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Why you need timely, accurate accounting.

Having timely, accurate accounting information is essential to running a healthy business.  As I progress through my business career and interact with lots of “business” people, I’m noticing a scary trend.  Many business owners do not see the need to have timely, accurate accounting done by someone in house (controller) or an outsourced CPA firm.  This worries me.  Let me tell you why…

1.      You will have difficulty selling your business.

Think a successful business or business owner will take your word on how well the business is performing?  Think a couple of spreadsheets will do the trick?  The answer is a resounding NO!  I’ve personally seen a business owner try to sell his business to a potential suitor only to be turned down and ultimately questioned due to a lack of timely financial statements.  Deficiencies in this area lead successful people to question just how serious you are about your business.  It tells them that you don’t value data and make sound business decisions according to that data.  Essentially, you’re flying by the seat of your pants or running the business off feel or emotion.  Numbers are black and white and tell the picture.

2.      You won’t proactively plan for taxes throughout the year.

Wouldn’t it be nice to have a projection of your Federal and State tax liabilities, at least, quarterly?  Imagine taking large sums of your money out of your business only to realize later that most of that money should have been used to pay tax liabilities.  Having taxes estimated on a regular basis allows you to set aside tax funds, operate your business, and take personal distributions with the remainder without regret.

3.      Growing the business will be hard.

A lack of financial records will make it difficult to expand, open a new location, or build a talented team.  Similarly, getting financing will be extremely difficult.  How will you prove to any lender that your company is strong financially and able to pay the debt back timely?  Employees will also recognize your lack of financial reporting when it comes time to account for out of pocket expenses.  Would you work for a company that is cavalier about employee reimbursements?  Without accurate, timely financial reporting, growing your small business will be hard.

These are just a few of the many reasons to get serious about having timely, accurate accounting for your business.  This data is invaluable in making proactive financial decisions.

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Thinking about e-filing?

Many of our clients have always filed their tax returns using the old-fashioned, tried and true method of paper returns, mailed in to IRS, LDR or another taxing authority. Some feel that there is added security filing this way.

Every year we hear of massive data breaches and we are all concerned about identity theft. Recent highly visible attacks on Anthem Health, Sony Pictures and the Pentagon Twitter account have us questioning whether our personal data sent over the Internet is safe.

IRS gives us the top 5 reasons for switching to e-filing this year:

1) It’s accurate and easy.
2) There are convenient options.
3) It’s safe and secure.
4) Refunds are processed and issued faster.
5) It allows payment flexibility.

You still have a choice. If your comfort level is higher filing your returns on paper, that’s your option. We still offer the preparation of paper returns for mailing.

PRM offers you the option of filing electronically through our software provider’s secure network. We can get prompt notification of the receipt and acceptance of an e-fiiled return. It could take as long as 6 weeks before we are able to follow up on a paper filed return.

We are here to explain the process or to facilitate your return filings. Call us at PRM with any questions or concerns at 337-406-1099.

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CPAs don’t blog, right?

You’re right, when most people describe their CPA the word “blogger” generally does not come to mind.  Maybe “number cruncher” or “bean counter,” but rarely “blogger.”

Well, our goal at Prejean Romero McGee (PRM) is to work outside of the so-called “CPA box” so welcome to our blog!

We believe a blog goes hand in hand with our culture of innovation and continual growth.  Our goal in blogging is to provide timely and useful tax information to the general public.  We will answer questions frequently received from clients, business associates and friends relating to tax matters simple and complex.

At PRM continuous improvement is a constant pursuit.  Whether it is ongoing continuing education, the latest technologies or superior staff, we always strive to advance in order to best serve our clients.

Cheers to a prosperous new year.  We look forward to receiving blog questions and topic suggestions from you.  Please submit to marcus@prmcpa.com

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