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As a team of accounting experts with years of experience and passion beyond the numbers, we have seen how smart accounting practices can help a business thrive – and how lack of a financial management plan can destroy a business as well. Whether your business is a startup, an established enterprise, or a non-profit, take […]

As a team of accounting experts with years of experience and passion beyond the numbers, we have seen how smart accounting practices can help a business thrive – and how lack of a financial management plan can destroy a business as well.

Whether your business is a startup, an established enterprise, or a non-profit, take a moment to learn about Perry & Associates CPAs’ top 10 accounting practices to ensure profit success.

1. Identify Your Financial Goals

We’ve helped businesses in various stages of their financial journey throughout the years, and one thing remains clear; having clear financial goals helps business owners create a more realistic financial plan, reach financial targets, efficiently allocate resources, set budgets and discover opportunities to grow revenue. Without a plan, don’t expect profit to expand!

2. Establish a Chart of Accounts

A chart of accounts is a structured system that categorizes and organizes all the financial transactions of a business. Essentially, it’s a blueprint of your financial system. It typically includes a list of accounts representing assets, liabilities, equity, income and expenses. It helps business owners understand and track money coming in, money going out, what you own and what you owe. It also makes the financial reporting process much easier.

3. Budget and Forecast

Budgets provide a structured plan for how a business will allocate resources, manage spending and track progress toward financial goals. On the other hand, forecasting focuses on projecting future financial outcomes by analyzing past performance and current market trends. Both work hand in hand to help business owners make informed decisions and avoid overspending.

4. Regularly Review Financial Statements

Schedule monthly or quarterly reviews of your financial statements. This will help you identify trends or potential problems at your place of business. Three primary financial statements to analyze are income statement, balance sheet and cash flow statement.

5. Maintain Proper Internal Controls

Strong internal controls minimize the risk of fraud and financial errors, which is critical to ensuring profit success. Our forensic team, Perry Forensic, recommends implementing policies and procedures that are designed to protect assets, ensure accurate financial reporting, support regulatory compliance and keep all members of the team on the same page. Ways to do this include separating responsibilities among staff, implementing clear procedures and performing routine audits.

6. Use Automation to Streamline Accounts Payable and Receivable Processes

Streamlining accounts payable and receivable processes means automating and optimizing how a business manages incoming and outgoing payments to improve accuracy, speed and cash flow. It reduces manual work, minimizes errors and ensures timely billing and payments. As a forward-thinking and ever-innovating team, we have experts who know the ins-and-outs of accounting software that can provide support and the expertise needed to set up and manage these systems.

7. Stay Compliant With Tax Regulations

No accounting best practices list would be complete without reminding business owners to stay on top of their taxes! Maintaining tax compliance is vital to your business’s overall financial well-being, and involves keeping accurate financial records, staying informed about current tax laws and regulations and identifying key tax planning opportunities that minimize your tax liabilities. Sound overwhelming? Then contact our tax and accounting experts.

8. Conduct Regular Audits

Conducting regular audits is an opportunity to receive constructive feedback, improve processes, identify risks and become aware of financial reporting concerns. At Perry & Associates CPAs, our auditing services gives our clients an intensive review of their systems and records to provide the highest level of assurance.

9. Set Clear Profit Goals and Monitor KPIs

Set clear profit goals and monitor key performance indicators (KPIs) such as cash flow forecast, inventory turnover, customer retention and revenue growth rate to evaluate progress and guide strategic decision-making.

10. Work With Accounting Experts like Perry & Associates CPAs

Partnering with a professional accounting firm can streamline your operations by saving time, minimizing errors and ensuring regulatory compliance. We are invested in your success and have a deep commitment to providing services in a way that are always responsible, reliable and accurate.

Need guidance on putting these best practices into effect? Contact Perry Forensic. We’ll get you on the right track to profit success and personal satisfaction.

