No Flashing Lights Attached

On December 16th, 2014, posted in: Accounting, BIZ-TIP by 0 Comment

Driving home in the dark the other night, I was grateful for the flashing lights set out alongside some road work that alerted me not to drive into a ditch. The thought came to me that it would be nice if all dangers we face had flashing lights. Unfortunately that isn’t the case with many things and one of those things are erroneous financial statements.

It never ceases to amaze me how business owners don’t realize how far from the truth their financial statements are. When they act on Picture1information they assume to be correct when it is not, they put their businesses at risk. In the last three months we’ve had nine companies come to us in this condition, so it is more common that you might think. What’s the lesson? Make sure you have someone you truly understands accounting generating financial statements for you. Don’t assume you know what to do without consulting an expert.

One of the experts you should be meeting with this month is your CPA. There may be things you can do before year-end to save you on your taxes. What are some of the things he/she might suggest?

Here are a few possibilities:

  • Defer income until 2015 when possible, or the reverse
  • Increase expenses by purchasing things you have put off or defer purchases
  • Consider giving staff bonuses and remember they need to be processed as payroll

Your individual situation will determine the advice you receive. However, no advice will be accurate if your financial statements are incorrect.

If you don’t have confidence in your financial statements and would like a free 30 minute strategy session to discuss your situation, contact Carolyn@TheAccountantsOffice.biz or call 480-219-4285 today to schedule a time. We look forward to the opportunity to be of service!

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