Bruno CPA & Associates | New York CPA

New York CPA

The Top 3 Reasons to Outsource Your Accounting

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While you may think it’s better to take care of your small business accounting tasks in-house, you may be surprised to know that your business can benefit from having a professional accountant or CPA handle the job for you. Here are the top three reasons to outsource your accounting.


1. Peace of Mind

The number one reason for outsourcing your accounting is the peace of mind you will get regarding managing your accounting records. A qualified accountant or CPA on your team allows you to gain access to their professional knowledge and experience. Further, you can even choose an accountant that specializes in your unique business needs. A professional can help you keep your business records accurate and up-to-date. For example, payroll and tax documents will be maintained appropriately and submitted promptly. Timely and accurate accounting reduces your risk of penalties resulting from inaccurate record-keeping or lack of knowledge regarding aspects of accounting like tax laws and deadlines.


2. Focus on Business Development

When you enlist the services of a qualified accountant or CPA to manage your small business accounting needs, you minimize the time that you or your senior staff must spend performing or micromanaging those tasks. Freeing up your time in those areas enhances your ability to maintain a keen focus on the day-to-day tasks your business faces and any additional business needs that arise. Being able to focus your time on managing and growing your business, you improve operational efficiency. As you develop strategic goals, you can convey those to your outsourced accountant to garner their professional guidance and support when executing and realizing those goals.


3. Save Money

Many small business owners feel that handling accounting tasks in-house is more cost-effective because they can utilize existing staff. However, consider the total cost involved in hiring or training a staff member to manage your business’s accounting needs. There is also the associated time expenditure related to supervising an employee who manages the accounting. For a dedicated in-house staff member to handle the task, you must consider the additional costs of payroll, payroll taxes, and employee benefits. There is also employee turnover to consider, which, if high, could lead to additional training and expenses. By not electing to have a full-time dedicated employee handle accounting in-house, you also save on space and technology required to accommodate that individual.

For these reasons – and more such as getting timely financial advice, understanding cash flow, and maximizing your tax savings opportunities – it’s time to outsource your business’s accounting needs. What you gain far outweighs the cost.

Contact our firm to find out how we can create a package of accounting services for your small business.


The Crucial Role of Cannabis Accountants: A Pre-Revenue Necessity for New York Dispensaries

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Introduction:

As the cannabis industry continues to blossom, New York has emerged as a key player with the legalization of recreational marijuana. For entrepreneurs venturing into the world of cannabis dispensary ownership in the Empire State, it is essential to prioritize financial management right from the start. One often overlooked yet critical aspect is hiring a cannabis accountant, even before the doors of the dispensary open and revenue starts flowing.

Navigating Regulatory Compliance:

New York’s cannabis industry is tightly regulated, with a myriad of laws and compliance requirements. A cannabis accountant well-versed in the state’s specific regulations can be instrumental in ensuring that the dispensary operates within the legal framework. From licensing fees to tax obligations, having an accountant on board during the pre-revenue phase can prevent costly mistakes and potential legal issues.

Budgeting and Financial Planning:

Launching a cannabis dispensary involves significant upfront costs, from securing a suitable location to obtaining the necessary permits. A cannabis accountant can assist in developing a comprehensive budget that covers all aspects of the business, including construction, security, staffing, and inventory. By carefully planning finances from the beginning, dispensaries can avoid financial pitfalls and better allocate resources for sustained growth.

Tax Planning and Optimization:

The tax landscape for cannabis businesses is intricate, and New York is no exception. Without proper guidance, dispensaries may find themselves facing hefty tax bills and missed opportunities for deductions. A cannabis accountant specializing in the industry can implement tax planning strategies to optimize the dispensary’s financial position. This includes understanding the nuances of 280E, a tax code provision that limits the deductibility of certain expenses for businesses engaged in illegal activities, such as the sale of cannabis under federal law.

Financial Reporting for Investors and Stakeholders:

In the competitive cannabis market, attracting investors is often crucial for success. Cannabis accountants play a pivotal role in preparing accurate and transparent financial reports that instill confidence in potential stakeholders. From projected cash flow statements to balance sheets, having reliable financial data can make the difference in securing funding for expansion and operations.

