Accounting

How Can Accounting Firms Assist Startups & Small Business in 2024?

Accounting for small businesses can feel overwhelming, but with the right help, it doesn’t have to be. A certified public accounting (CPA) team can play a critical role in helping startups and small businesses through the dreaded tax season and beyond, making day-to-day operations smoother. If you’re a small business owner, take the time to understand how a CPA team can benefit a company like yours.

💡 Accounting for Small Businesses: The Benefits of Using a CPA Accounting Team

Accounting Can Be Time-consuming
Some of the most time-consuming tasks for a business owner can be your accounting responsibilities, especially if you don’t have experience in the field. If you aren’t comfortable handling the aspects of your company’s accounting, consider outsourcing to a CPA team. They can provide expert services in small business bookkeeping, tax planning, data management, and more. They can even take on chief financial officer (CFO) duties, which is a position in the company that you may not currently have filled. Instead of going it alone, why not let a team of professionals lighten your load?

Keeping Up-to-date on Accounting Trends
An integrated CPA team will keep your company up to date on new accounting trends and policies and will take the time to find solutions and tools to make your financials easy to manage.

Establish a Proactive Tax Strategy
You would be smart to establish tax strategies early—something that a CPA team can help you with—in order to get the most out of your profits. Although hiring a CPA team will initially cost more than doing it yourself or keeping an in-house accountant, you’re going to benefit in the long run in terms of money saved thanks to their expert advice.

Let’s Talk About Tax Deductions

What are Tax Deductions?
Tax deductions are expenses that you can claim against your tax payments in order to reduce the amount you pay.

As a small business, there are certain tax deductions that you might benefit from even if you don’t know it yet. Here are a few examples:

📌 Work-Related Travel Expenses: Any travel you might do for work—whether it’s a train ticket, gas for your car, or a hotel stay—could be deductible. The trip itself must be necessary for business, take you away from your home, and be longer than a working day.
📌 Home Office Expenses: If your small business operates from a home office, expenses like office supplies, equipment, and even a portion of your rent or mortgage may be deductible. You can even claim $5 per square foot of space used by your office.

A CPA team can walk you through all the deductions you might be able to claim and ensure that you’re saving as much money as possible.

💡 Getting Audited

Audits Happen
Audits happen regularly, and it’s mandatory to comply with the IRS when they decide to audit you. The main reasons for an audit include ensuring your financial statements as a business are accurate and free from errors that might otherwise point to suspicious activity.

The Pain of Audit Compliance for Small Businesses
An audit can be a real pain, requiring you to pull information from all your accounts and source any information that auditors might request. That means you’re at their beck and call, which can be a serious disadvantage when trying to handle accounting for small businesses.

Minimizing Your Risk of Being Audited
Audits can be avoided by following the advice of a CPA team. It’s less likely that you’ll be audited if your financials are handled by a professional. Although it’s not guaranteed that you won’t be audited if you hire a CPA team, they can take preventative measures to make the auditing process as smooth as possible.

💡Strategizing & Planning With A CPA Team

A CPA Team Will Help You Understand the Financial Effects of Business Decisions

Whenever you make a business decision, there will always be financial implications—good or bad. A CPA team will be able to help guide you to make the right choices and avoid the wrong ones. They can help you understand what your money is best used for and how you can increase your profits.

For example, if you want to hire a new staff member or invest in training, your CPA team can advise you on what’s best for your budget.

With a CPA team, you can easily look at the bigger picture and create a detailed strategy for the future of your company. They can help you explore the opportunities you have as a small business and how to leverage your resources to grow. Together with your CPA team, you can make the right decisions to ensure your business is on a positive financial route.

Take Advantage of Your CPA Team

When it comes to your accounts, take advantage of what an integrated CPA team can offer. Weigh the pros and cons of outsourcing your accounting duties, and consider how a whole team can make accounting for small businesses a breeze.

Feel like you’re juggling too many numbers?

? Let’s make it easier. Contact us at Insogna CPA, and we’ll show you how we can take the weight off your shoulders. Whether it’s tax season or day-to-day operations, we’re here to help your startup or small business thrive in 2024 and beyond. Let’s chat and get your financials in tip-top shape!Top of Form

Best CPA in Austin Texas

Taxes can be more complicated when you have a business, property, and family. Plus, the tax codes keep changing. Hiring the best CPA in Austin, Texas, can make life a lot easier. Experienced CPAs not only ensure you prepare and file your taxes properly and on time, but they can also help you with your bookkeeping and accounting.

If you’re searching for personalized, expert accounting services, look no further than us. At Insogna CPA, we offer a range of services for individuals and businesses. We have the best CPA in Austin Texas committed to offering the highest quality tax and accounting services.

