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What To Look For In A Tax Planning Firm

chad@boydgroupservices.com (Chad Davidson) — Wed, 21 Jul 2021 15:21:52 GMT

Learn all about what a tax planning firm does and what one can do for your business, including what to look for in a tax firm and how it helps profitability.

The Benefits of Hiring A CFO | Boyd Group Services

Thu, 01 Jul 2021 19:59:57 GMT

Learn what the job duties are for a Chief Financial Officer or CFO are, what they can do for your business, and why you should hire one.

How Tax Planning In Advance Helps Your Company

chad@boydgroupservices.com (Chad Davidson) — Tue, 15 Jun 2021 21:38:42 GMT

Learn how tax planning at the beginning of the tax year helps you grow your business and reduce taxable income, plus other great tips for small business owners!

Most Common Bookkeeping Mistakes To Avoid | Boyd Group Services

Wed, 02 Jun 2021 15:42:19 GMT

Learn the most common bookkeeping/accounting mistakes small businesses make and how to avoid them, including great tips for growth and success!

Why Your Small Business Needs A Bookkeeper | Boyd Group Services

Wed, 19 May 2021 15:25:39 GMT

Learn why hiring a bookkeeper/accountant is crucial for small business owners, and how doing this will be the smartest financial decision you make.

How Accounting Leads To Business Growth And Success | Boyd Group Services

chad@boydgroupservices.com (Chad Davidson) — Wed, 19 May 2021 15:02:04 GMT

Learn how hiring an accountant can help your small business in multiple ways that lead to a solid foundation, growth opportunities, and financial success!

Common Small Business Tax Mistakes | Boyd Group Services

Tue, 20 Apr 2021 20:00:07 GMT

Learn the most common tax mistakes new small business owners make and how tax planning can help grow your business exponentially for ultimate financial success.

Filing Personal And Business Taxes | Boyd Group Services

Wed, 07 Apr 2021 19:47:21 GMT

Business owners learn about the art of filing personal and business taxes, structuring and scaling your company, and the importance of tax planning all year.

What is Accounting and Why is it Important?

Thu, 01 Apr 2021 18:08:33 GMT

What Is Accounting?

Accounting is an organizational approach to help businesses understand their financial information and business records.

It's easy to think of accounting as a person who takes in raw financial information, records all of your business projections, taxes, transactions, etc.

They will then provide you with a report about the financial state of your business that is easy to understand and helps determine the success of your business.

Accounting can help businesses understand their cash flow, whether or not they are making a profit, which parts of the business are actually pulling income and the current value of the company's liabilities and assets are.

Accounting vs Bookkeeping

Although bookkeeping and accounting overlap in many ways the simplest way to explain the difference is:

Accounting: Exceptionally utilizes the financial data through tax planning, strategy, and analysis.

Bookkeeping: How one categorizes or records financial transactions.

Accounting Cycle

An accounting cycle is a lingo that accountants call the process made to take in raw financial data and provide consistent and accurate financial reports.

Bookkeeping is the first step in this accounting cycle.

This cycle starts the moment that your business has a transaction - if it involves your business's money it must go into your company's ledger. Bookkeeping involves recording business transactions.

Major Steps For Accounting Cycle:

Record and Analyze transactions (look over bank statements, invoices, etc.)
According to the rules of double-entry accounting, post transactions to the ledger
Listing all of the business's accounts and discovering their balances through an unadjusted trial balance.
At the end of the period, adjusting entries will be prepared.
Adjusted trial balance prepared
Financial statements prepared

Accounting rules and processes are mostly automated by accounting software. So on to learn about an important part of accounting; financial statements.

Meet Chad.
Colorado's trusted Bookkeeper & Accountant.

Contact Boyd Services to schedule your free consultation. We’ll take the stress of accounting & bookkeeping off your hands and mind while providing you with a real and compassionate person to help you succeed. Don't deal with the pressure of dealing with business taxes alone.

Learn More

Financial Statements

The reports that summarize how your business is doing financially are called financial statements.

The 3 Main Types of Financial Statements

balance sheet
income statement
cash flow statement

These statements will help you understand where your money is and how it got there.

For example, if you are a freelance fitness instructor who bills clients for training. These financial statements can help you understand what months are the most profitable and how much money is spent on tools and supplies. You will also be able to determine the business's total value.

Financial statements can be done by a bookkeeper, to avoid headaches and miscalculations.

The Different Types of Accounting

Financial accounting
Managerial accounting
Tax accounting
Cost accounting
Credit accounting

Why Accounting Matters For Your Small Business

-Helps plan for growth

Properly assess the full development of your business through financial statements.

-Get paid with accounting

Balance sheets track how effectively you’re business is collecting payment. Helping you create processes to provide better follow-up with unpaid clients or harder payment deadlines, to ensure you get the money you've earned!

- Accounting and securing a loan

If you are needing to get a loan for your small business accurate financial statements and cash flow projections are essential, and can only be done with an accounting system in place.

- Get investors or sell your business with accounting

Even if you are not looking for investors or potential buyers, in the future, you may need accounting records to prove your business is on track for growth and profitable.

- Stay out of jail & annoying fines with accounting

Reduce your risk of breaking tax laws, avoid possible jail time and fines with solid accounting. Accurate financial records are imperative and having an accountant filling your taxes ensures that it's done accurately and on time.

-Don't pay a penny extra to the IRS

Accurate financial records produced through accurate accounting helps you predict your income and ensure that you are not paying a penny more, than you need to, to the IRS.

The Job of an Accountant

Accounting is important for businesses because it saves you from the unknown and brings you to a clear path of success. A talented accountant could save you money and will definitely save you time!

Accountants also provide businesses with insight and knowledge that you can't get on the internet. Learn about tax deductions that could save you a lot, see where you could be cutting costs, and even about tax rules you may have not known you were breaking. Either way, you'll be sure to get a lot from your experience with an accountant.

All businesses can benefit from having an accountant. So look no further than Colorado's trusted accountants at Boyd Group Services.

