While most tax reduction tips are utilized prior to January 1st, if the New Year has come and gone, that doesn’t mean that your tax bill is set in stone. There are still some things that you can do to lower your taxes, save money when preparing your tax return, and avoid tax penalties. 

Here are some tax tips that individuals can utilize after January 1st that may help lower your taxes and potentially save on tax preparation. Let’s get into it. 

#1. File And Pay On Time

Or file an extension on time if you need a bit more time to get your things in order. It may seem like a no-brainer, but by filing your tax return by the deadline and paying anything you may owe, you can avoid penalties and fines, which keeps you from spending more than you otherwise would.

#2. Organize Your Records

One of the biggest hassles people face come tax season is getting all of their documentation in order. Organizing your records makes when it comes time to file easier. This includes things like your tax-related documents, such as W-2s and 1099s, prices paid for stocks or funds you sold, details on income from rental properties, and more. 

#3. Itemize Your Tax Deductions

In some cases, the standard deduction will be more than your itemized deductions – but not always. Many people find it easier to just take the standard deduction, but itemizing your deductions can be worth it if your qualified expenses add up to more than that. 

Many such deductions are well-known, such as for mortgage interest, charitable donations, and medical expenses that exceed a certain percentage of your adjusted gross income. A CPA can help you find all deductions you quality for, including ones you may not have been aware of. 

#4. Contribute To Retirement Accounts

Contributing to your retirement accounts by the tax return filing due date can help to lower your tax bill. You can contribute to an IRA all the way up until Tax Day, and still deduct the eligible amount from your taxable income from the previous year.

It’s important to work with a tax professional in order to ensure that all qualifications are met, as there are factors that affect eligibility for this. The amount you save for making contributions also varies depending on contributions, tax bracket, and number of years the money has been invested.

#5. Hire A CPA

The best tax tip that you can utilize, regardless of the time of the year, is to hire a CPA to help you with your taxes. Taxes can be very complicated, and tax law is ever-changing. Many individuals worry about doing their taxes wrong and getting into trouble with the IRS. 

When you hire a CPA to help you with your taxes, you can rest assured that you’re working with an experienced professional who stays on top of any and all tax changes. That way, you can know your taxes are filed properly. While it’s true that you have to pay a CPA for their services, the peace of mind said services can bring is priceless. 

Professional Tax Preparation For Individuals And Businesses

Golub, Senitt, Rosenberg & Co’s experienced CPAs provide the professional tax preparation services you need to preserve your peace of mind. Whether you’re an individual or you need help with your business’s taxes, rest assured that we’ll ensure the process is completely as smoothly as possible. By working with a CPA, you can relax knowing that your tax return will be accurate and compliant with any changes in tax law. 

Contact us today to schedule a consultation. Whether you need tax help or assistance with another one of our CPA services, such as fractional CFO work or controllership, we look forward to hearing from you. 

Have you filed your beneficial ownership information reports yet? Are you starting a new company and have heard the term “BOI reports” bandied about and don’t quite understand all that that entails?

Here, we’ll answer some of the most commonly asked questions about BOI reports. For more information about beneficial ownership information and how that can be integrated into your compliance and risk management processes, the CPAs here at Golub, Senitt, Rosenberg & Co are here to help. 

What Is Beneficial Ownership Information?

Beneficial ownership information is identifying information about the people who either directly or indirectly own or control a company. 

This can include those with significant ownership stakes in a company, those who have significant control over decision-making, or a combination of the two. People with substantial control can include: senior officers, people with the authority to appoint or remove certain officers or directors of the company, people who are important decision-makers in or for the company, and people with any other form of substantial control over the company, such as someone with influence over important decisions. 

Essentially, beneficial ownership information identifies the real people behind a business, even if they aren’t the legal owner on paper.

What Information About Beneficial Owners Must Be Reported?

Reporting companies must provide the following information about all beneficial owners in their BOI reports:

• Legal name
• Date of birth
• Residence address
• Identifying number and issuing jurisdictions from driver’s licenses, passports, or other such authorized documents
• Image of the document the number is from

When Is This Report Due?

Reporting companies created or registered prior to January 1, 2024 must file by January 1, 2025. 

Reporting companies created or registered after January 1, 2024 must file within 90 days of receiving actual or public notice of formation or registration. 

Reporting companies created or registered on or after January 1, 2025 must file their initial report within 30 days of receiving actual or public notice or formation or registration. 

Why Do Companies Have To Report This?

The reason why companies have to report beneficial ownership information is in order to combat money laundering and other illicit activities. Reporting beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN) is part of the Corporate Transparency Act. 

Law enforcement and financial institutions use this information in order to identify potential risks with a company, such as when individuals may try to hide true ownership through shell companies in order to partake in money laundering schemes. Without access to beneficial ownership information, it can be challenging and time-consuming to identify patterns of risk. 

Thus, BOI reports are part of basic due diligence and typically are regulator requirements. It is part of risk management and compliance with laws on sanctions, fraud, money laundering, and terrorist financing. 

Who Has To Report Beneficial Ownership Information?