Comprehensive Record-Keeping:

Accurate and detailed record-keeping is vital for any business, but it holds particular significance in the cannabis industry. Dispensaries must track every transaction, adhere to seed-to-sale tracking requirements, and maintain meticulous records for regulatory purposes. A cannabis accountant can implement effective accounting systems to ensure compliance and streamline the reporting process.

Conclusion:

In the competitive landscape of New York’s burgeoning cannabis market, dispensaries must prioritize financial management from the outset. Hiring a cannabis accountant during the pre-revenue phase is not just a prudent decision but a strategic imperative. By addressing regulatory compliance, budgeting, tax planning, financial reporting, and record-keeping early on, dispensaries can establish a solid foundation for long-term success and growth. In the complex world of cannabis business, a knowledgeable accountant is an invaluable asset that goes beyond crunching numbers — they become a key partner in navigating the intricacies of the industry.

Bookkeeping & Accounting Tips for Small Business Owners

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Running a small business is a demanding task, requiring you to wear many hats, from managing operations to marketing and customer service. Among these responsibilities, bookkeeping and accounting are crucial for the financial health and sustainability of your business. While it may seem daunting, effective financial management doesn’t have to be overly complicated. Here are some essential bookkeeping and accounting tips to help small business owners stay organized, compliant, and financially sound.

1. Separate Personal and Business Finances

One of the first steps for any small business owner is to separate personal and business finances. Open a dedicated business bank account and use it exclusively for business transactions. This separation simplifies bookkeeping, aids in tax preparation, and ensures legal protection of personal assets.

2. Use Accounting Software

Investing in accounting software can save you time and reduce the risk of errors. Tools like QuickBooks, Xero, or FreshBooks offer user-friendly interfaces and automate many bookkeeping tasks, such as invoicing, expense tracking, and financial reporting. Many of these platforms also integrate with your bank account, further streamlining the process.

3. Track All Expenses

Maintain meticulous records of all business expenses. Use your accounting software or apps to capture and categorize receipts immediately. Keeping a detailed record of expenses not only helps in managing cash flow but also ensures you can claim all possible tax deductions.

4. Regularly Reconcile Bank Statements

Reconcile your bank statements at least once a month. This process involves comparing your accounting records with your bank statements to ensure they match. Reconciling accounts helps identify discrepancies, catch errors, and detect potential fraud early.

5. Implement a Consistent Invoicing System

A consistent invoicing system ensures you get paid on time. Send out invoices promptly, set clear payment terms, and follow up on overdue payments. Using accounting software for invoicing can automate reminders and track outstanding invoices.

6. Monitor Cash Flow

Cash flow is the lifeblood of any small business. Regularly monitor your cash flow to ensure you have enough funds to cover operating expenses and invest in growth opportunities. Create cash flow projections to anticipate future needs and adjust your operations accordingly.

7. Set Aside Money for Taxes

Avoid the year-end scramble by setting aside money for taxes throughout the year. Estimate your tax liability and regularly deposit a portion of your revenue into a separate tax account. Consider consulting with a tax professional to understand your tax obligations and maximize deductions.

8. Maintain Accurate Financial Records

Accurate financial records are essential for making informed business decisions. Regularly update your books and keep records of all financial transactions, including sales, purchases, payroll, and other expenses. Accurate records are also crucial for compliance with tax laws and regulations.

9. Prepare for Financial Reporting

Prepare financial statements, such as the balance sheet, income statement, and cash flow statement, on a regular basis. These reports provide insights into your business’s financial health and performance. Use these reports to identify trends, assess profitability, and make strategic decisions.

10. Seek Professional Advice

Consider hiring a professional accountant or bookkeeper, especially if your business finances become complex. A professional can provide valuable insights, ensure compliance with tax laws, and help you optimize your financial strategy. Many small business owners find that the cost of professional advice is outweighed by the benefits of improved financial management and peace of mind.

Effective bookkeeping and accounting are fundamental to the success of any small business. By implementing these tips, small business owners can maintain financial order, make informed decisions, and ensure their business thrives. While it may require an initial investment of time and resources, the long-term benefits of sound financial practices are well worth the effort.