Leverage Accounting

Once, artificial intelligence was the stuff of science fiction. Today, though, AI and automation have become integral to our daily routines. Think about it: how many times this week have you used Siri or Alexa to set a timer, create a reminder, or answer a question?  The promise of AI and digital transformation is driving efficiency and growth. Businesses of all sizes are increasingly relying on technology-powered solutions and tools to do more with less—and do it better. Consider the applications for financial and accounting processes. From automating data entry and transaction categorization to generating real-time reports, technology is changing the way businesses approach their numbers. Embracing and implementing technology can enhance accuracy, unlock efficiency, and enable more strategic decision-making. Best of all, even small and medium-sized businesses can benefit from digital transformation.  Digital transformation is changing accounting Through technologies like AI and automation, digital transformation is streamlining traditionally time-consuming accounting processes while improving accuracy by eliminating the potential [...]

Tax planning and tax preparation may sound like two sides of the same coin, but the reality is that they are vastly different. All too often, though, business owners and leaders focus on taxes only during tax season—and this means that many miss out on opportunities to legally reduce tax liabilities and retain more cash in the business.  Tax filing season is still months away—but the fall is an ideal time to undertake tax planning well ahead of next year’s filing. Tax planning is important both for the business and the business owner. In this article, we will cover the difference between tax preparation and tax planning and reveal how a strategic approach to tax planning can benefit your business.   The difference between tax preparation and tax planning  Tax preparation and tax planning are both essential for managing a business’s tax obligation. But that is where the similarity ends.  Tax preparation is a compliance process that focuses on gathering [...]

As a business owner, you already understand that every successful company is built on the bedrock of financial stability—and it simply doesn’t exist without effective credit management. Credit management ensures healthy cash flow, reduces exposure to write-offs and bad debt, and helps foster strong customer relationships while also strengthening the bottom line. While the benefits of good credit management may seem obvious, the “how” is sometimes daunting. In this article, we explore how your accounting firm may be a valuable resource for your business in helping you implement effective credit management practices.  Understanding credit At a high level, credit management refers to the strategies, policies, and procedures your business adopts and implements for extending credit to your customers and collecting payment for products or services.  In practice, credit management entails finding the right balance between extending credit terms to your customers to facilitate sales and ensuring that you can collect payments timely to maintain healthy cash flow in your [...]

The Greek philosopher Heraclitus is said to have written, “Change is the only constant in life.” Though more than 2,500 years have since passed, the quote is still relevant today.  Advancements in technology and ever more complex financial regulations are reshaping how we do business. It’s why more than ever, businesses benefit from access to expert professional accounting services to navigate the straits of change. This article explores why and how professional accounting services can help you make the best decisions for your business, even as the accounting landscape changes around us.     Understanding the changing business landscape The business landscape is undergoing significant change, driven by technology advancements, regulatory shifts and updates, and increased globalization. These changes place new requirements on businesses, from new reporting standards to new and evolving tax laws and other compliance requirements. Businesses must actively manage these changes to ensure business sustainability and to avoid falling behind. At the same time, the accounting industry is [...]

The saying “it’s lonely at the top” can feel very real for many business owners and leaders. According to research, nearly 50% of business owners and managers handle finance and accounting themselves. While generally confident that they’re delivering on administrative tasks, the same study shows that nearly 30% have been audited or have received a notice from the IRS.1 It’s all fine until it’s not, perhaps. Who is the business owner or manager’s most trusted advisor? Survey1 says: the CPA. When an accountant knows the client’s business and can offer strategic support, nearly 9 out of 10 small- and medium-sized (SMB) business owners see them as their most important trusted advisor. Strategic accounting is about more than tax filing and running the numbers. It’s about knowing the client’s business, financial challenges and opportunities, and empowering the company to succeed in today’s business landscape.  Let's take a closer look. What are accounting advisory services? You may have heard the term [...]

U.S. tax compliance can seem challenging and daunting for many businesses. This is true not only for income tax compliance but for other types of taxes as well. One type of tax that can be both challenging and daunting and which can expose a business to significant penalties and interest is sales tax. This article provides a brief overview of sales taxes in the United States to help management understand compliance responsibilities and to highlight a compliance pathway for businesses.  The Big Picture - Sales Tax in the United States The Tax Foundation reported in 2020 that there are more than 11,000 separate taxing jurisdictions for sales tax in the United States.1 More importantly, the requirements to file (i.e., known as nexus) in each jurisdiction are generally not uniform and may vary significantly. Welcome to sales tax in the United States! The general requirements for sales tax compliance in the United States have also changed significantly in recent years. [...]

Are you an accounting expert? Chances are you’re an expert on your business, but not necessarily on its accounting operations. And, if so, you’re not alone. According to data from Small Business Report Accounting, 60% of business owners feel they have insufficient knowledge of finance and accounting. Even so, only approximately 30% of small businesses use an external accounting professional. As a result business owners who have a trusted accounting advisor may have an edge.  These survey results suggest that filing tax returns, crunching numbers, and keeping the books simply aren’t enough. Accountants can and should do more than tax filing. They should be able to provide insight into many areas of your business, help you understand your financial position, and serve as a trusted advisor to set you up for long-term success.  Is your accountant delivering on these objectives? If not, it’s time to think differently. In this article, we take a look at five key reasons to [...]