What Is The Business Tax Rate In Colorado?

chad@boydgroupservices.com (Chad Davidson) — Fri, 19 Mar 2021 01:17:39 GMT

Starting A Business

If you or someone you're close to is starting a small business in Colorado, in today's market and economy, you know you are going to face some challenges. As part of pertinent information to know or learn, you may be asking what is the business tax rate in Colorado? Your business taxes will be one of the most important aspects to manage in the overall picture. Tax strategies, careful tax planning and yearly tax preparation can be the key to financial success.

This is why shrewd business owners hire a terrific financial advisor or an exceptional CFO, right from the start. If you're struggling with your numbers, or perhaps just beginning your journey, remember Boyd Group Services when you want to maximize your chances for success. Let's find out all about corporate income tax rates and other information on income taxes, in relation to businesses or corporations, in Colorado.

Colorado State Taxes

We all know about the IRS, our federal taxes, and basic requirements regarding federal income tax rates, from doing our yearly federal income tax returns. But what about our state taxes? Well, we know that all states are different, for one thing! So we will talk strictly about Colorado, for the sake of this article.

The Colorado Department of Revenue, like most all other states, has its own set of rules and tax rates in regards to business taxation, depending on the type of business or corporation you are, and the amount of Colorado sales or taxable income you make per tax year. Let's start by examining the different types of corporations and businesses.

Colorado's Corporate Income Tax

Top Rated Corporate Tax System

Colorado was rated one of the top 10 states for their corporate tax system, in 2020. In 2008, they passed legislation that made it a single factor apportionment system, in which the amount a company pays in corporate income tax is based on their Colorado sales only. The corporate income tax rate as of 2020 is a flat 4.55%, based on the business's assessed net income equaling the sales made in Colorado, for the previous tax year.

Prior to this 2008 legislation, Colorado business owners could choose one of two methods of taxation that involved either a combination of payroll, sales and property or a special method of property and sales. This makes Colorado one of the states business owners prefer.

S Corporations

If you are an S corporation in Colorado, you do not have to pay a corporate income tax. However, the shareholders will take their profit (or loss), split it up, and then must report it as taxable income on their personal income tax returns. The Colorado Department of Revenue will not collect any business tax from S corporations, also known as pass-through entities, which themselves are not subject to additional federal taxation, either.

C Corporations

On the other hand, a Colorado corporate income tax rate for regularly constructed C corporations is the new standard, as of 2020, at 4.55%. This is down from 4.63%, which was the Colorado corporate income tax rate for the previous 20 years, ever since the year 2000, representing a cut of 0.08%. This corporate income tax is paid to individual states for basically the legal privilege of doing business within them, and all these same states have a different corporate income tax rate.

Limited Liability Corporations or LLCs

When starting an LLC, another kind of business organization, businesses will receive an ID number which is said to be for tax purposes. This number effectively makes you a business taxpayer, with the ability to start recording business expenses as tax deductions, ultimately reducing your taxable income on your corporate income tax return.

It is important to note that for income taxes, an LLC is classified the same as a partnership, and as such does not pay separate corporate income tax to Colorado or federally, except through members' personal income taxes. Like S corporations, members of the LLC take the profits and split it among members, who must report it on their state income taxes, and pay the 4.55% as taxable income. The LLC itself is not taxed, unless designated as a corporation.

Other Businesses

A partnership is designated the same as an LLC, with the partners taking the amount of the company revenue and splitting it up between them, then reporting their share individually. A sole proprietorship is much the same, except you are the only member, so you don't have to share profits. Depending on multiple factors, you'll want to carefully organize your business in the smartest way possible, as far as choosing the right type of tax classification.

Boyd Group Services is here to help you with all your business tax needs, as a B2B company that offers expertise in tax and financial services for growing your small business. We estimate most small businesses just starting out are paying an amount anywhere from 30-50% higher in taxes than they need to be, here at Boyd Group Services. Call to schedule a free in-depth analysis on your small business today.

State Sales Tax Rates

T he other kind of Colorado taxes you'll need to know about as a business is the state sales tax rate. It is important to note that Colorado, it is important to register with the Colorado Department of Revenue with your location for tax reasons, as the sales tax rate varies greatly depending on the local municipality. The base state sales tax rate is 2.9%, but this amount can be as much as 11.2% depending on where in Colorado you are. It's important to know the sales tax rate to be able to charge your customers accordingly.

For businesses selling tangible, physical products, knowing the sales tax rate is very important, because the sales tax amount is owed to the Colorado Department of Revenue. This means that, as a small business owner, you will be collecting the state and county sales tax rates on the products you sell, for them. Then you are responsible for periodically sending them this amount, usually on a quarterly basis.

For example, the sales tax rates in the city of Colorado Springs, for example, as of January 1st, 2021 has decreased from 3.12% to 3.07%, but the combined sales tax rates of what businesses are supposed to collect for the state of Colorado equals 8.20%, for businesses in Colorado Springs.

In Conclusion

Depending on your taxable income, you fall into specific income tax brackets that determine the overall tax rate you will pay on your personal income tax returns. Reducing the amount of taxable income is one of the most important and valuable things you can do to increase your cash flow. This increases your ability to take advantage of growth opportunities when they present themselves. Boyd Group Services specializes in these kinds of services, so do your business the favor of scheduling a free in-depth analysis, and see how we can help you, today.

What Is Tax Liability?

chad@boydgroupservices.com (Chad Davidson) — Sat, 27 Feb 2021 17:55:44 GMT

Basic Definition

If you are asking the question what is tax liability, and especially if you're a small business owner or starting a business, this article is for you! The term tax liability refers to the total amount of tax debt either you or your business owes to the tax authority - we know this as the Internal Revenue Service, or IRS. It is the agency that regulates the income tax rate and the amount of federal tax we pay, and what we refer to as our federal income tax, on our federal income.

If you file an income tax return, this usually means you will either receive an income tax return or refund, or you will have an income tax liability, which is the amount you owe in taxes.

