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!

People can lower their federal and state tax obligation through credits and deductions. Credits typically produce a more favorable result, as they lower the taxes owed. However, in combination with deductions, they provide a way to reduce your taxable income and reduce your total tax bill.

Tax Credits

There are a number of tax credits available to individuals that reduce overall income and can put you in a different tax bracket, meaning your income is taxed at a lower rate They include the earned income credit, child tax credit, child and dependent care credit, and American Opportunity tax credit. These and others reduce the amount you owe the federal government and work to lower your income.

Retirement Savings

Income set aside for retirement purposes and company-sponsored 401(k) accounts can lower your taxable income. They include traditional IRAs, Roth IRAs, and 401(k) plans.

Health Savings Account

People contributing to an HSA for health care expenses can use those funds to lower their taxable income, as they’re made with pre-tax income.

529 Plans

As an educational savings plan, earnings and distributions aren’t subject to taxes – providing the funds are used for qualified educational costs. They’re not deductible on federal taxes, but can lower the state tax burden. Be aware that rules vary by state. Pre-paid tuition plans are another option for qualified institutions.

Charitable Contributions

Those who volunteer at a qualified non-profit organization can deduct travel expenses associated with volunteering. Cash and non-cash contributions can also be deducted – be sure to keep a receipt. Claiming a charitable contribution will lower income and tax burden, but itemization of deductions is required and there are limits on how much can be deducted.

Depreciation and Business Expenses

For those that operate a home business or farm, for example, a portion of equipment or machinery can be deducted as depreciation. A percentage of a home used exclusively for conducting business can also be deducted.

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!

CPA stands for certified public accountant. The professional designation is earned by accountants that have obtained a higher level of education in multiple areas that includes accounting, auditing, finance, taxation, and other areas of financial expertise. They’re licensed, trusted and highly-trained professionals that assist clients in attaining their financial goals. All CPAs are accountants, but all accountants aren’t CPAs.

What They Do

A CPA provides consulting services and helps clients create strategic financial plans for the future. The professionals file taxes, maintain financial records, provide litigation consulting, and assist clients with retirement planning and exit strategies.

They work with individuals, businesses, multiple industries, education, government, and a wide variety of non-profit organizations to keep clients informed of their financial standing. A CPA can represent a client during a tax audit only if they’ve qualified as an Enrolled Agent and received the right to practice from the U.S. Government.

Some CPAs choose to specialize in fields ranging from environmental issues and agriculture to forensics. The professionals work for clients ranging from athletes and celebrities to some of the largest corporations in the world, along with small business operators. CPAs are committed to continuing education to provide the most effective and efficient services for their clients. A CPA utilizes highly-sophisticated and specialized software to ensure accuracy.

Ethics

CPAs have a code of ethics. The information between clients and CPAs remains confidential. A CPA in Florida is required to complete a minimum of 4 hours of board approved ethics every 2 years.

Selecting a CPA

It’s critical for individuals to choose a CPA that they trust, since the professional will have access to personal and sensitive information. The CPA should also have expertise and experience in the client’s particular industry. It can be helpful to ask family, friends and peers for recommendations based on their personal experiences. The IRS also maintains a directory of credentialed professionals. CPAs are financial professionals and are available to answer any questions that may arise. Individuals need to feel comfortable taking any financial matter to their CPA.

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!

Everyone dreads tax time, as evidenced by the number of people that wait until the last minute to file. Waiting until the deadline can be a costly mistake for individual filers and those that operate a home or small business. There’s an increased risk of mistakes, missing a deadline, and you may not catch deductions and credits for which you’re entitled.

Get Organized

You need to start thinking of tax time long before you’re ready to file. That means keeping and organizing receipts. Keep bills and receipts in folders according to type. If nothing else, at least keep them in a box. It will be a mess for you or a tax preparer to decipher, but worth it. If you utilize the services of a tax professional, you’ll typically have been sending them your receipts, which makes the process easier.

Know Your Obligations

There are plenty of resources online that provide all the information you’ll need for your individual circumstances to file local, state and federal taxes. Bear in mind that you could be audited at any time.

Credits and Deductions

Whether you’re an individual filing your taxes, operate a home business or a gig worker, there are numerous tax credits and potential deductions for which you may qualify. They can reduce your taxable income, the taxes you pay, and could place you in a tax bracket where you’ll be taxed at a lower rate.

Tax Software

Completing your taxes can be much easier with tax software. You’ll still need to keep track of your receipts, but tax software can make it easier to track expenditures and income.

Professional Expertise

A tax professional is well worth the money, especially for those with a home or small business. The professionals use software that’s highly specialized and sophisticated. They’re also cognizant of the constantly changing tax laws and can provide strategies for saving.

