Choosing the right Certified Public Accountant (CPA) is a crucial decision for any business. The right CPA can provide valuable financial advice, ensure compliance with tax regulations, and help your business grow.

Here’s how to choose an accountant for your small business and key considerations to keep in mind during the process.

1. Qualifications and Experience

Why It Matters: A CPA with the right qualifications and experience can offer expert guidance and support tailored to your business needs.

What to Look For:

• Ensure the CPA is licensed and has the necessary credentials.

• Look for CPAs with experience in your industry.

• Check their track record with businesses of similar size and structure to yours.

Tip: Ask for client references to get insights into the CPA’s performance and reliability.

2. Range of Services

Why It Matters: Your business may need various accounting services, from tax preparation to financial planning. A CPA who offers a broad range of services can be a valuable asset.

What to Look For:

• Tax preparation and planning

• Bookkeeping and payroll services

• Financial reporting and analysis

• Business advisory services

Tip: Choose a CPA who can scale their services as your business grows, ensuring you have the support you need at every stage.

3. Industry Knowledge

Why It Matters: A CPA familiar with your industry’s specific challenges and regulations can provide more relevant and effective advice.

What to Look For:

• Experience with industry-specific tax codes and regulations

• Understanding of common financial challenges in your sector

• Ability to provide tailored financial strategies

Tip: Discuss industry-specific issues during your initial consultation to gauge the CPA’s knowledge and expertise.

4. Communication and Availability

Why It Matters: Effective communication and accessibility are vital for a productive working relationship with your CPA.

What to Look For:

• Responsiveness to calls and emails

• Availability for regular meetings and consultations

• Clear and concise communication style

Tip: Choose a CPA who is proactive in providing updates and information, ensuring you are always informed about your financial status.

5. Technology and Tools

Why It Matters: Modern accounting software and tools can streamline processes and enhance accuracy. A tech-savvy CPA can provide more efficient and timely services.

What to Look For:

• Use of up-to-date accounting software

• Secure online portals for document sharing

• Familiarity with cloud-based accounting solutions

Tip: Ask about the CPA’s technology stack and how they use it to improve service delivery and client communication.

6. Cost and Fees

Why It Matters: Understanding the cost structure of CPA services helps you budget appropriately and avoid unexpected expenses.

What to Look For:

• Transparent fee structure

• Clarity on what services are included in the fees

• Comparison with industry standards

Tip: Opt for a CPA who offers value for money rather than the cheapest option, ensuring you receive quality services.

7. Reputation and Reviews

Why It Matters: A CPA’s reputation can provide valuable insights into their reliability and service quality.

What to Look For:

• Online reviews and testimonials

• Ratings on professional directories

• Awards and recognitions in the accounting industry

Tip: Conduct thorough research online and ask for recommendations from trusted business associates.

Optimize Your Financial Management with Archer Lewis

Picking the right CPA is essential for the financial health and success of your business. By considering qualifications, range of services, industry knowledge, communication, technology, cost, and reputation, you can make an informed choice that meets your business needs.

At Archer Lewis, we pride ourselves on providing comprehensive and tailored accounting services to help our customers’ businesses thrive. Discover how we can enhance your financial management.

Understanding and utilizing available tax deductions for small businesses can significantly reduce your tax burden and maximize your profits. Here are some common tax deductions that your small business should consider to save money.

1. Home Office Deduction

If you use part of your home exclusively for business purposes, you may qualify for a home office deduction. This can include a portion of your mortgage interest, rent, utilities, insurance, and repairs.

How to Qualify:

• The space must be used regularly and exclusively for business.

• It must be your principal place of business.

Tip: You can use the simplified option to calculate your deduction: $5 per square foot of your home used for business, up to 300 square feet.

2. Business Vehicle Expenses

If you use a vehicle for business purposes, you can deduct related expenses. There are two methods to calculate this deduction: the standard mileage rate or actual expenses.