Depending, of course, on your particular circumstances, Uncle Sam says you are behind on your income taxes and you need to pay, and may give you the opportunity to make tax payments in an installment agreement. One thing is sure regarding death and taxes (as the saying goes); everyone will die, and everyone will pay taxes. The IRS always gets their money!

The federal government will make sure you pay, one way or another, when you owe back taxes or a tax bill, as well as when you have a tax debt in your history. The last thing you want is to become an income tax liability, so be sure to pay your tax payment on time and thus reduce your tax liability.

Business Tax Liability

If you own a small business or are self-employed paying self-employment tax, your total tax liability largely depends on your taxable income, which explains the vigilant cognizance to continuously reduce your taxable income.

The type of business you are and the amount of taxable income you have for the previous tax year determine the tax rates you are charged, your filing status, and the tax brackets you fall in. The total of your tax liability is the amount of money you owe from tax liabilities, such as the following examples:

income tax
capital gains tax
sales tax
self-employment tax
back taxes you still owe the IRS

Besides the IRS, there are other tax authorities you could have a tax liability with, namely your state and local tax agencies. Your state government makes individual state tax laws and has its own guidelines for when you have a tax liability with them. In order to stay in the black with Uncle Sam, stay on top of your business and personal income taxes each year.

Estimating Your Tax Liability

If you are a sole proprietor, an LLC, a general partnership, or an S corporation, you will use a method that's called pass-through taxation to estimate your total tax liability. This means that all profits from your business are taxed along with your personal income tax return.

The exception is a C corporation, which pays the usual federal corporate tax of 21% as well as state tax, which varies, of course. Any business except a C corporation should be estimating their yearly taxes in a quarterly fashion, for easier ability to make quarterly payments to the IRS and not have a huge tax bill at the end of the year.

To accurately estimate your tax liability, take the current quarter's gross income of the business and calculate this amount as the basis for your yearly total tax liability. If the amounts fluctuate you can adjust the numbers accordingly moving forward. You need to base everything on a yearly total due to the graduated tax rate your taxes are paid by, even though you pay them quarterly. Remember to subtract your qualified business deductions for the quarter, the difference is your gross income and amount for the quarter, multiplied by 4 for the estimated yearly total tax liability.

Reducing Your Tax Liabilities

So how can you effectively reduce your tax liabilities? Well, that's where financial advice proves invaluable, and where we shine here at Boyd Group Services. Aside from this, however, there are a few steps you can take yourself with little difficulty. The first is to keep a better list of all your business expenses, keeping all receipts throughout the year and giving you more opportunities for legitimate deductions.

Always pay your taxes on time, because as stated, money in taxes you owe the IRS is non-negotiable. In addition, for any money you owe not paid on time, the IRS will fine you exorbitant amounts that can quickly become out of hand.

Last but not least, invest in your business. Putting money back into your business is one of the smartest investments you can make, because it's all deductible! So go ahead and purchase that new equipment and redecorate with the new furniture you really wanted. Get the latest technology for helping your business grow and succeed. These deductions will all reduce your taxable income and lower your taxes.

Additional Facts

When you're just starting out or building your own small business, these kinds of questions are common. However, your business's financial situation is a key crucial component to your overall success. In order to reach your maximum potential and achieve the business goals you've set, you will need to have a good plan for growing your business and taking advantage of periodic growth opportunities. This is why having a top-notch financial advisor on your side can make all the difference.

Here at Boyd Group Services, we can assist your small business with multiple financial services and options which are all designed to help you grow your business and achieve the kind of financial security you need. Having a great financial advisor is one of the best business decisions you can make, and takes all these kinds of worries and puts them in good hands. This way you can put your energy and focus into running your business, where it should be.

Whatever your business's financial needs are, Boyd Group Services can help. Schedule a call today so we can discuss your situation, and have the financial freedom you've been looking for.

What Is Business Tax Preparation & Planning?

chad@boydgroupservices.com (Chad Davidson) — Sat, 27 Feb 2021 17:48:41 GMT

Knowledge Is Power

If you have recently started a business or are thinking about starting one, you may be asking what is business tax preparation and planning? Especially if you're serious about your business, and intend to strive for the kind of financial success which affords participation in growth opportunities, thus reaching its maximum potential and greater overall measure of success. In business, if knowledge equals power - then tax and financial advisors are the key to that knowledge! Find out some of these long treasured and coveted pearls of wisdom, here in this post…

No Cheapskates!

One quick way to certain failure is to use the cheapest tax preparer you can find. Choosing a tax professional in this manner actually costs you money - to learn a hard lesson that is easily preventable. When hiring someone to help with your business taxes, keep in mind that all tax preparation services are not created equal! Some states have basic licensing requirements, but generally the only requirement for a tax preparer is that they have a PTIN (Practitioner Tax Identification Number), so be discerning.

Typically, an adequate tax preparer will be a CPA (certified public accountant), a lawyer, or an enrolled agent. Their services don't have to cost you an arm and a leg by any means, but do some research first to be certain of who you're getting. A good tax preparer can do more than just prepare your business tax returns once a year at tax time. A good CPA can help you with a year-round tax plan that will also afford you the ability to take advantage of growth opportunities in the near future. If you're just starting your business or find you're in a rut, having this kind of financial advice can be the key to greater success.

Business Tax Basics

Forms

Small business owners can do some things to prepare for their business tax return from the Internal Revenue Service, or IRS. The tax forms you will be used at tax time vary, depending on what type of business you operate. This includes people doing business as a sole proprietor, those who are self-employed, LLCs, corporations, general partnerships, and nonprofit entities. They all have their own separate tax forms and their own laws regarding taxation that apply to them. You can also schedule a call with us to discuss your current situation and guide you in the right direction.