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!

Everyone wants to find ways to lower their tax burden each year. There are some everyday write offs that many individuals are eligible to take on their federal income tax and they don’t even know it. A tax write off is a deduction that taxpayers can use to reduce the amount of taxes they owe. Not everyone qualifies for each write off, but the following are some of the most popular.

Vehicles and Mileage

People that use their own vehicle as part of their job can deduct the milage on their vehicle used strictly for work. It applies to people such as delivery drivers, reporters, and gig workers.

Mortgage Interest

Homeowners can deduct the interest paid on their home mortgage. Space used for a home office can’t be counted and deductions must be itemized.

Home Office

More people are operating a home business and a percentage of the space used for business can be deducted if the area is used exclusively for business purposes.

Student Loan Interest

The interest paid on a student loan is deductible for yourself, a spouse, or a dependent child. You can deduct up to $2,500 worth of interest, whether from a private or federal loan.

Charitable Donations

Cash and non-cash items donated to a qualifying charitable organization can be deducted if you itemize deductions. Volunteers can deduct the mileage they drive to the organization. Taxpayers that claim the standard deduction can no longer take the charitable contribution write off.

Medical and Dental Expenses

Any expenses greater than 7.5 percent of your adjusted gross income can be deducted – provided you itemize deductions.

State and Local Taxes

State and local income taxes paid can be claimed on your federal tax return, up to $10,000.

IRA and Retirement Contributions

To take this, you need to have had earned income from work. The amount that can be written off depends on age.

Health Savings Accounts

Setting aside money to cover medical expenses is a good idea. The amount you can set aside depends on age.

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!

No business owner wants to pay more in taxes than necessary, but many are losing out on ways to reduce their tax burden without even knowing it. The following are just some of the ways that small business owners can reduce their company’s taxable income.

Health Insurance

The cost of health insurance isn’t cheap, but it can help small business owners reduce their company’s taxes. The IRS allows a deduction for people that are self-employed and pay for their own health insurance. That includes premiums for medical, dental, vision, and even long-term care coverage. The coverage extends to spouses and children age 26 and younger covered under the policy. This is especially important for people that are gig workers, independent contractors and freelancers, all of whom are considered a small business by the IRS.

Retirement Savings

If you have no employees, you can establish a single participant 401(k), also known as a SOLO 401(k). You might also be eligible to deduct your contribution to an employee retirement plan. Other options include the Self-Employed Individual Retirement Account, also known as a SEP IRA, Roth IRA and traditional IRAs. There’s also a Saver’s Credit for which you may be eligible due to your retirement contributions.

Qualified Business Income Deduction

Also known as the Section 199A deduction, you may be eligible for it if you claim your business income on your personal income tax return. It’s available for sole proprietorships, partnerships, LLCs, and S corporations.

Home Office and Depreciation

Operating a business out of your home can net you deductions in a variety of ways. It’s possible to deduct a portion of your home dedicated to the business, internet service, business phone, office supplies, and similar bills that are necessary for the operation of the business. You can also deduct depreciation of your office equipment and assets essential for conducting business.

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!

When your small business has reached the point where you need even one employee, its time to hire a payroll service. The service takes the worry and headaches out of the entire process, allowing you to focus on building and growing your business.

A payroll service ensures that employees are paid accurately and on time, but not all services offer the same level of benefits. It pays to shop around for the company that best fits your needs now and in the future. Payroll services may help you with employee schedules, your accounting practices and even software. The company may also track overtime and employee benefits.

Compliance

One of the most important tasks that a payroll provider does is ensure that the business is in compliance with all relevant reporting requirements and changes in tax laws. They know what forms employers must file and when.

Accuracy and Security

Employers are required to withhold specific taxes and in certain amounts. The computations can be complex. Payroll services ensure the appropriate amount of withholding is calculated. They use highly specialized software and are dedicated to accuracy in every aspect. They can provide the appropriate financial information for any governmental query or request. All data is maintained securely and confidentially.

Employee Verification

There’s a lot of paperwork involved when hiring any employee. A payroll service streamlines the process of verifying a potential employee and gathering the necessary information about them, such as if they’re eligible to work in the U.S., if they have a criminal history, and past employment records. Self-service employee accounts are another benefit. Individuals can manage their employee account online to enroll in benefits and update their information when needed.

Scalability

Even if you only have 1 employee now, that will change as your company grows. The ability to handle payroll for any number of employees is essential. You’ll want a payroll service that’s able to keep up with your evolving company needs and the services it offers, along with flexible payment plans.

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!