FinCEN BOI rules apply to the following two types of reporting companies:

• Domestic reporting companies. These include corporations, limited liability companies, and other entities created through filing a document with a secretary of state or similar US office.
• Foreign reporting companies. These include corporations, limited liability companies, and other entities that were formed under the law of a foreign country that register to do business in the United States through filing a document with a secretary of state or similar US offices.

Are Any Companies Exempt From Having To Report?

Yes, there are some companies that are exempt from having to file BOI reports. These include some nonprofits, publicly traded companies that meet specified requirements, certain large operating companies, and more. However, this reporting obligation applies to millions of businesses in the US or that operate in the US. 

CPA Services In And Around Glendale, CA

Golub, Senitt, Rosenberg & Co provides the full suite of CPA services in and around Glendale, CA. Whether you need help with your BOI reports, tax planning, fractional CFO services, or another type of accounting service, please don’t hesitate to contact us today. We are here to help you, however we can. 

Are your finances getting to be too much to handle, but your business isn’t big enough yet to justify hiring a full-time CFO? Did your CFO resign and you need an interim CFO during the hiring process for a replacement? 

If the answer to these questions is yes, it might be time to hire a fractional CFO. Here, we’ll go over what fractional CFOs do, how to know when to hire one, and some key benefits you can experience when you work with a fractional CFO. Let’s get into it.

What Does A Fractional CFO Do?

CFOs, both full-time and fractional, look to the future of your business. While full-time CFOs are a permanent part of the company, you would hire a fractional CFO for a certain period of time or for a project in order to assist with specific financial needs. Also known as outsourced or part-time CFOs, fractional CFOs are financial professionals who provide high-level financial management and strategic guidance to a company. 

Some of the things fractional CFOs do include: 

• Improving cash-flow
• Enhancing financial systems
• Improving growth and profitability strategies
• Assistance with mergers and acquisitions
• Recommending new software to improve financial systems
• And more.

Why Hire A Fractional CFO?

When you hire a fractional CFO, you get to enjoy the benefits of a CFO’s services, at a fraction of the cost of hiring a full-time CFO. This is beneficial to small businesses who may not have the resources to hire a full-time CFO, as well as to bigger companies who need someone to step into this role during a transition period while conducting the hiring process for someone permanent. 

The reason for this is because as business growth accelerates, financial teams may struggle to keep up with the business’s needs or not know how to negotiate terms and other such complexities. A fractional CFO sees to strategic planning and analysis, negotiation, and cross-functional work to ensure that nothing falls to the wayside. They understand how to ensure that your business is operating according to the demands of the CEO, the board, and the investors. 

Signs It’s Time To Hire A Fractional CFO

Many companies don’t start out with a financial team in place. This typically comes with growth. As your company grows, so does the need for a financial professional on your side, which is when you’re start thinking about whether it’s time to hire a fractional CFO.

Fractional CFOs help you model your business to be future-proof. They’re your partner, who help you strategize and avoid any financial pitfalls that could endanger your company. 

Some signs you should start thinking about whether to hire a fractional CFO include:

• You need financial leadership.
• Your business is growing quickly.
• Your business is expanding into new markets.
• Your business is making money, but not profit.
• Your business needs to fundraise.
• You’re not confident in your books.
• Month-end close is taking too much time.
• You need to reconcile a lot of accounts. 
• And more.

If you’re asking yourself if your business need to hire a fractional CFO, the answer is likely yes. You can schedule a consultation with a fractional CFO firm in order to best determine your needs.

As your business continues to grow, you may eventually need to hire a full-time CFO, as the roles and responsibilities you need filled exceed the time constraints of an outsourced, part-time professional. Your fractional CFO will let you know when it’s time to start thinking about implementing a full-time financial executive instead of utilizing their services. 

Key Benefits Of Working With A Fractional CFO

#1. Expertise

Fractional CFOs are seasoned professionals who have a breadth of expertise across industries. As they usually work with multiple clients simultaneously, they have more ongoing experience to pull from when advising and leading your organization.

#2. Cost-Savings

Fractional CFOs bring all the experience of a full-time CFO, instantly saving you the cost of hiring a permanent professional. They also allow you to bypass expenses associated with hiring someone in your company itself, such as payroll taxes and other such employment expenses. 

#3. Flexibility

Your fractional CFO’s work can be to your business’s needs. You can ask for increased support during critical periods and then revert back to a more consistent level when evened out.

#4. Objectivity

As a fractional CFO is someone you hire, rather than someone who has a stake in your company, you can count on them for objectivity. This can not only improve business outcomes, but also reduce business owner stress, as they can trust unvarnished advice based on experience, rather than advocacy for specific strategies. 

Do You Need To Hire A Fractional CFO?

Golub, Senitt, Rosenberg & Co provides fractional CFO services, controllership services, and the full suite of CPA services in order to fulfill the needs of growing businesses in and around Glendale, CA. We focus on fostering long-term relationships with our clients, looking towards your financial future, in addition to helping you with backwards-facing needs, like taxes and audits.

To learn more about the services we provide and what we can do for you as a fractional CFO, please don’t hesitate to contact us today.