Income Records

There are several different income records you will need to be able to qualify for all of the tax deductions which may be possible. Here are some records you will want to get together for your small business tax preparation checklist:

Receipts from sales or services from the business
Accounts Receivable
Returns and allowances
Business checking/savings account interest (1099-INT or statement)
Other income, including rental income, federal and state gasoline or fuel tax credit, or refund

In addition, you will want to have other records for tax information such as your credit card statements, bank statements, record of business expenses, and records from your double entry bookkeeping system on your business such as the income statement and balance sheet.

The Importance Of Tax Planning

Especially for small business owners, tax planning is one of the most important things you can do for your overall success. It is part of achieving financial security for your future, as it can help you take advantage of business growth opportunities throughout the tax year. It involves year-round planning and preparation, and you can enlist the help of a professional like us here at Boyd Group Services, where we will happily share our extensive knowledge and expertise with you. We know that tax planning and preparation is a vital part of any successful business strategy.

Reduce Liability

One of the main components of tax planning is to reduce your liability, or the amount of taxable income, reported to the IRS each year. Additionally, it gives you more control over when you pay your taxes, freeing up significant amounts of money when you really need it. To be able to take advantage of many of the incentives that are available, however, you must be familiar with the entire tax code and laws, which change each year. Boyd Group Services makes this easy, and can help you not only reduce liability and pay less taxes, but also help advise you in growing your small business.

Grow Your Small Business

If your business is surviving but that's about it, getting financial advice from a professional can make all the difference. Growing a business in today's market is tough enough, especially when you're trying to run it. Since your business is your livelihood and likely your most significant asset, your lifestyle and future depend on it. If you feel like your progress is impeded by the lack of funds necessary for significantly growing your business, make sure to schedule a call with Boyd Group Services.

What To Look For In Hiring A Professional

One of the most important things to look for when hiring a professional tax advisor or financial advisor is the level of education and experience they have in the field. A certified public accountant or CPA is a good start, since obviously the job calls for a lot of math and accounting skills. Be sure whomever you hire has proven and recent experience, as well as connections within the community or the industry in general. Use your instincts as well, and remember this person ideally should have a confident demeanor that speaks of success, and a genuine and likeable personality.

In choosing a firm to provide you and your small business the tax services and financial advice you need, be picky! After all, it's true that you will be entrusting a large part of the success of your business to this person. You have a responsibility to make certain it is someone you have confidence and trust in. While there are never any guarantees when it comes to finances, why would you settle for anything short of perfect, giving your business the best chance possible? Here at Boyd Group Services, we would love to help you give your business the best chance possible in reaching its potential, so schedule a call today so we can discuss your particular situation. We look forward to serving you!

What Is Bookkeeping?

chad@boydgroupservices.com (Chad Davidson) — Sat, 13 Feb 2021 22:16:05 GMT

The Importance Of Keeping Impeccable Records

If you own a small business today or are thinking of starting one, you may ask the question what is bookkeeping? Now while you probably have a pretty good idea, you may not know everything involved in bookkeeping , or why it's so important to keep impeccable records. The fact of the matter is, both the success of your business and how much success you can achieve, depends primarily on your finances - thus, your bookkeeping. Therefore, the better question here is, do you need an accountant?

Overview

Two Methods

The term bookkeeping refers to keeping records of all the financial transactions your business makes, so let's go over some basics in bookkeeping and accounting practices. It's important in business bookkeeping especially, to have a set accounting process you follow. In recording financial transactions for small business owners, there are two proven bookkeeping systems you can choose from to meet your business needs. The first is called the double-entry bookkeeping system and is probably the most reliable.

The Double Entry Bookkeeping System

The double-entry bookkeeping system is the standard for most small business owners today. It has a detailed system of recording financial transactions that use the concept of debit and credit for each one. In this process, every transaction affects two or more bookkeeping accounts, through an introduced concept of debit and credit. The benefit of using this process is that it's an accurate, complete recording of all business transactions, and can be used to evaluate the condition or performance of your business.

This method is valuable, especially when you need credit or want to investigate the possibility of allowing investors into your business. At this point, you will need to provide specific financial information that any bank or lending institution will request. When using this type of double-entry bookkeeping, financial reports such as these can be easily generated. As your business enjoys bigger and better success, these financial situations often represent growth opportunities you won't want to miss!

Single Entry Bookkeeping

Smaller business bookkeepers may only be using what's called a single entry bookkeeping process. However, this accounting system is sorely outdated and much less reliable, although it is still acceptable for the I.R.S. when preparing tax returns. Basically, this is just a general ledger or simply a cash book where they keep a record of all the daily cash transactions for their business. A balance sheet is often the only form of accounting the business can produce, aside from cash receipts and a monthly document containing their outgoing bills.

With single-entry bookkeeping, anyone's transaction affects just one account. The remaining tasks are keeping books that reflect sales made, inventory, capital, and basic accounts payable and accounts receivable, on a monthly basis. These records are usually kept in an informal manner as well. The problem with this type of accounting process is, while it may seem to be effective enough for cash flow in handling the minimal amount of business transactions you make, you leave yourself with very little opportunity for growth.

Bookkeeping Methods

There are several different ways to keep your books, as a business. In today's economy, many small business owners utilize bookkeeping software, hire accountants once a year to do their taxes, and try to keep their own books the rest of the time, to save money. After you attain a certain measure of success, however, you will want to consider hiring a professional bookkeeper. In any case, no matter where in this process you now are, let's go over some common practices in bookkeeping to give you the scope of daily tasks.

