As a business owner, you’re always looking for strategies to maximize your profitability. Many enterprises are reaping the benefits of outsourcing to accomplish financial goals. Even the smallest of companies can take advantage of outsourcing. The practice has been prevalent since the late 1980s and has given rise to an increasingly large gig economy.

What is Outsourcing

It’s a popular practice that many businesses utilize to save money. Business owners hire a third-party individual or firm outside the company structure to perform services, complete tasks, or provide products that would ordinarily be done in-house by regular employees. Outsourcing services are most often delegated to resources in other countries where labor costs are cheaper.

How it Can Save You Money

Unlike an on-site employee, there are no employee-based insurance costs or benefit packages the business must provide. Outsourcing enables businesses to provide high-quality services at a fraction of the cost. The practice enables business owners to focus on the core aspects of their enterprise, while delegating other tasks that they may not be able to provide as well as another.

Outsourcing can help businesses expand their range of services. It’s also helpful for providing enterprises with access to high-tech resources, eliminating the need to purchase expensive and specialized software or equipment.

Many Ways to Save

One of the most well-known examples of outsourcing is customer service call centers. Payroll and accounting are often outsourced instead of performed on-site. Products ranging from ties and hats to T-shirts are often outsourced. Other examples include:

• Marketing and advertising
• Information technology
• Legal services
• HR department duties
• Cleaning services

A great many services are regularly outsourced by companies without realizing what it’s called.

Solutions for Any Business

No matter what industry a business operates within, there are opportunities for outsourcing. Contracting with a third-party can help a business operate more effectively and cost efficiently.

At Peavy and Associates PC our mission is to assist you with all your tax preparations, payroll and accounting needs.  We provide our clients with professional, personalized accounting services and guidance in a wide range of financial and business needs. Give us a call today (843) 347-0849 and discover why our clients return to Peavy and Associates, PC year after year!

Many individuals dream of owning their own business, but don’t fully understand what their tax liabilities are depending on the type of enterprise they’re operating. Knowing your tax liabilities is essential for growth and profitability. Your accountant will play an integral role in every facet of your business.

Federal Taxes

Depending on the size and scope of your operation, you may need to pay quarterly taxes and meet specific reporting deadlines. Those conducting a side hustle or working in the gig economy can often report their income on their personal tax return to the IRS.

State and Local Taxes

Your business structure and the city within which you operate will dictate which taxes you’ll have to pay. Florida is a tax-friendly state. Corporations are subject to a 5.5 percent income tax. Sole proprietorships, limited liability corporations (LLCs), and S corporations are exempt from paying state taxes.

Employment Taxes

Florida business owners will be responsible for paying federal and state employment taxes if they have employees. You’ll be required to pay a payroll tax and report wages, tips and other forms of compensation paid to an employee. There are special forms for doing so. You’ll typically be responsible for workers’ compensation insurance, unemployment insurance taxes, and temporary disability insurance. You’ll be required to report taxes that have been withheld from employee paychecks.

Why You Need an Accountant

The Florida tax code is a highly complex and complicated set of regulations. It can drive business owners to distraction trying to decipher the code, but an accountant is cognizant of all the intricacies. He or she can provide expert guidance on ways to reduce your federal, state and city tax liabilities.

An accountant will advise you of your tax responsibilities and be able to file at the appropriate time on the correct forms. The professionals help you work toward your individual goals, minimize costs, and maximize your profitability.

At Peavy and Associates PC our mission is to assist you with all your tax preparations, payroll and accounting needs.  We provide our clients with professional, personalized accounting services and guidance in a wide range of financial and business needs. Give us a call today (843) 347-0849 and discover why our clients return to Peavy and Associates, PC year after year!

You’ll have a wide variety of questions to ask any accountant you’re thinking of hiring. While many people feel self-conscious about asking questions, it’s important to remember that he or she will be responsible for ensuring business taxes are completed and filed on time to helping you reach your financial goals. Never hire an accountant without getting to know more about them.

“Tell Me About Yourself” Isn’t Intrusive

You’ll want to know if they’re licensed, have any special skills, their work background and experience. It’s an opportunity to learn why he or she became an accountant and the most gratifying part of the profession for them.

Software

If you’ve been using one of the consumer software programs available, you’ll need to know if your software is compatible with the accountant’s. You may have to print out and provide paper documents for transfer to your account if you decide to hire him or her.

Range of Services

Accountants can provide a wide range of services besides filing your taxes. They can provide guidance to assist you in attaining your financial goals, help you in operating more efficiently, and develop strategies for your changing needs. An accountant can be your trusted financial adviser from startup to retirement.

Clients and Reputation

It’s a good idea to find out the type of clients and companies with which the accountant normally works. Don’t hesitate to ask for references and to explore the professional’s social media accounts and website. A good accountant isn’t difficult to locate, but a great one will have earned a reputation for excellence.

Fees, Charges and Outsourcing

How an accountant calculates fees is also a critical question. An accountant is supposed to simplify your financial life, but fees and charges shouldn’t outweigh the benefits. You’ll also want an accountant that tends to your financial health personally, not one that outsources the job.

At Peavy and Associates PC our mission is to assist you with all your tax preparations, payroll and accounting needs.  We provide our clients with professional, personalized accounting services and guidance in a wide range of financial and business needs. Give us a call today (843) 347-0849 and discover why our clients return to Peavy and Associates, PC year after year!

Your accountant does much more than just file your taxes. He or she performs a wide variety of services to help you reach your business and financial goals. There are some essential questions you should ask your accountant each year to help maximize your business.

What Financial Goals Should I Pursue

Your financial goals will change over time as your business grows and your needs change. You may want to lower tax liability, increase profit margins, operate more efficiently, or be seeking an exit strategy. It’s important to talk to your accountant each year to ascertain what your primary goals are for the year.

Cost Saving Strategies I Can Use

Every business owner should be concerned with how to save their business money. Doing so can mean reducing overheat costs, waiting on expansions or upgrades, re-evaluating partnerships, or simply spending less. Your accountant can guide you in all those endeavors.

Tax Liabilities and How to Reduce Them

Knowing your liabilities will ensure you have enough money set aside to pay your taxes each quarter with no surprises. The information will tell you where funds should be dispersed or invested for greater profitability.

Which Financial Reports are Most Important

Your accountant tracks and monitors a variety of information. You need to be informed about every facet of your enterprise, but there are some reports that can be more important at any given time. Don’t be reticent about asking your accountant which reports of which you should be most aware. Doing so will keep you informed of current and future business trends, allowing you to make highly informed decisions about every aspect of your business.

Where Can Automation be Employed

Whether its payroll, machinery and equipment or customer service, there are a wealth of ways in which businesses can automate services and processes. Some enterprises are more automation friendly than others and can result in considerable savings. Automation is a topic that should definitely be discussed with your accountant each year.

At Peavy and Associates PC our mission is to assist you with all your tax preparations, payroll and accounting needs.  We provide our clients with professional, personalized accounting services and guidance in a wide range of financial and business needs. Give us a call today (843) 347-0849 and discover why our clients return to Peavy and Associates, PC year after year!