What Makes Our Firm The Best Choice For CPA

According to many of our clients, here’s what makes us the number one choice for CPA.

Taxes Are Our Forte

We know that taxes can be really confusing. But taxes are all about numbers, and we love numbers. As the best Austin accountants, we have plenty of experience dealing with taxes. We’re always up-to-date with the changing tax regulations and rules happening often. This means that by hiring us, you can ensure compliance with all the tax laws.

We’ll Save You Time And Money

While it could take you very many hours or even days to do your own taxes, we’ll only need a fraction of that time to put your taxes in order. Our CPA firm in Austin has done this thousands of times, and each time, we make sure our clients’ taxes are filed correctly.

Plus, we’ll save you money. We have all the latest tax-saving opportunities right at our fingertips because, after all, it’s one of our main areas of focus throughout the year. And it doesn’t matter if you have multiple income streams. You might still qualify for additional tax savings.

Trusted Financial Advisors

As a reliable CPA firm, we’re here to make money matters easy for you. Whether you’re dealing with debt, taxes, or planning for the future, we’ve got your back. Our friendly experts help you figure out how to pay off debts, understand taxes without the headache, and plan for retirement without stress. We also help you choose the right insurance and make budgets that work for you. If you need down-to-earth advice and support to handle your finances, just give us a call!

Better Work-Life Balance

Tasks like recording receipts, setting financial targets, tax returns, and bookkeeping are essential for the success of your business. However, they consume a lot of time. By delegating such duties to our team, you can have more time on your hands to dedicate to your business and family.

Cost Management

Cost management is everything when running a business. And it’s one of the reasons why you need the best Austin accountants. Our CPAs will assess the financial health of your business to determine areas where funds are being spent unnecessarily and recommend cost-saving alternatives. Our goal is to optimize your revenue and help put more money in your pocket.

Premier CPA Firm

If you’re on the hunt for the finest CPA in Austin, Texas, look no further! We’re proud to be a top-rated CPA accounting firm, dedicated to providing unparalleled solutions for all your tax and accounting needs. What sets us apart? We never take a one-size-fits-all approach. Instead, our expert team customizes our tax and accounting services to perfectly fit your unique requirements. Whether you’re an individual or a business, we’ve got you covered. Ready to experience the difference? Contact us today to schedule a consultation and discover why we’re the go-to choice for CPAs in Austin, Texas. Reach out now at 210-942-3962.

Insogna CPA

+1 210-942-3962
3355 Bee Caves Road Suite 503
Austin TX 78746

Unlicensed vs Licensed CPA – What does that mean for you?

Almost anyone can call themselves an accountant. This isn’t true of CPAs (Certified Public Accountants), which is a designation requiring specialized training towards becoming a licensed CPA.

The American Institute of Certified Public Accountants (AICPA) states, “All CPAs are accountants, but not all accountants are Certified Public Accountants (CPAs). Receiving your CPA certification distinguishes you from other business professionals – the benefits are increased trust, opportunity, and financial reward.”

What are the main differences between licensed CPAs and accountants?

Training – CPAs have passed rigorous testing and strict requirements for licensing in the state in which they intend to practice. After becoming licensed, CPAs must take continuing education classes throughout their career in order to maintain up-to-date information on issues and changes in the accounting world.
Fiduciary Responsibility – Many businesses that are required to have a financial statement audit or review will need a CPA to perform these services and issue the required reports. CPAs are also considered fiduciaries with a legal duty and power to act on behalf of, and in the best interest of their clients. Non-CPA accountants are not considered to be fiduciaries to their clients.
Taxes and Regulations – Accountants without a CPA certification may prepare a proper tax return, but a CPA offers distinct advantages to clients that non-CPAs cannot provide. Many licensed CPAs are more knowledgeable in tax codes as a result of the rigorous CPA licensing examination and continuing education requirements. Licensed CPAs are also eligible to represent clients before the IRS if audit support is required, while a non-CPA accountant is not.
State Requirements and Codes of Ethics – The license is not the only requirement to be a CPA. CPAs are also expected to follow a strict code of ethics and meet the high standards of the profession.

Pitfalls of working with an unlicensed accountant?

An unlicensed accountant can disappear with your data at any time. While a licensed CPA is professionally responsible by the State Board of Accountancy to make sure your data is protected.

Having a licensed CPA provides you recourse with the State Board of Accountancy in you ever need to report them. If you work with an unlicensed person and they disappear, there is no one to call or complain.