Chart Of Accounts

A chart of accounts for your small business includes the data from multiple different accounts such as revenue and expenses and serves as organized indexing of them. This is an example of the main accounts that typically are a part of the bookkeeping records and thus, on your chart of accounts:

Assets - this is where your 'Accounts Receivable' accounts go, such as: Inventory, Cash - Checking & Savings Accounts, and any money owed to your business, or credit you've extended.
Fixed Assets - also under the main 'Assets' heading, but will include your building or business space, vehicle(s) used for the business, business equipment such as computers, etc.
Liabilities - this is your 'Accounts Payable' area, involving any debt of the business. Includes current short-term obligations and long-term obligations as well, plus space for any future promises. Also will include owed payroll and sales taxes, as well as accrued wages owed.
Equity (Owner) - your investment in the business, and any retained earnings that you turn back into the business. Remember, any future growth opportunity allowing investors to invest in your business will come from the data held within these bookkeeping records. Therefore, save future account space for common stock and preferred stock.
Revenue - Sales / Profits, interest income from any business investments, and Sales Costs / Cost of Goods
Expenses - if you are unfamiliar with the type of accounts that go here, check out the I.R.S. tax form schedule C and go by this. Don't forget to include an expense account for your business, even if you aren't currently utilizing one.

Generating Financial Statements, Etc.

The success of your business widely depends on the financial state of it, and in order to succeed in the long run, you must show bigger and better profits over time. This is why keeping impeccable records of all your financial transactions is so important because you will need to be able to generate financial statements from time to time, as growth opportunities arise. By scheduling a call we can help you get started on the road to success. A ledger or journal for recording all daily transactions manually is also highly recommended. An income statement is another one of the financial statements commonly referred to and requested of small businesses for credit requests.

As a business owner, you must be able to make tough financial decisions for the good of your business, and having a great bookkeeper or bookkeeping system is the key to financial success. And keep in mind the fact that when you need expert financial advice or top-rated financial services you can trust, remember us here at Boyd Group Services. We help small businesses to achieve independent financial success through financial planning, growth opportunities, and investments, etc. so schedule a call today and set up a consultation so we can discuss your particular needs, and give you the expertise you need.

What Is a CFO?

Mon, 14 Dec 2020 02:22:02 GMT

The Basics

A "CFO" stands for Chief Financial Officer, and is one of the most important positions within a business. It is more than just a bookkeeper, an accountant, or even the supervisor of your entire accounting department. A CFO is pretty much single-handedly responsible for whether or not your business is making a decent profit or not. A good CFO can literally make or break your business, so the importance of hiring an excellent one is paramount. Sometimes a business owner may make an informed, intelligent yet independent decision to temporarily hire a professional CFO to improve their overall financial performance, as well as to hire and train an independently chosen outstanding candidate to take over the position permanently. This can be one of the best decisions a savvy business owner can make, creating an ultra-successful environment and model to work from and improve upon from that point forward. After all, a good, solid business is only as good as its finances.

Create Intense Job Description For This Position

If you are trying to create a job description for your business's CFO, make it both comprehensive and intense. A CFO has arguably the most intense, extensive job description and list of qualifications for than any other. He or she will have at least a Bachelor's degree in accounting, finance or economics and a strong educational background in business leadership and financial management. A well qualified CFO will either quickly establish or already have in place solid relationships with other CFOs and executives from other companies that can compliment or benefit yours in any capacity. Aside from that, a good CFO knows much more than just accounting. This person will be a complete business strategist, taking everything from past sales and current business operations to marketing strategies and current trends and growth opportunities into careful consideration. They will be familiar with your industry, and be both anxious and willing to learn all about your particular business's history, growth, etc. Your CFO will have an impressive success rate and experience history, especially if being hired for the temporary but vital reasons previously explained. In addition, this person will have a charismatic and energetic personality, with top leadership qualities and a style of the highest caliber. He or she will be, essentially, worth their weight in gold, to both you and your company. Keep in mind that this person can and will, make or break your business's future financial success.

Responsibilities Of A CFO

Though it may sound like we are possibly overdoing it in our assessment and description of a good CFO thus far, make no mistake, we are most definitely not in the slightest. In fact if anything it's been played down, and I will demonstrate how. Think about the responsibilities of the CFO from the owner of a successful business's perspective. This person is responsible for the profit margin of your entire company, and whether or not it has steadily but unmistakably increased since the time they were hired. They are responsible for the current reputation and brand awareness of your business, as well. Your past, current and future marketing strategy is dependent upon this person's knowledge and judgment. What people think about your products' quality and effectiveness not only directly impacts your business and its growth potential, but can also be attributed to an effective, active CFO's efforts in the community and through his or her business relationships and contacts. Are you beginning to see why it is so crucial to the success of a business to have a top quality CFO yet-?

Excellent CFO In Action

Here's an example of a great CFO in action. At a self-designed and inspired business-sponsored event in the community, Chad (CFO of the business doing the hosting and sponsoring of said event) decides to improvise when the turnout is initially a small number. He does this by getting up on the stage and announcing a "surprise impromptu talent show" with a great irresistible prize, starting in 2 hours. Go tell your friends and family members about it, and if you want to perform, come back and sign up in exactly 1 hour! He is already extremely well liked and respected within the community, and his enthusiasm and excitement is contagious. In the ensuing hour, he isolates himself in a quiet room with a pen and paper, brainstorming ways to benefit the business and boost brand awareness, especially among the younger generation of people who represent the current popular opinion. In the end, his overall contribution to your business is absolutely priceless, because the lasting impressions from the event that day are immeasurable, just from that aspect.

Final Summary

Obviously, not every CFO is going to measure up to "Chad", but hopefully by now you get the idea. When you think "CFO", you should have very high expectations, because this person is definitely going to be earning their salary. Don't settle for less than a superb, above-average over-achiever who will literally take your business to new heights! And here's another tip to remember: if you want to make a really smart business decision, hire a professional CFO from a unique company such as Boyd Group Services. The owner will be able to help you with your CFO position, as well as to assist your business with new growth opportunities, excellent financial advice, and new strategies for growing your business and increasing its future level of success. It's wealth management plus so much more. Running a business in today's uncertain economy is tough enough, without having to learn a bunch of financial strategies too. Besides, who has the time for anything but the hundreds of tasks you try and accomplish every single day? It is because of this, that we have been attempting to shed some light on the question 'what is a CFO', as well as what their responsibilities are and what an excellent one can do for you and your business. So, take good advice and hire a terrific CFO for your business!

