Atlanta CPA for GROWING Atlanta Business Owners & Entrepreneurs

In 2021 We Helped Our Clients Manage Over 135 Million in Cash Flow.

February 3, 2022/in Blog /by John Dillard

In 2021 We Helped Our Clients Manage Over 135 Million in Cash Flow.

www.HisCPA.com A Christian CPA Firm and Virtual CFO

Be Sure You CPA Works as Hard as You Do Towards Your Business Success

If you want a CPA that will truly take care of your business from A-Z you have found him right here at His CPA! John is the best!

May 22, 2019/in Blog /by John Dillard

If you want a CPA that will truly take care of your business from A-Z you have found him right here at His CPA! John is the best!– Christoper Purvis, PNC Bank

Tax Law Changes and Year-end Tax Planning

December 5, 2018/in Blog /by John Dillard

Wanted to remind you of the need to do 2018 year-end tax planning so we might avoid surprises as well as keep your tax bill as low as legally possible. Please forward your year-to-date data and a forecast for the rest of 2018 so we might update your tax planning accordingly.

Keep in mind this year’s taxes will be very different from prior years as the IRS has doubled the exemption amount making it less likely for taxpayers to be able to itemize, lowered tax rates, did away with exemptions but increased child tax credits, the total deduction on your personal returns for the total of state income and property taxes combined are limited to $10,000.

2018 Deduction for Pass Through Entities for Small Business Owners, In President Trumps most recent tax law changes there is a 20% deduction for Pass Through Entities for Small Business Owners. Be sure in addition to the tax rate deductions available to all personal returns your CPA considers this in your 2018 tax planning. The change was added by Congress to “bridge the gap” between the reduction in the greatly reduced corporate rates and the marginally reduced personal rates for America’s Small Business Owners. Plan Early & Plan Often!

Effective January 1, 2018 the IRS has dramatically changed the way business owners record and deduct Meals and Entertainment. Entertainment expense is no longer deductible. Business meals remain 50% deductible. Items benefiting employees (not the owners) such as recreational/social activities (i.e., Christmas parties) are deductible at 100%. Accordingly I suggest setting up in your chart of accounts effective 1-1-18 three new charts of accounts: -Entertainment Expense (not deductible).

-Business Meals (50% deductible)

-Recreational/Social Employee Expense (100% deductible)

Georgia Tax Law Changes for Georgia Business Taxpayers & Entrepreneurs. Georgia Governor Nathan Deal signed House Bill 918 reflecting changes in Georgia law to reflect IRS Tax law updates. Effective January 1, 2019 Georgia reduced the personal and corporate tax rates to 5.75%. Georgia did not adopt the 20% qualified business income deduction that was included in the Tax Cuts and Jobs Act/TCJA giving business owners and entrepreneurs a 20% deduction of their K-1 business income on their federal return. This was passed by the IRS for business owners to bridge the gap between reduced corporate tax rates and those for individuals.

Georgia also doubled the standard deduction for all individual taxpayers to $6,000 for married tax payers filing jointly/$3,000 for married taxpayers filing separately and to $4,600 for single tax payers. Stay abreast for more tax news as it affects each and every one of our pockets!

Due Diligence When Buying a Business

October 10, 2018/in Blog /by John Dillard

Performing Due Diligence When Buying a Business.

The below is a sample letter that we might receive from a potential client looking to buy a new business and a draft of what my response might be.

Hi, John. I’ve been presented an investment opportunity that I think I’m really interested in. There are a lot of unknowns and I have lots of questions.

The opportunity is a minority ownership in a business. The company is in an industry I’m very familiar with. I believe in the longevity of the business.

Certainly, I would need to know the value of the business before buying in. Could you help me with that? Do I need to ask for tax returns, P&L, etc.?

I would also like to be aware of any tax implications the investment might have. Thank you in advance for your expert opinion.

Below is my response:

Sounds great. I’ll be more than happy to help you walk through it.

I would suggest getting copies of the last two business returns as well as a year-to-date financial statement.

I would also get a feel for the business segments and the number of different clients they have so we can address business concentration risk.

One of the biggest issues with setting up a partnership is having a agreement in advance making sure that if you leave your able to start your own business but also having the flexibility that if they leave that you are a protected from them taking all the clients with them.

Shareholder agreement will need to be examined and thought about in great detail to make sure that they are adequate for all parties. Then we will need to determine the value of the business. Also want to take great care to add value or subtract from that value for minority versus majority ownership interest.

Just a few initial thoughts to get a started towards your long-term business success.