your business, then regularly review their invoices. You want strong partners, but you also want to make sure you’re not overpaying. On the whole, try to make as many expenses as you can variable instead of fixed. Flexibility is key in times of hardship.

Manage Liquidity

Cash is king. It’s a bit of a cliche, but as much as people hear it, far too many business owners don’t live by it. The reality is, a cash crunch can seriously test the foundations of your business. This is especially true during economically uncertain times. Make sure you’re managing your liquidity any way you can.

The best way to do this? Streamline your cash collection. By developing a system that either automates or otherwise accelerates payments, you can save yourself from operational challenges on the backend. Another tip is to centralize your cash in the event you need to use it immediately. 

Have a Succession Plan

You have probably thought about what you’re going to do when you retire. Have you thought about what your business is going to do? If you are a business owner, drafting a plan is a must for the future success of your company. 

It’s not just about keeping the doors open. A lot of people depend on the success of your business, like your vendors, employees, customers, investors, and community members. Keeping them in the loop about your succession plan will keep them confident in the continued success of your business. There are also a lot of financial and tax implications of turning over a business. Knowing your succession plan well in advance can make this transition a smooth one for everyone.

Conclusion

It’s impossible to know what the future has in store. Even the most successful businesses can fail in the long run if they’re not thinking future-first. It’s just as true with technology as it is with your financial strategy. Make sure you know your numbers and stay close to your accountant to properly future-proof your business. 

Recent Posts

Follow Us

JOIN OUR COMMUNITY
for THE LATEST UPDATES

Join our newsletter to be the first to know about the latest news and resources.

FiBrick | Accounting, Tax Preparation and Integrated Financial Solutions
  • 1 (646) 242-3326
  • Info@Fibrick.com
  • 349 5th Avenue, Suite 816, New York, NY 10016

Company

Resources

join our community

Posted on

Accounting Software Dashboards: 3 Benefits for Businesses

schedule consultation

Accounting Software Dashboards: 3 Benefits for Businesses

Do you long for an easy way to view your financial data without reading a bunch of numbers that don’t make any sense? It’s a good thing that accounting software was developed to aid managers. One of the parts you might use is the dashboard. 

Accounting software dashboards allow you to see how your business is performing. It allows you to clearly see the key performance indicators (KPIs) that can drive your business. It can also reveal your points of improvement. Basically, it helps you save time, improves your decision-making, and offers clarity in your business operations. 

Furthermore, accounting dashboards are interactive and customizable because you can tweak them according to the data you want to see. Also, many are mobile-friendly and intuitive, allowing you to check the data on whatever device you have. Lastly, they are designed to be easy to navigate. 

If you’re still not convinced of the uses of an accounting software dashboard, we will detail three of the most common benefits of utilizing a dashboard:

You can easily customize the dashboard, and it is highly interactive. 

One of the most important features of an accounting dashboard is you can customize the KPIs to suit your business needs. As we all know, not all businesses are the same. Businesses look at different factors to gauge the success of their operations. Customizing it according to our needs and department is essential. 

Many accounting dashboards allow you to keep only the metrics that matter the most. The removal of extra data will help you understand the report better and reduce the amount of time to analyze the performance. You can also filter the information and categorize it into different data sets. 

You can either customize the time frame from quarterly to monthly or edit the KPIs specific to a department. The more organized it will be, the more easily you can interpret data. Lastly, the more interactive it is, the more relevant your insights will be.

Cashflow Video Guide

Learn the simple steps to prepare cash flow projections to improve your business cash flows.

You can use it on any device. 

It’s beneficial that accounting solutions are available on any device. It allows users to easily access the dashboard without the need to open the laptop or computer. Since we are becoming reliant on technology to create an analysis of the future, it is nice to see the business performance easily, especially when making a decision. So, if you want a more accessible mobile accounting solution, you need to invest in mobile-friendly accounting software. 

You can easily navigate and organize information.

A dashboard’s main purpose is for you to analyze data seamlessly. You can’t interpret data when there are a lot of factors displayed. Through the dashboard, you can filter unnecessary data and efficiently remove the clutter. It shows a clean and organized interface, but it creates an excellent visual presentation of data and trends in a given time frame. For example, you can show monthly profits in graphs or directional trends. 

Conclusion

Accounting software dashboards are a great way to show KPIs. It gives you an organized way of determining a company’s health and success. In fact, it can allow you to use KPIs to improve business operations and achieve business goals. 

Do you want to analyze your cash flow? FiBrick is a people-centric accounting firm that offers a suite of services for startups and scale-ups. Contact us today!

Recent Posts

Follow Us

JOIN OUR COMMUNITY
for THE LATEST UPDATES

Join our newsletter to be the first to know about the latest news and resources.

FiBrick | Accounting, Tax Preparation and Integrated Financial Solutions
  • 1 (646) 242-3326
  • Info@Fibrick.com
  • 349 5th Avenue, Suite 816, New York, NY 10016

Company

Resources

join our community