How Long To Keep Business Tax Records

Thu, 10 Dec 2020 16:47:00 GMT

And Other Great Tips For New Business Owners

If you are a fairly new business owner, you may be wondering how long to keep business tax records. This article will explore the answer to this question and also help you with some other great information and tips for tax-time. If you've successfully started a new business recently, congratulations! Now comes the hard part - keeping it afloat. If your business is going to achieve overall success, however, a huge percentage will depend on how well you manage your books. This in turn will help you when it comes time to do your taxes. Keep in mind that using a professional in this department is one of the smartest business decisions you can make, especially in the formative years of your business. A good financial advisor can help you to make or break your business. Ok so the short answer to how long to keep business tax records, according to the IRS, is 3 years from the date you filed your last return. However, they also state that they "generally will not go back more than 6 years" when performing an audit. Most lawyers will tell you to keep any and all business records for 7 years, to keep yourself safe. There is a statute of limitations for collections from the IRS of 10 years. As you can see, this presents an issue of varying opinion. If you like to err on the side of caution, you may want to keep your records for 7 years (or even 10 if you're really cautious). But the IRS themselves say 3 years should be sufficient, so it's really a matter of what type of risk level you're comfortable with. Now let's talk about the kind of things that draw the IRS's attention to you for an audit, so that you don't put yourself in an unnecessary (and unpleasant) situation.

How To Avoid An Audit

There are few threats quite as scary as an IRS audit to a new business owner. In fact it is quite probable that is the reason behind finding this article of interest, in the first place. If so, you can exhale and breathe normally for a while, because statistics show your chances of that are extremely minimal. Even still, there are a few things that put up a red flag, demanding closer scrutiny by a human agent - instead of the computer program that flags them. Income brackets between $200,000 and $1 million or more have a significantly higher chance of being audited, but even they have a relatively small chance of an audit. Only 1 out of 100 small businesses are audited each year, and probably the number one reason is disproportionate deductions and expenses when itemizing. Small businesses are expected to have itemized deductions, however, they should be legitimate and not ridiculously high in proportion to the income or profit margin of the business. Little things such as rounding your figures up or down instead of keeping it real with actual, exact numbers whenever possible, can actually trigger a red flag. You're not expected to make a lot of money in your first few years, but it should show some increase each year once you get going. If your business shows a loss year after year, it will send a red flag up. Typically, you're allowed only 3 out of 5 calendar years to report a loss, as a business. These represent the most common reasons for a business audit.

Tax Assistance

As a business owner, careful tax planning and good tax strategies are valuable to you. The objective is to reduce your federally taxable income and maximize your returns, and to do that effectively, it takes a professional who knows how to make the tax code work in your favor. There are many deductions and credits you may not be aware of, and let's face it - you're trying to run a business, not become an expert on tax laws. Have you set up benefits for your employees yet? If not, there are significant tax credits for setting up qualifying retirement plans such as a 401K. Have you considered going green? Better for the environment, good p.r., and a tax credit! Or how about making your business accessible to disabled patrons and employees? If you have more than 15 full time employees, it's the law anyway, but even if you don't it's just the right thing to do - plus you get a tax incentive to do it. Even just for hiring employees, there are tax credits you can take. Buying machinery or vehicles for your business can get you significant write-offs, the first year they're in use in many cases. There are many things as a business you can legally utilize on your taxes in helping to reduce taxable income, you just need someone who is extremely knowledgeable in this department to help you take advantage of what is possible for yours.

Financial Advice From Boyd Group Services

Good financial advice is priceless, especially if utilizing a place such as Boyd Group Services, where owner Chad Davidson also specializes in growth opportunities for businesses, CFO services, accounting services, tax preparation and planning for businesses, and more. He can help you find the funds you need for the right growth opportunities, and teach you how to scale your business for the anticipated goals you set. Achieve the success you know you're capable of, and be well prepared for it when it comes. Typically, Chad can also show you how to save 30-50% more just on your taxes. Boyd Group Services also provides a free 45 minute strategy session where they will perform an in-depth diagnosis of your business, and tell you the ways they can help you. If you have recently started a business, now is the time to start carefully planning for the future. Even if you're a seasoned professional who just needs some good, sound financial advice, you can benefit greatly by calling Boyd.

What Is Financial Planning?

chad@boydgroupservices.com (Chad Davidson) — Thu, 10 Dec 2020 16:41:11 GMT

And What It Means For Your Business

If you're a new business owner or even sole proprietor or independent contractor, you may be asking questions like what is financial planning ? Educating yourself in this often overlooked area is a smart business decision to make, but remember that having a professional accountant or excellent bookkeeper you can trust and depend on is the key, for business owners. After all, you're trying to run a business, which is hard enough in today's economy. Perhaps your business has taken off faster than you'd expected, or maybe the opposite is true and you're wondering how you can plan better for the future. Maybe you are getting ready to start a business and gaining some general knowledge on financial planning first. No matter what your situation is, learning more about financial planning is a smart move to make. Because let's face it, your business is only as valuable of an asset as its profits. Any successful business has a great CFO or CPA running the financial department and keeping excellent records. Financial planning is a big part of growing your business and is instrumental in its overall future success. It is generally a part of your original business plan, and helps in determining how you will fund new growth opportunities that will assist you in reaching the goals you set.

Key Components

Thankfully, you don't need an accounting degree to put together a financial plan for your business, however. There are a few key components that should be a part of any solid business financial plan.

Profit & Loss Statement
Cash Flow Statement
Balance Sheet
Sales Forecast
Business Ratios & Break-Even Analysis

Why Accounting Is Important?

Mon, 16 Sep 2019 15:02:07 GMT

Business Accounting

As a business owner today, good accounting is even more important than ever. It can definitely become overwhelming in a hurry, especially if you didn’t take it seriously and aren’t well prepared. Even as a sole proprietor, you need a really good accounting procedure, or really good software like Quickbooks, but still, you must adapt some strict behaviors and practice them religiously. Unless, of course, you have an endless supply of money and don’t have to make any in your business. We’ll assume for the sake of this article that you are interested in making a profit, and in learning about why accounting is important. Your business is your livelihood, and you likely put everything into it.

