Knowing The Numbers

Jan 11, 2011 No Comments

“Hello my name is Doreen Schmid. I am a CPA in downtown Fort Lauderdale and owner and founder of Advanced Tax Solutions, LLC.  I started my career at one of the largest public accounting firms, Deloitte and Touché.” Eloquently stated by our latest female entrepreneur. This lovely lady left the uber competitive corporate world to take a leap of faith and go it alone.

After dealing with public accounting for 5 years with some of the best training and experience the corporate world has to offer,advanced-tax-solutions she experienced the business cycle from “boom to bust,” Doreen had to leave after the company went bankrupt. “I decided to accept another job in a corporate tax department of a South Florida retailer. As a result of the company’s acquisition and resulting downsizing, many jobs were lost in the process, one being mine. Faced without a job, I thought this was the perfect time to start my own firm, something I had always thought about doing but always felt it was too risky to leave a corporate job to do so.”

That was the beginning for Advanced Tax Solutions, LLC.  “I decided to open a company that can specialize in tax and accounting services for small businesses and individuals. I’m here to watch and help your company grow every step of the way.    Let’sadvanced-tax-solutions face it accounting and taxes are not sexy, but they are a necessity of every business. Having a good positive relationship with your CPA can help make the process easier.” Doreen explains how she takes a unique approach to creating her client base. Most accountants don’t network, but rather buy an existing book of business with clients in place, she thought differently. “I thought it would be great to get every client on my own, learn about their business, and help be part of the business growth process.”

Doreen was generous enough to share some of her tips with us. These are for anyone interested in accounting and taxes in terms of ones own business.

Common Mistakes:

  • Don’t be too busy with the business to know where your company stands.  It’s good to review the numbers once a month, see where your company makes money and see where it spends money.  This is a practice many people don’t do because they are too busy running the business.  Knowing the numbers is very powerful information!
  • Just because your tax filings are complicated, don’t ignore the deadlines.  Many small businesses fall behind on their filings.  Having a small business can make your taxes more complicated.  Take time to make sure you are up to date with the IRS and any states in which you operate.  It is much simpler to get it correct the first time when you start.

Small Businesses and Filings

Entity Formation – First you should think about starting a legal entity.  There are several types to choose from.  Many factors contribute into the selection, such as the products or services that the business intends to sell and the number of people involved in the ownership of the company.   Some of the more common are Corporations, S-Corporations, LLCs, and Partnerships.  The two most common legal entities are S-Corporations and LLCs.

S-Corporations – A large amount of small businesses are S-Corporations.  This is an entity that is similar to the corporation butads does not pay tax at the entity level although it does file its own tax return, Form 1120S.  The money your company makes flows into your individual tax return and is taxed at the individual tax rates.  There are many advantages of having an S-Corporation.

LLC – This structure has become a lot more popular in the last 10 years.  The limited liability is very attractive to the members.  If you are a sole member of the LLC then the company does not file its own tax return rather the earnings and expenses are reported on the individual’s tax return.  If there are two or more members, the entity files its own tax return and is treated as a either a partnership or a corporation.

Doreen ends with this bit of advice, “Finding a good CPA from the onset of your business can be the recipe for success. Knowing the numbers and having the proper tax structure in place can help tremendously when your company starts taking off.” No matter how much passion or talent you have as a business owner, not being aware of your financial surroundings is a sure way to sink any enthusiastic entrepreneur and her endeavor. If you love the above guidance as much as we do, start investigating Doreen Schmid and her company.

Written by: Bridgette

ADVANCED TAX SOLUTIONS

www.AdvancedTaxSolutionsfl.com

Cities, Ft. Lauderdale, Novelty
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