Licensed CPA vs Unlicensed Accountant Snapshot

According to Merchant Maverick, “An accountant is a finance professional who offers business advice and can perform bookkeeping tasks like reconciliation and record-keeping. But only a CPA can represent your company legally before the IRS and create audit reports and review reports.”

Certified Public Accountant (CPA)

Must have a Bachelor’s and have successfully passed the CPA certification exam
Offers advice and insight about the big picture finances of a business, and can often offer deeper knowledge of tax codes
Can create audit reports and review reports
Can legally represent a client

Unlicensed Accountant

Generally, has a bachelor’s degree, preferably in accounting
Offers advice and insight about the big picture finances of a business
Can only create compilation reports
Cannot legally represent a client

What do I need?

Do you need help managing the day-to-day bookkeeping processes of your business? Hand the reigns to a professional bookkeeper to free up your time.
Do you need financial advice regarding your business? A professional accountant or CPA will be able to analyze your business finances and offer business advice.
Do you need to prepare your taxes? A bookkeeper can help you manage your payroll taxes, sales taxes, and compile 1099s, but only an accountant, CPA, or EA can file your tax returns for you.
Are you worried an employee is stealing from you? A forensic accountant will be able to get to the bottom of the issue and spot any potential fraud.
Are you a private or public corporation?If you are a public corporation, it must provide audit reports to investors and only CPAs are qualified to create those reports.

Analyzing your businesses needs is the best way to determine which type of accounting professional you need. We would we happy to discuss your needs to determine what type of services you might require.

Insogna CPA offers bookkeeping, payroll, virtual/fractional CFO, and more services to help take your business to the next level. Give us a call.

How does my company’s accounting method impact its bottom line?

Do you know if the accounting method you’re using is the right one for your business?

The difference between cash and accrual accounting lies in the timing of when sales and purchases are recorded. Cash accounting recognizes revenue and expenses only when money changes hands, but accrual accounting recognizes revenue when it’s earned, and expenses when they’re billed (not paid).

The cash basis is easy to determine when a transaction has occurred (the money is in the bank or out of the bank) without the need to track receivables or payables. Since transactions aren’t recorded, per se, until the cash is received or paid, the business’ income isn’t taxed until it’s in the bank.

In the accrual accounting method, revenues and expenses are recorded when they are earned, regardless of when the money is actually received or paid. The upside is a more realistic idea of income and expenses during a period of time, providing a long-term picture that cash accounting doesn’t provide. The downside is it doesn’t provide any awareness of cash flow. Accrual basis accounting without careful monitoring of cash flow can have potentially devastating consequences.

Tax Impact

Let’s say you own a business that sells machinery. If you sell $5,000 worth of machinery in December, under the cash method, that amount is not recorded in the books until the customer hands you the money or you receive the check.

Under the accrual method, the \$5,000 is recorded as revenue immediately when the sale is made, even if you receive the money in January and thus pay taxes on it.

The same principle applies to expenses. If you receive an electric bill for $1,700, under the cash method, the amount is not added to the books until you pay the bill.

However, under the accrual method, the $1,700 is recorded as an expense the day you receive the bill.

Should I use cash or accrual?

If your business is a corporation (other than an S Corp) that averages more than $25 million in gross receipts over the past three years, the IRS requires you to use the accrual method. If your business doesn’t hit those criteria, you can use the cash method.

Keep in mind that the IRS requires companies to use and maintain the same accounting method to report taxable income for a year — so no changing halfway through a tax year.

Some businesses can choose the hybrid method of accounting, wherein they use accrual accounting for inventory and the cash method for their income and expenses.

If you’re unsure of which accounting method is best for your business, speak with us.

More Tax Tips

Would you like more year-end tax tips? Download our new, Year-End Tax Planning Guide.

Best Small Business Accounting: Insogna Partner Gusto Adds New HR Integrations

At Insogna, we strive to offer efficient, modern services that will set us apart as the best small business accounting in Texas. Our partner, Gusto, recently released two new HR integrations that will allow Insogna to better assist you in hiring and taking care of payroll responsibilities. In addition to their seamless payroll management, Gusto is adding the optional services from JazzHR and Greenhouse to help users improve the hiring process, from effective recruiting to simple onboarding.

JazzHR works with clients to streamline the recruitment process on a user-friendly platform. They offer solutions that include finding qualified candidates, assisting with interviews and assessments, and reporting HR metrics like compliance and recruiting. With Gusto and JazzHR’s new partnership, hired candidates are imported and employee records are created directly in Gusto.

Greenhouse is a recruiting software that assists in the hiring process. Greenhouse works hard to improve both yours and the candidate’s hiring experience. They offer apps to help both parties stay on top of the process, scalable options depending on your business needs, and regular statistical reports to help you refine your hiring process. Gusto integrates with Greenhouse to import candidates, send offers, and add new team members as employees or contractors.