Whether it makes money or not and how much it makes (or loses) directly affects the way you are able to live. With so many ways to grow your business and profit from the benefits out there in the market today, good accounting is critical to your success. After all, you will need resources for taking advantage of the new growth opportunities that are the most profitable. Like the old adage goes, it takes money to make money. So let’s talk about some of the ways in which you can see why accounting is important to your business.

A/P – A/R

First off, let’s talk about accounts payable and accounts receivable, or A/P – A/R. This is one of the basic principles in accounting, and absolutely vital to know at all times to keep from quickly bankrupting your company. Your business has overhead expenses and bills to pay every month, and these should be part of your accounts payable records. You absolutely need these records to be 100% accurate, first of all. Especially if you want to stay in business for more than a month (or so)! How much you pay out is what you measure against what you’re bringing in – your accounts receivable – in order to get your gross profit amount, something you’ll need for your taxes as well as any loans you may apply for, etc., plus, it is particularly important to know when deciding whether or not you can afford to buy something, and in making any financial decisions overall.

When people owe you, you may need to send reminders. But how do you remind yourself, when to do that, if you don’t keep good accounting records? You wouldn’t even know when they are late, and if not prompted, they might end up not paying you at all. Essentially, your business’s success depends on these records, and the financial planning and decisions you make based upon the information within them. Since most business owners know all this, let’s move on to some real information you can use.

Business Planning

OK, so let’s say you’ve started a business within the last 3 years, and you’re still struggling to show a profit every month. Or you’ve decided you’re going to start a business, and want to do it right. In either case, business planning is in order. The reason you want a business plan is to establish the future goals you want to achieve, and create your plans for getting there. It should include milestones leading up to your goals, and detailed plans and ideas on how you’re going to achieve each one. This helps you determine the precise business focus for each milestone. In addition, if you’re trying to secure funding for any reason, you will need to present a well researched business plan to any lender, bank or investor. This is also another area where you see why accounting is important, as you will need a detailed assessment of your company’s financial records and accounting, and a profit and loss statement. How to write these things, however, is a subject for another post. There is a lot of information that goes into writing these types of records and reports. Business financial planning can be achieved with the help of a good financial advisor in Fort Collins , Colorado Springs, Or Denver, which is definitely one of the best pieces of advice you can take from this post. As soon as your business begins pulling a steady profit, enlist the services of a financial manager or advisor. You can find a great resource for assistance with business financial decisions and growth opportunities with Boyd Group Services.

Business Investing & Financial Advice

Once your business has shown that it is profitable, one of the best things you can do from here is to hire a professional financial advisor and business growth specialist. A great advisor will be someone who gets to know you and your business, so that they understand your needs, goals and even your personality, very well. They will already have established important contacts necessary for growth opportunities and for current market trend information and inside (legal, of course) tips. They should have extensive knowledge and proven experience in their field of expertise. Most importantly, they will truly care about your business, and about helping you to succeed and reach your goals. If you have a great financial and business advisor by your side who really cares about you, you can do just about anything. This is not hype or an exaggeration. Ask just about any highly successful business owner the importance of having one, and they will all tell you the same thing. It is of key importance.

In Conclusion

Hopefully we have demonstrated various reasons for why accounting is important to your business, overall. The better job you do with your accounting records and financial planning, the better chances you have of growing and prospering in general. You will also have a much better chance of obtaining funds when you need them for growth opportunities and investing. There are many more digital marketing ideas you can take advantage of with a relatively small expense. Hiring a quality digital marketing firm is another excellent business decision that should pay off rather satisfactorily. In any case, good luck and stay focused on the future goals you set.

How To Grow Your Business

Mon, 16 Sep 2019 14:54:56 GMT

Owning A Business In Today’s Market

If you are a newer business owner in today’s market, you may be wondering how to grow your business. The present economy is expected to bounce back from the state it’s in due to the worldwide pandemic over the next few years, but there are still growth opportunities out there. While you may be experiencing a slight decline in revenue, utilize this time well by considering hiring someone to help grow your business. A great reference for business growth solutions is Boyd Group Services , who can help you with everything from CFO services to tax planning for your business, and who specializes in optimizing business’s growth potential and expanding their opportunities.

Growing your business is going to take some time, and that’s something you just never have enough of. Therefore, take the bull by the proverbial horns, while there’s a lull in business and you still have some! It’s the smart move, especially if you’re struggling, or if you’re in the first 5 years of being in business. Do yourself a favor and schedule a free strategy session, and see for yourself what they can do for your business. However, if that’s not possible and you are trying to learn something for yourself and go from there, here is some good information.

Great Tips You Can Actually Use:

Write about something you know. If you don’t know much about a specific topic, invite an expert to write about it. Having a variety of authors in your blog is a great way to keep visitors engaged.

You know your audience better than anyone else, so keep them in mind as you write your blog posts. Write about things they care about. If you have a company Facebook page that gets lots of comments, you can look here to find topics to write about.

What is Tax Planning?

Mon, 16 Sep 2019 14:49:39 GMT

Specifically Speaking…

All of us Americans are interested in paying less for our taxes each year, but how can we reduce our taxable income and increase our returns? This is part of what is commonly known as tax planning, and the subject of this post. If you have begun to take an active interest in securing your future financial success, you may be asking the question, what is tax planning? Tax planning is basically taking a logical, proactive approach to your financial situation, and evaluating the various methods of reducing your taxable income per year. This is where hiring an excellent financial advisor is to your great advantage. There is just too much information regarding the federal government, taxes and the stock market, for any one person to learn, let alone apply and make work for them. At least, for anyone who also has a job to do and a household to run! This is definitely something to concede to a professional, especially since we’re talking about your finances here. Your future success, if you want to be real. However, if it’s still in your nature to gather some general information on any topic you’re considering hiring someone to help you with, good for you! That’s exactly who this article is written for.