Standard Mileage Rate:

Multiply the number of business miles driven by the IRS standard mileage rate (65.5 cents per mile for 2023).

Actual Expenses:

Deduct the actual costs of operating the vehicle, such as gas, oil, repairs, insurance, and depreciation.

Tip: Keep detailed records of your business mileage and vehicle expenses to substantiate your deduction.

3. Supplies and Equipment

Expenses for office supplies, software, and equipment used for your business can be fully deducted. This includes items like computers, printers, and office furniture.

How to Qualify:

The items must be necessary and used for your business.

Keep receipts and records of all purchases.

Tip: For larger equipment purchases, consider Section 179 deduction to write off the entire cost in the year of purchase rather than depreciating over several years.

4. Travel Expenses

Business travel expenses are deductible if the travel is necessary for your business. This includes transportation, lodging, meals, and incidental expenses.

How to Qualify:

The trip must be primarily for business purposes.

Maintain records of the business purpose of each trip.

Tip: Only 50% of meal expenses can be deducted, so keep separate records for meals and other travel expenses.

5. Professional Services

Fees paid to professionals such as accountants, lawyers, and consultants are deductible. These services must be directly related to your business.

How to Qualify:

The services must be necessary for the operation of your business.

Keep invoices and payment records for these services.

Tip: Regularly consult with a CPA to ensure you’re taking full advantage of all available deductions.

6. Employee Salaries and Benefits

Wages, salaries, and employee benefits are fully deductible as long as they are reasonable and paid for services actually rendered.

How to Qualify:

Payments must be for actual work performed.

Maintain detailed payroll records.

Tip: Consider offering benefits like retirement plans and health insurance, which are also deductible and can help attract and retain employees.

7. Advertising and Marketing

Expenses related to advertising and marketing your business, such as website costs, business cards, and online advertising, are deductible.

How to Qualify:

Expenses must be directly related to promoting your business.

Keep receipts and records of all marketing expenditures.

Tip: Invest in a mix of marketing strategies to maximize your reach and effectiveness.

Maximize Your Tax Deductions with Archer Lewis

Taking advantage of these common tax deductions can help reduce your tax liability and increase your bottom line. At Archer Lewis, we’re committed to helping small businesses thrive by providing expert tax services and personalized advice. Contact us today to learn how we can support your business’s financial health and compliance.

Don’t let tax season overwhelm you. Let Archer Lewis (AL) help you navigate the complexities of business taxes and ensure you’re taking full advantage of all available deductions. Discover how we can make tax time easier and more profitable for your business.

A 529 plan is a tax-advantaged savings plan designed to help individuals save for future education expenses. These expenses can include tuition, room and board, books, and other educational fees. The importance of a 529 plan lies in its ability to provide a structured and efficient way to save for education costs.

One key benefit of a 529 plan is its tax advantages. Earnings within the plan grow tax-deferred, meaning that account holders do not pay taxes on investment gains each year. Additionally, withdrawals used for qualified education expenses are tax-free at the federal level, making it a valuable tool to save for education without incurring unnecessary tax liabilities.

Another crucial aspect of a 529 plan is its flexibility. The funds saved in a 529 plan can be used at eligible educational institutions across the country, including colleges, universities, vocational schools, and even some international institutions. This flexibility allows account holders to use the savings for a wide range of educational pursuits, providing options for both traditional and non-traditional educational paths.

Furthermore, a 529 plan can be a practical way to involve family members in contributing to a child’s education fund. Grandparents, relatives, and friends can contribute to the plan, helping to build a substantial sum over time. This collaborative approach to saving can ease the financial burden of education expenses for both the account holder and the student.

In conclusion, a 529 plan is a valuable tool for saving for education expenses due to its tax advantages, flexibility, and collaborative savings approach. By utilizing a 529 plan, individuals can effectively save for educational goals and ensure that they or their loved ones have the financial resources needed to pursue higher education opportunities. Learn how we can help you with your taxes.