These solutions are helpful to small businesses whose time and money is extremely valuable—automation is proven to be more efficient than manually carrying out repetitive processes like these. Coupled with Gusto’s offerings and Insogna’s expertise, outsourcing these responsibilities will check some major items off of your to-do list.

Insogna has partnered with the other industry experts to ensure that you remain compliant and avoid penalties that often come as a result of payroll mistakes. Teaming up with the best small business accounting for startups will help your company revolutionize the following services and more:

Easy onboarding
Automatic payroll tax automation and filing
Affordable, scalable benefit plans
Year-end W2s and 1099s

Contact Insogna CPA to get set up with the best small business accounting and full-service payroll option out there. We are well qualified in our field and can advise a strategy that meets your startup’s unique needs.

Did Your Bookkeeper Make These Accounting Mistakes Last Year?

As your small business probably knows, anyone can perform bookkeeping tasks. It isn’t hard to categorize synced transactions from the bank! It’s not a matter of finding someone who can perform this responsibility well, but finding an experienced bookkeeper who will do it correctly, on time, and cohesively with a CPA who can in turn provide a proper and thorough report to tax authorities. If your bookkeeper made these accounting mistakes last year, it might be time to rethink your business’s accounting.

Didn’t Work in Conjunction with Your CPA

Having a bookkeeper and a separate tax person can prove to be an issue, as they are not incentivized to communicate with one another. Consider hiring a licensed Certified Public Accounting Firm that specializes in helping small businesses bridge the gap between transactional work and providing ongoing tax strategy planning.

You will miss opportunities to legally save money on your taxes if your financial efforts are not ongoing and cohesive. If your bookkeeper doesn’t do their job correctly on a daily basis, your CPA will have to clean up messes later on in order to correctly prepare your business’s taxes. Bringing in an integrated CPA team will ensure a seamless financial experience throughout the year as the same group of licensed CPAs sees your business through from the beginning of the fiscal year through to the end.

Missed Opportunities to Legally Save on Taxes

Your business could take a significant hit thanks to a financial disconnect between your CPA and bookkeeper. Is your bookkeeper only equipped to take care of your straightforward and transactional daily financial tasks? Don’t skimp in this area; what you might save by hiring an inexperienced bookkeeper that makes accounting mistakes you will likely spend when paying taxes and then some.

Enlisting the expertise of an integrated CPA team guarantees that you are getting high-quality service from a group of CPAs that work together to benefit your organization.

Didn’t Provide Year-Round Advisory and Planning

To truly thrive, your company needs year-round, customized financial expertise from an industry professional that has been trained to help business owners like you. Trusting an unqualified bookkeeper that works in total separation from your CPA will not do the trick.

A strategy that was established at the beginning of the year might need to be altered if your bookkeeper reports that day-to-day conditions have changed since the strategy was put into place. A communicative, collaborative relationship between these two is crucial for your organization’s success.

Mis-Reported and Risked An Audit

You will be a likely auditing target if your bookkeeper continually makes mistakes—even small ones. Rounding to the nearest whole number, simple math errors, incorrectly categorizing expenses, neglecting to track reimbursable expenses, and more can catch the attention of the IRS and put your business in a vulnerable position.

If errors of this nature don’t trigger an audit for your company, your CPA will either have to allocate extra time and effort to rectify these mistakes later on or your business will simply miss out on opportunities to save money.

Didn’t Get to Know Your Business

Your bookkeeper should have an in-depth familiarity with your business, its problem areas, its long-term goals, etc. in order to help you save money. Ask yourself the following questions:

Can my bookkeeper help identify problem areas?
Opportunities to increase profits?
Do they understand my goals to grow my business? Do they help me figure out ways to cut costs?

If the answer is no, and your bookkeeper makes accounting mistakes, consider how upgrading to an integrated CPA team might improve the financial aspects of your business.

What Can Be Done?

As mentioned previously, there are simple solutions to these costly mistakes. Insogna CPA serves small businesses to bridge the gap between transactional work and providing ongoing tax strategy planning so your business doesn’t suffer from poor financial management:

Small business bookkeeping helps your company save on its taxes as much as legally possible.
Identifying problem areas in your business, opportunities to maximize profits, and advising on how to cut costs. Put simply, not only calculating your books but reading them, too.
Preventing unnecessary audits by maintaining good reporting habits and avoiding audit-triggering mistakes.

Is your small business’s bookkeeping costing you too much and not saving you enough? Contact Insogna CPA today to find out how an integrated CPA team can help you come out ahead.