The Basics

Tax planning is using the tax code to your advantage, utilizing various absolutely legal and legitimate methods. These measures include things like deductions, credits, exemptions, rebates and concessions, to name a few. But it doesn’t stop there. Excellent tax planning strategies include income deferral or shifting and investment tax planning, to include the exploration of tax-exempt and tax-deferred investments, among multiple other investment strategies. Utilizing these methods does require meticulous, year-long planning and current working knowledge of the tax system and code, as well as the current stock market trends, etc. Tax planning at its core has three basic parts. The first is reducing your overall taxable income, which is done in various ways available to anyone – as long as you’re aware of them! The second is to increase the number of tax deductions you take advantage of throughout the year. Again, it pays to know what’s available to you, and it’s different for everyone. The third part is taking advantage of specific tax credits that are out there, and once again this entails a vast, working knowledge of the tax system. The idea, of course, is to maximize your “visible” income at the same time you’re investing in your future, and minimizing your taxes.

The Importance Of A Good Financial Plan

A good, solid financial plan that includes an investment portfolio is always the smartest option for your future financial success. A great financial advisor can go a long way towards securing you a profitable future, and earning the fees you pay out many times over, in most circumstances. He or she will take the amount of your investable assets, the level of risk you’re comfortable with taking, and the amount of time you want to invest, in order to put together a portfolio that is designed to reach the goals you set for yourself. Your financial advisor should take the time needed to get to know you and your family, the business you’re in etc., in order to better understand your needs and goals for the future. The better your financial advisor knows you, the better he or she can advise and invest for you. A person really doesn’t know their risk tolerance until they test out how steady their nerves really are, by making some investments. If you are tight with your financial advisor, they can assess this better right along with you, letting you know the pros and cons of a particular stock or venture you may be interested in. Remember, the higher the risk, the higher the potential returns, as well. But this kind of investing is not for everyone. The majority of people tend to want to stay at a minimum to a moderate level of risk, which is also fine. Any type of investing greatly and exponentially increases your chance of future financial success. Tax planning is just a part, albeit an important part, of a solid and comprehensive financial plan.

Investment Tax Planning

Lastly, while we’re on the subject of tax planning and investing for your future, investment tax planning should not be overlooked. We brought it up briefly, but let’s give it a more thorough overview. Since we are on the topic of tax planning, investment tax planning is equally important. The entire method is centered around planning your entire year’s strategy around being as tax-efficient as possible. Since the overall goal is to make as much money possible while appearing to take a comparative loss, we’re going to need to make some very strategic investments. This is where this type of investment tax planning strategy is of key importance. There are many different options you or your advisor have, in order to optimize your most tax-efficient investments. Some good examples are things like tax-managed stock funds and ETFs (exchange-traded funds) due to the fact that they trigger less capital gains, treasury bonds and savings bonds are exempt from local and state taxes, municipal bonds are typically federal and state tax-free, and tax-exempt mutual funds, which are a collection of either stocks, bonds or a combination of both. With all of these examples, you pay either a minimum amount or zero in taxes on any returns on these investments, making them a very shrewd investment. Another strategic, tax-free investment in your future is worth mentioning, and that’s a Roth IRA or Roth 401K. This is an investment in your retirement fund, tax-free. You can contribute up to about 6K a year, and although you can’t deduct what you put in, when you want to start withdrawing at the minimum age of 59-½ (as long as you’ve had the account open for a minimum of five years), your money is tax-free, including all the returns from these investments. In conclusion, I hope you’ve gotten some good basic information on tax planning and investment tax planning. Happy investing!

Blog

What To Look For In A Tax Planning Firm

The Benefits of Hiring A CFO | Boyd Group Services

How Tax Planning In Advance Helps Your Company

Most Common Bookkeeping Mistakes To Avoid | Boyd Group Services

Why Your Small Business Needs A Bookkeeper | Boyd Group Services

How Accounting Leads To Business Growth And Success | Boyd Group Services

Common Small Business Tax Mistakes | Boyd Group Services

Filing Personal And Business Taxes | Boyd Group Services

What is Accounting and Why is it Important?

What Is Accounting?

Accounting vs Bookkeeping

Accounting Cycle

Financial Statements

The Different Types of Accounting

Why Accounting Matters For Your Small Business

The Job of an Accountant

What Is The Business Tax Rate In Colorado?

Starting A Business

Colorado State Taxes

Colorado's Corporate Income Tax

Top Rated Corporate Tax System

S Corporations

C Corporations

Limited Liability Corporations or LLCs

Other Businesses

State Sales Tax Rates

In Conclusion

What Is Tax Liability?

Basic Definition

Business Tax Liability

Estimating Your Tax Liability

Reducing Your Tax Liabilities

Additional Facts

What Is Business Tax Preparation & Planning?

Knowledge Is Power

No Cheapskates!

Business Tax Basics

Forms

Income Records

The Importance Of Tax Planning

Reduce Liability

Grow Your Small Business

What To Look For In Hiring A Professional

What Is Bookkeeping?

The Importance Of Keeping Impeccable Records

Overview

Two Methods

The Double Entry Bookkeeping System ﻿

Single Entry Bookkeeping

Bookkeeping Methods

Chart Of Accounts

Generating Financial Statements, Etc.

What Is a CFO?

The Basics

Create Intense Job Description For This Position

Responsibilities Of A CFO

Excellent CFO In Action

Final Summary

How Long To Keep Business Tax Records

And Other Great Tips For New Business Owners

How To Avoid An Audit

Tax Assistance

Financial Advice From Boyd Group Services

What Is Financial Planning?

And What It Means For Your Business

Key Components

Why Accounting Is Important?

Business Accounting

A/P – A/R

Business Planning

Business Investing & Financial Advice

In Conclusion

How To Grow Your Business

Owning A Business In Today’s Market

Great Tips You Can Actually Use:

What is Tax Planning?

Specifically Speaking…

The Double Entry Bookkeeping System