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As tax and accounting leaders in our industry who believe in a proactive approach, the halfway point of 2024 is a good time to take stock of any changes in tax laws and procedures that could impact both your business and finances. In this Perry & Associates CPAs blog, learn our tax tips for 2024 […]

As tax and accounting leaders in our industry who believe in a proactive approach, the halfway point of 2024 is a good time to take stock of any changes in tax laws and procedures that could impact both your business and finances.

In this Perry & Associates CPAs blog, learn our tax tips for 2024 that could ultimately help you plan for this tax season.

Take Advantage of Tax Credits and Deductions

There are a variety of deductions and credits that businesses can utilize strategically, which is why it’s crucial to understand how your business is classified. Let’s discuss a few 2024 deductions and credits that could help your business save this year:

  • Section 179 Deduction: This allows businesses to deduct the full purchase price of qualifying equipment and software paid for or financed during the tax year. The maximum section 179 expense deduction is $1,220,000. Discover how else this deduction has changed in 2024 from the IRS.
  • Bonus Depreciation: Bonus depreciation is a tax incentive that accelerates by allowing businesses to write off a large percentage of cost for an eligible asset in the first year it was purchased. Learn more about depreciation here.

Leverage Retirement Plans

This year, both you and your employees can contribute slightly more to your retirement accounts. For employer-sponsored plans including 401(k), 403(b) and 457 retirement plans—as well as Thrift Savings Plans, the 2024 contribution limits will jump to $23,000. Not only can offering these plans have tax advantages, they help attract and retain employees.

Understand the Tax Implications of Your Business Structure

Every business structure (sole proprietorship, S-Corp, C-Corp, Partnership) has varying tax implications and tax filing requirements. Make sure you are filing under the correct structure, using the appropriate forms and receiving tax benefits as they apply accordingly.

Seek Out the Help of Experts

At Perry & Associates CPAs, we stay ever innovating and ever investing with the latest software, training, professional development and research to ensure that our team is aware of the latest tax rules and legislation to keep our clients ahead of the curve. We know that filing taxes and staying abreast of constantly changing laws and procedures is stressful, which is why we want to relieve the burden! Regardless of industry, we can show you how our passion beyond the numbers is an ideal solution for your business.

The year is already halfway over – make sure you are making the right tax decisions! Contact our experts and we’ll provide you with the guidance, tools, resources and information to ensure you are headed in the right direction.

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The Internal Revenue Service’s Criminal Investigation unit issued a warning Tuesday about the use of “money mule networks,” criminals who exploit networks of innocent people to move illicit funds between bank accounts, currencies and blockchains in an effort to evade law enforcement. Click here to view full article

The Internal Revenue Service’s Criminal Investigation unit issued a warning Tuesday about the use of “money mule networks,” criminals who exploit networks of innocent people to move illicit funds between bank accounts, currencies and blockchains in an effort to evade law enforcement.

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The priority deadline to apply for state programs is mid March at some schools. Priority deadlines for financial aid have been extended for some local universities now that a new version of FAFSA has been released. The new Free Application for Federal Student Aid, or FAFSA, form had its […] Click here to view original […]

The priority deadline to apply for state programs is mid March at some schools. Priority deadlines for financial aid have been extended for some local universities now that a new version of FAFSA has been released. The new Free Application for Federal Student Aid, or FAFSA, form had its […]

Click here to view original web page at www.houstonpublicmedia.org

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5 Vital Financial Strategies Business Owners Often OverlookPhoto Courtesy of Taylor Financial Financial strategy is the backbone of enduring success in the dynamic business world. As Investopedia reports, being unable to overcome financial hurdles is the number one reason businesses fail. And yet, amidst the hustle of daily operations, […] Click here to view original […]

5 Vital Financial Strategies Business Owners Often OverlookPhoto Courtesy of Taylor Financial Financial strategy is the backbone of enduring success in the dynamic business world. As Investopedia reports, being unable to overcome financial hurdles is the number one reason businesses fail. And yet, amidst the hustle of daily operations, […]

Click here to view original web page at www.forbes.com